Company Background Of Abc Medical Devices

845 WordsJun 7, 20154 Pages
Company Background ABC Medical Devices is currently the #2 supplier of artificial joints in the Northwest. They have been in business 76 years, and have seen product development and sales plateau in the last 10 years. Six months ago, they purchased XYZ, a much smaller competitor in the same field. XYZ has only been in business for 5 years, but has earned a reputation for innovation and rapid product development. They have had trouble breaking into the market, though, because physicians are reluctant to work with such a young company. At the urging of their Board of Directors, senior leaders at ABC approached XYZ. The conditions of the acquisition have resulted in some restructuring. ABC’s senior leadership has retained their positions; the CEO of XYZ has been named the Head of Product Development, a cabinet level position. The rest of the XYZ leadership team has been retained to complete the Product Development Division. ABC’s former Product Development leadership team accepted an early retirement package. ABC and XYZ employees have been blended into their respective departments. The leaders have pledged not to lay off any employees, but to gradually reduce staffing levels through attrition. The employees have not easily merged. Changes brought about by the merger have resulted in 10% of the workforce choosing to leave the company. Unfortunately, some of the most reliable and productive workers have left, and others are expressing their dissatisfaction with the new working

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