Abstract

Teleflex Canada, a division of Teleflex Inc., manufactures a range of products, including marine hydraulic steering systems, trim components for marine propulsion, heating equipment for the truck and bus industries, a range of proprietary fluid controls, and field cookstoves for the U.S. Army. Within Teleflex Canada, there was a consensus that continual innovation in product design, manufacturing, and marketing was critical to the success of the organization. In 2005, Teleflex Canada executives were faced with various questions: Would size inhibit the ability to innovate? Would increased corporate centralization at Teleflex Inc. impact Teleflex Canada’s ability to respond to new market opportunities? At the Teleflex Inc. corporate level, different questions were being asked: Could the culture of innovation in Teleflex Canada be transferred to other parts of the company? What was the appropriate level of corporate support and control necessary to foster innovation and high performance at Teleflex Canada and at other Teleflex business units?

Teaching
This case is designed to explore the concept of innovation in large organizations. Teleflex Canada is a diversified MNC that competes in the marine, automotive, and aerospace sectors. Teleflex Canada has delivered consistent and, within Teleflex Inc., above-average growth for many years. The company enjoys a leading position in the marine hydraulic steering industry and continues to develop new product offerings for a diverse set of markets, such as commercial trucking and defense. Much of the company’s success has come from an approach to innovation that emphasizes several key factors: (1) a focus on product development using existing and proven technologies; (2) the development of products for ends users that can then be “pulled” through channels as opposed to pushed; (3) the creation of a corporate culture that encourages creativity, risk-taking, and tolerance for failure; and (4) an atmosphere that tries to foster sharing and teamwork.

The case can be used to accomplish various teaching objectives. It can be used in a strategic management class to develop the concept of innovation and its role in firm success. It can be used in a course on organizational design to show how a division of MNC links its innovation activities to the larger firm. It can be used with executives to examine the key determinants for innovation.
Case number:
A07-06-0002
Subject:
General Management
Year:
Setting:
Canada
Length:
10 pages
Source:
Private, field