Introduction
Minnesota medical devices company faces product quality problems and various litigations related to defective products. Additionally, the organization faces various ethical challenges in connection with product marketing and grants to Managing Directors. The major challenges facing the organization have negatively impacted on its performance due to damaged stock prices, low morale and damaged company reputation. Negative media publicity that has previously arisen from defective pacemakers has also affected the firms’ brand and market share. Founded fifty years ago, MMD is a publicly traded company in the New York stock exchange. The company grew from one billion sales in 1980 to fifteen billion in sales in the year 2009. However, currently, the largest business unit in the company records single digits in sales growth. In general, the company is facing lower profit margins and slower sales growth in a stable market environment. The problems have resulted to constantly declining stock prices compared to its peers. The overall sales growth is not pleasing and slowing to dangerous levels even as companies are continuously being challenged to be more strategic in their public relations efforts. On the other hand, medical devices companies are required to expectations and guidelines for quality in their products. Accordingly, an appropriate public relations function design is a vital tool and organizations require focusing on how they have positioned their public relations function. This paper establishes an effective public relations function design to be used to bolster Minnesota medical devices company’s brand. The aim of the public relations function will be a guide how the organization will handle its public relations to significant impact on performance, growth and profitability.
Situation analysis
SWOT analysis
Strength
One of the strength is that Minnesota medical devices company is in a fast growth industry that is faced with less competition. Founded fifty years ago, the company has secured a strong brand name in the medical equipment and supplies industry. The company also has a strategic advantage that result from economies of scale as it has the ability to operate in large scale. Diverse product portfolio: Minnesota, medical devices company, has a diverse product portfolio that can insulate against concentrated risks. The company has a range of products including pacemakers, repair, spinal, Neuro, Urology, Diabetes, medical imaging and drug delivery.
Weaknesses
Minnesota, medical devices company lacks stability in performance and growth. In 1980, the company recorded $ 1 billion in sales. In the year 2009, the company recorded $ 15 billion in sales. The company has shown a declining growth from 2006 despite adding business units on the previous units. Secondly, the company has Weak numbers across the net margin, operating margin, and gross margin compared to industry averages.
Additionally, a tarnished brand reputation has hurt Minnesota medical devices company in the eyes of consumers. The Tarnished Reputation is likely to have a long-term negative impact on this entity adding to its decreasing value. Such a reputation is a difficult qualitative factor to overcome and may require significant investment in brand management to overcome the challenge in the market.
Weak management that arises from influence by the family through special shares also affects the company’s performance and investors’ confidence.
Opportunities
The market for medical equipment and products is large and continues to grow. This provides an opportunity for Minnesota medical devices company to sell new products in emerging markets.
Threats
Mature markets poses a threat to the organization as customers’ needs and preferences have changed. The availability of substitute products from other manufacturers is also a challenge to the company. Mature markets are competitive and require Minnesota medical devices company to increase its market share which is expensive. Additionally, there are increasing government regulations in the health sector today. Fluctuating exchange rates have a negative impact on costs and revenue of firms.
Porter’s five forces
Threat of new entrants
The company operates in an attractive industry that has the low threat of competitors. High capital requirements needed to venture in the industry limits the threats of new entrants as firms must spend a considerable amount of money to invest in goods. High sunk cost is required by new entrants. The requirement to commit more money with no guarantee also discourages new entrants. Additionally, a strong brand name is critical in the industry. Competitors are required to engage in aggressive marketing to improve their brand value and effectively compete. This discourages new entrants. The nature of customers in this market is also a factor that discourages new entrants. Customers are loyal to existing brands, and new entrants have to spend resources building brands. These costs positively affect Minnesota medical devices company. The high learning curve and barriers to entry positively impact the company.
Competitive rivalry within the industry
The health equipment and supplies is a fast growth industry characterized by growing markets. In a slow-growing industry, the only way to acquire a market share is to steal it from your competitor. There are also relatively few competitors competing for the same customers and resources. However, the industry has experienced rapid technological changes to increase efficiency and decrease cost. Minnesota, medical devices company, will have to adjust to these changes to enhance its competitiveness.
Bargaining power of customers
Medical devices and supplies are important to customers. When customers in the health sector cherish a particular product, they pay more for the particular product. Additionally, customers have limited choices hence a positive impact on the company.
Bargaining power of suppliers
The health equipment and supplies industry are characterized by a low concentration of suppliers. The critical production inputs are similar which makes it easier to mix and match inputs thus reducing suppliers bargaining power. Suppliers, therefore, have limited bargaining power which positively affects Minnesota medical devices company.
Threat of substitute products
The company deals in a wide variety of products some of which have limited number of substitutes thus customers cannot easily find a variety of products. A limited number of substitutes are an advantage to the organization.
Mission for the public relations department
The public relations department will have several specialties designed to help Minnesota medical devices company to manage its relationships with key stakeholders. The business will capitalize on the public relations functions to improve its performance, expand its operations business, improve brand image and increase employee engagement. The Public Relations will have a very critical role to play in the organization. One of the top priority missions of the department will be to change and influences the organization’s status and reputation on how the public and media views it. The second mission will be to develop motivation, commitment and morale among employees to increase their productivity and input. The third mission will be to develop the necessary attitude, competence and appropriate work culture with the ultimate goals of creating and maintaining a bridge of good will and mutual understanding between the organization and different stakeholders.
The existence of a functional and well structured Public Relations Department in a company is very critical. Another fundamental mission of the public relations department will be to play the role of an intermediary between various departments and the employee and the top management. The public relations department will be responsible for the dissemination of the various policies and programs. The Public Relations department will also play the role of bridging the communication gap between the organization, customers, public, investors and other key stakeholders. Also, the public relations department will also try to build a good image.
The primary mission of the public relations department in the organization will be to create and maintain good relation with relevant internal as well external stakeholders. The department will take some initiative such as producing printed materials; audio-visual materials and filling the communication gap if any while disseminating information to the public. The creation of official channels of communication will be implemented in order to establish a steady flow of information covering all main aspects of the company’s operations. Also, a channel of communication between the senior person in charge of the various activities in the company and the public relations department will be created. Again, a pattern of procedures should be formulated to provide information from the divisions. Given that no two organizations are similar, the public relations procedures will vary in detail to suit the particular organization.
Key public relations goals
The key public relations goals are to improve investors’ relations, internal relations, media relations and research in order to increase profit margin by 15% within the first year.
Internal Relations
The public relations department aims to improve the internal relations by fostering communication between the organization and one of its main assets: its employees. The Internal relations specialists will help the company to establish employee feedback systems, manage organizational change and help create a leadership response. The department will prepare and report organizational news to employees through emails, websites and newsletters.
Investor Relations
One of the key goals will be to increase investor relations. This will have an impact on the performance of the company’s shares on the stock exchange. The public relations specialists in the public relations department will build and maintain communication between the Minnesota medical devices company and its investors and regulators.
Media Relations
One of the problems facing Minnesota medical equipment company is the management of relationships with the media. Media has the capacity to create and exaggerate a brand image to the detriment of the company. The public relations department can help the company refurbish and build a brand within the industry. Media relations professionals will build trust between Minnesota medical equipment company and the media by facilitating interview requests, providing timely and accurate information and supplying story ideas, pictures, and graphics. The public relations professionals will also train organization’s leaders to handle news interviews. Additionally, crisis planning will be conducted by media relations specialists. The department will work in collaboration with company leaders plan talking points and arrange logistics and monitor issues that may result in a communications crisis.
Research
The department will be involved in various research activities to allow the business to predict the success of its communications efforts and evaluate their impact. The PR professionals will use a range of tools, including focus groups, surveys, content analysis and interviews, to define a communication opportunity or challenges facing the company. The research will also be conducted to evaluate the impact of the organization’s media campaign.
Organizational chart
Minnesota, medical devices company, makes use of very limited public relations services despite having large internal public relations staff for both the company and the family. The external public relations for most business units are either fragmented or nonexistent except for the pacemaker unit. The company that operates globally requires a global public relations structure that fits within the larger organization to help provide the opportunity for success
Public Relations Managers
The public relations department of Minnesota medical equipment company will have a group of knowledgeable, experienced and expertise workforce. The group will be well coordinated from the top to the bottom to consistently adapt to the needs of the organization. The department will be headed by the Chief of the Department. The second in command will be the deputy chief. Below him will be the managers in various PR units to support the implementation of various activities to achieve the organizational goals and missions.
“Thumbnail” job descriptions. Internal/external objectives for the initial implementation period
The Public Relation is an important tool of modern management. However, the success of the Public Relations program is determined by the input and qualifications of the personnel entrusted with the job. The Public Relations manager is like a driver in the department. Similarly, a good Public Relations manager may not essentially have an understanding of the complete mechanics of the media. Managers will, therefore, have the assistance of public relations officers with vast knowledge in different areas to support their functions. But like a competent driver, the manager should know how to control his vehicle and get the maximum benefit from it.
The public relation manager will mainly be communicators. He will be responsible for communicating policies and ideas of the company to the public through different media such as the TV, press, film, radio and other types of media. The Public Relations manager will, therefore, be required to have experience in mass media operation and a thorough knowledge of the media to enable him to handle them effectively. One of the prerequisite for successful public relations is the skill of persuasive writing. The public relations manager will not only act as the source of information for the company but will also interpret the company’s official policy to the public.
The public relations manager will be associated with the decision-making of the company and its top management to enable him to conduct his responsibilities effectively. Thus, the Public relations manager will be under the immediate and direct control of the Chief Executive and not under an intermediary officer of the company. The reporting structure will give the manager ample scope to be in close liaison with the top executives and to deal with matters at the highest level. It will also enable him to be in close touch with the heads of other departments. The public relations manager will also strive to gain the confidence of top executives. The atmosphere of confidence and mutual trust is essential to conduct the duties and responsibilities successfully while safeguarding the interests of the management effectively. Another prime function of the public relations manager is the building of the right image for the company. The image of a business depends on the kind of relations they keep with the public and the functioning of its different departments. To effectively build the company’s image, the manager will also enhance his own image within and outside the company.
The manager will be required to establish and maintain close contact with the company he represents on one hand and the mass media on the other hand. In fact, he will be the immediate link between the company and the media. Additionally, he will receive reactions and queries from the media, and it is he who will communicate with them.
Responsibilities
The first responsibility will be to manage the relations with the public and the press. The managers will also be responsible for handling publications and financial relations. Thirdly, they will handle crisis situations and arrange take the responsibility of the annual report of the concern. They will also be responsible for arranging the press conferences, reception of the guests, take every possible step to build and boost the image of the company.
Qualifications
The Committee on Public Relations has some recommendations on the minimum qualifications for Public Relations officers. All managers will be required to be graduates in Public relations or journalism. They will be required to communicate effectively with different people at various levels inside and outside the company. They will also be required to have Capacity for unrelenting hard work and ability to handle different company and human problems. The ability to write and edit of news items, articles, features and experience of working in an advertising agency will be an added advantage. They should also have the ability to write commentaries and scripts for broadcasts and films; understanding and ability to make use of different media of mass communication, printed material, press, films, radio and audio-visual program. Institutional training in public relations will be a very desirable qualification. People’s and leadership skills will be required for the management position.
Some other qualifications will include essentially be a go-getter, generalize in terms of capabilities and a specialist in Public Relations responsibilities, Pleasing personality, Proficient in oral and written communication, initiative and drive and ability to communicate effectively.
References
Hamilton J, Byatt G. & Hodgkinson G. (2011) project management processes and tools to drive success.
Procter & Gamble Company (1983) Public Relations Guide: Featuring PR Tools, PR Techniques, how to Set Up a PR Seminar Procter & Gamble, Educational Services
Asbjoern Rolstadaas (2008) Applied Project Management Tapir Academic Press
Carolyn Morgan is the author of this paper. A senior editor at MeldaResearch.Com in legitimate essay writing service. If you need a similar paper you can place your order from.
