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LinkedIn Introduction Stryker Corporation is a leading supplier of specialty medical and surgical products. Stryker Corporation has segregated its business in different divisions such as Orthopedic Implants, Medical and Surgical Equipment MedSurgRehabilitative Medical services and international sales.
Stryker Corporation sales are growing and it is considering in house manufacturing facility to support the growth of business.
PCBs are used in all instruments key products and platforms.
Stryker Corporation is concerned about reliability of its supplier as inadequate supply of PCBs will disrupt the operations and supply will be affected as production will be impossible without PCBs.
Problem analysis Stryker Corporation is considering outsourcing the key electronic component of Stryker Medical instrument.
Currently, Stryker Corporation is purchasing PCBs or printed circuit boards from a small number of manufacturers, which in turn is expensive and there is a potential risk of disruption of supply, as the supplier is working on very low margins and capital.
Supplier can default any time, thus, there are likely chances that small suppliers will default and supply of electronic component will be disturbed. There are different options to tackle the outsourcing situation such as a default option is continuing as it is, while the second option is to commit long term supply contract with financial strong supplier which will result in long-term supply of component at a low cost.
The cost and benefits can be evaluated using the incremental savings by comparing existing outsourcing options with a new long-term contract. These projects are mutually exclusive therefore,all three projects cannot be undertaken at the same time.
On the basis on NPV, it is financially viable to opt for option two rather than option 3. Business case option 3 In sourcing means cessation of the company contracting and performing the same function in-house.
Stryker Corporation wishes to set-up manufacturing facility that will produce PCBs in the house. NPV method is more superior when it comes to evaluating options and making decisions.
The financial business case is not viable as NPV is much less than the previous option, however there are other non-financial benefits such as production of PCBs will be in full control of Stryker Corporation, and the company will not be dependent on any supplier. It is also possible that Stryker can produce PCBs in excess which can be sold outside.
If compared to option 1 and option 2, Option 3 seems to be a nonfinancial option as it requires ahuge outflow of investment and significant time to build the facility.
NPV is also less than option two therefore,it is not a recommendable option as compared to option 1 and 2……………… This is just a sample partial work. Please place the order on the website to get your own originally done case solution Related Case Solutions:In-sourcing PCBs is a Harvard Business (HBR) Case Study on Finance & Accounting, Fern Fort University provides HBR case study assignment help for just $ Our case solution is based on Case Study Method expertise & our global insights.
Case Solution. Examines a recommended acquisition of the capability to produce printed circuit boards (PCBs) in-house rather than buying them from third-party contract producers. Stryker Corporation's Instruments clients are planning on the proposal consequently of issues with existing companies.
Stryker Corp In sourcing PCBs Case Solution - Examines a recommended acquisition of the capability to produce printed circuit boards (PCBs) in-house rather than buying them from third-party contract. Stryker Corp.: In-sourcing PCBs.
MENU. Stryker Corp.: In-sourcing PCBs case study. Timothy A. Luehrman; Stryker Corporation's Instruments business is considering the proposal in response.
Stryker Corp In sourcing PCBs Case Solution, Stryker Corp In sourcing PCBs Case Analysis, Stryker Corp In sourcing PCBs Case Study Solution, Stryker Corp In sourcing PCBs Case Solution The alternatives of this case revolve around printed circuit boards.
The company Stryker Corporation has an instruments division which needs to assess the. Stryker Corporation In Sourcing Pcbs Harvard Case Study Solution and Analysis of Harvard Business Case Studies Solutions – Assignment HelpIn most courses studied at Harvard Business schools, students are provided with a case study.