Case | HBS Case Collection | August 2007 (Revised January 2009)

Stryker Corporation: Capital Budgeting

by Timothy A. Luehrman


Examines some parts of Stryker Corporation's systems and procedures for approving and authorizing capital spending of many different types, including buildings, machinery, and working capital for existing businesses, as well as transactions with third parties such as acquisitions, joint ventures, and licensing agreements. Set in early 2007, nearly two years after significant modifications in these systems and procedures. Stryker has compiled a remarkable track record of consistently high growth in profitability over more than 20 years. The modifications to its capital-budgeting procedures are partly intended to support the company's efforts to continue this success.

Keywords: Working Capital; System; Organizational Culture; Policy; Capital Budgeting;


Luehrman, Timothy A. "Stryker Corporation: Capital Budgeting." Harvard Business School Case 208-046, August 2007. (Revised January 2009.)