Case Study-Sydney IVF

Case Study-Sydney IVF

Sydney IVF’s Business Strategy

The business strategy for Sydney is the differentiation of products and services. Its strategy is to position itself as the best provider of lab-based fertility services. The company differentiates its products by investing in Research and Development in order to offer the best services for its patients. The company engaged in research-based innovation aimed at providing the best services to the patients. It is through the provision of quality services that made Sydney-IVF charge premium prices for its products. The customers prefer the services from this company more than from other competing organization because of the interest in continuously improving its services. After thye introduction of the new culture medium in 1996, the company’s performance improved dramatically and started recording high profits that were incomparable to their competitors. The company started advertising its success rate and was the first company in Australia to take such a bold move. In 2005, the company recorded similar success rate as clinics that were transferring two embryos to the uterus. 68% of women under 38 got babies from one egg retrieval.

The company focuses on science-based knowledge where it has to understand all the technical aspects of its operations. For instance, the culture medium used by this company provides the nucleic acid required for the growth of embryos. The effectiveness of this culture medium has contributed to its export to more than 50 countries. It dominates the market in Scandinavia and it is the market leader in Japan.

The company has adopted corporate governance standards that have enabled it to position for long-term profitable growth.  In addition, the company has independent chairman and directors who have been overseeing the management practices.

The company has a strong ethical dimension that is facilitated by an independent ethics committee. This committee also functions as an institutional review board (IRB) and is tasked to develop formal ethical policy for the company. All the members of this committee are committed towards the success of the company and would rather resign than allow something to go wrong.

The company strives to provide reproductive services to the community. It has the responsibility of forming families that are acceptable in the society. To achieve this, the company promotes honesty and transparency in all its operations.

How the Strategy of the Stem Cell Business is Different

The strategy of the stem cell business is to develop stem cells for tissue regeneration and transplantation. The company also uses stem cells as a drug discovery tool. This strategy is maintained by the exploitation of the genetic embryo testing program.

The stem cell company has avoided using stem cells for toxicity testing since it requires a lot of resources to initiate. The managers at the stem cell business have established a three-year goal for the production of disease-based biological assays that are required in the pharmaceutical industry. The bioassays give scientific guidelines that are based on experimental methods that illustrate the effects of drugs on living organisms. Another strategy to be employed by the stem cell company is to establish stem cell banks and to automate the genetic testing of stem cells.


Robert Jansen’s Theory of Motivation/

According to Jansen, employees in the two businesses are motivated by professionalism. All the employees including the nurses, scientists, and the support staff, do their jobs without receiving bonuses for motivation.

All employees working in Sydney IVF are motivated by the overall goal of getting better results. This makes the employees to work tireless without expecting any financial rewards. This theory of motivation works well with organizations where quality is required. When employees are motivated with bonuses or other financial gains, they tend to relax and may be rebellious when such rewards are not given. The type of motivation described by Jansen is intrinsic motivation where employees are encouraged to have a positive attitude in order to achieve positive results. Good performance by the company motivates employees to work harder since success is attributed to all stakeholders.

Major Risks Associated with the Two Businesses

Sydney IVF, the finance area faces the risk of fraud and misrepresentation of financial reports. The company employs qualified personnel in all its departments and pays particular attention to the finance department. The financial risk of fraud should be controlled because it can lead to huge losses to the company. This risk cannot be ignored since the company is expanding its operations to many countries. The expansion strategy and the increase on the number of customers has led to creased profits and hence increasing the risk of fraud and misappropriation of funds.

In the laboratory, the Sydney IVF is faced with the risk of mixing up embryos which can lead to the transferring of wrong embryos to patients.

In the genetics area, Sydney IVF faces the risk misdiagnosis and missing abnormally. This can lead to providing wrong services to the patients. In extreme circumstances, misdiagnosis may cause death of the embryos or the patients if it’s not noted in time.

The Stem Cell Company is faced with the reputational risks due to the strict regulations enforced by governments. The licensing requirements are very strict and a breach can lead to an imprisonment of up to five years. This makes the employees to be keen while handling laboratory procedures. All the other risks are similar to the risks associated with the Sydney IVF.

How Jansen Manages These Risks

To deal with the risk of mixing up embryos, the Sydney IVF applies procedures that make it impossible to switch an egg or sperm. This is done by the implementation of a policy that does not allow reproductive cells from more than one couple to be in the workplace at the same time.  The company therefore trains its employees to be extremely cautious while handling the embryos. In addition, the management employs a policy of transparency where employees are encouraged to report any technical mistake that my lead to dissatisfaction of patients. They are also encouraged to approach their managers whenever they have significant concerns.

To manage the risk of misdiagnosis, the Sydney IVF employs highly trained doctors but the risk cannot be eliminated fully. Employees are also advised to follow all the set procedures while serving patients. In handling the reputational risk at the Stem Cell Company, the management ensures that all the licensing requirements are met. All embryos are tracked at each stage from donation to egg retrieval and when they are used in experimental projects. Regular reports are submitted to a regulatory body indicating the number of embryos produced by the company.

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