Publications
Publications
- June 2005
- HBS Case Collection
Growth and Profitability at Fresenius
By: Joel Podolny, Vincent Dessain, Monika Stachowiak and Anders Sjoman
Abstract
In March 2005, Mark Schneider, CEO of Fresenius, is considering the group's strategic and organizational future. The highly decentralized 7 billion euro German health care group is active in three different business units, with the largest, FMC AG, listed separately from the parent Fresenius AG and representing the lion's share of the company's revenue and profit. A decentralized approach had let the group units grow independently over the years, and Fresenius took pride in its adaptive, entrepreneurial spirit. Schneider, however, wonders whether the decentralized approach will allow the group to continue to grow in a coordinated and cost-conscious fashion. How should he combine the company's entrepreneurial and profit-oriented culture with any latent synergies in the existing organization? Although Fresenius looks healthy at the moment, Schneider knows that the company's future is tied to improved sales and profitability.
Keywords
Globalized Firms and Management; Diversification; Organizational Structure; Growth and Development Strategy; Health Industry; Germany
Citation
Podolny, Joel, Vincent Dessain, Monika Stachowiak, and Anders Sjoman. "Growth and Profitability at Fresenius." Harvard Business School Case 405-083, June 2005.