Business Case Studies & Business Publications

Stryker Corporation

Hess, Edward D., E...

Case

Stryker Corporation

Hess, Edward D.; Eriksson, Cassy

S-0174 | Published August 25, 2010 | 17 pages Case

Collection: Darden School of Business

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Stryker is the story of how CEO John Brown built his company into a market leader using a simple strategy of growing earnings 20% a year. The strategy was supported by the values statement: "do not lie, cheat, or steal to do it." Stryker had an internal high-performance environment grown primarily through organic growth and by adding technology through small acquisitions. This case confronts Brown's succession and the issue of whether Stryker's 20% growth rule remains viable or whether it is starting to drive bad behavior.

How culture, structure, measurements, and rewards need to be aligned to drive growth producing behaviors; How management style and delegation impact keeping an entrepreneurial spirit in a big company; Chart an organic growth progression; How sole focus on top-line growth can lead to operational issues as a company grows; Decide on realistic growth expectations for a business; and Assess the risks of overly ambitious growth and to manage those risks.