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1. what are the missions of CERs and the capital budgeting process at Stryker? To what
extent have they been shaped by elements of corporate finance theory? To what extent are
they shaped by Stryker’s particular industry, history, and culture?
a. Capital expenditure requests (CERs) are forms that have to be filled out before authority
spending could be obtained. These forms contained a proposal and approval process that
had to go through the corporation. CERs are either Operational or Mergers/Acquisitions—
the company either decides to spend money on existing business or new initiatives. Both
types of CERs contain two parts: the first part describes the business proposition and the
second part summarizes the financial analyses. These capital expenditure requests are
presented to the Capital Committee or appropriate party for approval. The reason these
requests are drawn up is to make light of the advantages/disadvantages of the project at
hand. This would allow the company to choose the project that adds the most value to the
Company based off of “the numbers" and management must decide which projects to
allocate their resources to, and how much of their resources to allocate to the specific
project. In order for Stryker to sustain performance, continuous investments in both new
and existing products, markets, and technologies have to be made (Stryker Case). The
group/managers mission was to lay out these “projects"/investment plans in the CERs
showing the financial benefits and how these projects could help the company continue to
meet the 20% benchmark for growth year after year. Stryker is very focused on reaching
