Stamypor Case Study: TABLE OF CONTENTS Executive Summary - Situation Summary 1 Objectives 2 Central Problems 2 Recommended Actions 3 Reasoning Behind the Recommended Actions 4 Alternative Action Programs 6 Risks and Contingency Plan 7 Application of Readings 8 Works Cited 9 EXECUTIVE SUMMARY The New Business Development division of DSM is faced with the decision of whether it should continue to develop the Stamypor resin. The product is already near the end of the second stage of development. If NBD’s management board approves this product to continue into the third stage, it will require €16 million to be invested for equipment. However, if the Stamypor …show more content…
The project must also have the potential for an average annual market growth that exceeds 10%, and should reach a €10 million turnover within 5 years. The objective of the NBD is to ensure that DSM’s financial goals are met by increasing each product’s market potential and improving production technology. At the same time, NBD must keep its costs under control so that the product can be sold at a low price. For Stamypor, improved methods of cost reduction and a manufacturing system that will give the product a consistent porosity level are the main requirements that need to be met for this project to continue to the next stage. CENTRAL PROBLEMS The root cause of Stamypor’s problems was an unstable value proposition (2, p85). DSM-NBD underestimated the value of a need analysis, which was evident from that fact that they skipped the first stage of the Stage-Gate process. This evaluation stage is used to ascertain the need for a new product (1, p9). The omission lead to uncertainties over Stamypor’s claimed ability to add value to the resin industry. Additionally, a significant portion of DSM’s budget was assigned to corporate R&D and not to NBD. Therefore, fundamental research was not involved in the Ideation stage of the Stage-Gate process (3, Figure 5.4). The fact that DSM-NBD went ahead with a sizable investment - 2 - without understanding its
The industry is an important customer of the supplier since it’s the only industry it sells to. (Assuming there is no other use of the injection modeled technology. Low.
On the 24th February 2000, Victoria was taken semi-conscious and suffering from; hypothermia, multiple organ failure and malnutrition, to a local church. The taxi driver that collected them from the church was so horrified at her condition, that he took them straight to A and E. Victoria died the following day.
On September 4, 2001, Steve Papa, CEO and founder of Endeca Technologies, could hear a construction worker nailing a “Commercial Real Estate Available” sign to a building across the street from his Cambridge, MA office. This had become routine, as hundreds of early stage technology companies failed to raise additional growth capital. The words of his Vice President of Marketing, Steve Sayre, warred with the sound of the construction. “I know the board is actively working on the C round,” Sayre said. “We’d better get this funding closed; I don’t think the NASDAQ is going to hold up.” Papa knew that his CFO shared Sayre’s concerns. To an even
In order to keep up with the competition, Victoria Chemicals must make changes to its business strategy. The project that is accepted must meet several criteria that the board has set based on performance measures. The projects are ranked as engineering efficient proposals. The addition to net income of the project must be positive and therefore increasing earnings per share. The net present value of the project’s free cash flows must be positive, and the internal rate of return must be greater than 10 percent, and the payback period for the project must be less than six years.
1) Upon the story presented, necessary actions should be taken to overcome the hospital’s problems. St. Mary’s Hospital last year’s numbers showed the necessity of such actions. For the first time, since the hospital started operating, they presented deficit on its revenue. St. Mary’s hospital had some major problems in a few departments. During the last few years, the occupancy, or the number of patients in the hospital, has been declining. Such problem is explained by changes made to reimbursement policies, a larger emphasis on outpatient services, and an increase in local competition. Another major problem the hospital faces is the performance appraisal system. It seems inadequate for the system in
The call centre of the Eastern Medical Faculty Foundation, hereafter referred to as EMFF, provides a competitive advantage to the Internal Medicine Department of the Chicago School of Medicine through the delivery of efficient and high quality service to patients. Treating patients generates revenue the Internal Medicine Department and contributes to investments in research in the highly competitive healthcare sector. Unfortunately, declining customer satisfaction, as evidenced in a growing number of customer complaints, suggests the quality of service is deteriorating and threatens the very competitive advantage of the EMFF.
Innovation – HD invested in process improvements in 1992. One option for future expansion is to look into continuous improvement and optimization of existing facilities to maximize output.
Life History and Characteristics: Staphylococcus aureus is a gram positive bacterium that is usually found in the nasal passages and on the skin of 15 to 40% of healthy humans, but can also survive in a wide variety of locations in the body. This bacterium is spread from person to person or to fomite by direct contact. Colonies of S. aureus appear in pairs, chains, or clusters. S. aureus is not an organism that is contained to one region of the world and is a universal health concern, specifically in the food handling industries.
MedImmune is dedicated to helping patients live better lives through advances in science and medicine. Hundreds of thousands of patients have benefited from their products, which are designed to treat or prevent infectious diseases, cancer and inflammatory diseases (Wikipedia, 2012). Their extensive research and development efforts are focused on these same areas.
L.M. is a 75-year-old female who suffers from severe dementia and lives in a SNF. She was diagnosed with lung cancer in 2005 and as a result had a right upper and middle lobectomy. She also has a history of severe emphysema. L.M. has had several pneumonic infections and has an allergy to Pneumovax. She has a recurrent aspiration risk and received a tracheostomy and a PEG tube in January 2012.
3M Corporation has small laboratory or research and development section with some technicians and doing experiments on sandpaper and developed some core technology at that time for 3M like masking tapes. After such core technologies development 3M achieved global reputation and become “hothouse” of innovation. However the process grows slowly and allows 3M to recognize user needs because 3M researchers contact different employees in factories.
Crocs’ success is partially due to creating an effective value chain management system (Hoyd & Silverman, 2008). Value chain management is a dynamic process focusing on maximizing effectiveness along the entire sequence of operational activities (Handfield, 2011). In accomplishing this, Crocs refined its production, manufacturing, and delivery systems in many ways. Specifically, Crocs bought their resin supplier and engaged in technologically novel processes to create proprietary croslite® resins that are inexpensive to produce, odorless, and available in a variety of colors (Business Pundit, 2008). Likewise, they acquired and created compounding facilities to reduce supply chain inefficiencies and better control manufacturing of their product. Finally, Crocs improved their inventory processes by adding warehouse operations to each factory (Hoyd & Silverman, 2008).
Codman & Shurtleff is a subsidiary of Johnson & Johnson which supplied hospitals and surgeons worldwide with over 2,700 products for surgery. Codman is now facing a profit shortfall of two million. A series of actions was decided in order to recover the shortfall, while the decisions made were somehow not aligned with J&J’s group philosophy. Codman managers decided to cut budgets of R&D expenditure which might have negative effects on the long term performance of the firm. The management of Codman ought to choose a better way that has a positive effect on operations in the long run and use a formal process, “stage gate”, in new product development.
1. There are many problems that are apparent at Salt River Labs. The first major problem is the purchasing process. There are way too many people involved in this process. The current process involves series of five different people, or groups of people. This starts with the Chemists who send requisitions to supervisors, who send the requisition to Suzie Martinez, who sends the same requisition to Barbara, who finally sends the requisition to Arthur who makes the final decision about the requisition. Once a decision to approve or disapprove the requisition has been made, the requisition gets sent to Paul
Strengths: - BVS has assured its relative independence from its corporate parent in the US - number 2 in its field. - The hiring effort focused on scientists, and junior management. - Aggressive investment in Research; Strong and innovative R&D Department. - Intensive growth in current sales and projected sales - Dynamic, entrepreneurial, and ambitious head of purchasing department and have an international experience. - High-tech machinery, BVS most advanced on the market. - BVS sustain good relations with their supplier. Opportunities: - Forceful investments in the pharmaceutical industry,