The case study focus on the strategic plan by the Stryker Corporation

The case study focus on the strategic plan by the Stryker Corporation
Problem Statement: Stryker Corporation’s has been relying on several small manufacturer of the supply of Printed circuit boards (PCBs).Recently, the PBCs supplied by some of the contractors have failed to meet expectation of the firm in terms of delivery in time, quality and responsiveness. Likewise most of the suppliers have suffered from bankruptcy and weak financial operations which has affected the supply of PCBs. The conduct of these suppliers as affected the operations of Stryker in terms of service delivery in time to the clients as well as the quality of services to the same clients. As a result, the corporation has lost several of its customers to the competitors .To curb these challenges; Stryker has been looking for new suppliers who could be relied upon to supply quality PCBs in time but the initial problems still exist. Should Stryker consider replacing the original PCBs supplier? Should it form a partnership with one of its suppliers? Or should Stryker manufacture its own PCBs to solve the problem at hand? These are the questions which the problem analysis seeks to answer.
Objectives: Stryker Corporation has been the leader in the electronic medical product for many years. It has succeeded in creating a brand image that many consumers, most of which are healthcare facilities, are proud to identify with. With the expanding market, the corporation is anticipating an increase in the number of products the client would require. With the supplier of Printed circuit boards, a component of the electronic medical product, threatening to tarnish its good name Stryker is considering a solution to the problem. The strategy will ensure that the firm maintains customer loyalty as well as meeting the market need efficiently.
Alternatives: Stryker has three options to solve the problem namely:
1. The firm is considering creating serious modifications while maintaining the current suppliers
2. Establishing a partnership with one of the suppliers/Manufacturers to improve on the quality and reliable supply of PCBs.
3. Establish its own PCBs manufacturing plant at Kalamazoo in Michigan.
Consequences of Alternatives: Although alternative three was most feasible among the three but it required a large amount of capital outlay as well as an increase of salaries to the company’s staff. New skillful employees will be required to work in the new branch .Because this is a new investment, the firm will have to fund its operations before it can payback the initial investment.