Quadria Capital: Doing Well by Doing Good in Asian Institute of Gastroenterology Hospitals

Founded in 2012, Quadria Capital Investment Management Private Limited (Quadria Capital) was committed to its mission of using its expertise to do well by doing good through bringing affordable quality health care to Asia. In July 2013, it found such an investment opportunity in the Asian Institute of Gastroenterology (AIG) Hospital in India. AIG was one of the largest gastric sciences hospitals in India that specialized in gastroenterology. It performed more endoscopic procedures per day than any other hospital in the world. It had earned a global reputation for clinical excellence, being among only twenty centres globally to be conferred World Organization of Digestive Endoscopy (recognition. This clinical excellence in the gastric science specialty and reputation put AIG in a strong leadership position and drove demand for its services. It was also renowned for its research and education in gastric sciences. As exciting as the opportunity was, the two founders of Quadria Capital knew this investment would use up a sizable portion of their funds, and they had to carefully consider the risks and what needed to be done to decide whether AIG was the right investment opportunity for Quadria Capital.

This case can be used to discuss how service firms can deliver service excellence at affordable prices. It demonstrates how using a FSF to leverage economies of scale will bring about process efficiencies and service excellence. It can also be used to discuss business models and growth strategies. This case is recommended for students in services marketing, service management, and strategy courses for master of business administration (MBA) or Executive MBA levels. After working through the case and assignment questions, students will be able to do the following:<br><br><ul><li>Understand the challenges faced by service organizations in general, and health care in particular.</li><li>Know that customer-induced uncertainty is a key challenge for achieving both service productivity and service quality, or cost-effective service excellence (CESE).</li><li>Learn about the advantages of a focused service factory (FSF) strategy for achieving CESE.</li><li>Understand the operations management (OM) approach for achieving CESE.</li><li>Be able to assess the requirements and trade-offs for pursuing FSF and OM strategies.</li><li>Derive recommendations for Quadria Capital’s assessment criteria for future investments in health care businesses that are suitable for either FSF or OM strategies.</li></ul>

• Service Excellence Strategies