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Siemens Medical Solutions: Strategic Turnaround
Describes how Siemens Medical Solutions (MED) accomplished a remarkable turnaround from a money-losing operation to one of Siemens' most profitable divisions. By late 1996, a challenging market environment in the health care industry as well as inefficiencies in the company's manufacturing, logistics, and sales/service processes had a negative impact on MED's profitability. Reacting to these challenges, CEO Reinhardt defined and implemented a comprehensive turnaround program centered around people, processes, and products. The case highlights the most important aspects of the company's turnaround and later expansion and provides an outlook for the company's future challenges and opportunities.