Danaher corporation case study
We bristle at that a little, because this is not how we are wired.
Adjacencies were businesses that once acquired were still solely a stand-alone business. Bill King is the senior vice president of strategic development at Danaher. Danaher is similar to GE in that their economies of scope are to create products that unrelated to one another.
Stewart We worked until 5 a.
Danaher the making of a conglomerate pdf
We always tried to incorporate new things into DBS to have it grow and change as the portfolio changed. Danaher operates under a well-defined framework, in some aspects very close to a value investing approach. You want them to rise to the challenge, adopt stretch objectives, and seek to improve. That process creates alignment, and allows us to quickly establish and reconfirm the financial targets from our due diligence. They participate in product market diversification because, not only are their products diversified, they also acquire businesses in several countries. We are sometimes compared to private equity firms because we are so acquisitive. The Soul of a Company Comas: We devote a lot of attention to the people we hire — both in recruiting them and in helping them be successful here. Based on the precision and success of the DBS, Danaher is trying to create synergy. Bill King is the senior vice president of strategic development at Danaher. External quality is a broad measure of every dimension of a customer experience. Danaher Corporation — Case Solution This case study analysis delves into the corporate strategy of Danaher Corporation, one of the best-performing industrial conglomerates in the U. The internal fill rate is the percentage of managerial positions we fill with internal candidates.
The markets in which the company plans to operate are identified prior to assessing any player as a potential acquisition opportunity. When you acquire frequently enough, you learn what to do and what not to do. Those are our eight core value drivers. Lico: We ask all the companies why they do what they do.
We have had kaizens with the CEO on teams, in factories, and on the shop floor. Danaher operates under a well-defined framework, in some aspects very close to a value investing approach.
Danaher capital allocation
Finally, we rolled it out across Danaher, by asking every business to talk through a simple matrix of strategies and growth tools. One example could be a story about how the water quality platform has captured customer insights for accelerated product development. The dental businesses had great sales management practices that were new to us. Danaher has products medical technology, tools and components, environmental products, aerospace and defense, and industrial. When people participate in the implementation of tools, that is as good a learning experience as you can have. But their lack of an operations background turned out to be a godsend. Kevin Klau: We throw key new hires into immersion. Steve Simms not pictured is a retired executive vice president of Danaher. Steve and Mitch, who can be very persuasive, must have convinced him that there would be a better future here. As a new startup with constrained resources, the company knew its marketing decisions would make or break the new product. We decided to narrow it to just the most important metrics.
We set up kaizen [continuous improvement] sessions and policy deployment [PD] reviews for every business. The category they were placed in was based on how the company being acquired related to existing businesses. We look for large global markets with good growth profiles and generally low cyclicality.
We quickly pick up everything we can from one another; then we make sure that it works in our environment.
based on 115 review