STEEPLE Analysis of IDEXX Laboratories, Inc.
IDEXX Laboratories, Inc. is a multinational corporation based in Maine, United States. IDEXX has interests in a number of different industries with the majority of their business operating through manufacturing, distribution, sales and development of services and products for livestock and poultry. From its humble start IDEXX grew from a small workshop on the Maine coast to their current size of over 6,000 employees in 60 countries throughout the world. IDEXX was incorporated in 1983, and continued to grow, eventually expanding global operations to their European headquarters in Hoofddorp, The Netherlands. IDEXX is split into three main lines of business, Companion Animal Group, Livestock and Poultry Diagnostics, and Water. Additionally. IDEXX also created SNAP tests for the detection of antibiotic drug-residue found in dairy milk, as well as optical spectrum (OPTI) point-of-care analyzers. These analyzers measure blood gases, electrolytes, acid-base balance and more parameters. IDEXX is always working to maintain their status as the market leader in veterinary diagnostic and research projects.
The purpose of this paper is to examine IDEXX’s high potential for impacting health and society through its divisions, as well as their impact in the technological, economic, environmental, political, legal and ethical areas. As large multinational company IDEXX’s potential influence is vast and their responsibility to societies has grown. Using the STEEPLE analysis we will examine these topics and discuss how IDEXX is currently impacting these areas, and explore what strategies IDEXX can employ to improve their company through Human Resources Management (HRM).
Social
IDEXX Laboratories still has a very small, family run business climate despite their global reach and operations in multiple countries. With this in mind, their global operations still stem primarily from Westbrook, Maine. To maintain their position as global leaders in diagnostics for Animal Health, as well as milk and water quality testing, IDEXX must focus on the emerging markets and develop systems to function autonomously within those local markets, understanding that each country has a foundation of culture and business practices that span outside of the United States. Understanding the local business conditions will help IDEXX be successful in each new market. In 2011 IDEXX acquired a new research and diagnostic laboratory business in the College of Veterinary Medicine from the University of Missouri. IDEXX continues their expansions through acquisitions and mergers and most recently expanded their market in Brazil by acquiring a regional company called Madassa do Brasil LTDA. Each new acquisition is important for IDEXX, especially in their focus on animal welfare. Each culture has a different view on animal-consumer relationships and IDEXX needs to be prepared to adapt to these lifestyle and social preferences.
Within the social impact of IDEXX, their growing company offers numerous job opportunities in each new market that is opened, as well as in Westbrook, Maine where the job market is otherwise stale. One of the ‘Guiding Principles’ that is the foundation for IDEXX’s strategic actions is to ‘contribute to our communities’ (Idexx.com, 2015). Keeping this initiative in the forefront, IDEXX offer employees the opportunity to volunteer for two paid work days each year through the Global IDEXX Volunteer Efforts (GiVE) Program which often results in group projects working with organizations like Habitat for Humanity or other causes important to employees. IDEXX is aware that some of their positions, especially within reference laboratories can be highly stressful for their employees, so they fund studies such as one conducted at Harvard University and published in Environmental Health Perspectives on the effects of stress on rats helps society further understand its surroundings and how to respond to their environment (Environmental Health Perspectives, 2015).
IDEXX Laboratories recently identified the growing workforce population in the United States will be in the Millennial category. IDEXX is actively working to adjust their work environment to be more appealing to this demographic because they rely on being able to acquire the newest top talent for their innovation sectors. Since IDEXX as a company grew so quickly they were not able to keep up with the changing workforce and a lot of their policies and procedures are outdated. Because of this, a lot of the policies are ignored within the company which leaves less of impact for policies that are actually business critical. IDEXX is continuously working to catch up with the new generation and to improve the business procedures within the company.
Technology
IDEXX Laboratories is a technology leader and one of the most innovative companies in animal diagnostics. IDEXX has a large number of patents and continues to innovate new solutions for their business. Because of this they are able to lead in the innovation curve, and dominate competitors by offering the newest and best product to the market. IDEXX released new web-based radiology software that will serve to assist the research efforts of companies worldwide attempting to diagnose and treat animal conditions. With this software Veterinarians can share and collaborate efforts remotely, which will innovate the way an animal is treated. IDEXX realizes that as a company they need to focus on providing real-time care so that their services can greatly impact the animal health and disease diagnosis market. Because technology is always advancing it is imperative that IDEXX stay abreast to the current changes and be ahead of the curve when new technology is available. These advances from IDEXX are also in line with one of their Guiding Principles: Innovate with Intelligence. IDEXX consistently demonstrates their technological impact on veterinary medicine, and often develops advanced technology to further their stance in the market, and consistently improve how humans understand animals and their wellbeing.
Economic
IDEXX is currently in a good position as a market leader for the diagnostic offerings, but they need to be careful with this advantage and realize that there are competitors working to combat their offerings, and provide some heavy alternatives for animal diagnostics. To help with their competitive stance IDEXX recently (2014) decided to move their distribution operations in-house eliminating contracts from outside vendors. This risky move allowed IDEXX to offer same-day delivery to a wider range of United States based customers, and increased the work force with additional factories and sales representatives to reach a wider geographical region (PR Newswire, 2015). IDEXX has a fairly significant economical footprint, while they currently employ over 6,000 employees that number is growing as new projects and initiatives are rolled out. According to their 2014 annual report, IDEXX generates up to two billion United States Dollars in revenue each year (IDEXX.com, 2014). With IDEXX’s revenue and work they are strong economic contributors in their local markets as well as globally. These facts combined translate to a large contribution to the local and worldwide economy.
Environment
All businesses have an environmental impact, what the company can monitor is whether or not it has a positive or negative impact. IDEXX is an environmentally conscious company, and recently demonstrated this in their 2013 completion of the World Campus Synergy Center in Westbrook Maine, the facility is certified by the Leadership in Energy and Environmental Design as a ‘Green’ building (Usgbc.org, 2015). The company focuses on low emissions, high efficiency, and overall creating a sustainable space. IDEXX also offers rewards to employees from driving low-emission and fuel-efficient vehicles by providing them with prime parking spots, as well as offering charging stations for employees who drive electric vehicles. IDEXX rolled out a ‘borrow a bike’ program in 2015, encouraging employees to ride bikes to work to help lower pollutions on the road. IDEXX also offers natural landscaping on campus and a garden and composting facility (Idexx.com, 2015).
A large part of IDEXX’s business comes from environmental improvement. Their tests for water quality ensure that over two billion people have clean drinking water. In addition to standard testing IDEXX also responds to crisis, and provided tests to Japan in 2011 after the country was devastated by the tsunami. Their tests can also be used in water main breaks and other water problems that would impact the cleanliness of drinking water. The livestock, poultry and dairy tests are also used to ensure the quality of meat and milk that is being produced. “IDEXX takes sustainability seriously through an approach that aligns with business objectives, ensures social and stakeholder responsibility, and demonstrates environmental stewardship” (IDEXX.com, 2015).
Political
IDEXX has a few political implications in their business practices. Because IDEXX is such a global company, the political climate must always be considered when organizing a partnership or acquisition with another company, especially in another country. Recently IDEXX partnered with a company in Kenya to help provide reference lab services and diagnostic testing in an untapped market (Nation.co.ke, 2015). This strategic alliance allows IDEXX to reach this market, without creating an upset with the local business. This is an example of how important it is for IDEXX to follow laws and regulations in countries outside of Maine. It is also important for IDEXX to be aware of the raw materials that they use for their production. In 2010 there was a reform in the Consumer Protection Act, which prohibited the use of ‘conflict minerals’, or minerals from countries where the minerals were obtained through conflict. To adjust for this act, and for social responsibility IDEXX has strict regulations for suppliers, and regulate the origin of the minerals used in their manufacturing (Idexx.com, 2015).
IDEXX is also active in political animal welfare. They have contributed to the ideas of politicians interested in animal rights and keeping humans safe through their research into animal-based human diseases. IDEXX research on Mad Cow Disease has been used on political bills to pass legislation to keep food processing method safe.
Legal
The legalities involved in IDEXX Laboratories are vast, especially with the consistent contributions to technology and innovative veterinary medicine methods. In fact, IDEXX highlights the terms of use for all products, legalities expected of employees, and rights under the law to products on their website (Idexx.com, 2015). Additionally, the company must protect itself against employee espionage, so employees are bound by non-disclosure, and non-compete written agreements at time of employment. Depending on the level of employee they may also have more in-depth employment contracts to protect both the employee, and IDEXX. As the company progresses in veterinary medicine and grows in size, legal rights become more essential. An employee can be terminated or even jailed for trade secret exchange; IDEXX Laboratories must remain diligent in protecting the work they produce.
IDEXX must also protect themselves from lawsuits regarding animal care and misdiagnosis. As a significant amount of IDEXX’s work is through reference laboratories it is of the upmost importance the due diligence is employed with the lives of so many animals relies on proper diagnoses. Additionally, false readings or bad test in water quality and livestock poultry and dairy could also have negative impacts on the company, and the testers, or impacted parties could file legal action against IDEXX.
Ethics
IDEXX also has a significant amount of ethical considerations within their company. IDEXX must be sure that their suppliers are obtaining their sources by ethical means, and that life-saving services are offered at a profitable, but affordable rate, such as water testing. IDEXX must also promote ethical business practices, and ensure compliance with laws and regulations in each country. To ensure ethical action in their employees IDEXX requires a signed ethical code of ethics for each employee, and business ethics is also provided through online training. The company also creates a transparent appearance, where all work is discussed and open for inspection by the general public, excluding trade secrets. This generates trust in the company from the public and creates an open atmosphere. IDEXX follows their code of ethics closely and is quick to act if anything unethical threatens the business.
Recommendations and Implications for HRM
IDEXX is a diverse company with standings across the globe. IDEXX has a dynamic employee culture with a globally diverse workforce. Challenges within IDEXX include a siloed workforce with limited access to the Global Headquarters, limited employee contact and engagement by employees in reference labs and distribution centers that have work days structured in such a way they do not have time to read company correspondence, and lack technology to access the internal website the ‘Intradexx’. Additionally there have been struggles with leadership transparency when transitions or acquisitions with the company are made. There seem to be a ‘trickle down’ effect that causes delayed information to employees, and decreases moral because subordinates believe their leadership team doesn’t trust them.
IDEXX should focus on employee engagement within their global workforce. Too much of IDEXX is governed through the Global Headquarters in Maine, United States by employees who are not culturally sensitive and do not have experience in foreign markets. IDEXX needs find the balance of deploying or hiring local HR Talent that will be accepted into the culture of new markets. IDEXX should also work to understand the global requirements and customs of new locations and adapt the United States policies and procedures to fit with the new market, allowing the company to regain top talent in the local area, and enabling the new teams to feel like they are part of the bigger company, without being demanded orders from a culture that is very different.
IDEXX should work on employee communication. The outdated technology that is currently used for internal communication is slow, clunky and difficult to search. Employees are not able to find information they need regarding their own personal health, benefits, or corporate information including news briefs and information that could impact their role or stake in the company. It is recommended that IDEXX create a new internal communication system that is in line with their strategic goal of attracting more millennials, as well as cleaner and more direct communication method.
IDEXX Human Resources also needs to be aware of the legal impact of patent development by employees, and the risk of them taking trade secrets to a competitor. While there are currently non-complete and non-disclosure forms signed at each new hire’s orientation, HR needs to be aware that policies and guidelines around these are changing, and policies should be updated and monitored as needed to protect the innovation that they offer.
Additional strategies that IDEXX needs to be aware of are within their talent recruitment. IDEXX offers a generous benefit package with flexible working environments and state of the line facilities in most locations. These advantages are attractive to top potential talent, but there still must be a focus on still must work hard to obtaining and maintaining the best talent in the industry. IDEXX should actively recruit from Veterinary Schools and Radiologist, enticing them to come for work IDEXX instead of the competitive. There are roughly 500 certified Veterinary Radiologist in the United States with specialties that are relevant to IDEXX (ACVR, 2015).
To be a continue being a market leader in veterinary diagnostics and research and development IDEXX’s Human Resources department must align with the corporate strategy. There are challenges within the organization that can be changed through strategic implementation to ensure that employees are made aware of changes within the company, they feel engaged and culturally appreciated. IDEXX should focus on attaining and retaining top-talent in the field. If they continue their focus IDEXX will continue to grow into a strong company and keep their market-leading position in the world of animal diagnostics and research.

References
ACVR,. (2015). About American College of Veterinary Radiology. Retrieved 1 December 2015, from http://www.acvr.org/page/about-american-colleg-veterinary-radiology
Environmental Health Perspectives,. (2015). EHP – Chronic Social Stress and Susceptibility to Concentrated Ambient Fine Particles in Rats. Retrieved 1 December 2015, from http://ehp.niehs.nih.gov/0901631/
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Idexx.com,. (2015). Green building at IDEXX. Retrieved 1 December 2015, from https://www.idexx.com/corporate/about-idexx/synergycenter.html
Idexx.com,. (2015). IDEXX Releases New Web-Based Software for Radiology. Retrieved 1 December 2015, from https://www.IDEXX.com/corporate/news-and-events/press-release/2015/20150909pr.html
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IDEXX.com,. (2015). IDEXX Laboratories, INC 2014 Annual Report. Retrieved 1 December 2015, from https://www.idexx.com/files/corporate/about-idexx/annual-reports/2014-idexx-annual-report.pdf
Nation.co.ke,. (2015). Lancet Kenya diversifies into animal health market. Retrieved 1 December 2015, from http://www.nation.co.ke/business/Lancet-Kenya-diversifies-into-animal-health-market/-/996/2840956/-/q9ecnaz/-/index.html
PR Newswire,. (2015). IDEXX Announces Several Milestones in its US All-Direct CAG Distribution Strategy. Retrieved 1 December 2015, from http://www.prnewswire.com/news-releases/idexx-announces-several-milestones-in-its-us-all-direct-cag-distribution-strategy-277746111.html
Usgbc.org,. (2015). LEED Certification | U.S. Green Building Council. Retrieved 1 December 2015, from http://www.usgbc.org/certification