HA616_WorkingExcercise5
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Running head: SUMMARY ANALYSIS 1
Summary Analysis
Module 5: Working Exercise
Bianca Huntsman
HA616: Healthcare Strategic Management and Marketing
Dr. Lee Bewley
February 17, 2019
SUMMARY ANALYSIS 2
Adaptive
Medtronic could benefit from adopting the Maintenance of scope strategies. Particularly utilizing the enhancement strategies, that may be directed toward innovative management processes, speeding up the delivery of the products/services to the customer, and adding flexibility to the design of the products or services (Ginter, Duncan, & Swayne, 2013). The Diabetes Group is the smaller segment within Medtronic but is rapidly growing due to consumer demand. Using this strategy would help speed up delivery and in turn assist in the growth of this market. Typically, after an acquisition, organizations initiate enhancement strategies directed toward upgrading facilities, reducing purchasing costs, installing new computer systems, enhancing information systems, improving the ability to evaluate clinical results, reducing overhead costs, or improving quality (Ginter, Duncan, & Swayne, 2013). Medtronic could reduce purchasing cost by adopting the twelve steps of supply base introduced by Krause and Handfield. Medtronic relying heavily on suppliers to be fully operational, therefore this significantly impacts the company’s composition. According to Krause and Handfield (1999), there are 12 steps to developing a world-class supply base, which can be categorized into four stages: Stage 1: Identifying/assessing/rationalizing the supply base
1.Identify strategic supply chain needs
2.Search for competitive suppliers
3.Establish performance metrics and assess suppliers
4.Supply base rationalization
Stage 2: Problem-solving development
SUMMARY ANALYSIS 3
5.On-site risk assessment by cross-functional team
6.Problem solving to eliminate suppliers’ deficiencies
Stage 3: Proactive development
7.Establish open relationship through feedback and information sharing
8.Systematic supplier development: direct involvement activities; incentives and rewards;
warnings and penalties
9.Maintain momentum
Stage 4: Integrative development
10.Supplier integration in new product/process development
11.Establish performance improvement in second-tier suppliers
12.Establish integrated supplier network
Although Diabetes Group is the smaller segment within Medtronic they are in high demand due to the lifestyle adopted in this day in age. Medtronic have developed tools that assist in the quality of life of many. In order for them to achieve their mission and vision they heavily rely on the raw materials of their suppliers. Introducing these steps will enable Medtronic to achieve these goals at a greater advantage to the company.
Market Entry
Medtronic believes, sustainable change requires collaborative effort, many minds — sharing ideas, information, risks, and rewards (Medtronic, 2019). A cooperative strategy can offer significant advantages for companies that are lacking in particular competencies, knowledge or resources, enabling them to secure these through links to other companies possessing complementary skills or assets; Additionally, it may also offer easier access to new
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SUMMARY ANALYSIS 4
markets, and opportunities for mutual synergy and learning (University of Birmingham, 2019). Medtronic Diabetes Group benefits from partnering with other companies to utilize the greatest resources and newest technology. Cullen identified five typical management structures used by companies for their joint ventures and strategic alliances: dominant parent, shared management structure, split-control management structure, independent management structure, and rotating management (Cullen, 1999). Medtronic would take the dominant parent approach as it has already bought multiple firm to assist further growth. parent firms can achieve competitive advantages such as gaining skills, assesses from local firms, achieve economies of scale and scope, and market position because these gains are seen as the foundation for a sustainable competitive advantage (Le, 2009). Competitive Strategy
Medtronic competitive strategy would be the Analyzers strategic posture, which are organizations that maintain stable operations in some areas, usually their core products or businesses, but also search for new opportunities and engage in market innovations (Ginter, Duncan, & Swayne, 2013). Medtronic Diabetes Group could rely on other segments within Medtronic as they grow with new and more technological Diabetes tools. Medtronic (2019) is composed of the following segments:
CARDIAC AND VASCULAR GROUP ($11.4B)
Aortic, Peripheral, and Venous
Atrial Fibrillation Solutions
Cardiac Rhythm and Heart Failure
Coronary and Structural Heart
SUMMARY ANALYSIS 5
MINIMALLY INVASIVE THERAPIES GROUP ($8.7B)
Renal Care Solutions
Respiratory, Gastrointestinal, and Informatics
Surgical Innovations
RESTORATIVE THERAPIES GROUP ($7.7B)
Spine
Brain Therapies
Pain Therapies
Specialty Therapies
DIABETES GROUP ($2.1B)
Advanced Insulin Management
Multiple Daily Injection Solutions
Non-Intensive Diabetes Therapies
Listed above you can see that the Diabetes Group is in fact the smaller segment within Medtronic. As this segment is growing it could utilize the advantages from the other sector's to implement and grow. With high demand for these diabetes tools and implantation of the other strategies could lead Medtronic to a greater path of production at a lower cost, and deliver their products at a rapid and efficient pace. As a dominant partner they can obtain technological advantages by partnering with other companies to their favor. Medtronic has the tools necessary to grow and succeed in the value-based market.
SUMMARY ANALYSIS 6
Resource
Cullen, J. (1999). Multinational Management: A Strategic Approach. Retrieved from https://www.referenceforbusiness.com/management/Int-Loc/Joint-Ventures-and-
Strategic-Alliances.html#ixzz5fqXJ81Pa
Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2013). Strategic management of health care organizations
. San Francisco, CA: John Wiley et Sons/Jossey-Bass
Le, N.H. (2009). Role of Parent Control of International Joint Venture in Gaining Competitive Advantage. Retireved from https://pdfs.semanticscholar.org/55e0/62f177469ad2eaf83aee25367c2513fb0d4e.pdf
Medtronic. (2019). Facts and Statistics. Retrieved from https://www.medtronic.com/us-
en/about/facts-stats.html
Medtronic, (2019). Transform helathcare through collaboration. Retrived from https://www.medtronic.com/us-en/transforming-healthcare/aligning-value/collaboration-
in-healthcare.html
University of Birmingham. (2019). Cooperative Strategy. Retrieved from https://www.birmingham.ac.uk/postgraduate/courses/taught/business/msc-ib-modules/
cooperative-strategy.aspx
Krause, D, Handfield R. (1999). Developing a World-Class Supply Base, Center for
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SUMMARY ANALYSIS 7
Advanced Retrieved from https://www.instituteforsupplymanagement.org/files/tools/CostsofSvcs.pdf