Please read and respond to the post below

Mission Statement for Idexx Labs: "To be a great company that creates exceptional long-term value for our customers, employees, and shareholders by enhancing the health and well-being of pets, people, and livestock."(1)

"IDEXX labs is the primary diagnostic lab for the veterinary industry to utilize and find out what is going on with their patients. We have been in business for over 40 plus years and we have not significantly increased our offerings or created something new. Our current focus is stagnating and nothing is advancing in the veterinary industry. As a leader in providing diagnostic answers, we need to step up and advance our company so that we are not left behind. The new initiative that I am recommending focuses on patient and pet parent convenience and care. Historically IDEXX has focused on providing veterinarians answers but we have not moved into the pet parent world yet. Bringing the convenience of pet diagnostics into the homes of pet parents is where the industry is moving and we need to be at the forefront.

Proposal: "The new initiative that I am recommending focuses on patient and pet parent convenience and care. Historically IDEXX has focused on providing veterinarians answers but we have not moved into the pet parent world yet. Bringing the convenience of pet diagnostics into the homes of pet parents is where the industry is moving and we need to be at the forefront."(2)

The idea in this proposal will change the veterinary industry. Pet parents will now have the ability to participate in their pet's health by having the ability to request their own pets diagnostic tests to check on their health. They will also no longer need to wait at the veterinary clinic to get their pets blood work. These benefits will help pet parents afford care and allow for them to participate in their pets care.

Recommendation: The team advises that IDEXX laboratories acquire a pet innovator who is changing the veterinary industry by providing in-home veterinary diagnostics for pet parents." (1)

Funding and Return for your game plan:

• Which are the most important financial data items you will present?
  • Gross Profit Margin and Return on Sales (Operating Margin) will allow us to review our current profitability and efficiency as a company so that we can see if we can afford to create a new branch and business. Since our current business is going to be covering the expenses of the new business we need to make sure that we can maintain and build.
  • Working Capital will also help to assess our company's current assets and if we can move forward with the new project.
  • Current diagnostic tests are completed within the United States and compared to the current number of pets owned in the United States.
• What is your overall proposed strategic plan going to cost to implement?
  • Our goal is to start small and focus on a city to try out the model. To implement this new business we would start out with a small team and focus the pay compensation model on that of a uber model. The teams will be equipped with very little tools and must already have training from previous jobs in the veterinary field. The overall cost to equip the teams is around $500.0 and per Collection, we would pay $25.00 per tech per order. The most expensive aspect of this new business is going to be marketing the new service. We can expect to spend $15,000.00 to $25,000.00 per month on advertising to make sure that we take total market share and increase brand recognition.
• How much profit or savings will your plan produce for your healthcare organization?
  • This new business adventure is not going to save us any money but if it becomes a viable business we can expect our sales to increase by 50% since we are entering into a new market.
• What non-financial benefits will your plan generate in the organization and/or the wider community?
  • The non-financial benefits include introducing a pet parent-focused business that will alleviate the demand for veterinarians.
  • Increase in pet parents' ability to know what is going on with their pets.
  • Increase pet health wellness and preventative medicine
• What are the key potential financial risks of your plan that must be managed?
  • The demand for this service is not present and the business fails
  • Veterinarians feel that we are competing and we lose their membership in our diagnostic centers.

Reference:

1. Joseph Menicucci, Week 1 discussion answer