Running head: CASE STUDY CRITICAL ANALYSIS 1

Shouldice Hospital Limited (B) Case Study Critical Analysis

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Introduction

Shouldice hospital limited has always been a focused institution and ranked among the

best hospital in Toronto due to how it offers quality services. The facility is identified by many

from one primary thing that it does so well; it treats one of the predominantly men's condition

known as inguinal hernia. As compared to the recurrence rate of the disease from other hospitals

across North America, Shouldice manages it better with a recurrent rate of 3%. The hospital has

used a term from the production management literature to represent the apotheosis of a social

"focused factory" to designate the hospital process that does one thing exceptionally well

(Heskett & Hallowell, 2004). 

Shouldice has been trying to figure out whether to increase its capacity or not as it is

faced with the problem of meeting the increasing market demands. The underlying problem the

hospital is facing is the paradox of transformation. Despite the hospital having limited flexibility,

it is working at its level best to me by synchronizing experienced workforce and available

resources. Unluckily, it is facing the challenge of satisfying the needs of its clients. If the hospital

decides to meet the unmet demands from its market niche, it means the existing workforce will

be negatively affected as well as the quality of service delivery. However, failing to satisfy its

clients, Shouldice will end up losing its customers and have excess capacity due to competition.

 Analysis

Shouldice makes sure it maintains these four key strengths: employee geared policies, an

individualized patient experience, focused staff, as well as following a unique procedure. These

four strengths work in unison within the facility to promote happy and healthy patients plus

content and a loyal workforce. 

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People from all walks of life from Toronto visit Shouldice hospital, some questing in the

line for a considerable long time waiting to be served. From the beginning to the end, Shouldice

involves all its clients in a clinical procedure. At the same time, it is creating a social platform for

clients to interact with others to promote a sense of synergy with activities that enhance

recuperation. Hence, it benefits from this social atmosphere economically in two ways: fewer

resources are used and potentially substitute client labor to staff labor. To make the customers

happy, they interact in the main house situated outside of Toronto, Canada. The all-inclusive

patient experience includes encouraging nurse and housekeepers, patient socializing, evening tea,

as well as orientation. The facility is equipped with equipment that makes it look like a country

club that is warm and relaxing and exciting to complement the strategy for encouraging the

patient to exercise often to speed up their recuperation process (Wirtz & zeithaml, 2016). The

hospital prides itself as it provides services in an all-inclusive manner (Wirtz & zeithaml, 2016). 

Shouldice not only provides a platform for employees to gain their experience but also a

lesson for its clients. The turnover rate of employees at the Shouldice hospital turnover rate is

low because they are hardly fired, and at the same time, allowed to participate in profit-sharing,

as well as earn higher than some of the surgeons and union workers. Comparing doctors working

in Ontario with from Toronto, Shouldice staffs get a 15% bonus on their monthly income and

work on regular hours, leaving them time to interact with their loved ones. The organization has

been able to achieve its goals because some of these human resource practices increase

employee's performance that makes it easy for the hospital to run its operations and procedures. 

One of the only weaknesses that can be seen for Shouldice is meeting client demand in

today's market. Due to increasing clientele, Shouldice has experienced capacity issues. If the

hospital allows patients to stay for 3 days and they conduct 30 operations, its capacity becomes
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100% full. It means, in a 5-day work week, it would fill up 90 beds. During peak seasons, they

set an additional of 14 hostel room capacity. This translates to 70% capacity in a period of 7 days

when they are operating full time. According to (Heskett & Hallowell, 2004), when Shouldice

operates at a near capacity, which is about 70% of their maximum capacity, its staff is working at

its best point. However, a heavy workload to teams builds a stressful environment. It is supposed

that since the employees are made up of "gregarious nursing staff," and physicians' work plan

shows that the employees are contented with the current task distribution plan and do not want

adjustment. Upon increasing the work schedule would lead to "more aggressive scheduling of

the operating rooms" and may "make it hard to maintain the same kind of working relationships

and attitudes" (Bozarth & Handfield, 2019). 

Generally, the excellent working atmosphere that Shouldice creates for its staff and

clients serve as a marketing vehicle when they tell their families and friends through word-of-

mouth. Shouldice has the opportunity to expand. Over the years, they have built a strong

reputation for themselves. They are known for their extraordinary work. Clients travel many

miles just for the experience and expertise of Shouldice. Having such a strong background, and

client support would enable Shouldice to become successful it in locations. 

Recommendation and rationale 

For Shouldice to meet the unmet market demand of its clients, it has to choose from

many of its marketing strategies options. Some alternative courses of action include adding a

new floor to the facility, building a new facility, or adding Saturday operations.
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References

Bozarth, C. C., & Handfield, R. B. (2019). Operations and Supply Chain Management.

Heskett, J., & Hallowell, R. (2004). Shouldice Hospital Limited (abridged). In SERVICES

MARKETING: People Technology Strategy (pp. 669-679).

Wirtz, J., & zeithaml, V. (2016). Strategic approaches for achieving cost-effective service

excellence. Retrieved from: https://iae-aix.univ-amu.fr/sites/iae-aix.univ-

amu.fr/files/35_wirtz_strategic_rev.pdf