Ben Creed Shijia Sheng Shaka Dickerson Amanda Reece Elaine Williams Melissa Work CRITERIA Financial Conditions • Financial Metrics Value Creation Model • Revenue Flow Chart Internal/Cultural • Career Development • Benefit Package External Environment • SWOT Analysis • PEST Analysis GE or ISRG? GE > ISRG Finance GE < ISRG GE = ISRG GE > ISRG Culture GE < ISRG GE = ISRG GE > ISRG GE Environment GE < ISRG ISRG DECISION TREE Financial Metrics the What and the Why… Financial Metrics Net Profit Margin – shows how much out of every sales dollar a company keeps after everything else has been paid for – employees, vendors, lenders, etc. A measure of profitability Current Ratio – tells lenders and investors a company’s ability to meet its financial obligations A measure of liquidity General Electric Intuitive Surgical Current Ratio Compared to Industry and Top Competitors General Electric Intuitive Surgical Financial Metrics Return on Invested Capital (ROIC) – shows how well a management team generates operating profits vs. the amount of money they use to generate those profits A measure of profitability Revenue Growth – A relative measure of how fast a company’s business is expanding. Tracking revenue over time can help identify increases and decreases in a company’s sales. Return on Invested Capital Compared to Industry and Top Competitors General Electric Intuitive Surgical General Electric Earnings Compared to Conglomerates Industry - 5 years to date Intuitive Surgical Earnings Compared to Health Care Industry - 5 years to date General Electric Intuitive Surgical Financial Metrics Heat Map Value Creation Model Partners Consumers Philanthropy Shareowners CUSTOMER CLIENT Organic Growth Solve People Focused Build CORE VALUE Products / Service Leadership Program EMPLOYEE PROCESS Diversification Reputation Technologies R&D Technical Innovation Benefit Package Revenue Flow Chart Customers Partners Philanthropy Cash Earnings Return Marketing Product/Service R&D Shareowners Budget Assets Infrastructure Dividends Reconstructing Payroll Benefits Training Government Employees Revenue Flow Related Main Stakeholders SWOT S W O T Diversified Business Innovative Technologies Brand Value Environmental Awareness Strong R&D Leadership Program SWOT S W O T Senior Management Unsuccessful Asian Markets Low Stock Price 4th Largest Producer of Pollution SWOT S W O T Governmental Support Takeover & Merger Corporate Social Responsibility Global Market Growth in Aviation Industry SWOT S W O T Rules & Regulations Extra Competition & Price Wars Challenges in Economic Recession Period PEST POLITICAL • Tax systems and regulations • Different business environment SOCIAL • Culture challenges influencing corporate culture ECONOMIC • Deflation & inflation • Exchange rates TECH • Varied rate of technology advancement Value Creation Model Surgeons Consumers Hospitals Shareowners CUSTOMER / CLIENT Organic Growth People Focused Efficacy NonInvasivenes s Products / Maintenance / Training Compensation EMPLOYEE PROCESS Growth Reputation Research Grants Partnerships Technical Innovation Benefit Package Revenue Flow Chart Health Insurance Providers Patients Surgeons / Hospitals Researchers Cash Earnings Return Training Product/Service Marketing Assets Budget Shareholders Stock Prices R&D Payroll Benefits Employees Revenue Flow Related Main Stakeholders SWOT S W O T First-Mover Advantage High Entry Barriers Brand Strength Near-Monopoly in Technologies High Switching Costs SWOT S W O T Big-ticket Purchases High Cost Rely Heavily on R&D Lack of Diversification SWOT S W O T Global Growth Domestic Growth Procedure Growth SWOT S W O T Legal Liability Rules & Regulations Imitators Development of Alternative Solutions Price of Raw Materials PEST POLITICAL ECONOMIC • Health care bill • International health care laws • Exchange rates • Hospital affordability SOCIAL TECH • People are getting older and sicker • Competition for experienced hires • Social acceptance of robotic surgery • Patents • Advancement in robotics Summary Benefits for Employees • • • • Health Ahead Program Income Protection Retirement Insurance Leadership Development Training Corporate Social Responsibility • • • • Philanthropy into Global Initiatives Public Policy Influence Investment Into Alternative Energy Employee Volunteerism Benefits for Employees • • • • • Comprehensive Family Health Care Benefits Income Protection Retirement Programs Incentive Programs On-site Services Corporate Social Responsibility • • • Supports Local Fundraising Efforts Volunteerism Invest in Effective Charitable Programs Culture Culture • • • • • • • • Building People Leadership Development Work Environment Improved Diversity Fast Paced Results-Driven Hard Work (long hours) Making a difference On The Flipside Top-notch professional training and development Good start for younger employees Good company reputation Various industries to work in Global reach More secure career route Attractive salary and stock options Relatively small company = more individual impact See tangible customer results from your work Excitement of being a part of something on the rise