Taking Surgery Beyond The Limits Of

The Human Hand

Imagination At Work

GE or ISRG ?Ben Creed Shaka Dickerson Amanda Reece Shijia Sheng Elaine Williams Melissa Work

CRITERIA

Internal/Cultural • Career Development• Benefit Package

External Environment• SWOT Analysis• PEST Analysis

Financial Conditions• Financial Metrics

Value Creation Model• Revenue Flow Chart

DECISION TREE

GE orISRG?

Finance

Culture

Environment

GE ISRG

GE > ISRG GE < ISRG

GE > ISRG GE < ISRG

GE > ISRG GE < ISRG

GE = ISRG

GE = ISRG

the What and the Why…

Financial Metrics

Financial Metrics

Net Profit Margin – shows how much out of every sales dollar a company keeps after everything else has been paid for – employees, vendors, lenders, etc.

A measure of profitability

Current Ratio – tells lenders and investors a company’s ability to meet its financial obligations

A measure of liquidity

General Electric

Intuitive Surgical

Current Ratio Compared to Industry and Top Competitors

General Electric Intuitive Surgical

Financial Metrics

Return on Invested Capital (ROIC) – shows how well a management team generates operating profits vs. the amount of money they use to generate those profits

A measure of profitability

Revenue Growth – A relative measure of how fast a company’s business is expanding. Tracking revenue over time can help identify increases and decreases in a company’s sales.

Return on Invested Capital Compared to Industry and Top Competitors

General Electric Intuitive Surgical

General Electric Earnings

Compared to Conglomerates Industry - 5 years to date

Intuitive Surgical Earnings

Compared to Health Care Industry - 5 years to date

General Electric

Intuitive Surgical

Financial Metrics

Heat Map

CORE VALUE

Build

Imagine

Lead

Solve

LeadBuild

CUSTOMERCLIENT

PROCESS EMPLOYEE

Products / Service

Technologies

Reputation

R & D

Benefit Package

Leadership Program

Diversification

Shareowners

ConsumersPartners

Philanthropy

Organic Growth

TechnicalInnovation

PeopleFocused

Value Creation Model

Revenue Flow Chart

Marketing

Reconstructing

R&D

Product/Service

Customers Partners

Government

Shareowners

Philanthropy

Infrastructure

Employees

Training

Dividends

Assets

Donations

CashEarningsReturn

PayrollBenefits

Taxes

Funding

Budget

Main Stakeholders

Revenue Flow

Related

S W

O T

Diversified Business Innovative Technologies Brand Value Environmental Awareness Strong R&D Leadership Program

SWOT

S W

O T

Senior Management Unsuccessful Asian Markets Low Stock Price 4th Largest Producer of Pollution

SWOT

S W

O T

Governmental Support Takeover & Merger Corporate Social Responsibility Global Market Growth in Aviation Industry

SWOT

S W

O T

Rules & Regulations Extra Competition & Price Wars Challenges in Economic

Recession Period

SWOT

PEST

POLITICAL ECONOMIC

SOCIAL TECH

• Tax systems and regulations

• Different business environment

• Deflation & inflation• Exchange rates

• Culture challenges influencing corporate culture

• Varied rate of technology advancement

Non-Invasiveness

InnovateLead

Efficacy

Challenge

Impact

CUSTOMER/ CLIENT

PROCESS EMPLOYEE

Products / Maintenance / Training

Research Grants

Reputation

Partnerships

Benefit Package

Compensation

Growth

Shareowners

ConsumersSurgeons

Hospitals

Organic Growth

TechnicalInnovation

PeopleFocused

Value Creation Model

Revenue Flow Chart

Marketing

R&D

Product/Service

Surgeons / Hospitals

Shareholders

Researchers

Employees

Training

Stock Prices

Assets

Grants

CashEarningsReturn

PayrollBenefits

Budget

Main Stakeholders

Revenue Flow

Related

Patients

Health Insurance Providers

S W

O T

First-Mover Advantage High Entry Barriers Brand Strength Near-Monopoly in Technologies High Switching Costs

SWOT

W

O T

S Big-ticket Purchases High Cost Rely Heavily on R&D Lack of Diversification

SWOT

S W

O T

Global Growth Domestic Growth Procedure Growth

SWOT

S W

O T

Legal Liability Rules & Regulations Imitators Development of Alternative

Solutions Price of Raw Materials

SWOT

PEST

POLITICAL ECONOMIC

SOCIAL TECH

• Health care bill• International health

care laws

• Exchange rates• Hospital

affordability

• People are getting older and sicker

• Competition for experienced hires

• Social acceptance of robotic surgery

• Patents• Advancement in

robotics

Summary

Benefits for Employees• Health Ahead Program• Income Protection• Retirement Insurance• Leadership Development Training

Corporate Social Responsibility• Philanthropy into Global Initiatives• Public Policy Influence• Investment Into Alternative Energy• Employee Volunteerism

Culture• Building People• Leadership Development• Work Environment• Improved Diversity

Benefits for Employees• Comprehensive Family Health Care Benefits• Income Protection• Retirement Programs• Incentive Programs• On-site Services

Corporate Social Responsibility• Supports Local Fundraising Efforts• Volunteerism• Invest in Effective Charitable Programs

Culture• Fast Paced• Results-Driven• Hard Work (long hours)• Making a difference

Attractive salary and stock options

Relatively small company = more individual impact

See tangible customer results from your work

Excitement of being a part of something on the rise

On The Flipside

Top-notch professional training and development

Good start for younger employees

Good company reputation Various industries to work in Global reach More secure career route