MEDRAD’s Operating Environment and Its Relations with Stakeholders
MEDRAD embraces an operating environment that is based on sustainable development in which it offers products and services that have various sociological, ecological, and economic impacts on its customers and stakeholders. In its operations, MEDRAD focuses on long-term achievements to avoid missing any future opportunities. The company considers its employees as valuable assets, and as a result, it provides them with a safe and healthy working environment to enable them to enhance their productivity. Also, the organization complies with health and safety standards set by various federal regulatory bodies (MEDRAD, 2011).
MEDRAD also holds a special relationship with its customers and suppliers to retain them for as long as possible. The way the company handles its customers and suppliers is one of the main reasons it has been able to win several awards, such as the Malcolm Baldrige Award. The company has a customer care department that effectively collects and handles complaints from the customers. The company ensures that its customers are appropriately attended to at all times. The company does the same with its suppliers, which also supports the organization’s prosperity. Its suppliers are paid in time to avoid cases of nonpayment or debts, which can ruin the company’s relationship with them (MEDRAD, 2011).
The company also has a good working relationship with its partners and stakeholders. It ensures that it respects every deal it reaches with its partners at all times to avoid unnecessary disagreements. The company extends the same relationship to its stakeholders; the company allows them to easily access its books of accounts and other crucial documents at any time they wish to do so. The stakeholders are represented at MEDRAD’s top management by individuals of their choice (MEDRAD, 2011).
Future Workshops
MEDRAD’s Strategy
MEDRAD align the work and output of each of its employees with its philosophy, mission, and objectives. The alignment process is done through a constant review and a comparison of the company’s current philosophy or mission to those of the past years. Each department and business within the organization has a workbook and a standard template that guides it in addressing its SWOT analysis, blind spots, and other essential competencies (Poladino, 2011). The company also includes its employees in its gain-sharing payout, in which all of them are given the same amount of payout for motivational purposes, regardless of their different locations across the globe. The strategy used at MEDRAD is useful, and it helps the company to increase its annual revenues. For example, MEDRAD was able to increase its revenues from $120 million in 1997 to $625 million in 2009 (Bayer Healthcare, 2011).
Review of MEDRAD’s Financial Status
MEDRAD is fully engaged in the development, marketing, and repair of medical equipment used in disease diagnosis and treatment. Some of the major products that the company deals in include endovascular devices for cardiovascular diseases and fluid injection devices, which are used in cardiology and radiology. The company’s total revenues are over $700 million; it obtains the most significant part of its annual revenues from the production of medical devices (Bayer Healthcare, 2011).
Strategic Issues at MEDRAD
The main strategic issues currently faced by MEDRAD can be attributed to the competition and compliance requirements. MEDRAD now faces stiff competition from other companies that deal with a similar line of products (Poladino, 2011). Some of the main competitors of MEDRAD include GE Healthcare Limited, Baxter International Incorporated, and Boston Scientific Corporation. MEDRAD is also affected by the regulatory standards set by the Food and Drug Administration Board and other federal bodies (Bayer Healthcare, 2011).
Business Model
Definition
A business model is a plan that organizations use to design their target markets about the products and services they produce. The idea of target marketing is often used to develop appropriate marketing and selling procedures for particular products. A business model is also used to set a retail price that enables an organization to make a profit on its sales. The essential components of a useful business model include sales and marketing procedures, business operations, organizational structure, and labor requirements (Poladino, 2011).
MEDRAD’s Business Model
The business model used at MEDRAD contains the essential elements that support all the operations of the company. The first component of the model is the sales of medical devices. The medical devices produced by the company are sold to hospitals, medical imaging centers, and other health facilities in more than 80 countries. The company makes annual revenues of about $300 million from the sale of these devices. The company has close to 1,350 workers who assist it in its production processes (MEDRAD, 2010).
The second component of the MEDRAD business model is the sales of the company’s consumable parts. The company uses an effective improvement system when offering repair services to its clients. The company uses modern technology to service medical devices in various hospitals and health centers, which are its main clients. The technology applied by MEDRAD in offering the services has been emulated by several other companies to enhance quality and productivity in North America. As a result of MEDRAD’s uniqueness in terms of the way it does its production and sales, it has been able to win several presents such as the Manufacturing Excellence Award (MEDRAD, 2010).
Customer care forms the third component of MEDRAD’s business model. The company has effective customer care and service support that is made up of professional individuals who are well trained to undertake their duties accordingly. The customer care team directs all its efforts at offering repairs, assistance, and maintenance services to the company’s customers. These customer services are provided through different means, including phones, depot parts, and actual visits. The company is dedicated to ensuring that its customers appreciate and use its products (Kaplan, 2012).
The fourth component of the model addresses how MEDRAD produces and manufactures medical equipment and other consumable parts. The company develops and manufactures medical equipment that is used to diagnose and treat various diseases. The company has a number of manufacturing stations in North America as well as in other parts of the world to ensure that the production of medical devices meets its clients’ needs. The company currently deals in other areas, such as MR patient care and molecular imaging as a way of improving medical technology in North America (Poladino, 2011).
The last component of the model addresses how MEDRAD’s products are distributed to its customers. MEDRAD is known to dominate the world market for the medical equipment that is used in diagnosing and treating diseases. The company uses various means to reach its customers. The company’s marketing and sales procedures range from direct to internet marketing. The customers can either purchase the products they need directly from the company or from its outlets, which are situated in different locations. The customers can also make orders from the company’s website or through phone calls and wait for their deliveries to be made at convenient locations (Kaplan, 2012).
References
Bayer Healthcare. (2011). Our plan. Web.
Kaplan, S. (2012). The business model innovation factory: How to stay relevant when the world is changing. Hoboken, NJ: Wiley.
MEDRAD. (2010). 2010 MEDRAD award application summary – Malcolm Baldrige. Web.
MEDRAD. (2011). Malcolm Baldrige National Quality Award 2010 award recipient, manufacturing category. Web.
Poladino, B. (2011). Five key principles corporate performance management. New York, NY: John Wiley & Sons.