HBR Business Case Assignment
1. This case starts out in a lab that is located in a building that is operated by Crescordia. Crescordia is a company that makes a range of products such as artificial hips and scalps but also is one of the few companies that sell fixation devices. At the beginning of the case Crescordia holds a seminar for orthopedic surgeons so they can better familiarize themselves with the products and procedures that are needed when dealing with using these fixation plates. During this seminar the CEO Peter Walsh enters excitedly to see what is going on. You can tell right from the start that he is a very big people person and is incredibly ...view middle of the document...
He basically confirmed to Walsh that resorbable’s still are not perfect and that they could not do any more lab work because to find out what problems that they would need to solve they would have to actually test there resorbable’s on people. A week later they had a meeting where Jane LaMott the vice president of sales was excited at the prospect of putting resorbable’s in their lineup of products while Chief marketer Diane Robinson was completely of the opposite opinion and thought it would be a huge misstep to bring resorbable’s as part of their product line. Nothing was settled at this meeting. The next day Walsh had a meeting with CFO Calvin Westbrook and asked him to weigh in on resorbable’s. Calvin Westbrook also expressed feelings of not having much faith in resorbable’s and making it seem like there was no need to rush into resorbable’s.
2. There are many drivers of tensions related to Crescordia offering resorbable’s to the market. First off Crescordia is a company that is known for the quality of products they put out and they have a reputation built on the fact that they only offer quality products. If they put resorbable’s on the market they would releasing a product that has a failure rate and would stain their reputation. Also if they were to turn to resorbable’s it would be a huge financial undertaking because they would have to offer a wide range of resorbable’s if they wanted to compete which would wouldn’t reach profitability if they didn’t scale production. One idea was that they should offer a smaller range of these products to just the pediatric market but was quickly shot down when there legal counsel Sam Maddox told them how bad it would look if they used children as the guinea pigs for this project. Another point that was brought up by the CFO Calvin Westbrook is the fact that if even if they were able to make a product that would work than the whole industry would move towards resorbable’s and even though their profit margins would be higher, the costs of retooling equipment and factories would be such a high capital expenditure that it would not be worth it.
3. After thinking about it for some time I cannot support Crescordia launching resorbable’s on the market. I feel that it would be a huge misstep for them to jump into the market and that there is no harm in waiting it out and seeing how things develop in the industry. I think that the alternative path they should take is they should keep working on improving the non-resorbable plates that they put out and should not put much focus on resorbable’s. I think that there are many more pros to not focusing on resorbable’s than there is if they did focus on them. I find it hard to see why they would take the risk of launching a line of resorbable’s.
4. There are many pro’s in not going forward with resorbable’s. First off Crescordia will keep its high reputation because this will show that they do not want to rush products onto the market,...