Managing Innovation at Nypro Incorporation Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Managing Innovation at Nypro Incorporation

Introduction:

Nypro Incorporation has built its reputation as one of the largest companies in terms of injection molder of precision parts plants. The company has its operations in more than 21 countries around the globe. The plastic injection molding industry had been populated by low value-added and smaller molders historically. In the molding industry, anybody who knows how to handle a molding machine and afford to setup a molding machine can easily run the molding business. Gordon Lankton, the general manager of the company started Nypro Inc. as a small molder company in 1962. Lankton has changed the overall company’s strategy from producing small-scale plastics to large-scale molding jobs in response to technologically advance and progressive customers.

The company is committed to providing customer development support to its customers and obligated to deliver products as per the customer expectation. In addition to that, the company is also committed to delivering the products on time. The company has made a strategy to offer same capabilities to each and every plant worldwide. Moreover, the customers of the company are multinational global companies that have worldwide sourcing requirements.

The business is categorized into three divisions that are health-care, electronics/ communications and customer/ industrial. In addition to that, the company is strategically aligned with customers’ base i.e. they are focusing on building their plants near customers in the vital markets. The structure of the company is highly de-centralized, and the company is struggling for uniform world class premiere technology at all the plants worldwide.

Issues Identification:

The plastic injecting molding industry was facing a shifting basis of competition that was speed and variety in the future. Additionally, the G.M of the company, Lankton perceived and found a new market for Nypro Inc. and he was considering that how and where to disseminate the revolutionary molding machine all over the company. Along with that, the company was facing issues and challenges of trying to be unique in terms of product and innovative in terms of strategy along with keeping consistency in all the plants globally.

How does the internal market for innovation at Nypro function?

Internal market at Nypro Inc. comprises of various divisions that are willing to work independently that in turn lead the company towards the best manufacturing plant. In order to improve the productivity and enhance innovation in plants on a regular basis, the management of the company is engaged in offering stock options to each independent plant of the company. The internal market place for innovation and invention at Nypro Inc. is also engaged in constantly making improvements in the overall management system of the company that in turn improves the plant and eventually become progress for the company.

Furthermore, the company has also created internal competitions among the plants of the company that motivates every plant to make progress and out-beat the other one. Internal competition results in the elimination of stagnation and increases satisfaction and complacency among the employees. The president of the company, Brian Jones proclaims to the top plants of the company that the market place is very competitive within the company thus; each plant has to put their extra efforts and ideas for innovation to fight in opposition to each other. It has been evident from many examples that ideas that are good and innovative are snapped up quickly. On the other hand, nobody is ever willing to select the idea that is traditional and mediocre.

It is obvious that the management at Nypro Inc. is willing to see the improvement and efficiency in the production through harnessing and motivating employee spirits and morale. The internal competition within the company is geared up by money and it is the best possible way through which the management can boost and encourage employees’ trust and loyalty. In addition to that, it will generate a sense of innovation among the employees as well. In explaining five forces model, Michael Porter explained that the rivalry among the contenders reveals the concentration of competition along with that, it also provides the foundation on which the competition will be held.

The desire for innovation and profitability at Nypro Inc. was further continued, accelerated and increased the desire to be the best among all the plants within the company. The employees working in each plant are highly motivated and extremely willing to give their best performance in the desire of receiving offered stock options. Productivity, growth and profitability of the business is highly dependent on the employees of the organization and Nypro Inc. is in continuous procedure to make their employees motivated that was seeking ways to improve the overall company’s progress and development...........................

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