Background and Overview of the Health Service Organization



Strategic Analysis – Stryker OrthopaedicsTeam CTeri McGuigan, Larry Wagner, Barbara SchmidtmanA project submitted in partial fulfillmentof the requirement for the degreeMaster of Arts Siena Heights UniversityBattle Creek, MIMarch 8, 2013Background and Overview of the Health Service OrganizationStryker Corporation began in 1941 when Dr. Homer Stryker, who was an orthopedic surgeon, did not like the quality of the products that he was using on his patients. To overcome the challenges with the products he was using, he began to make his own ("Company history," 2011). This was the beginning of the global Stryker Corporation today. Throughout the 70+ years that Stryker has been evolving, they have grown to make more than just joint replacements. It took only 17 years for Stryker Corporation to hit the $1 million dollar in sales, and 30 years to reach $17.6 million in sales ("Company history," 2011). Dr. Stryker’s innovation led the company to this type of growth. Items which he created were revolutionary for that day and age. In the early 1960’s new leadership took over Stryker and the company was renamed to Stryker Corporation. Dr. Stryker’s son, Lee Stryker became the company president and led the company to significant growth until his death in 1976 ("Company history," 2011). New leadership, John Brown, was appointed and he set three goals for the company. The three goals were to make Stryker stock public, to grow earnings per share to 20% every year, and to drive growth through acquisitions and quality ("Company history," 2011). In 1980, Stryker broke the corporation into the three service areas; medical, surgical, and osteonics. Throughout the 1990’s Stryker became more global, and began to open offices in Canada, Latin America, Denmark, Greece, Italy, China, Hong Kong, and Switzerland. Also, throughout the 1990’s Stryker received a great deal of awards such as recognition in Business Week, the Bronze Medal by Wall Street Transcript, Society of Business Designers APEX award, and was listed as one of the 10 best manufacturing plants in the United States ("Company history," 2011). From 2000 to present day, it also proved to bring more exciting growth and innovation to Stryker Corporation. Stryker opened offices in Romania, Ukraine, Japan, Saudi Arabia, and Germany. Even more awards have been given to Stryker Corporation, across the world. In 2010 Stryker Corporation earnings were at $7.3 billion dollars ("Company history," 2011).Directional Strategies Stryker has shown the ability to create effective and specific directional strategies. When John Brown, CEO, took over the company in 1976, he made three very clear goals for the future of Stryker. The achievement of those three goals led Stryker to significant growth. This is the purpose of directional strategies, to provide clear direction for the vision of the company, to outline the mission and purpose for the company, and to ensure that there is focus on key areas within the company.In 2012, Stryker named a new president and CEO, Kevin Lobo. In a press release, Lobo says “Stryker is a company with a proud history and a bright future. Since joining the company last year, I have witnessed firsthand the commitment of our talented people as they work to enhance the lives of patients. It’s a privilege to have the opportunity to lead this great company, and I look forward to working with the Board and our people throughout the organization to maximize our strengths, build on our leadership positions, and create value for shareholders” (“Stryker names kevin,” 2012). In Lobo’s statement, it is clearly defined what his goal is for Stryker in the years to come, maximize, build leaders, and create value for the shareholders.MissionThe mission of Stryker is “we make a difference by caring for the caregivers, helping them maintain order in their organizations, and restore health to their patients” (“Stryker fact sheet,” 2012). VisionThe vision of Stryker is “to be the world’s most admired, fasted growing medical technology company” (“Stryker corporation,” 2013). GoalsThe goal of Stryker is “to become a strong competitor in the global marketplace by designing, manufacturing and distributing products that support physicians and hospitals” (“Stryker corporation,” 2013). Quality/ValuesThe quality statement of Stryker is “At Stryker, we put quality first in everything we do and we continually improve our quality systems to develop, produce and market products that meet or exceed the requirements of customers and regulatory agencies around the world” (“Stryker fact sheet,” 2012). External Environmental AnalysisGeneral EnvironmentRegulatoryStryker Orthopedics is very highly regulated, by all countries in which they conduct business. In the United States, the Food and Drug Administration highly regulates based on the Medical Device Amendments of 1976 and the Safe Medical Devices Act of 1990 (“Stryker annual report”, 2011). This act requires that all new products must be reviewed by the FDA prior to being marketed or used on patient populations. Additionally, the majority of products made by Stryker must be clinically tested before final FDA approval. In the United States, there has been FDA warning letters submitted to Stryker, but as of May 10, 2010, there are no outstanding issues requiring FDA concern (“Stryker annual report”, 2011).In Europe, the European Medical Device Directives were adopted which creates a single set of medical device regulations for all of the European states (“Stryker annual report”, 2011). Stryker has been given the authorization to apply success regulatory compliance to almost all of their products within the European market. In Stryker’s social responsibility statement, it is also evident their commitment of abiding by all regulatory requirements. “Stryker is committed to producing products that are safe and effective, and it is the responsibility of every employee at Stryker to comply with all applicable laws and regulations, including those relating to the environment, product quality, and the health and safety of employees, medical professionals, and patients” (“Social responsibility,” 2013).SocialGiven the regulatory requirements of Stryker, it does have a strong viewpoint of social responsibility and their work environment of the people they serve as well as those who work for the corporation. The viewpoint of Stryker on social responsibility is to make a difference in the communities in which they work and live. It is viewed that this is to ease suffering and restore the health and well being to the people in all corners of the world (“Social responsibility,” 2013). Stryker has a commitment to make the world a better place for those they serve, and those who live within their communities. Stryker helps to support United Way, Operation Smile, Operation Walk, and CURE International. All of these non-profit companies have a variety of ways to help strengthen the community, either in ways of health and well being or financial support. Operation Smile targets children who have been born with cleft palate. United Way has a comprehensive means to help people who have lost their jobs, provide education, or give relief in natural disaster areas. Operation Walk provides free medical treatment to underdeveloped countries, where medical services such as joint replacements would not be financially possible. CURE International is a non-profit company that works to better the lives of children with disabilities in underdeveloped countries, through physical or spiritual focuses. Although this is not a comprehensive list of all the areas which Stryker has developed a commitment to supporting the greater good of the world, but demonstrates how strongly the company believes in providing care and support to those who are less fortunate. The work environment for Stryker is also something that is held in high value. Stryker has been listed for three years as one of Fortune’s Best Companies to Work for. This alone is something that is not an easy task, but shows how great this company is for employees to work. Stryker Corporation says “our employees are fully engaged in their careers and work environment and their input drives the company’s improvement process. There are no predetermined career paths at Stryker so you can discover many new opportunities without having to change employers” (“Work environment,” 2013). This sort of commitment to the human assets within Stryker shows how substantial their impact is within the internal environment and globally. Industry-specificPoliticalDue to certain components of the new health care reform laws, a new medical device tax will be imposed on medical device manufactures of 2.3%. This tax will cost all people within medical device industry approximately $20 billion (Chiaramonte, 2012). In an effort to prepare for the new taxation on the medical supply industry, Stryker is taking proactive action on the looming tax increase, and challenging economic times. Executives at Stryker, who have placed blame on Washing have said “here we are, one of the greatest industries in the country, and we’re staring down on January 1, 2013 and the addition of a 2.3% excise tax, while meanwhile on the other side all discussion in Washington is about creating jobs” (Chiaramonte, 2012). Although Stryker is a multi-billion dollar business, there have been recent changes in the medical environment that will impact Stryker in coming years. Recently Stryker had to cut 1,170 jobs and Stryker noted that ObamaCare was the culprit. Fox News reports 5% of the worldwide orthopaedic workforce will be cut, even though Dr. Stryker’s grandson was one of the largest contributors to President Obama’s re-election campaign (Chiaramonte, 2012). Politically, this has caused negative publicity for Stryker, Corp. even though Dr. Stryker’s grandson runs a company that is not affiliated with Stryker Corporation. However, his $66,000 in contributions to the Obama and the Democratic Party, has not been viewed positively by the media, given the amount of jobs that were lost due to the health care reform laws.TechnologicalStryker has demonstrated a commitment to innovation, since Dr. Homer Stryker started making products for patients in the 1940’s. It was Dr. Stryker’s innovative mind and desire to provide quality products to patients that founded such a solid company. As a global leader in developing products, Stryker maintains a focus on innovative products for the global market. “Stryker is one of the world’s leading medical technology companies with among the most broadly based range of products in orthopaedics” (“About stryker,” 2013). Stryker offers a wide variety of services in the orthopaedic industry such fixing sports injuries, surgical joint replacements, and treatments for knee pain. Specifically, for joint replacements, Stryker offers innovation for replacement that sets themselves above their competitors. Research shows that Stryker has the lowest revisions rates from all of their competitors from April 2003 – December 2009 (“About stryker,” 2013). This is partially because of the technological advances of Stryker’s knee replacement system. “Stryker knees are designed to resist wear in many ways – they use advanced bearing surfaces; they’re designed to help avoid excessive stress in any one spot; and they’re sized to better fit your personal anatomy (“About stryker,” 2013). The same type of innovation is used in all of Stryker’s replacements, such as hip replacements and shoulder replacements. Service Area & Competitor AnalysisThe Service AreaStryker has a broad service area, which includes countries all over the world. Globally, Stryker products sold in over 100 countries in 2011, yet in 2011 approximately 63% of revenues were generated within the United States (“Stryker annual report,” 2011). Given that 63% of revenues were generated within the United States, particular demographic information within the United States population is important to note. Within the United States there has been in increase in the amount of knee replacements in elderly patients. In patients who are in the age of mid-70’s, there was a 162% from the mid 1990’s through 2010 (“Knee replacement surgeries,” 2012). This has been partly attributed to the increase of obesity within America. There was also a large increase on knee replacement repairs during this time, within the same population (“Knee replacement surgeries,” 2012). Arthritis patients are the primary groups that receive hip replacements. Research shows that approximately 43 million Americans have reportable arthritic conditions and an additional 23 million Americans have chronic joint symptoms that have not yet been diagnosed as arthritic conditions (“Frequently asked questions,” 2012). In 2003, approximately 800,000 knee and hip replacements were done, at an estimated cost of $15,000 per surgery (“Frequently asked questions,” 2012). Shoulder replacements are another common joint replacement that is produced at the Stryker Corporation. Arthritis patients are typically the type of population that would be receiving shoulder replacements. Approximately 60,000 Americans receive shoulder replacements each year (“Shoulder replacement,” 2012). Although this is a significantly smaller market than knee and hip replacements, it still provides relief from arthritic pain that patients may find unbearable. It is expected that by the year 2030, it is expected that total hip replacements are expected to grow by 174% and primary knee replacements will grow by 673% (Kurtz, Ong, Leu, Mowat & Halpern, 2007). Projections like this are promising for Stryker’s Orthopaedic industry but will also require important strategic focus on the market that they compete in. A constant focus on the demographic make-up of global consumers, as well as how the competitors are doing financially in the challenges of health care reform will be very petitor AnalysisThe market that Stryker competes in is highly competitive and new products can be introduced ongoing. Due to the changes in the internal and external environment, services and products can become obsolete quickly (“Stryker annual report,” 2011). Continued innovation is critically important for the overall success of Stryker. Innovation can be achieved by highly focused research individuals, and learning from problems that may go wrong. In 2012, Stryker had negative publicity because of a recall on total hip replacements. Research on what went wrong not only will help Stryker to improve, but also could benefit Stryker from a marketing/public relations perspective. According to Stryker, they believe that the factors that differentiate them are their commitment to innovation and quality, service, and reputation (“Stryker annual report,” 2011). There are five main competitors within orthopaedics. Among Stryker, there are DePuy, Orthopaedics, Inc., Zimmer Holdings, Inc., Biomet, Inc., and Smith and Nephew. Although this market is highly competitive, Stryker financially sets itself above all of its competitors in the orthopaedic market. Table 1 shows that in orthopaedic sales, Stryker total sales were $0.7 billion dollars more than the next closest competitor, DePuy by Johnson & Johnson (Stryker, 2013). Table 1 DePuy is one of Stryker’s competitors within the Orthopaedic environment. DePuy is a sub-company of Johnson & Johnson, which is a much larger, financially viable company. Johnson & Johnson is a global company that manufactures pharmaceuticals, diagnostic, surgical, hygiene, therapeutic, and biotechnical products. Due to the large market that Johnson & Johnson serve, they earn on average $61.9 billion annually. Based on the large overall earnings, this gives DePuy buying power as well as a plentiful amount of research dollars. DePuy makes hip, knee, and shoulder replacements, which the knee replacement is the most commonly used joint replacement. DePuy makes a rotating platform knee, which was created nearly 30 years ago and fits all sizes of the patient population. This technology was innovative when it was originally created and has only improved over the last 30 years. The internal analysis of DePuy reveals that the size of the company, Johnson & Johnson, helps keep the company stable and profitable. Additionally the size of the company allows for larger dollars to be spent on marketing initiatives as well as innovation. Regarding financials, the more money that DePuy makes, the higher the tax rate will be in coming years because of health care reform. An additional weakness of DePuy is the amount of varying products that Johnson & Johnson has. This prevents having a great deal of time to have a solid focus on important components of strategy. Another competitor of Stryker is Biomet. Biomet specializes in knee and hip replacements, as well as medical supplies, and dental implants. Biomet averages approximately $2.6 billion dollars a year, a fraction of what Stryker makes in billions each year. Additionally, Biomet only makes up approximately 6% of the competitor market share. Biomet markets that their knee replacement is superior to their competitors. “Biomet believes that implants should be designed to accommodate any individual’s anatomy regardless of race, stature, or gender (“Vanguard complete,” 2013). In support of their statement, Biomet has 10 different femoral sizes, where other competitors only have five. The Vanguard by Biomet complete knee system promotes motion and because of the unique design will accommodate almost all patient types. An internal analysis shows that the strengths of Biomet include minimal diversification, allowing heavy focus on the few service lines. Having minimal diversification allows Biomet to spend a great deal of attention on specific products, such as knee or hip replacements. Weaknesses of Biomet are that it financially is not as secure as other competitors, which could impact research dollars for the company. On Biomet’s website, there are spelling errors, which many may not notice. However, a Physician looking at this site would notice the word orthopaedic being misspelled. Currently it is spelled, “orthopedic” which refers to feet. The correct spelling should be, orthopaedic, referring to bones. This is a weakness because it shows improper knowledge of the product market they are serving. When comparing all of the competitors, Stryker markets themselves high above their competition. Stryker claims to have the lowest revision rates, out of six well known companies, Vanguard and DePuy included. Producing highly quality, innovative products, will allow Stryker to remain a very strong competitor for all companies within the Orthopaedic environment.Internal EnvironmentService Delivery: StrengthsWeaknessesThe ability to distribute goodsCost of manufacturingPatentsFDA regulationsDiversity in the market areaLay off of employeesStrong FinanciallyInsurance companiesFrom a service delivery aspect the Stryker Corporation has much strength in which to capitalize on. Their name and goods are very reputable in the market of joint replacement and research. Stryker has the ability to take items to patent quickly, which is a key strength for this company. There is a large amount of paperwork that needs to be completed for patents in this market. Being able to navigate the paperwork quickly to keep their product safe is strong company strength. The company also has some internal weaknesses that need to be addressed. Some of these are unforeseeable at times. When dealing with the FDA and insurance company’s regulations can change quickly. If a company does not stay on top of these it will be a great weakness and a competitor can make a stronger foot hold in the market place. When some of the changes in the insurance industry occurred it also became a weakness to Stryker. These insurance companies are not paying as much as they have before. Patients need to meet certain criteria in order to have joint replacements done. If the patients are not diagnosed with a certain medical need, hospitals may not get reimbursement for them. Thus, the insurance companies are regulating who is getting what and cutting down the patients who receive joint replacements. This will hurt the bottom line for the companies in the market, including Stryker. It is very expensive to create new items in this market and if insurance companies are dictating the criteria and lowering the number of replacements. This is hurting the company’s ability to maintain research and designs. ResourcesCompetencies CapabilitiesValueHigh Value: Has good capital and their employees are valuable.HighHigh: Has excellent strategic planning capabilities to stay current.RareLow: There are others in the market of replacement joints.NONo, Other companies have this same capability.ImmitatableYes, but difficult to get into the field. Having to complete FDA paperwork a huge asset here.Difficult to imitate.Difficulty due to FDA regulations and process.SustainableYes, Has excellent reputation in the market and excellent research and design component.Yes, Their skills in the market are excellent.Yes, Has sustainable strategies for the competition. Being able to navigate the FDA regulation quickly helps here.The Stryker Corporation has many resources and capabilities to their company. Due to the time they have been in the market they have learned many things on how manipulate the resources. They have a product which is not rare but important not only to them as a company but to people in the world. The rare portion of their company comes from the engineers and experts that help them to create these products. There are number of other companies that make similar types of items. But the Stryker has an excellent quality to these items and the market knows this. The Stryker Corporation has been in business for a long time. During that time they have learned how to navigate the paperwork and politics of getting patents and FDA approved regulations. Stryker’s capabilities are great and they will use this as the sustainable future. Joint replacement items can be imitated in the market. But this imitation is hard to accomplish due to regulations and policies. If there is an imitation in the field it will probably be cheaper, less costly, and less durable then the products made by Stryker. So in a short time frame it is possible to put out imitations. But it will not take the professionals and patients to learn that they also have a cheaper product which doesn’t hold up. Organizational StructureOrganizational StructureStryker: Corporate Structure – Top Down Leadership StrengthsWeaknessesProduct Diversification – Product Teams & DepartmentsRegulating International Relationship ManagementExecutive Management – Ownership in Communication ChannelsStrong Strategic Stability & FlexibilityHealthcare SystemAn organization is structured with lines of command and communication systems. The duties and responsibilities of all stakeholders are involved in organizational structure. “Organizational structure determines how the roles, power and responsibilities are assigned, controlled, and coordinated, and how information flows between the different levels of management” (Business Dictionary, 2013). John W. Brown is the current Chairman Emeritus, serving on Stryker as C.E.O. from 1977 to 2004. Howard Cox has sat on the Board of Director’s since 1974, bringing a historic perspective. (Stryker, 2013). More than half of the eight member board has been sitting since 2006. The current Chairman is C.E.O. The purpose of the Board of Directors is to oversee the mission of the organization and share accountability for the financial happenings of their respective organization. Management owns 14% of Stryker stock, enforcing value creation within the organization. The management structure of competitors Smith & Nephew and Medtronic, own between 1-2% of ownership through stock. This drastic difference is a result of Stryker’s financial reward system. The organizational structure at Stryker is designed not only to provide value to the stockholders, but also to the management team and stocks owned by board members.The chain of command follows a divisional structure by product and service. There are heads of departments, with its very own strategic decisions. Stryker’s resources, competencies, and capabilities are the foundation of their strategic planning. For each division, strategy and structure are compliments. The value of Stryker is their industry knowledge, including insurance and patents laws. It is also their innovation. This is a rare internal strength and their strongest competitive advantage. Stryker has no control over the external environment including; taxes, laws and regulations. This limits the availability of their products, in both research and development. The sustainability of their strengths, mixed with their internal control of external factors, is favorable. For decades, Stryker has been successfully innovating new products, acquiring suppliers through backward integration, and using human capital to sustain their personal advantages. . Organizational StructureTYPE: Divisional Structure by ProductsResourcesCompetenciesCapabilitiesValue (High or Low)Are the resources related to organizational structure of high value or low value? HighAre the competencies related to organizational structure of high value or low value? HighAre the capabilities related to organizational structure of high value or low value? HighRare (Yes or No)Are the resources related to organizational structure rare? NoAre the competencies related to organizational structure rare? YesAre the capabilities related to organizational structure rare? YesImitability (Difficult or Easy)Are the resources related to organizational structure easy or difficult to imitate? EasyAre the competencies related to organizational structure easy or difficult to imitate? DifficultAre the capabilities related to organizational structure easy or difficult to imitate? YesSustainability (Yes or No)Are the resources related to organizational structure sustainable?Are the competencies related to organizational structure sustainable? YesAre the capabilities related to organizational structure sustainable? NoStrategy Formulation & EvaluationOverview Stryker balances their product diversification through acquisitions, which increases shareholder wealth and organizational value. Between the years of 2009-2011, Stryker purchased several large companies to provide innovation within the medical industry. For example; Orthovita was acquired in 2011 by Stryker, to increase the product mix of ortho-biologic products, which includes the fusion of bones. This segment of the market was worth $300 million in 2007 (Quinion, 2007). This will allow Stryker to compete successfully in the spine, orthopaedics, and biosurgery markets. It is not a strategy to simply acquire related organizations, but it is essential to develop successful strategies in a medical technology that create a competitive advantage. Stryker should expand in the biosurgery markets. Adaptive Strategy The adaptive strategy that would create the most value for Stryker in the biosurgery market is first through backward integration and then through product development, specifically related diversification. The biosurgery market consists of wound healing and tissue sealing, a large component of a patient’s recovery. During the 1970’s, a doctor’s visit was required to remove stitches. Today we use stitches that will dissolve; natural to the human system. Forward integration is “gaining ownership or increased control of a firm’s suppliers’, which drives their acquisition strategy (David, 2009). Product development adds value to the organization through which products increase revenues and improve the quality new products and services. There are two tools that will assist in analyzing the best organizational match when selecting the adaptive strategy; The Grand Strategy Matrix and The SPACE matrix.The Grand Strategy Matrix is a four quadrant matrix based on market growth and competitive position. Stryker falls in Quadrant 1. This is based on their strong financial position and numerous merging markets in medical equipments. This puts Stryker in an excellent strategic position. “For these firms, continues concentration on current markets (market penetration and market development) and products (product development) is an appropriate strategy” (David, 2009).The Strategic Position and Action Evaluation, or SPACE Matrix, looks at the organization and focuses on internal positions of financial strength and competitive advantage as well as the external strategic positions of environmental stability and industry strength. Through analysis of finances, internal strengths, the environmental and industry strengths, Stryker should have an aggressive strategy.“These four factors are perhaps the most important determinants of an organization’s overall strategic position” (David, 2009). Each subject under these four categories are scored, with 1 being the worst and 6 being the best for each variable. Financial strength received an overall score of 6. Stryker’s debt to equity ratio is at 7% while competitors sit at 15% (Wikiwealth, 2013). This means that Stryker has more ownership in their organization and are desirable to future creditors. The working capital receives a score of 5. Stryker’s current working capital is at $6.6 billion dollars, which allows for a strong acquisition and related diversification strategy. Finally shares owned by insiders are at 19.69%, with a rating of 6. No other competitor’s executive teams and shareholders have as much ownership as Stryker (MacroAxis, 2013). This is a large financial competitive advantage, cultivated with the Stryker family involvement and management ownership. Industry strength have an overall score of 6. Resource utilization is scored at 6 and can be measured through the income to debt ratio. Stryker has four times less the amount of assets, but essentially the same return, with Stryker having .002 tenths of a lead over Abbott, at 8.77%. They also have extremely low debt. Financial stability is scored at 6. With the research and design segment of Stryker and the focus on innovation, growth within the industry is very strong. They have continually acquired new medical technology companies to expand their strategic scope. Stryker’s rating for environmental stability is projected at 4.5. Technological changes are rated at 5 and managed through technological acquisitions, which includes the human resources, skills, and competencies of the acquired business. The human factor is a always a risk when resources are paired and overlapped. Ease of exit is rated at 3. Once an investment and division is created for a product it must be researched, designed, marketed, human capital must be employed. Costs for developing new products and entering new markets are extremely high. The risk of being involved in business is above average in medical technology such as biosurgery and Stryker has a score of 5. It is an industry that must be diligent in research and have the ability to use financial leverage.Finally the competitive advantages that Stryker have include product quality discussed in the Internal Environment (IE) analysis. Because of this product quality and longevity in the business, they have developed strong support from the medical community and are viewed as product innovators and developers. Because of this rich innovative history; human capital has become a strong competitive advantage at Stryker. As acquisitions are made with new medical technology companies, they roll this knowledge into the operations. Market Entry StrategyBased on the adaptive strategy chosen in the areas of product development, marketing segmentation is extremely important. This new product must satisfy the current demands in medical needs, both from a consumer level and medical professional basis. For instance, the field of biosurgery may be more appropriate for a large, metropolitan city, with a greater population sample or a country that values natural remedies. Stryker would best focus on the following marketing segment variables; region, country size, age, religion, social class, and behavioral variables such as attitude toward product and benefits sought (David, 2009). Stryker has volatile economic conditions, such as taxes, regulations, and major shifts in the paradigm of medical insurance. Although Stryker has had several recalls on their product, they are an organization who can successfully navigate through these sudden changes. Sty\ryker is very adaptive to changes as they have acquired many companies through backward integration. The internal resources are their knowledge workers or human capital, innovation, and financial management. Their internal strength of creating innovation in the medical industry, promoted through organizational culture, will welcome new companies to the capabilities of Stryker. It is because of these reasons, Stryker should continue with the strategies of backward integration and product development. Competitive StrategiesStrategic Posture The best posture for Stryker Corporation is: Adapt to the future. Stryker will have to make company changes as the Federal Government and Insurance companies make changes to what they will cover. The other changes that will be coming is what the insurance companies consider elective procedures and what is required to maintain a certain live style for the patient. Insurance companies are now starting to dictate what they believe patients should have and not have. So some of the revenue that Stryker has enjoyed in the past will be coming to a stop until this trend changes if ever. It is adaptable for this company and they have the resources to accomplish this. Any other posture position would not be the correct one for Stryker. They will adapt and overcome this hurdle to stay profitable and growing.Strategic PositionThe strategic position of Stryker should begin with their vision, or purpose for existence. The vision of Stryker is “to be the world’s most admired, fasted growing medical technology company” (“Stryker corporation,” 2013). As Stryker buys suppliers, adding to their capabilities and product mix, the strategies positively reflect the reason Stryker even exists. Financial analysis will continue to play a vital role throughout each acquisition or division of Stryker’s strategy. The production costs must not exceed profits generated. The varied branches of medical supplies and services that Stryker offers meets the needs of the aging population. The strategic posture matches the adaptive strategy, and returns all decisions back to the vision of Stryker.Summary and ConclusionIn conclusion, Stryker is competing in a highly competitive, global market. Although they have proven to be highly prosperous and recognized since the company began in the 1940’s, there are some serious challenges that face Stryker in the coming future. Adjusting to health care reform will be critical for Stryker, as well as maintaining their commitment to remaining highly innovative. It will be important that Stryker minimizes future cutbacks in human capital, as engaged human assets will be very important within these challenging times. Lastly, in order for Stryker to be successful through all of the changes in health care, there will need to be a high level of focus on the larger and smaller competitors. The larger competitors, like Johnson & Johnson have the power to be more successful than Stryker, however smaller companies like Biomet have a smaller product focus and should not be ignored within the orthopaedic environment. ReferencesAbout stryker. (2013). Retrieved from Chiaramonte, P. (2012, November 16). Medical giant stryker cuts 1,170 jobs, citing obamacare. Fox news, Retrieved from Company history. (2011). Retrieved from Frequently asked questions. (2012). Retrieved from Knee replacement surgeries for elderly more than double in 20 years. (2012, September 26). Retrieved from Kurtz, S., Ong, K., Leu, E., Mowat, F., & Halpern, M. (2007). Projections of primary and revision hip and knee arthroplasty in the united states from 2005 to 2030. The journal of bone & joint surgery, 89(4), 780-785. doi: 10.2106/JBJS.F.00222Shoulder replacements. (2012). Retrieved from Social responsibility. (2013). Retrieved from Stryker annual report. (2011). Retrieved from Stryker corporation. (2013). Retrieved from Stryker fact sheet. (2012, March 14). Retrieved from en-us/GSDAMRetirement/index../141280.pdf Stryker names kevin a. lobo as president and chief executive officer. (2012, October 1). Retrieved from Work environment. (2013). Retrieved from ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download