Teleflex Canada Case Notes - Teleflex Canada: A Culture of...

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Teleflex Canada: A Culture of Innovation CASE ASSIGNMENT As head of Teleflex Canada, you will be attending an annual strategy meeting at Teleflex Inc. with corporate executives and the heads of other business units. Corporate initiatives to create a fully unified operating company, share resources across business units, and establish common operational standards have you worried about the impact on Teleflex Canada, and you see this as a forum for discussing the issues at hand. During the meeting, you want to accomplish the following goals: 1. Recognize the benefits of increasing the relationships between Teleflex's diverse businesses. 2. Share with other leaders the factors that have contributed to Teleflex Canada's innovative success. 3. Describe the division's culture and share your ideas for transferring innovative capabilities from Teleflex Canada to the rest of the organization. 4. Identify the role that Teleflex Inc. can play in keeping innovation alive at Teleflex Canada and in stimulating innovativeness corporately. 5. Discuss the pros and cons of vertical integration at Teleflex Canada to determine how to maintain and strengthen core competencies needed for success in the future. 87
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Teleflex Canada: A Culture of Innovation STRATEGIC ACTIONS: STRATEGY FORMULATION 1. Recognize the benefits of increasing the relationships between Teleflex's diverse businesses. Teleflex is a highly diversified company, with dozens of small and unrelated profit centers. Recent attempts have been initiated to increase the level of operational and corporate relatedness between its various units. Taking advantage of opportunities to share activities and transfer corporate-level competencies between businesses can stimulate value creation. Available to companies operating in multiple product markets or industries, economies of scope are cost savings that the firm achieves by successfully sharing some of its resources and capabilities or by transferring one or more corporate-level core competencies that were developed in one of its businesses to another of its businesses. Both tangible resources, such as plant and equipment or other physical assets, and intangible resources, such as manufacturing know-how, can be shared to create synergy and value. Corporate-level core competencies are complex sets of resources and capabilities that link different businesses, primarily through managerial and technological knowledge, experience, and expertise, and can create a distinct advantage in at least two ways. Because the expense of developing a core competence has been incurred in one of the firm’s businesses, transferring it to a second business eliminates the need for that second business to allocate resources to develop it. In addition, intangible resources are difficult for competitors to understand and imitate. Therefore, the unit receiving a transferred corporate-level competence often gains an immediate competitive advantage over its rivals. There is evidence that businesses which experience improved performance begin
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This note was uploaded on 01/06/2012 for the course MGT 4027 taught by Professor Stein during the Winter '11 term at Southeaster Oklahoma State University.

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Teleflex Canada Case Notes - Teleflex Canada: A Culture of...

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