Danaher Business System

Questions:

1. Understand the key tenets (such as just-do-it) that an organization has to imbibe in order to institutionalize lean operating practices.

Any organization do not need to stop its improvement, need to fit into the customers’ demand as fast as it changes, find new different ways to get more effective work and more profit, as well as reduce the cost of production and losses in order to compete with other companies and organizations

1. Discuss the steps taken by Danaher to derive the full potential of DBS in both its existing subsidiaries as well as in its potential acquisitions.

Danaher had been buying out smaller companies with this they got more labor force and squeezing out greater efficiencies from them by deploying lean methods with the objective of reducing inventory levels and hastening the pace of production it helped to adapt to needs and wants of customers and do not lose too much if their demand changed. DBS enabled Danaher to take over companies and raise their efficiencies. It helped the company achieve tremendous growth with raising the efficiency company gets better profit and with good profit Danaher can buy more companies and grow even more

1. Discuss and debate the pros and cons of Danaher’s deliberate strategy to resort to inorganic growth.

Mostly inorganic growth arises due to merger or acquisition of other companies. Here I will put pluses and minuses which are following with this strategy from my point of view.

Pros:

• any goal can be obtained faster
• strategy is able to weaken the competition
• achieving of a synergistic effect
• way to new geographical markets
• quick purchase of market share

Cons:

• possibility of a problem with the staff of purchased company after the deal
• high risk in case of an incorrect assessment of the company and situation
• the strategy involves considerable financial costs

1. Explore the ways in which Danaher could maintain its sales growth momentum with the help of DBS and in the event of acquisition opportunities drying up.

 DHR operates in four segments:

• Professional Instrumentation (32.1% of Net Sales)

• Medical Technologies (27.2% of Net Sales)

• Industrial Technologies (28.6% of Net Sales)

• Tools & Components (12.1% of Net Sales)

In order to continue its sales growth in my opinion they need to develop the existing segments and expand the area of company for new ones.