Bella Healthcare - On Project TKO, after failure of Project Baton

1. Bella Healthcare India
Presented by:
Vikram Mudam - IM28
IIFT-International Marketing,2015-17
8826274477.

2. Bella Healthcare
1969
Todd &
Greg Bella
Joseph Cherian
Bangalore
India

3. Focal
Point
Project
TKO
Project
Baton
EKG Equipment Target Market
Indian R&D Team
Objectives/
Goals
Customer Objectives
4
Portability
Ease of use
Connectivity
Affordability
Constraints
Expert Competition
90% Lack Health Insurance
Clinics need more ROI
Highest heart disease in India
More affordable diagnosis
is needed in India
Huge Potential in India
Resources and capabilities
to build a new product
Physical resources,
Financial resources,
Human resources and
Intellectual capital resources
+
-
Coordination between India & US
Cross Culture
Project Baton failure
‘Kawu 606‘
& other Successful Machinery

4. Situation Analysis - SWOT
Strengths Weakness
 Consolidate firm, with an established market
 Qualified employees countries
 Extensive experience in the field of
machine electrocardiograph
 Visionary mindset
 Negative history for poor cultural
market communication between divisions across
countries
Opportunities Threats
 Knowledge of the Indian market
 Design choices relevant to the Indian market can be
made
 Growing need and less supply in the market
 2 years R&D advantage to the competitors
 Already successful similar product in the market
 Other competitors working on a similar
project

5.
Desire to serve
emerging markets
Rich background and
experience in the
industry
Better
understanding
and more
effective work
relationship
with the low
cost supplies
Telemedicine
advantage over GE’s
device
Cost effective
manufacturing could
give an edge
Growing needs and
relatively less supply
Large room to offer
customized
Healthcare options
People from rural
and remote areas
needing portable and
cost effective
diagnosis.
Urban residents
with increasing
income levels and
improving health
insurance
Company Collaborator Competition Climate Customer
Company Analysis - 5Cs

6. Why did Project Baton Fail?
Cross Culture – An Important issue with this case
Costly joint venture between St. Louis, USA & Bangalore, India
The goal was to design a new, lower cost stress test system to challenge the medical technology market segment and
position itself as a "more affordable" contender. This project was cancelled after 4 years. Several factors contributed to the
shutdown
- No Coordination between US & Indian team in training
- Egoistic & Impersonal Supervisor in St Louis training workshop
- Cultural Misunderstanding, No effort made to bridge the differences
- Conflicts in priority between design engineers and manufacturing occurred, as no defined roles were discussed and no
Specifications were discussed with manufacturing & component teams
- Asian suppliers tend to assign a low priority to a task unless they have a solid production deal
- Multiple prototype iterations led to the suppliers losing trust in Bella India's promise
No clear organizational processes were implemented and both teams suffered. In the end, without clear direction from
Management, and a clear understanding of cultural communication, R&D and manufacturing lacked coordinated efforts to
produce product.

7. Recommendations
Going with the management's optimism,
Project TKO is an ambitious but a viable project. Since Project TKO will be majorly entrusted to the India team,
there is a lesser possibility that cross cultural misunderstandings will impede the project.
We recommend that Bella India undertake this project as it has the resources and capabilities to do so.
Although, it has to strongly reflect on Project Baton's failure and try not to repeat the same mistakes.
It should focus on:
-Research
-Training to Employees to fill Skill Gaps
If done with proper planning, management and coordination, there are high chances that
Bella India will succeed in this endeavor.

8. Any Questions!!
Thank you