Danaher Business System: Lean Thinking and Strategy

            
 
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Case Details:

Case Code : OPER108
Case Length : 25 Pages
Period : 1987-2013
Organization : Danaher Corporation
Pub Date : 2013
Teaching Note :Not Available
Countries : US; Global
Industry : Diversified

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Background Note

Danaher was a conglomerate operating worldwide that designed, produced, and sold various lines of industrial and consumer products classified into five strategic segments — Test & Measurement, Environmental, Life Sciences & Diagnostics, Dental, and, Industrial Technologies. By 2007, Danaher had around 200 production and distribution locations across the world. From 1984 till February 2013, Danaher had taken over more than 400 companies. As of March 2013, the Danaher group had head offices in seven countries; it had its manufacturing and research bases globally and its 63,000 associates across the globe served clients in over 125 countries. For the year ended December 31, 2012, Danaher had generated sales of US$18.26 billion and net earnings of US$ 2.39 billion .

Operations Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

Danaher was established by brothers Mitchell Rales (Mitchell) and Steven Rales (Steven) in 1982. Mitchell and Steven quit their father’s real estate business in 1979, and began Equity Group Holdings by purchasing small manufacturing companies such as Western Pacific Industries.

They took over an almost bankrupt real estate investment trust and put it together with the other manufacturing companies to establish Danaher.

Steven and Mitchell took on huge debts, resolving to set up an industrial enterprise in the faith that robust, industrial brands would act as sturdy bases that would help the company expand. They employed their deal-making abilities and their knack for identifying hidden efficiencies to profit out of regular brick-and-mortar businesses.

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