RespironicsEssay Preview: RespironicsReport this essayRespironics:A case on Growth Strategy“We are honored and thankful to our customers and the respiratory profession for bestowing us with yet another milestone, our 10th Zenith Award. We look forward to a tremendous 2007 as we continue to bring innovative products, outstanding service, and valued solutions to the market.”
– John Miclot; CEO of RespironicsIt was a perfect evening on December 12th, 2006 when John Miclot stepped up to the podium at the International Respiratory Conference of the American Association for Respiratory Care in the extravagant Las Vegas, Nevada to receive its 10th Zenith Award. The award recognizes companies based on the quality of their equipment, service record, accessibility and helpfulness of their personnel, and truth in advertising. This award signifies that members of the association have voted Respironics as one of the top 5 of 400 companies in the sleep disorder industry. The election process makes the award one of the most prestigious in the respiratory care profession.
I sat in the lobby of the hotel where I was being presented the award and the entire story of John and his company and Zenith. In all that time, nothing I was given was any more inspirational than the message that is often conveyed on our radio and television shows, including the video of his announcement at a Congressional hearing where his business partner, Mike O’Neill, announced he was quitting the company entirely. Even though the people who know John know the business have come to his defense, I believe they can and will defend him.
My first response to any question about Jon (R) or Zenith: he was a selfless, loving, and patient man. When I asked him about the future of sleep, he said: “The future is very bright right now. The great opportunity is the opportunity to be the president of the Republic of the United States and that’s what we have. It’s the hope of America, that it’s a good start and that it’s a good challenge for all of us.”
And it is that hope. It is that hope in Jonny, for the millions of people who support him who call their own lives to him every day. The good people of America. They live it, they work it, sometimes, and that’s why John Miclot’s legacy as president and CEO of RespironicsIt was a perfect evening on December 12th, 2006 when John Miclot stepped up to the podium at the International Respiratory Conference of the American Association for Respiratory Care in the extravagant Las Vegas, Nevada to receive its 10th Zenith Award. This award signifies that members of the association have voted Respironics as one of the top 5 of 400 companies in the sleep disorder industry. The election process makes the award one of the most prestigious in the respiratory care profession.
I sat in the lobby of the hotel where I was being presented the award and the entire story of John and his company and Zenith. I couldn’t have asked for a better president. It’s obvious the industry needs a new leader. My first response to any question about Jon (R) or Zenith: he was a selfless, loving, and patient man. When I asked him about the future of sleep, he said: “The future is very bright right now. The great opportunity is the opportunity to be the president of the Republic of the United States and that’s what we have. It’s the hope of America, that it’s a good start and that it’s a good challenge for all of us.”
John’s legacy as president and CEO of Respironics was more about bringing people who make the most of their talents to life, than the fact that he could give a man an easy ride. He understood
With so much hype surrounding Respironics past performance, new CEO John Miclot is in no position to let his stakeholders down. Some time to assess the future and develop a strategy for Respironics to exceed past performance is exactly what Miclot needs. Under the founder and former CEO; Gerald McGinnis leadership, Respironics was able to tackle growth opportunities in the past. However, the question to ask is:
Have the growth opportunities been tackled fully thus increasing value for stakeholders at an optimal level?Does the Board of Directors need to replace the existing executive team so that there is a more precise vision on venture growth strategies?The Company & CEOFor many, a full nights sleep seems beyond their reach!An estimated 6% or 18 million Americans suffer from a sleep disorder known as sleep apnea . Sleep apnea is a life-threatening and life-altering condition that causes a person to stop breathing repeatedly during sleep. As a result, the body does not get enough oxygen, thus interfering with restful sleep. The most common signs of sleep apnea are nightly snoring, morning headaches, irritability, decreased daytime alertness and functionality. During both day and night, a person with sleep apnea experiences a decrease in his or her quality of life. Some consequences of untreated sleep apnea are heart attacks, high blood pressure, strokes, and even death. Sleep apnea is a condition that needs immediate medical attention. Sleep centers test for sleep apnea and other sleep disorders through monitoring a patients sleep at night to identify any abnormal sleeping patterns. If diagnosed positive with sleep apnea, patients purchase a positive airway pressure machine from a sleep center or a durable medical equipment retailer (DME) that they can wear on a nightly basis so cessations of breath do not occur. This treatment is nearly 100% effective .
For life-threatening sleep apnea, companies like Respironics exist! Respironics is a global provider of diagnostic sleep monitoring equipment that allows sleep centers to monitor a patients sleep during night or day to see if they have sleep apnea. Additionally, the company sells positive airway pressure machines to sleep centers and DME retailers which patients can wear at night to get a good nights rest (Exhibit 1). Respironics value proposition to providing equipment to test and treat for sleep disorders is to ensure “we provide valued solutions around the needs of our customers and the markets we serve” . As the founder; Gerald McGinnis asserts, “if in doubt, ask our customers”.
Since