Baxter to Spin Off Heart Care Unit

question 11

Essay

Baxter to Spin Off Heart Care Unit
Baxter International Inc. announced in late 1999 its intention to spin off its underperforming cardiovascular business, creating a new company that will specialize in treatments for heart disease. The new company will have 6000 employees worldwide and annual revenue in excess of $1 billion. The unit sells biological heart valves harvested from pigs and cows, catheters and other products used to monitor hearts during surgery, and heart-assist devices for patients awaiting surgery. Baxter conceded that they have been ''optimizing'' the cardiovascular business by not making the necessary investments to grow the business. In contrast, the unit's primary competitors, Guidant, Medtronic, and Boston Scientific, are spending more on research and investing more on start-up companies that are developing new technologies than is Baxter.
With the spin-off, the new company will have the financial resources that formerly had been siphoned off by the parent, to create an environment that will more directly encourage the speed and innovation necessary to compete effectively in this industry. The unit's stock will be used to provide additional incentive for key employees and to serve as a means of making future acquisitions of companies necessary to extend the unit's product offering.
-In your judgment,what did Baxter's management mean when they admitted that they had not been "optimizing" the cardiovascular business in recent years? Explain both the strategic and financial implications of this strategy.

Recognize the process and significance of secondary growth in plants.

Describe the adaptative features of plants for water conservation and photosynthesis.

Distinguish between primary and secondary plant structures and their development.

Relate plant cell types to their functions within the plant body.

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Definitions:

Cultural Differences

Variations in the norms, values, beliefs, and practices among people from different backgrounds or societies.

Empathy

The ability to understand and share the feelings of another person, allowing for better communication and interpersonal relationships.

Tolerance

The acceptance and open-mindedness towards differences in opinions, beliefs, and practices among individuals or groups.

Pluralism

A condition or system in which various groups, cultures, or individuals coexist within society respecting each other's differences.