Codman & Shurtleff
Codman & Shurtleff, Inc
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Team 7
Week 9, September 26
Executive Summary:
Codman & Shurtleff is a subsidiary of Johnson & Johnson which supplied hospitals and surgeons worldwide with over 2,700 products for surgery. Codman is now facing a profit shortfall of two million. A series of actions was decided in order to recover the shortfall, while the decisions made were somehow not aligned with J&J’s group philosophy. Codman managers decided to cut budgets of R&D expenditure which might have negative effects on the long term performance of the firm. The management of Codman ought to choose a better way that has a positive effect on operations in the long run and use a formal process, “stage gate”, in new product development.
Table of Contents
Executive Summary 2
1. Introduction 4
2. Conclusion 4
3. Recommendations 5
4. Discussion 4.1. Analyze annual planning and control process 4.1.1. Short-term & long-term planning and control 6 4.1.2. Corporate-level & subsidiaries-level planning and control 6,7 4.2. Evaluating the planning and control system 4.2.1 Strength 7,8 4.2.2 Weakness 8 4.3. Innovation (Product Development) 8,9,10
5 References 11
6.Appendices 12
1. Introduction:
Codman & Shurtleff, Inc. was established by Thomas Codman in 1838 to design and fashion surgical equipments. After the acquisition of the company by Johnson & Johnson in 1964, Codman & Shurtleff operated as one of J&J's autonomous subsidiaries. It grew stably and successfully through decades.
The case started by focusing on the tentative actions, the management team at
[pic]
Team 7
Week 9, September 26
Executive Summary:
Codman & Shurtleff is a subsidiary of Johnson & Johnson which supplied hospitals and surgeons worldwide with over 2,700 products for surgery. Codman is now facing a profit shortfall of two million. A series of actions was decided in order to recover the shortfall, while the decisions made were somehow not aligned with J&J’s group philosophy. Codman managers decided to cut budgets of R&D expenditure which might have negative effects on the long term performance of the firm. The management of Codman ought to choose a better way that has a positive effect on operations in the long run and use a formal process, “stage gate”, in new product development.
Table of Contents
Executive Summary 2
1. Introduction 4
2. Conclusion 4
3. Recommendations 5
4. Discussion 4.1. Analyze annual planning and control process 4.1.1. Short-term & long-term planning and control 6 4.1.2. Corporate-level & subsidiaries-level planning and control 6,7 4.2. Evaluating the planning and control system 4.2.1 Strength 7,8 4.2.2 Weakness 8 4.3. Innovation (Product Development) 8,9,10
5 References 11
6.Appendices 12
1. Introduction:
Codman & Shurtleff, Inc. was established by Thomas Codman in 1838 to design and fashion surgical equipments. After the acquisition of the company by Johnson & Johnson in 1964, Codman & Shurtleff operated as one of J&J's autonomous subsidiaries. It grew stably and successfully through decades.
The case started by focusing on the tentative actions, the management team at
References: C. Akroyd. (2007), week 8 lecture slides: Management Control in Product Development, Auckland: University of Auckland. Bruns, William J., Accounting for Managers: Text and Cases. (2nd Ed.) Southwestern., 1998 R. Augustine, Planning and innovation in R&D (2001). Retrieved 18 September, 2007, from http://www.thehindubusinessline.com/businessline/2001/07/04/stories/040467au.html http://www.thehindubusinessline.com/businessline/2001/07/04/stories/040467au.htm R Simons (2000), Performance Measurement & Control Systems for Implementing Strategy, Upper Saddle River, New Jersey: Prentice Hall Wikipedia (2007), Research and development, Retrieved 18 September 2007, from http://en.wikipedia.org/wiki/Research_and_development Y. Li, L. Li, Y. Liu & L. Wang (2005), International Journal of Production Research, Vol