Micro and Macro Economic Analysis of Terumo Corp

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INTRODUCTION

Terumo Corporation is a leading medical devices and healthcare management products manufacturer headquartered in Japan, with a global network spanning across Europe, Asia, Africa, the Americas and the Middle East. Founded with the aim of designing and making superior thermometers, Terumo has always been committed to contributing to society by helping to provide better healthcare through high quality and innovative medical technology. The objective of this essay is to obtain an understanding of the microeconomic and macroeconomic aspects of the company, and to identify the factors that may influence, and the economic issues that may be pertinent, to the same. For the purpose of this essay, and for the ease of analysis, the company has been treated as being Japanese, with the related microeconomic and macroeconomic data used in the analysis being focused mainly on Japan.

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1 . T erumo Corporation: A Microeconomic Analysis
1 .1 O verview of Company
Terumo Corporation, founded in 1921 by Dr. Shibasaburo Kitasato, is a company that functions mainly in four sectors, namely hospital products, cardiac & vascular, blood system and consumer healthcare1, the last of which was merged with the general hospital sector in April 2012. Though the company originally dealt in the design and manufacture of thermometers, it is now an active player in the manufacture and sales of medical equipment, devices and products, such as pharmaceuticals, blood bags, disposable medical devices, cardiovascular equipment and medical monitoring systems2.

Number of Employees
Net Sales
Corporate Stock
Capital Stock

18112 (Consolidated)
386.7 billion yen (for FYE Mar. 2012)
First section of the Tokyo Stock Exchange (Code: 4543)
38.7 billion yen

Corporate Profile. [Online]. (URL http://www.terumo.com/about/profile.html). 2012, March 31.

1 .2 O verview of Industry & M arket S hare
1 .2.1. Overview by Business Segment 3
Cardiac & Vascular Business: Net sales for Terumo in FY2011 (Year Ended March 31, 2012) enjoyed an increase of 11.1% compared to FY10, with the final figure being 160.6 billion yen.

Terumo Social and Environmental Report 2012. [Online]. (URL
http://www.terumo.co.jp/English/about/csr/corporatedata/businesssegment.html)

General Hospital Business: The Consumer Healthcare Business segment of Terumo was merged with the General Hospital Business segment in April 2012. Net sales of the General Hospital Business decreased by 1.9% as compared to FY10, to 154.3 billion yen, due to factors such as the Japanese earthquake (domestic sales) and the appreciation of the yen (international sales).

Terumo Social and Environmental Report 2012. [Online]. (URL
http://www.terumo.co.jp/English/about/csr/corporatedata/businesssegment.html)

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Blood Transfusion Business: Terumo’s acquisition of CaridianBCT from Gambro AB in April 2011 aided the growth of the net sales in this segment by 192.5%, to 71.8 billion yen.

Terumo Social and Environmental Report 2012. [Online]. (URL
http://www.terumo.co.jp/English/about/csr/corporatedata/businesssegment.html)

1 .2.2. Overview by G eographic S egment 4
The four main geographic segments considered for analysis by Terumo are Japan, Europe, the Americas, and Asia & others. For the purpose of this essay, the two focus segments considered shall be Japan and Asia.

Japan: Increase of 7.5% year on year in net sales, with the figure for FY11 being 190.5 billion yen.

Terumo Corporation, 2012. Terumo Social and Environmental Report 2012. [Online]. (URL www.terumo.co.jp/English/about/csr/corporatedata/geographicalsegment.html)

Asia & Others: The CaridianBCT contribution to sales, along with positive blood bag sales increased the net total to 45.4 billion yen, which translates to a 21.1% year on year increase.

Terumo Corporation, 2012. Terumo Social and Environmental Report 2012. [Online]. (URL www.terumo.co.jp/English/about/csr/corporatedata/geographicalsegment.html)...
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