Sydney IVF, a research-based Vitro fertilization and stem cell company based in Australia, was founded by Drs. Robert Jansen and Jock Anderson in 1986. This case study evaluates Sydney IVF's strategy implementation and risk management decisions. Over time, the company has developed and employed novel technologies in their leadership role as it continuously faces the risks of the business being engaged in artificial fertilization. Other challenges the company also faced were the political, ethical, and business risks that come with being engaged in the lab-based fertility field. As leverage, the company implemented safeguards such as an ethics committee and a "whistleblower" system designed for employees involved with the company. CEO Robert Jansen hoped still to develop the Stem Cell Company. But with the challenges and risks involved, Jansen must come up with a safeguard against these risks but, at the same time, strive for the company's growth.
Robert L. Simons; Kathryn Rosenberg; Natalie Kindred
Harvard Business Review (109017-PDF-ENG)
January 26, 2009
Case questions answered:
- Describe Sydney IVF’s business strategy: What are the main goals? Who is the primary customer? What drives innovation?
- How is the strategy for Stem Cell Business different?
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Case answers for Sydney IVF: Stem Cell Research
1.) Describe Sydney IVF’s business strategy: What are the main goals? Who is the primary customer? What drives innovation?
Following the fact of limited capacity within hospitals to accept additional patients for the Vitro fertilization procedure, the business idea and model of Sydney IVF (IVF) was created. IVF’s strategy rests on the internal notion of being the best lab-based fertility provider, defined by two main dimensions:
Firstly, IVF wants to be outstanding in science-based technical knowledge, which eventually leads to the needed research-based and pacesetting innovations. Clearly, the goal of Sydney IVF was to improve the current processes and technologies of fertilization by conducting research, e.g. the first development of a portable incubator to grow embryos shaped their business model.
Secondly, the relationship with the doctor’s patients should be honest and transparent. In addition to the two main factors, a structured and comprehensive description of the business processes with clear tasks and responsibilities is a crucial component within the business model, e.g. a clear corporate governance structure and an institutional review board. Sydney IVF does not only want to grow nationally in Australia but also want to grow internationally, mainly through joint ventures and partnerships.
Patients cannot come to Sydney IVF directly but have to be brought to IVF by their physician. Therefore, whereas the patients can be described as the end consumer, the independent doctors are the ones that…