1. State the business case for option #3‚ the PCB In-sourcing proposal. What is the benefit? What is the risk? How do you compare this proposal to option #1 and #2? Benefit: a. Better performance in management‚ quality and delivery. When PCB is in-souring facility‚ the management team of Stryker Corporation can directly control the production process‚ which is more efficient and could obtain better quality in products. Secondly‚ when the production of PCB is in-sourcing‚ it will be much
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Stryker Corporation: In-sourcing PCBs Table of contents: Executive summary 1. Introduction 2. Analysis of current position 3. Analysis of new project 3.1 Methodologies and processes of Valuation 3.2 processes of Valuation 4. Conclusion References Appendices A & B Executive summary: The executive for Stryker Corporation recently considered setting up own factory to produce Printed circuit boards (PCBs) – a key electronic component of many of Stryker instrument’s medical products
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MEMORANDUM TO: Board of Directors Stryker Corporation DATE: July 15th‚ 2011 SUBJECT: In-sourcing PCBs Project Recommendation The purpose of this memo is to disclose the business evaluation for the three proposed options regarding PCBs sourcing strategy. The analyzed options are: 1. To maintain the current basic sourcing policy but with improvements in the acquiring methodology of key materials. 2. To establish of a partnership with a single supplier to improve quality. 3
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Corporate Finance Case 2 Stryker Corporation: In-sourcing PCBs 1. State the Business Case for #3 Option# 3 has several benefits that make it the most viable option of all. Here are the following benefits: * This option promises a higher degree of control over quality and delivery. These developments will help reduce the logistic losses. * The initial expenditure (manufacturing costs) will be tax deductible‚ enabling Stryker to lower its tax
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Stryker Corporation Deciding whether to keep outsourcing or in-source PCBs Stryker Corporation has 3 different options regarding the supply of needed PCBs. Option 1: contemplates the fact of keeping the same suppliers but with significant changes in order to assure continuous supply of PCBs and quality. No investment is needed. Option 2: establishing a partner with a single supplier. This way there would be a sole supplier for Stryker established in a new facility near them‚ this would give
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the business case for option #3‚ the PCB In-sourcing proposal. In Option#3‚ Stryker choose to manufacture its own PCB in its own facility. If Stryker take the Option #3: * Facility: The proposed facility would manufacture all of the various types of PCBs required by Stryker Instruments. * Timeline: 1) For part of 2004-2005‚ Stryker would be both manufacturing PCBs and buying from outside suppliers. 2) Beginning in 2006‚ Stryker would be manufacturing all of the PCBs by itself.
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Case Questions: 1. Option #3 suggests Stryker Corporation to build its own facility to manufacture its own PBCs. Under the current situation that some contract manufacturers have weak performance in quality and delivery‚ the benefits of this option are obvious as following: First of all‚ option #3 promised the highest degree of control over quality and delivery‚ which can solve the major problem that Stryker has faced with recently. On the other hand‚ self-manufacturing offers an opportunity
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IRAC Brief: Stryker Corporation and the Securities and Exchange Commission Legal risks associated with domestic and international business are a challenge for today’s business managers. A company must possess strong internal controls to prevent deceptive bookkeeping and corrupt business practices as part of their overseas operations. Stryker Corporation experienced this firsthand as part of their international business practices‚ recently challenged by the Securities and Exchange Commission (SEC)
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In the case of Stryker’s struggles in addressing the quality issues with the actual orthopedic implant‚ there are several considerations that the company should have contemplated before creating their final product. The Freiberg team’s success depended on several key factors in the development of their navigation system. Choosing the right people should have been a priority when creating the devices as well as addressing problems and prioritizing the importance of the most critical issues‚ In addition
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Summary of Stryker Corp: Stryker Corporation is a medical technology firm‚ which develops and manufactures: medical implants‚ surgical and imaging technologies‚ as well as patient handling and emergency medical equipment produced for the healthcare industry. Stryker competes in the Medical instruments industry. The medical instrument industry provides consumers and society with many varying products and services that use technology to meet their health needs. More specifically Stryker instruments
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