Medicl Prduct Company Essay

8060 Words Jun 6th, 2015 33 Pages
Harvard Business School

9-694-065
Rev. March 17, 1995

Medical Products Company
At the beginning of their three-day meeting in March 1990, Mr. Roberto Hausman, the president of the Disposable Devices Sector of the Medical Products Company (MPC), welcomed the group assembled around the conference table.
This promises to be a very productive meeting. A window of opportunity has opened up for us, and it appears that we finally have a chance to resolve, once and for all, some of the issues our European organization has been struggling with over at least the last six years. The recent acceleration in the projected growth rate for our hypodermic and diabetic products makes it possible to discuss possible changes without having to
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694-065

Medical Product Company

Most of the growth in European sales had taken place since 1980, when the company had decided to become much more aggressive in expanding its presence there. At that time European operations were organized by country, with strong country managers overseeing domestic marketing and sales activities for all products. The factories producing hypodermic products (which at that time, comprised most of the MPC products made in Europe) also reported to them. MPC's top management decided that it no longer made sense for local managers to make product marketing decisions that could have spillover effects on other countries. Also, they were concerned because different quality, cost, and delivery standards had been adopted by different plants producing the same product.
Therefore, during the early 1980s an SBU (Strategic Business Unit) structure similar to the one that previously had been established in the United States was overlaid on the existing country organization. An SBU president was created for each of MPC's key product lines and given sales and profit responsibility for all the sales and marketing organizations associated with that product line in
Europe. They reported to the president of European Operations (located in Lyons, France), on the same level as the country managers. The European president, in turn, reported to MPC's president for
International Operations at its U.S. headquarters. The managers

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