Danaher Corporation Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Danaher Corporation Case Study Solution

Abstract

The case illustrates the successful strategic planning and implementation of the Danaher Corporation, started in 1980 by two of the four brothers Steven and Michel, under the name of Equity Group holdings.Over the period of time, the company grew in size and revenues by accruing the companies through investment mode. Such Strategy quickened Danaher to acquire the market share and growth at the fast track. In the later year after its first acquisition, the company changed its name from equity holding to Danaher, synonymy with the name of the sea meaning smooth flow.

In addition to this, the company adopted the kaizen strategy of Toyota, for continuous improvement and lean operations. In doing so, it opted the companies for acquisition on the basis of three factors (1) understanding (2) Niche markets and (3) predictable earnings and cash flow.

Though with the particular strategy, the company gained substantial market share and revenues, however, it face the certain challenges regarding the sustainability of the kaizen model in the long term, along with the retention of the organizational culture and performance of the organization in pursuing the Niche strategy. Such challenges posited to Danaher needs to be addressed by the management in order to maintain the competitive edge and distinctive offerings in the market in the long term.

Keywords: Competitive edge, sustainability, DBS, Kaizen, Porter 5 forces

Introduction

Danaher, primarily known the equity group holding started its business in 1970.The Company grew in size by pursuing the strategic business model of Acquisition Over the period of time, the company gained the market share and profits through investing in small and large groups. In doing so, it not focused in the size of the company ye set three standards for selection of the company to be acquired.Such standards allowed the Danaher to maintain its culture and organizational value with in the company.

Over the period of time, the company evolved and made different strategic changes.Such changes includes the establishment of THE DBS system based on the kaizen strategy of Japanese Toyota Corporation.Such development of DBS system allowed Danaher to incorporate the interactive culture and training programs that not only encouraged the technical earnings for Kaizen but also focused to develop the mindset of the managers.In doing so, the CEO himself trained the newcomers and along with the other team and training session in and out of the company.

In addition to these, the company also developed the strategy of developing the strategic groups and closed knitted family with the acquired companies.It negated the Conglomerate type of culture and enhanced the sense of uniformity through the organizational structure. Moving forward with the particular strategy Danaher acquired the companies that focused on manufacturing, precision components and plastics.It merely accrued those companies the pursue the niche target strategy in order to develop a bich stance for its offerings in the market.

Since Danaher under the leadership of the two strategic leaders developed a strong interactive culture, it focused on bringing the best out of the acquired company by unleashing the underutilized capabilities and talent or by mitigating the hurdles resided in the company in the form of limited thinking and reactive approach instead of proactive. In addition to this, Danaher also focused on the (1) Market size (2) Growth rate (3) sales of the particular country in the fragmented markets before acquiring any new company .This allowed the company to manage its strategy through new acquisition and also allowed to maintain its culture strategically and efficiently.

Analysis

What accounts for Danaher’s success? Can this approach be replicated by other firms?

Danaher’s from its initiations pursued different strategy as compared to other investing firm.It acquired or merged with such companies that has strong growth rate and sales and opted in the fragmented market under the strong management stems with revenue of up to 1 billion in total.It opted the strategy of growth in Niche markets and thus acquired those firms that have niche foot print in the market. Such strategy differentiates Danaher from other companies, as other reinvesting firms merely focused on ailing firms that have been facing the declining revenues due to certain reason. Such opting of the growing firm become one of the reason of Danaher success in the market.

Danaher Corporation Harvard Case Solution & Analysis

In addition to this, the company adopted the lean structure and continuous improvement model as an organizational and business strategy.Such strategy allowed the company to continually invest in the people and processes to enhance the performance of the overall organization. Indoing so it develop the 4ps models (people, place, Process and Performance) to out threw the competitive position in the market. Such developed of kaizen model along with 4p model allowed the management streamlines its process and hence resulted in informed decision making and efficient performance in the market.

Moreover, the company developed an interactive, friendly and enthusiastic culture within the orization and developed such parameters which disseminated the same learning sent the acquired firm’s as well.Such sustainability and uniformity of the culture throughout the strategic group allowed the company to maintain its competitive edge and hence rendered as a factor of success for Danaher. In addition, while taking the stance on the culture, the company focused on bottom up strategy in which it focused to identify the problems that arose in the process delivery and not pointing the individual for the problem,such culture encouraged people/employees from the mistakes and hence improved the overall organization stance in the market.

Also, the company developed certain criteria to acquire the firms,such criteria included the growth, alliance of the business learnings and sales of the company in the market.It merely focused to bring the best into the acquired company by unleashing the unused capacity and human skills, rather changing the whole business module of the acquired firms. This feature gave Danaher a competitive edge in the market,since it is difficult for another firm to maintain such coherence throughout the model so effectively................

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