Case Detail

Case Summary

Baxter Dialysis Crisis

Case Number: 5-304-507, Year Published: 2012, Revision Date: September 05, 2012

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Authors: Daniel Diermeier; Stacy Dickinson

Key Concepts

Crisis Management, Decision Making, Health Care, Reputations

Abstract

Global healthcare giant Baxter International Inc. was the leader in the $7 billion market for the development, manufacture, and global distribution of dialysis products. But its dominance was threatened in late 2001, when patients with end stage renal disease all over the globe began dying within hours of using Baxter's dialyzers. Harry Kraemer, the CEO of Baxter, had shaped the company culture around three values—respect, responsiveness, and results—and emphasized that all employees' decisions and actions be informed by these values. How would Baxter respond to this crisis in keeping with the company values?

Learning Objectives

After reading this case, students will be able to:
• Understand the strategic and reputational nature of crises
• Understand the challenges of managing a crisis, whether the company is at fault or not
• Learn the requirements for building trust in a crisis

Number of Pages: 12

Extended Case Information

Teaching Areas: Strategy

Geographic: United States, Global

Industry: Health Care, Medical Supply

Organization Name: Baxter International

Organization Size: Large

Decision Maker Position: CEO

Decision Maker Gender: Male

Year of Case: 2001