Strategic Map Analysis of Medtronic: Business Development Strategy

This report provides a strategic map analysis for Medtronic, a medical equipment manufacturer based in Ireland. It addresses the need for strategic alignment in a competitive industry, as highlighted by CEO Omar Ishrak and CFO Karen L. Parkhill. The strategic map focuses on four perspectives: financial, customer value, internal business processes, and learning and growth. Key financial targets include increasing net profit and revenue, while customer value initiatives aim to boost market share and customer satisfaction through loyalty programs. Internal process improvements involve training employees and enhancing product quality, with specific targets for manufacturing and quality ratings. Learning and growth strategies emphasize technical knowledge and skill development through training programs. The report assesses Medtronic's current business conduction, noting its strong revenue generation but highlighting areas for improvement, such as resource allocation for training and recruitment. The analysis concludes that while some strategies are in place, effective implementation of the entire strategic map is crucial for Medtronic's continued success.

Running head: STRATEGIC MAP ANALYSIS
Strategic Map Analysis
Name of the Student
Name of the University
Author Note

1STRATEGIC MAP ANALYSIS
Introduction:
The paper is focused in the elaboration of a designed strategic map for a chosen
organization in the form of Medtronic. The company operates in the medical equipment
manufacturing industry and is based in Ireland. As the industry is seen to be notably
populated with the considerable number of competitors, the need of the strategy map and the
alignment of the operational activities with the strategies of the organization is notably faced
by the Omar Ishrak, the chairman and Chief Executive Officer of the organization along
with Karen L. Parkhill, the Chief Financial Officer of the organization (Medtronic.com.
2019). The paper also identifies the logic behind the design of the strategy map and also
evaluates the business conduction of the organization to assess whether that is in alignment
with the designed strategy map or not.
Strategy Map:
Increase
Shareholder Value
Increase the
generation of profit
Financial
Customer
Value
Exceed the expectations
of customers
Increase the
customer loyalty
Internal Business
Process
Improvement in quality
of the products
Improve team
performances
Increase the
operational efficiency
Learning and
Growth
Increased training and
developmental activities
Recruitment of the
quality providing
employees

2STRATEGIC MAP ANALYSIS
(Map Courtesy: Designed by the author)

Running head: STRATEGIC MAP ANALYSIS
Perspectives Targets Initiatives Measures
Financial 4% increment on per year basis in
net profit.
8% increment in the generation of
the revenue in the target markets.
Improvement in the billing
operations.
Reduction in the operating cost of
the organization.
Through the effective evaluation of the
operating cost of the previous years and
the coming years.
Through verifying the billing
operations.
Customer
Value
5% increment in the market share
index.
7% increment in the customer
satisfaction index.
Create loyalty programmes for the
customers.
Enable the customers to achieve
the loyalty bonus.
Participation of the customers in the
loyalty programmes.
Number of the customers who achieved
the loyalty bonus.
Internal
Business
Process
Improvement in the manufacturing
of the products by 5% in each
quarter.
Improvement of the quality ratings
by 6%.
Conduction of the training sessions
for the employees of the
organization.
Introduction of the performance
bonuses.
The evaluation of the post training
reports along with the analysis of the
performances of the employees after the
training session.
With effective monitoring of the quality
standards and charts.
Learning
and Growth
Improve the technical knowledge of
the employees of the organization.
Improve the skills and competencies
of the employees.
Incorporation of the technical
knowledge to the new recruitments
of the organization.
Introduction of the intensive
training and developmental
activities for the improvement of
the skills and competencies of the
employees of the organization.
Through effective evaluation of
performances of the employees after the
training and development session.
The evaluation of the knowledge of the
employees regarding the manufacturing
of the products.

Running head: STRATEGIC MAP ANALYSIS
(Map Courtesy: Designed by the author)
Justification:
As mentioned earlier, the chosen organization is one of the market leader of the
medical device manufacturing industry. Hence it is pretty evident that the organization faces
significant amount of demand for the supply of the medical devices and along with that, the
importance of the absolute design of the devices is seen to be of great significance. Under
such situation, the importance of the effective strategic plan is seen to be notably important.
Mission and Vision:
The mission of the organization is to contribute the human welfare with the
application of the biomedical engineering in the process of research, design, manufacturing
and sales of the medical instruments and appliances in order to alleviate the pain along with
restoring and extending life (Medtronic.com. 2019).
The vision of the organizations is to develop the innovations and application of that
which have the potential to cover virtually all the human bodies (Medtronic.com. 2019).
The objectives of the organization is to make sure that they be able to provide the
required quality in the manufacturing of the products that they offer to the customers and
along with that, the incorporation of the desired accuracy is observed to be a major aim of
the organization (Medtronic.com. 2019).
One of the prime need of the chosen organization is the improved business
conduction in terms of the generation of the profit (Pramudita 2016). In the improvement of
the financial stability of the selected organization, the company needs to improve the billing
operations with a precise focus on the accuracy of including all the information and the cost
of the services (Quezada and López-Ospina 2014). Along with that, the selected

1STRATEGIC MAP ANALYSIS
organization needs to reduce the operational cost of the organization which will allow it to
improve the generation of the profit for the organization. The selected organization is must
have a target of increasing the net profit by 4% on per year basis and along with an
increment of 8% in the generation of revenue in the target market for improving their
financial condition. The verification of the billing operations along with the evaluation of
the financial reports for identifying the difference between operating cost of the previous
years and the coming years will be significant for the organization in improving the financial
aspect of their business.
According to the vision of the organization, the organization is determined to provide
optimum quality services to the customers. With a precise consideration at the customer
value perspective, the organization is expected to have a target of 5% increment in the
market share index and 7% increment in the customer satisfaction index. The organization is
expected to influence the customers towards participating in the loyalty programmes
initiated by the mentioned organization and along with that, the production of the loyalty
bonus to the customers for increasing their number of purchases will be crucial for the
organization in improving their business and the number of units sold (Burgartz and Krämer
2016). The success of the strategy is in need to be evaluated by the standards such as the rate
of participation of the customers in the loyalty programmes along with the effective
identification of the numbers of the customers who achieved the loyalty bonus.
In order to provide the optimum quality services to the customers of the organization
along with conducting their business operations with a precise focus on the shared values,
beliefs and integrity, the organization is in need to restructure their internal business
procedures (Osterwalder et al. 2014). For the improvement of the internal business
procedures, the selected organization is expected to train their employees so that they be
able to meet the developmental needs of the employees and enable them to perform in a

2STRATEGIC MAP ANALYSIS
better manner (Horkoff et al. 2014). Considering the Herzberg two factor theory, the
incorporation of a lucrative bonus will be significant for the chosen organization in
influencing their employees for improved performances (Alshmemri, Shahwan-Akl and
Maude 2017). With a precise focus on this, the organization must introduce a better
rewarding policy with the inclusion of the performances bonus for increasing the
productivity. The improvement in the internal business procedures can be evaluated with the
through verifying the post training reports along with the analysis of the performances of the
employees after the training session. Apart from this, the organization will be able to
evaluate the improvement or the progress in the performances of the employees with the
effective measurement in accordance to the quality standards and charts. The target for the
above mentioned activities in the internal business process perspective is to improve the
manufacturing of the products by 5% in each quarter along with the improving the quality
ratings by 6% on per year basis.
For the effective management of the business operations of the mentioned
organization in accordance to the mission and the vision statement of the organization, the
learning and the growth of the employees is seen to be significantly important. In order to
meet the developmental needs of the employees which will enable the employees of the
organization to serve as per the desired quality (Pearson 2016). The organization is in need
to provide the technical knowledge to the employees of the organization and at the same
time, the intensive practical training will be ideal for the employees to improve their skills
and competencies of manufacturing (Kong 2014). The success of the company’s initiative of
meeting the developmental needs of the employees is expected to be evaluated by the
assessment of the performances of the employees after the completion of the training and the
developmental activities.

3STRATEGIC MAP ANALYSIS
Comment:
As mentioned, the organization is one of the market leader of the concerned industry
and that is pretty evident with the increased generation of the profit of the organization. The
organization is seen to generate 29.71 billion US dollars as the revenue in the financial year
2016-17 and along with that, the financial report of the organization claimed that the
company generated 5.33 billion US dollars as the operating income in the same financial
year (Medtronic.com. 2019). Hence it is pretty visible that the organization is focused in the
generation of the increased revenue. In order to achieve that the organization is in need to
implement the strategic plan to us their resources in a better manner and the limit the
operational cost of the organization which it is unable to conduct.
However, the generation of value which is seen to be a significant part of the
strategic plan is notably achieved by the organization and that is visible through the
objectives and the implementation of the mission statement of the organisation. The
organization is seen to spend on the conduction of the training and the developmental
activities, however the sum of the investment is seen to be significantly less compared to the
desired to achieve the desired improvement in the quality of the products and the after sales
services of the products (Medtronic.com. 2019). Apart from this, the organization is in need
to focus on the point of effective recruitment of the skilled employees in order to make sure
that they be able to increase the work rate for the increment in the production and the
accuracy in the manufacturing of the products in accordance to the absolute design of the
products.
Conclusion:

4STRATEGIC MAP ANALYSIS
On a concluding note, the designed strategic plan reflects four perspectives which are
significantly important for the organization. However some of the strategies are observed to
be well in place for the organization whereas, majority of the strategies are seen to be in
need of implementation. Hence the success of the organization is seen to be dependent on
the effective implementation or the strategies mentioned in the map.

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References:
Alshmemri, M., Shahwan-Akl, L. and Maude, P., 2017. Herzberg’s two-factor theory. Life
Science Journal, 14(5), pp.12-16.
Burgartz, T. and Krämer, A., 2016. Measures to Understand and Control Customer
Relationship and Loyalty. In Managing in a VUCA World (pp. 99-114). Springer, Cham.
Horkoff, J., Barone, D., Jiang, L., Yu, E., Amyot, D., Borgida, A. and Mylopoulos, J., 2014.
Strategic business modeling: representation and reasoning. Software & Systems Modeling,
13(3), pp.1015-1041.
Kong, S.C., 2014. Developing information literacy and critical thinking skills through
domain knowledge learning in digital classrooms: An experience of practicing flipped
classroom strategy. Computers & Education, 78, pp.160-173.
Medtronic.com. 2019. Medical Technology, Services, and Solutions Global Leader. [online]
Available at: https://www.medtronic.com/us-en/index.html
Osterwalder, A., Pigneur, Y., Bernarda, G. and Smith, A., 2014. Value proposition design:
How to create products and services customers want. John Wiley & Sons.
Pearson, S., 2016. Building brands directly: creating business value from customer
relationships. Springer.
Pramudita, C.D., 2016. The Balanced Scorecard as Strategic Controlling Instrument.
Introducing the Indicators-based BSC for Implementation of a Corporate Strategy from
Four Different Perspectives. Anchor Academic Publishing.
Quezada, L.E. and López-Ospina, H.A., 2014. A method for designing a strategy map using
AHP and linear programming. International Journal of Production Economics, 158, pp.244-
255.

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