Northwell Inc. Case Study S.W.O.

Strengths
Claudia has strong relations with senior Mngt 25 years in business Canadian and US business: specializes in hospital/medical products Successful merger (Northwell & Medicheck) Reputation was very good at one time High quality source or products from Europes Claudia and Nathan are long time employees Claudia and Nathan bumped heads in the past and are able to work past that Business is 75% owned by 5 individuals that are directly involved Awards from recent years (Top 5 for quality) Good base- room to improve Virtual mall ability to communicate with customers Potential to reduce costs Other staff are excited Partnership with Medi-Check

Weakness
1 & years and failing Claudia has other responsibilities Unhappiness in marketing department Large staff turnover Short deadline (2 weeks) Merger difficulties One stop shopping (perhaps reduce to major selling items only) reduce over head Finger pointing due to sales decline (25% down to 8% a year ago Lack of resources for innovations Unrealistic expectations (30% growth) ROE of 18% exceeds others by 10% to 15% Head office in Dallas (possible disconnect)

Opportunities
Virtual malls ability to increase business Claudia has the opportunity to improve her resume Chance to get back lost business Locate high quality resources some where else beside Europe (perhaps cheaper) Bring in a cheaper generic brand to increase market Move manufacturing (outsource) Foreign market has increases 5% (more room to grow) R&D shifted to sales and marketing (chance to move back) Gave up new product innovations 5 years ago (opportunity to restart) Set up a customer call center 15% higher than competition Internet (technology) Help from sales and marketing Northwell could look into building the call center they previously discussed

Threats
Virtual malls competition 4-5 months behind schedule Pressure from Senior Mngt Loss of Mid west distribution Loss of good reputation Growth slowed 5 years ago (currently at 4%) Competition has caught up to Northwell regarding sales support Dissatisfied stock holders Replaced VP of sales & manufacturing / replaced president a year earlier 5 to 10 million dollars for malls budget Senior management is pleased but sees great risks (Medicheck) Resignation of staff up 15% (people are worried about losing their jobs) Loss of key employees (brain drain) Negative affect on profitability during past 8 years due to competitive pressures on price Nothwell sales and servicing became 15% higher than competitors. Customers didnt view differences in support and responsiveness.