Key Facts
• Family Medical Group of Companies (FMG) currently has 2 divisions: o Distribution - which began operations in 1924, selling medical supplies to local hospitals
Vice-president, Sam Collins:
• promoted internally after having moved through the ranks for over 15 years
• known for building rapport with customers
• easygoing personality and sharp wit
• considered a trusted and loyal employee
Five branch offices located across Canada
145 employees – many long-term employees still employed
Has earned a solid reputation nationally for quality products and reliable customer service
Cuts to healthcare spending in the 90’s has caused profits to decline drastically over the past 10 years
Repositioned corporate strategy to cope with cutbacks
• New atmosphere of cost restraint and continuous change
• Some long-term staff terminated as a result of cutbacks
• Cutbacks have created constraints in hiring, leading to a significant impact on candidates o Manufacturing – created in 1986 to develop and manufacture innovative, new medical products
Vice-president, Mark Olsen:
• hired externally, Bill needed someone with experience, vision and technical ability to manage production and R&D departments
• relatively young, but his charm and business approach have earned him respect
180 employees
Products being aggressively promoted internationally; sales have expanded into over 50 countries
New product-line extensions developed, but not produced or promoted yet due to lack of resources
Profits have been increasing significantly since inception
• Current HR Manager has been on leave for the past 13 months o Minimum of 10 vacancies to be filled at any given time o Training and development programs has suffered as a result o Have not had time to develop strategic plans or forecasting for either division Symptoms
• Profits in the Distribution division have declined drastically. Changes in strategic focus and