Essay About Potential Business Unit Synergies And Proper Infrastructure

Mdcm Problem Analysis
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Problem Analysis
MDCM is one of the world largest contract manufacturers for assembling, designing, manufacturing
and fabrication of specialty assembly equipment for medical devices. Although MDCM was
renowned for its ability to produce highly customized medical devices, it was facing numerous
problems as a result of which its profit margins eroding. Some of the challenges faced by the
company were
• Poor co-ordination between manufacturing facilities.
• Lags in information flow among department, suppliers and logistics leading to inaccurate
forecast, scheduling misbalances and bloated inventory.
• Different legacy systems for financials, HR, sales and logistics.
• No proper infrastructure for communications as multiple platforms was used.
• No networking across subsidiaries because of incompatible protocols.
Strategic Context
Firm wise strategic intent
To provide end-to-end package of medical device contract manufacturing services with high quality
and satisfaction to the customers.
Potential business unit synergies
Striving towards customer success which translates into organisation success as a whole. Potential
business driven synergies between business units towards customer-focused business. To have a
common set of quality standards and operational practices across all subsidiaries to better serve the
customers.
Individual business unit attributes
Using competitive choices of producing highly customized version of equipment for unique
applications and acquiring foreign companies to better serve local customers through operational
excellence. To focus on aggregate material purchasing