Topics: Customer satisfaction, Customer retention, Number Two Pages: 8 (1469 words) Published: March 29, 2013
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Written Analysis and Communication

Individual Assignment No 2

Case Analysis Report on

‘The Quality Improvement Customers Didn’t Want’

Submitted by

Mitul Jayendrabhai Shah

Roll no- 121224


Institute of Management – Nirma University

14TH August 2012


Quality Care is a US based reputed Health Maintenance Organization (HMO). Allan Moulter, CEO of Quality Care is in dilemma to install computerized system or not because of the uncertain behaviour of customers.

The objectives are to retain existing customers, to maintain customers’ satisfaction and to improve service quality.

The alternatives are to implement the new system or not to implement the system or implement the system parallel to current manual system.

The decision is to implement computerized system parallel to manual system initially. If customers accept the new system, Quality Care can go for fully computerized automated system.



Quality Care is Health Maintenance Organization (HMO) based in US. After Health Care One and Medicenters, it is 3rd player in the region (Refer exhibit no.1).

Allan Moulter is the CEO of the Quality Care for nine years. Jack Zadow, a consultant presented requirements for computerized system which made Allan think whether he should implement automation or not. HealthCare One, number one player in region has already begun using computerized reception system and the number Two player – MediCenters is also planning to install similar system by January. As per new system, members can directly go to a computer and slide their identification card through. Computer will ask set of questions, reason for visit, pulls members’ records, process information and routes member to appropriate staff for consultation.

Allan is in a dilemma whether to go for computerized automation system or not. Quality Care has to invest $350,000 including development, training, consultation and so forth. Ginger Rooney, the Vice president of marketing raised the doubt that Health Care is the personal field-one-on-one attention is what makes a satisfied customer. If computer system is implemented, there are chances that customer doesn’t feel the personalized touch and their customer satisfaction rate starts decreasing (Refer exhibit no. 2).

On the other side, if they are going for computerized system then it will make the system more efficient and improve the quality of service. The staff will be less stressful and more personalized to the members of the Quality Care. Pat Penstone, CIO of Quality Care also suggests that it is not only about reception area but whole offering as a whole. There are chances that members of Quality Care think that we are not high-tech and so we are also not up to speed in medical procedures. There are chances that in future government and insurance companies may want standard reporting and so we have to implement the system in future (Refer exhibit no. 2).


Quality Care is concern whether it should go for computerized system in their working stations while improving the service quality, cutting down the cost, retaining the members of Quality Care and maintaining the customer satisfactions.


The cause of the current dilemma is the unpredictable behaviour of the members and their reaction to Quality Care.

The consequence would be that if Quality Care is going to implement the computerized system, their loyal customers, satisfaction of customers and market share are at stake.


1. To improve service quality.

2. To retain members of Quality...
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