St. Jude Medical Strategic and Operational Plan Analysis
Strategic and Operational Analysis of St. Jude Medical
St. Jude Medical is one of the largest and most successful medical device companies in the world that excels at delivering high-quality, innovative products that reduce health care costs and improve outcomes for patients who suffer from expensive, epidemic diseases (St. Jude Medical Annual Report, 2012). An analysis of the company’s strengths, weaknesses, opportunities, and threats was conducted. The suggestions listed below are proposals for improvement of current strategic and operational plans.
Strengths
Recent company restructuring continues to solidify its infrastructure. Four product divisions were reorganized into two new operating divisions. “The organizational changes are part of a comprehensive plan to accelerate growth, reduce costs, and increase investment in product development” (St Jude Medical Financial Report, 2012). Quarterly examinations of the transformation are needed to ensure the changes are moving in a positive direction, that overall goals are met, and the funding is being allocated appropriately.
Weaknesses.
Negativity still surrounds the recall of the Riata leads used in the defibrillators. The “malfunction has been linked to 20 deaths” (Athavaley, Burton, and Weaver, 2012). There is not a projected dollar amount of the total cost to close litigation on pending lawsuits or the cost of the patients returning to the hospital to replace recalled leads. This issue must be addressed quarterly to accurately track spending and to gather data to project expenses for the next quarter. A report must be compiled to confirm the number of patients remaining that need the recalled leads replaced, and what the average payouts on the lawsuits are to develop an estimated expenditure in the budget.
Opportunities. The recent acquisition of two companies and a rise in the medical condition known as...