Background: Innostat is a private company selling surgical equipment based in Boston. The company developed from a small local manufacturer of scalpels and other surgical equipment into the world’s leading maker of prosthetic limbs and surgical implants, former CEO Jack Donally was behind this accomplishment. However, the company is now at a turning point. The legendary Jack Donally passed away and Stephanie Fortas is selected to be the new CEO since her strong suits are in both marketing and medical technology that answered what the company wants. Innostat’s performance had poorly illustrated in the 3 years before Jack’s retirement. After Jack’s innovations in the 1990s that resulted in 15 per cent increased of the company profits and revenues,
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Therefore, he can differentiate his product and made the firm successfully won the Baldrige Prize. Nevertheless, Jack never consulted with the Innostate’s senior team about the ideas nor how they fit in the company’s broader strategy, instead, he would go directly to R&D to get them implement on his ideas. This lack of engagement between Jack and other employees has been affected the marketing development of Innostat and R&D, in a never developed marketing penetration (Kim, …show more content…
When ideas mostly rely on Jack, when Jack could not come up with anything and everyone else do not have incentive to do so, the company ended up having nothing out to the market, loss in profits and market share since the competitors were able to released a more competitive products into the market. The trust among the shareholders also decreased from declined of revenue and they started to question on the company strategy to deal with the management
Therefore, he can differentiate his product and made the firm successfully won the Baldrige Prize. Nevertheless, Jack never consulted with the Innostate’s senior team about the ideas nor how they fit in the company’s broader strategy, instead, he would go directly to R&D to get them implement on his ideas. This lack of engagement between Jack and other employees has been affected the marketing development of Innostat and R&D, in a never developed marketing penetration (Kim, …show more content…
When ideas mostly rely on Jack, when Jack could not come up with anything and everyone else do not have incentive to do so, the company ended up having nothing out to the market, loss in profits and market share since the competitors were able to released a more competitive products into the market. The trust among the shareholders also decreased from declined of revenue and they started to question on the company strategy to deal with the management