MEMO
DATE: April 6, 2006
TO: Sunrise Medical Senior Management
FROM: 3919 ? Section 004
RE: Evaluating Organizational Structure to Capitalize on Growth
EXECUTIVE SUMMARY
The wheelchair industry will continue to experience considerable growth, averaging 11.5% annually over the next five years. Our current position in the Ultralight segment will help drive growth, but revenues in the Lightweight Standard and the Power & Pediatric segments will grow faster. We will benefit from strengthening our current relationships with Rehab suppliers as that channel becomes the most important distributor of wheelchairs with sales nearly doubling to $314 million in 1998. However, a centralized structure may interfere with our TQM and JIT efforts, affecting our commitment to superior customer service. Therefore, it is recommended that divisions continue making day-to-day operational decisions but require authorization from HQ for major decisions such as new product rollouts. Also, a single sales force selling products across lines will help to strengthen our relationships with Rehab suppliers.
TABLE OF CONTENTS
Section Page #
Sunrise Medical's Decision ............................ 1
The Future of the
Wheelchair Marketplace ................................. 1
Promising Segments ............................... 1
Rehab Suppliers Critical ........................ 2
Internal Structure at
...