Creating Competitive Advantage BUMGT: 760
Innostat case study
This case study talks about Innostat company, which based in Boston, MA. The Innostat had charismatic CEO Jack Donally. This company was his creation. He had transformed the company from a small local manufacturer of scalpels and other surgical equipment into the world’s best-known maker of prosthetic limbs and surgical implants. Sales had reached more than $ 2 billion, with the company employing more than 5000 people at locations in Boston, Los Angeles, and Dublin, Ireland. Mostly they are stakeholders in this business case. Innostat also had sales and marketing country organizations around the world. A few words about Jack. He had majored in history at the University of Massachusetts. He joined the company as a salesman after completing a tour of duty in Vietnam as a medical orderly. He loved to spend time talking to surgeons and researchers. He had that special skills that merged an interest in technology with an understanding of what customer needed and wanted. He typically came back from his travels full of ideas for new products. He would go straight to the head of R&D and get him started on a project, rarely engaging Innostat’s senior team in discussion of these ideas and how they fit in to the company’s broader strategy. As a result, we see that power in hands of one person and, of course, his death will influence company’s life so much. This situation has a lot of disadvantages for future of the company. For example, marketing never developed as a strong function, and R&D, though technologically sophisticated, never developed marketing savvy. Jack’s was bringing to the company some new modern idea, for instance, quality aspect. He believed that health care products had to be error free. That’s why the head of production was from Toyota – one of the best company in quality in the world. So basically it was simple structure – everyone reported to Jack and he made decisions as...
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