Project Hercules = Big Job Cuts

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Anonymous said:
I do not have a dog in that fight but as an investor who comes on these boards to try and find some information I can use. A lot of rumors and wishful thinking, but in reality you should study the thinking and history of the BCG. They are the ones who are making the recommendations. Thought this was interesting with regard to BCG Experience Curve and
Strategic consequences of the effect.
"The BCG strategists examined the consequences of the experience effect for businesses. They concluded that because relatively low cost of operations is a very powerful strategic advantage, firms should capitalize on these learning and experience effects. [6] The reasoning is increased activity leads to increased learning, which leads to lower costs, which can lead to lower prices, which can lead to increased market share, which can lead to increased profitability and market dominance. According to BCG, the most effective business strategy was one of striving for market dominance in this way. This was particularly true when a firm had an early leadership in market share. It was claimed that if you cannot get enough market share to be competitive, you should get out of that business and concentrate your resources where you can take advantage of experience effects and gain dominant market share. The BCG strategists developed product portfolio techniques like the BCG Matrix (in part) to manage this strategy.
Today we recognize that there are other strategies that are just as effective as cost leadership so we need not limit ourselves to this one path.[citation needed] See for example Porter generic strategies which talks about product differentiation and focused market segmentation as two alternatives to cost leadership.
One consequence of the experience curve effect is that cost savings should be passed on as price decreases rather than kept as profit margin increases.[citation needed] The BCG strategists felt that maintaining a relatively high price, although very profitable in the short run, spelled disaster for the strategy in the long run. They felt that it encouraged competitors to enter the market, triggering a steep price decline and a competitive shakeout. If prices were reduced as unit costs fell (due to experience curve effects), then competitive entry would be discouraged and one's market share maintained. Using this strategy, you could always stay one step ahead of new or existing rivals." If say EBT and EMID both have serious market potential to dominate, which has already been established then you can either reduce cost by cutting a boatload of sales reps or simply cut higher income managers and higher paid sales reps in both divisions. Why not just higher cheaper alternatives, limit commissions. Do this to Lessen the cost of the product to gain higher market share. Bottom feeders if you will. Should be interesting.
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WOW!! You go and take one MBA course and you're suddenly Tim Geithner's little brother. Let me put this in terms you'll understand. Our markets are dictated by Innovation and adoption. We're looking at the horizon and seeing diminished positions in commodity markets we once dominated. The strategy is acquisition of market leading technologies that are very specialized, and trying like hell to reduce our reliance and exposure to the certain losses we're facing in our core businesses. It's simple you and BCG can suggest there's and answer, but Kodak didn't go south because it lacked a dominant position in the marketplace, it went south because technology surpassed it.
 






You must be one of the higher paid Reps at Covidien. Let me lay it out for you in terms you can understand. The medical world is about to become McDonalds dollar menu. Everybody will be able to afford and receive the healthcare they want. Hospitals and Doctors offices are about to become the DMV. Hospitals will be concerned with low cost as the marketing will almost no longer be necessary. Lowest price points will rule the day. Turn and burn operations. Speaking of McDonalds you might want to get your resume updated, sounds like you will be in search of work.
 












Regardless of which argument you want to go with, the fact of the matter is that changes are coming and you either are getting on board or leaving the company. Like it or not, Covidien is not the same company we used to work for and they have no intention of running it that way.
 






Wow I don't know what to say here. I guess that we all have the same concerns. I wish that we could see into the future but we can not. I would bet that out of all of the rumors some are true and already in place. So I wonder should we be looking for jobs or should we stay put? From my understanding other companies are going through the same thing so if we all jump ship will we be jumping into even deeper water?
 






Anonymous said:
Wow I don't know what to say here. I guess that we all have the same concerns. I wish that we could see into the future but we can not. I would bet that out of all of the rumors some are true and already in place. So I wonder should we be looking for jobs or should we stay put? From my understanding other companies are going through the same thing so if we all jump ship will we be jumping into even deeper water?
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I've been here a long time and have seen lots of changes. At the end of the day, it's always worked out for the best so I'm staying put.
i
 






The successful ones will have no worries. The cities where there is way to many, better make sure you are beating plan. How many non revenue generating people are there in the company??? Just a thought.
 












Anonymous said:
You must be one of the higher paid Reps at Covidien. Let me lay it out for you in terms you can understand. The medical world is about to become McDonalds dollar menu. Everybody will be able to afford and receive the healthcare they want. Hospitals and Doctors offices are about to become the DMV. Hospitals will be concerned with low cost as the marketing will almost no longer be necessary. Lowest price points will rule the day. Turn and burn operations. Speaking of McDonalds you might want to get your resume updated, sounds like you will be in search of work.
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Well Said!
 






1/3 of sales force to be eliminated. With yesterday's announcement there is no need to keep all this weight. All is targeted at the sales force. The main fous is on combining EMID and EBD. If you are an EMID rep with an overlap EBD rep in the area you are toast.
 






Anonymous said:
1/3 of sales force to be eliminated. With yesterday's announcement there is no need to keep all this weight. All is targeted at the sales force. The main fous is on combining EMID and EBD. If you are an EMID rep with an overlap EBD rep in the area you are toast.
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Every emid rep has a ebd rep in their territory, youre a damn idiot.
 


















Anonymous said:
R&D here. Rumors are at least 15% cut in staff for us. People are also jumping ship. Already seeing people cut in support positions (security, maintenance, etc).
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Support positions getting cut? Sorry, I'm late to this party but I am in customer service and haven't heard anything. When will all this be decided?
 












Anonymous said:
It has already been decided. Customer service is going to be outsourced to Bangladesh.
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Somebody has to pay for that ugly ass sign at fenway...might as well be you. It certainly will not be management. The cash spent on that could keep hundreds of people employed. What a waste. It's not like thousands of people going to a ballgame are going to run out and buy something from covidien. It's all so upper management can feel like bigshots.
 






Anonymous said:
Somebody has to pay for that ugly ass sign at fenway...might as well be you. It certainly will not be management. The cash spent on that could keep hundreds of people employed. What a waste. It's not like thousands of people going to a ballgame are going to run out and buy something from covidien. It's all so upper management can feel like bigshots.
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Hey, that ballpark presence did wonders for Boston Scientific!
 






Well said...bloated egos, especially within the Surgical Solutions division.


Anonymous said:
Somebody has to pay for that ugly ass sign at fenway...might as well be you. It certainly will not be management. The cash spent on that could keep hundreds of people employed. What a waste. It's not like thousands of people going to a ballgame are going to run out and buy something from covidien. It's all so upper management can feel like bigshots.
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