MEDICAL TOURISM & WELLNESS CLUSTER – PRACTICE MEDICAL TOURISM & WELLNESS CLUSTER.
Medical Services Tourism
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Transcript of Medical Services Tourism
Medical Services TourismFor assignment help please contact at [email protected] and
The medical tourism industry is in a rapid state of growth, both in
Singapore and globally. Growth in consumer demand for health services
delivered by foreign medical professionals continues to grow for a variety of
reasons, including insufficient regional health care systems and the growing
expense of performing domestic procedures in their countries of origin.
Sometimes, booking a medical tourism package is simply an excuse to visit
a foreign land whilst also to consolidate their travel interests and save
costs. This growth in medical tourism provides enormous opportunities for
launching Singapore MedTours and ensuring it can grow and be sustained.
Medical Services Tourism is not without many business risks, including high
levels of competition from intermediary companies designed to help
consumers plan itineraries for medical services. There are also risks to the
client that must be considered, including ensuring that they fully
understand their own health risks so as to secure liability factors for the
business itself. In terms of strategic objectives, a comprehensive risk
management system must be developed.
However, outside of these risks, profit potential is quite considerable due to
the large customer demand that exists in many different foreign countries.
Singapore was chosen as the country to launch the new Medical Services
Tourism Company because of its award-winning infrastructure, the ability to
raise new capital through a variety of means and even for the education
system that can provide quality employment for the business by skilled
professionals. Singapore is ideal for Medical Services Tourism and this
business plan provides a comprehensive plan for the launch of the company.
2.0 Business description
Medical tourism involves availing medical procedure in a foreign country.
Westerners form a large segment of medical tourists who are attracted to
quality healthcare and large savings as compared to the medical costs in
their own countries. The patients then can take a vacation in the host
country after receiving their medical treatments. Often patients can cover
their surgery expense, flight and hotel accommodation charges for quarter
of the operation cost they would have paid in their country (Puah, 2008).
The Company would be named Singapore MedTours and it will be a Private
Limited Company (See Appendix 1). The firm will act as an agent that
facilitates tourism of international citizens looking for quality and affordable
health care that they might not be able to achieve in their home country. It
will be a start-up company with an onsite facility for receipt of travellers
and to satisfy their inquiries on medical tourism. The agency will make
profit by charging commission on these transfers and any additional
profitability received from supplementary, non-medical tourism that might
be booked through the agents or its online website.
Mission
Our mission is to provide Safe, Affordable and Quality health care options
to our customers through world class health care system of Singapore.
Source: Author
2.2 Industry background
The medical tourism market has nearly doubled in recent years, and is
currently valued at over $20 billion every year (Gaddum, 2010). This makes
medical tourism ideal as a profit-generating business with huge growth
potential. "Medical tourism fills a valuable niche that is desperately needed
in countries with bureaucratically flawed or unaffordable healthcare"
(discovermedicaltourism.com, 2008, p.2). One of the reasons that make
foreign travel so appealing to a variety of international tourists is in areas of
cost. For example, in the United States, it might cost approximately $30,000
for a knee replacement surgery, where in Singapore these costs will be
much less at only $18,000 (placidway.com, 2010). It is largely this cost
difference, for the same medical expertise, that is making medical tourism
such a booming business not just in Singapore.
Some of the major countries that are offering Medical Tourism in the world are:
Countries
Medical Inbound Tourists
2002
2004
2005
2006
Thailand
390,000
520,000
Malaysia
210,000
320,000
374,000
410,000
Singapore
117,000
179,000
India
100,000
150,000
Source: http://www.ihf-fih.org/pdf/25-28.pdf
Singapore is among the most attractive destinations for health care
travelling. The country has been awarded as the "Best Medical/Wellness
Tourism Destination"in 2007 and will be the "Leading Destination for Health
Care Service in Southeast Asia" (MedTourismReview, n.d).
2.3 Goals and Potential of the Business
According to Singapore's minister of trade and industry; "Singapore is a
good place to raise funds, both equity and loans, including venture capital."
(Satapathy, 2003, p.1745). Singapore was chosen as the start up location
because of the ease of access for funds related to the launch as well as
securing future loans or capital for improvement and expansion of the
business. Because of the quality availability to investment funds and other
loan-generating entities in Singapore, the business has several goals for
short term gain:
Source: Author
A long term goal of Singapore MedTours is to create an internationally-
recognised name in medical tourism that outperforms competition. There is
massive potential for creating a strong marketing presence internationally
based not only on growing consumer demand, but because of the systems
already in place in Singapore to assist in developing a sound advertising
programme with higher global exposure.
2.4 Uniqueness of service
Singapore MedTours will have several unique features designed to make it
outperform competitive entities in this industry.
Singapore MedTours would offer a low-risk guarantee to enable the
customers in moving forward with their medical tour with strong faith. In
any case if after arriving at the destination, the conditions of treatment
seem unacceptable to the client, we will give the liberty to cancel the
surgery. The only charge the client will be responsible of is the air fare and
accommodation. To our knowledge, we're the only medical tourism
company that offers this type of protection in Singapore.
Also MedTours would be unique in supplementary services related to
medical tourism that will improve profitability and improve the word of
mouth reputation for the business. Offers the founder of Scotland-based
Company Globe Health Tours; "This is a huge word of mouth business"
(Crawford, 2006, p.1). Therefore, Singapore MedTours will be equipped
with high quality service dimensions that please the travelling tourist and
also improve customer relationships using advanced CRM systems
(Customer Relationship Management software).
3.0 Marketing
Marketing will be crucial to the success of this new business launch
because of the importance of word of mouth to the company. With high
levels of competition in this industry, an improved and superior marketing
presence must be available and the funds needed to make this a reality will
be allocated to this effort.
3.1 Target market identified
There is no one, singular market available to this business because of the
ability to capture the attention of many different consumers hailing from
many international locations. "No two patients are the same, either in their
needs or the type of journey they either want or require"
(newsweekshowcase.com, 2010, p.1). This means that it would be quite
difficult for the business to isolate a single target market strategy that
would fit the needs of the majority of travellers who look toward our
services.
However, despite these unique consumer needs, medical tourism industry is
dominated by patients from United States. In 2008 alone estimates put that
more than 1.3 Americans travelled abroad for the exclusive purpose of
seeking medical care (Health-Tourism.com, 2008). The marketing strategy
should take into consideration the high volume of customers that will come
from this region and use communications strategies that fit the needs of this
high profit-generating customer client. Other international customers will
be measured using software and database tools to determine which
international location brings the highest volume of customers, and ongoing,
future research methods will be used to determine their needs as they arise.
Market Survey
Research Objectives
To analyze the growth potential for the business.
To analyze the consumer needs according to their relative priority.
To analyze the level of favourable consumer expenditure.
Customer Profiling and Characteristics
Customer profiling is important as it aids in identifying and catering to
customers in every possible way (Anderson, 1997, pg 71).
Based on the market survey conducted, most of the respondents show
favourable response for medical tourism. A majority of respondents with
negative response towards medical tourism shifted to 'need more
information' aspect when medical tourism benefits were mentioned.
However the two main factors motivating respondents to be favourable to
medical tourism are cost savings and high quality healthcare from
internationally accredited hospitals.
The most preferred service attribute is high standards of service with
considerable savings indicating that not all consumers bargain hunters. It
also indicates that respondents are not willing to compromise on quality for
cost reduction.
Determining the critical factors for success majority of respondents
preferred English speaking population and highly accredited hospitals. The
most influential means of promotion is word of mouth followed by hospital
referrals and company website.
In addition, with the various competitors' positioning and competitive
comparisons, most consumers' decisions are influenced by Brand equity and
awareness play an important role.
Target market
Based on the Market Survey conducted, Singapore MedTours will focus on
target markets which are of high growth potential. The market is divided
into the following segments which in turn will provide the company with
clear focus to direct its marketing strategies
Geographic segmentation: North American Citizens.
Demographic segmentation:
Age: 45-65
Income: U.S $24000- $70000
Psychographic segmentation: Customers keen on quality of service and
interested in good savings while not in favour to comprise on safety.
US Medical Tourism Market
According to the Market indicators United States medical tourism has got
good prospects in coming decade and beyond. In the United States, medical
surgeries are very expensive, and every year millions of Americans default
to pay for the health care expenses they require they are either uninsured,
uninsurable or underinsured. According to a study in 2007 50% of personal
bankruptcies are related to medical crises (Star Health Vacations, 2010).
3.2 Market size and trends
In 2006, Singapore drew 410,000 international customers that received
medical services primarily in form of Liver Transplants, Cardiac Surgery,
and Joint Replacement (Hadi, 2009). And this number of inbound patients
will exceed 1 million by 2012, with forecasted value of 3 Billion USD (The
Internet Journal of healthcare Administration, 2010). Scotland-based Globe
Health Tours experienced a 600 percent increase in business only after six
months of operations (Crawford, 2006). In all, Singapore Medical Tourism is
aiming to become a leading health care destination in all Asia and it
witnessed a steady growth of 11.9% per year from 2004 to 2008 (prlog.org,
2009).
3.3 Competition
Intensive competition exists in medical tourism, both internationally and in
Singapore itself. Therefore, the company must create strong marketing
presence and advertising know-how to make the business outperform
competition step by step or service by service. Within the country, there are
currently 29 hospitals that already provide health services to foreign
travellers, with services being performed by over 7,000 physicians and
15,000 registered nurses (health-tourism.com, 2010). Because these
hospitals already have contracts and/or relationships with other health
tourism agents, there is a great deal of marketing work that needs to be
performed by the business to make it stand out and be the preferred agency
for these profitable customer groups. This well-developed network of
physicians and agencies can be quite risky to the business model and
require competitive focus to ensure improved customer preferences for the
company.
U.S agencies operating in Singapore: There are several U.S based medical
tourism agencies, like Health Base Medical Tourism Agency, Planet
Hospital, which are providing health tourism services in Singapore to
patients of America. The companies are similar to each other only differing
in the fact that they are tied up with different hospitals in different
locations.
U.S Agencies operating in other medical tourism countries: These agencies
are tied up with budding medical tourism countries such as India, Thailand,
etc. Key players include World Med Assist, Indus health, Quest Tourism,
Med Journeys, Med Retreat
SWOT Analysis of Singapore MedTours
Strength
Well trained staff with heavy focus on building customer relationship before
and after their stay in Singapore.
Creating an easy to use Website and employing advance Customer
Relationship Software to attract and retain clients interested in Medical
Tourism.
Singapore is ranked 6th in world for the quality of health care provided by
the World Health Organization (WHO).
Medical tourists should not be able to witness chaotic events during their
stay in comparison to the other Asian countries as Singapore is urbanized
and clean country.
JCI-certified hospitals and healthcare facilities are found in abundance
throughout Singapore.
English is one of Singapore's official dialects.
Though the cost of healthcare in Singapore is not as low as India or
Thailand but they are still lower in comparison to Western Europe and the
USA.
Weakness
The cost expenses in medical processes and treatments in Singapore are
relatively high when compared to other Asian medical tourism countries like
Thailand, Malaysia and India.
The geographical location of Singapore is such that the climate is rather hot
and humid which maybe a hindrance to the westerners especially during the
post procedure and recovery stages.
Accommodation, transportation and the cost of goods in Singapore is more
expensive as compared to other Asian countries
The travel times to Singapore are considerably very lengthy for the US
medical patients.
Opportunities
World-class tourism service industry present in Singapore can help in
recruiting best talent for the Medical Tourism.
High market Growth - Healthcare services from countries with aging
population increasingly seek medical tourism.
U.S. workforce is seen to be increasing more in context to globalization
Low-cost global air travel had made Singapore all the more accessible for
inbound patients.
Employers and health plans targeting commercial populations have become
accepting of the various benefit of medical tourism.
Threats
There is seen to be fierce competition posed by other Asian medical tourism
countries like Malaysia, India and Thailand.
Popularity of Medical Tourism may encourage more competition to open
business in Singapore.
New technological breakthroughs can make previously very expensive
healthcare affordable in the client's home country.
Global endemic outbreaks like H1N1, SARS, and Bird-flu etc in western
countries can inhibit travel of foreign travellers to Singapore as government
may impose restrictions.
Source: Author
3.4 Estimated Market Share
In order to estimate the market share few of the assumptions has been
taken into account:
That the rate of people seeking foreign medical services continues to grow
at the same pace, with 1 million people entering Singapore in 2012 for this
purpose.
Very High volume of competition present in the country.
Based on the above two considerations the firm is taking the minimum
target of just 0.1% Market share, i.e., 1000 customers for the 1st year
which it plans to grow to 1,500 in 2nd year and by 2013 the target is to
reach 2,000 customers. The firm believes that this extremely low market
share can be easily achievable by utilizing good marketing and promotion
strategy and following best practices in the business.
3.5 Market strategy
Positioning
MedTours intends to work on a clear positioning statement of "Quality, You
can be Assured off" which encourages customers to have complete faith in
the company. The company will position itself as a reliable and friendly
agency with utmost importance given to customer safety. The point of
difference which separates the company from its competitors is the Quality
Guarantee what the company provides and the idea of personalization of
medical tours. This will help the company stay competitive while being
positioned as a differentiated medical tourism agency.
To be able to live up to the positioning the company will tie up with best in
class hospitals and service providers with highest priority given to details of
service dimensions. The company will purchase advanced CRM systems to
improve overall delivery of customer services.
The business will use, as one, marketing strategy, advanced training for its
employees related to customer service to make the short encounter with the
company one that is remembered and would help in creating good word-of-
mouth publicity.
Product
Singapore MedTours will offer best of the medical services present in the
Singapore by getting tie-ups with world-class hospitals of Singapore.
Specific focus will be made on JCI-Accredited (Joint Commission
International) hospitals like Alexandra Hospital, Changi General Hospital,
Raffles Hospital, Parkway Group etc; so that inbound patients from US and
other countries are assured that they are getting best quality service in a
very safe environment.
Services Offered By Singapore MedTours
The following are the exact nature of services being offered by Singapore
MedTours. Personal preferences of patients would be given priority to
select best hospitals and doctors.
Source: Author
Place
Singapore MedTours will have a dedicated well-furnished office from where
its entire staff can operate. Also in this office the customers would be
received first and will be given initial briefing about the Medical Services
they would be going through as well as general information about
Singapore, its culture, famous tourist attraction etc. The main purpose of
the office would be to make sure customers have one single easily
identifiable and approachable location from where they could satisfy all
their queries and solve their problems during their stay in Singapore.
Promotion
Approximately 78 percent of all medical travellers use the World Wide Web
as their first choice for booking medical tourism (medicaltourism.com,
2010). Because of this high volume, market strategy will include a strong
Internet presence that will require the expertise of information technology
specialists to give the business a colourful, interactive and engaging online
booking experience. The majority of the business will likely come from
Internet exploration, therefore the budget must be allocated to a web
design that outperforms competition and has the necessary information to
make Singapore MedTours their first choice in booking their travel needs.
The first publication of choice to improve visibility and awareness in
customer groups will be the Medical Tourism Magazine, a bi-monthly
publication that is distributed in a variety of international countries. Costs
for these ads are $4000 for a full page ad and $2000 for a half page ad
(medicaltourismassociation.com, 2010). This is a respected and well
established advertising publication that will give Singapore MedTours
better marketing presence. The company will purchase half page ads
several times yearly to update its literature based on consumer research
and success with other marketing formats.
Additionally, web-based advertising will be part of the ad strategy that
includes links to visit our business website on partnership or contract
agreements with different hospitals, travel agencies, and physician
websites. The goal of this rather inexpensive advertising method is to
simply give the company more ad presence and ensure budget needs are
met. Since most customers will not visit the business location prior to
making their travel needs, web presence is vital to building higher profit
and consumer demand.
3.6 Pricing
Cost of Medical Treatment in Singapore
If the procedure would cost $6000 in the U.S. financial savings might not be
realized by the patients even if the same surgery costs $1500 in other
country. By the time the airfare, accommodation and stay charges are
covered patients may only realize a break-even scenario (Med Retreat,
2010). Hence with careful consideration the following procedures would be
offered by Singapore MedTours.
Comparison of cost between Medical procedures in USA and Singapore
Source: http://www.health-tourism.com/singapore-medical-tourism/
Although the industry standard is 15% (See Appendix X) for each referral to
the hospital by an agency but the firm would initially keep the commission
fee at minimum 12% in order to gain competitive edge while start-up. This
also aligns with our market survey where cost saving has been attributed as
most important consideration for the customers.
People
Since this is highly service-oriented industry and the mission of Singapore
MedTours is to have best customer experience as possible, so Singapore
MedTours will make sure that it will hire competitive employees.
Furthermore sufficient training would be given so as and when needed in
order to cope up with market demands and competition. Lastly special
packages and policies will be design to reward and retain the best
employees of the firm.
Process
Process is extremely important part of any Service-oriented industry. Hence
Singapore MedTours will make sure that its process is as efficient and as
customer-friendly possible. Quality Control would be done regularly to
identify and improve any bottlenecks and promote the best practices.
Reviewing and Approving Online Membership Forms: Once an application is
filled, detailed information based on the customer requirement will be
provided allowing customers to make an informed decision.
Assignment of an U.S Consultant to the patient: The consultant would cater
to patients medical needs by designing a health tour plan.
Informing the Medical Doctor: By sending digital copies of client's medical
transcripts to the affiliated doctors for their approval to receive patient.
Arranging for a Facilitating interaction between the Client and Surgeon:
The process will be coordinated via email, teleconference etc. in this stage.
Collection of Expectations Form and Desired `Travel Dates: To plan for
exact tour plan.
Checking Hotel Reservation at desired dates: The information will be
obtained in this stage in order to be able to provide price quotations to the
clients.
Submitting the final price quotation for the health tour to the client: This is
to avoid any further confusion and also to provide relevant information to
the client.
Deposit of necessary funds for health tour by client into Singapore MedTours bank account.
These next few processes occur simultaneously:
Finalize Client's medical consultation and surgery dates with the preferred
doctor and hospital.
Assisting clients in acquisition Passport/Visa
Book client's Air Travel Itinerary which best suits their preferences.
Reservation of accommodation for client
Sending the booked travel and hospital information back to client: Now the
client will make the trip from his or her own country to host country
(Singapore).
Assigning Destination Program Manager (DPM) to the client: Upon arrival
of client in Singapore a DPM will be assigned permanently to client and the
person will be their Personal assistant throughout the visit. This person will
accompany the client to all their doctor's appointments and medical
treatments.
Arranging for Pre-Surgery consultation with the surgeon: This process
would be completed within 24 hours of client's arrival. The surgeon would
review medical transcripts and tests to ensure that procedure can be
performed on the specified dates.
Assistance to client during surgical procedure and post surgery
recuperation: After the client would be discharged from the hospital they
would be accommodated in resort or hotel to begin recuperation process.
Arranging for Post treatment vacation: After obtaining an authorization
letter from surgeon, an enjoying vacation would be arranged for in
Singapore.
Assisting for Safe Return home of the clients: At the end of the tour the
client will be send back to home country and the assigned US consultant
would assist in any post-medical needs.
4.0 Operations
Operational aspects of how the business is managed and structured will be
key to its success.
4.1 Identify location
The main requirements of indentifying the location for our business are:
Low cost per square feet, large pedestrian volume and easy access to
transportation (Abrams & Kleiner 2003, pp67-68). Thus, after searching on
the internet and checking the reality of the information with the agent,
following address can be an alternative to the location of our business.
Source:http://www.singaporeexpats.com/housing-in-singapore/singapore-
property/code4349017-commercial-industrial-buy-FRONTIER.htm
This location, compared with other places, satisfies the above requirements.
The charge for buying this office is expected at around 570,000 SGD, and by
using the yellow line MRT routine, the dense population of UBI become
bigger and bigger. Also two MRT stations (Tai Seng and Macpherson) are
very near to the location (gothere.com). The business prefers to buy the
office instead of renting because in 3-4 years time the amount of rent paid
would be equal to the total value of the office and since Singapore
MedTours is looking for long term viability of the business hence it is
buying the office.
Source: http://www.gothere.sg/maps#q:52%20ubi%20avenue%203
4.3 Zoning
Various Districts of Singapore:
Source:
http://www.propertyhub.com.sg/images/M_images/singapore_district_map.j
pg
The Zoning of the office was carefully selected while keeping the following
considerations:
The office should have as low as possible per square feet cost.
It should be present in or near the heart of the city.
Also the office should be near the Changi International Airport.
The current identified location of the office is in district 14 which is quite
near the Central Districts 6 - 12 of the Singapore. Simultaneously the
location is near the District 17 in which the Changi Airport is located. It is
very important for the office to be near airport as majority of its firm's
clients would be international medical tourists who would be arriving via
air-travel.
4.4 Taxes
The low tax rates and positive and encouraging business policies give
Singapore a reputation of attracting FDI. The taxes in Singapore are much
lower than most others developed countries and regions (Asia Biz). What's
more, the tax rates have continued to decline significantly over the years
(Appendix 2). Therefore, from the tax perspective, Singapore is an
attractive nation to do the business. Overall, to our service business, the
following kinds of taxes are needed to be considered before starting the
business:
Income Tax:
The amount of Income Tax is based on the income of our companies, and
according to Appendix 1, the income tax rate is 17% and as a new start
business, some partial tax exemption will be applicable to us.
Goods & Services Tax
GST, also known as VAT, is a broad-based consumption tax levied on
the import of goods, as well as nearly all supplies of goods and services in
Singapore. And the rate of GST is 7% (IRAS 2008). Only the sales and leases
of properties and financial services need not to pay GST. Therefore, our
company needs to pay 7% GST.
Stamp Duties
Stamp duty is a tax on executed documents relating to properties or interest
in properties and shares or interest in shares. Documents such as a lease,
sale and purchase, or mortgage of property need to pay stamp duties
(Appendix 3). Thus, our company needs to pay this kind of tax.
4.5 Proximity to supplies
There will be little concern over supply chain issues because of the quality
distribution system that exists in Singapore. But also, the business will only
need access to marketing literature and internal office/software support
systems that can be easily procured with its renowned infrastructure for
these tools. If the need arises for additional supplies, there are 3,000
logistics and supply chain companies operating in Singapore to assist with
these needs at no risk to the business (worldcustomsjournal.org, 2007). All
supplies needs can be easily satisfied.
4.6 Access of transportation
Singapore has a well developed transportation network consisting of Metro
Rail Transport (MRT) systems, Bus systems and Taxi Services that are all
air conditioned.
As it can be found in the location map, the location of our company near to
two MRT stations, which provides convenience to our customers to reach
our company. The mass rapid transit system in place is comprehensive and
connects to almost all parts of the country (Lim, 2008). It is also considered
among the best in the world (app.www.sg, 2009). Also with one of the world
best airports, Changi International, the access of transportation to other
nations is unobstructed (Changi). Transport is no risk to the business and
can sustain all traveller needs.
5.0 Management
5.1 Management Team and Key Personnel
Singapore MedTours being a private business therefore Management team
would initially be comprises of the primary investors of the organization.
The following will be the structure of the Management Team:
Source: Author
Deep Kamal Agarwal (CEO / Financial Director): Deep Kamal Agarwal is
successful Information Engineer from an Internationally Accredited College
in India. His both parents are respected doctor with over 25 years of
experience and hence he has natural affinity and knowledge about the
Medical Service Industry. He posses 2 years industry experience as an
operational manager in Sunrise Naturopathy Health Resort in India. His
forte lies in encountering any business problem and working out prompt
solution for it. He believes in holistic business approach and is critical
person for the firm to provide vision and direction over the years
Tasmiya Farheen (Marketing Manager): Tasmiya hold a bachelor degree
which is specified in marketing area. She also has an international
certificate of PR, and also expected to become a MBA at the same time. She
has 1 year working experience as a marketer for an Indian company in
relevant field and acquired necessary know-how ability to do well in
Marketing Department as well as she has potential to manage an business
organization.
Andy Zhu (Operational Manager): He has a bachelor degree of International
Business and Trade as well as he also did a course with specialization in the
field of Finance and had been working for 1 year in China before he joined
his MBA course in Singapore. He is an enthusiastic and hardworking
person, with strategic approach for day to day operations and problems
solving. His working experience may be not very suitable for Operational
position, but Andy is very adaptive and will be able to work well.
Frank (Legal Advisor): Frank has a bachelor degree of International
Business, which contains International Legislation and also a diploma from
the Law University of Vietnam. He has worked as legal consultant for a
company for 1 year that usually deals with global business. Since he has
been in Singapore for 1 year, Frank has acquired relevant information
about the law system of this country, and will to do well in his position
Tapan Ghadge (HR Manager): He holds a bachelor degree in Business
Administration (BBA) with specialization in Human Resource Management
area. He also has done a government certified course in Human resource
management as a specialization subject. He also enjoyed 1 year working
experience for a garment company called 'Frisson' in India.
Source: Author
5.2 Legal Structure
Singapore MedTours will be register in Singapore as a Private Company,
'Limited by Shares'. Ownership of the company will be according to the
shares issued to the company's investors. Since this is Private Company its
shares will not be open to be traded on stock market. The company would
maintain its own separate legal identity and as such all the liabilities would
only be settled through assets of the company and not private assets of
shareholders.
Company Ownership:
Singapore MedTours Pte Ltd. will be incorporated with five Partners. The
Partnership would be registered under the Singapore Partnership Act.
No.
Singapore MedTours Pvt. Ltd. Partners
(1)
Deep Kamal Agarwal
(2)
Andy Zhu
(3)
Tasmiya Farheen
(4)
Frank
(5)
Tapan Ghadge
Source: Author
5.3 Board of Directors
Board of Directors initially would comprise of 3 persons: Deep Kamal
Agarwal, Andy Zhu and Tasmiya Farheen. Their duties would comprise of:
Evaluating performance of the company, Review of company Operations,
Evaluation of Financial statements. Based on their review the Board will
give recommendations on Marketing Plans, Operational Procedures and
Cost-Control measures. The Board of director would meet every 3 months to
decide on Business Policies.
5.4 Organizational Structure
Personnel Plan
The following is the personnel plan that Singapore MedTours intends to
follow over next 3 years:
2010
2011
2012
Financial Director
0
1
1
Chief Executive officer
1
1
1
Marketing Manager
1
1
1
Operational Manager
1
1
1
Legal Advisor
1
1
1
Human Resource Manager
1
1
1
Information Specialist
1
1
2
Medical Consultants
5
7
9
Cleaning Staff
1
1
2
Total
12
15
19
Source: Author
7. Critical Risk
7.1 Potential Problems:
According to DR Jason Yap, director of Health Care Services in the
Singapore Tourism Board, Singapore is "The combination of health care
services, a safe and reliable infrastructure and a welcoming
community"( Yap, 2007), which encourage oversea patients to come over.
Moreover, the stability in political, economic and environmental factors is
another advantage. However, they are always some potential difficulties for
the business, such as:
Singapore government is about to impose higher medical fee for non-native
citizens (TypePad, 2010).
Hospitals in Singapore raise their own representatives in their targeted
countries (Yap, 2007).
The possibility of other countries, like Taiwan or Hong Kong, to bolster their
medical travel industry (Yap, 2007).
Effectiveness of cost management might be unpredictable due to the
changes of various input of the business like salary, advertisement fees etc.
The success of the company largely depends on the good relationship with
local hospital and must be maintained carefully.
7.2 Obstacles and Risks:
In addition, the company and the Medical Tourism industry, in general, is
facing some existing problems as listed below:
Medical procedures and treatment in Singapore are lower than some
countries like the U.S or Canada, but still higher than most of other Asian
countries like China or Thailand (Health-Tourism, 2008).
Other basic cost for customers in Singapore, like food, transportation and
accommodation are also relatively higher in compare to other nearby
countries.
The natural climate in Singapore is hot and humid, which is not comfortable
for customer from other regions or those who are in the post treatment or
recovery period.
As our main target market is in far away countries in Europe and North
America, there would be a hesitation of travelling distance and times.
7.3 Alternative courses of action
The following alternative course of action that firm will take for the
sustenance of the business if any obstacle or risk becomes great threat for
the business:
Hire external professional consultant to find flaws and offer advice on the
business model.
Conduct yearly market survey to keep abreast of the requirements of the
customers.
If it can be properly justified that a particular obstacle can be overcome
with more investment and will profit business in long run then this
investment prospects will be pursued. This investment can be from Initial
investors, other investors or bank loans.
If the need arise the business would first pursue the route of cost control by
scaling down its activities and focusing only on critical parts until business
has sufficient solvency to expand again.
8. Harvest strategy
8.1 Transfer of Asset
According to the particularity of the medical tourism and our business, the
company can utilize the harvest strategies as described as follows:
Sell the business
If the business is not performing well against the competition and
generating sustained losses, then the company can transfer the whole
business, including operation, staff, etc., to other businessman at a good
price. If there is no such a businessman who wants to take over the
business, then the company will end the business by satisfying all liabilities
and then selling all the assets to those who can offer better price.
Go Public
If the business goes on well and the expectation of the public is good, then
the company will think about the strategy of going public, which will
provide the company opportunity to expand the business to new market,
and even to new business areas.
8.2 Continuity of Business Strategy
The following strategies the company can follow in order to maintain
healthy growth in the industry:
Expand the Business into new potential markets like India, Malaysian, and
Thailand etc. in order to gain global exposure, offer more variety of
products (i.e. medical tours in different countries) and spread the risk.
Develop new Product or Services related to Medical Tourism like opening
its own Health Spa, Gymnasium to offer customers in-house recuperation.
Also it can feasible to open its own small hotel to provide customer
accommodations in order to bring cost down and increase the profits.
Singapore MedTours can acquire other companies offering the same type of
services in order to expand quickly and effectively.
8.3 Identify Successor
Singapore MedTours since is being owned by investors according to their
share holdings hence individual investors can sell their share to anyone
even to each other. But in order for any new person to be appointed in any
official position in the company they would have to qualify the needs of the
company like proper educational background, relevant business experience
etc as well as they need to show their competency in the field of Medical
Tourism or Management.
9.0 Milestone Schedule
The milestones schedule shows the important achievements that our
company needs to complete for short and long-term business objectives. It
is one of the most important parts in the business plan. It would help the
company have an idea about practical budgets, deadlines, management
responsibilities and relationship with events.
9.1 Timing and objectives
Short term:
Milestone
Start Date
End Date
Manager
Business Plan & Market Research
1/8/2010
30/8/2010
All Founders
Contracts with Major Hospitals
1/9/2010
30/9/2010
All Founders
Apply for Licenses & Fund Procurements
1/10/2010
31/10/2010
Frank, Deep Kamal
Purchase and Renovation of Assets and other issues.
1/11/2010
31/11/2010
Andy
Employment Hiring & Business Start
1/12/2010
31/12/2010
Tapan Ghadge
Advertising and Market Promotion
1/12/2010
31/12/2010
Tasmiya Farheen
The first batch of patients comes to Singapore
1/1/2011
31/1/2011
Tasmiya, Andy
Source: Author
Long Term:
Year
Objectives
Year 1
Attain break-even situation for the Business.
To increase the employees to 15 people.
Enter and expand the local market to enhance the sales.
Increase the number of partners to enrich the service category
Start building the brand of our company.
Year 2
Increase the Net profit by 20% and to get more market share.
Continue building the brand towards a trustful medical tourism agency
Year 3