Medical Device Contract Manufacturings Overall Corporate Strategy

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The MDCM, Inc. is a US-based and FDA-registered organization which had nineteen foreign subsidiaries across the globe as of 2002. The company possessed a large number of skilled and efficient employees and it assisted the firm to win different industry awards for product quality. Despite these potential internal strengths, the company had been struggling with the fifth consecutive quarterly loss for the second quarter of 2002. This paper will define the MDCM’s overall corporate strategy, the business environment in which the firm operates, and related high level IT objectives.
The Accenture IT governance model includes four distinct IT infrastructures such as efficient and predictable operators, information integrators, responsive solution providers, and new capability enablers. It is clear that the MDCM falls under the category of new capability enablers. The Accenture IT governance model states that organizations that operate as new capability enablers are characterized with a higher rate of organizational change. In addition, these organizations compete on product or service differentiation rather than on cost. New capability enablers generally have the capacity to meet rapidly changing business practices and requirements as they are flexible to market transitions. Such firms vehemently try to develop innovative IT solutions delivering first-mover advantages to managements as their major goal. For this purpose, they particularly target on their IT investments which add value to flexible capabilities that would produce bottom-line results. The case study indicates that business acquisition is one of the major global expansion strategies of the organization. As Jeffery and Norton (2006) point out, MDCM allowed the acquired companies to operate freely and to serve their local customers better way. The case writers also reflect that the company had no centralized IT system to integrate the business operations of all subsidiaries (p.3). The company gave great emphasis on customer tastes and specifications and offered differentiated services to different market segments.