Biotech To Front End Of The Market Business Essay

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Company Background

Biotech was founded in 1958 and located in Milford, Massachusetts, USA. In 1996 Biotech made its largest acquisition by acquiring Micromass in Manchester, UK. This brought Biotech to front end of the market for liquid chromatography and mass spec instruments. In 1998 Biotech opened a manufacturing plant in Wexford, Ireland. Biotech is now the world's market leader. Biotech products are used in laboratories all over the world mainly in pharmaceutical, biotechnology, industrial, university, and government research & development, quality assurance, and environmental testing laboratories. Biotech is now a multinational corporation that provides advancements in technology that enables scientists to break down the composition of natural products and synthetic chemical mixtures and the physical properties of materials.  Biotech creates business advantages for laboratories by developing and implementing new software and devices combined with new technology thus enabling significant advancement in healthcare delivery, environmental management, food safety and water quality (

External Environment

Social Conditions

The main social requirement in life is good health and the pharmaceutical industry plays a huge role in achieving this by reducing the testing times with more accurate results and quicker diagnosis. The economic performance of the pharmaceutical industry has not been affected by the economic downturn as most other industries due to the economic importance of healthcare and society's need for wellbeing. With purchasing in this current climate, costs have been driven down by way of innovation cost reduction teams and also the strength of the euro against other currencies has contributed.

Biotech products are sold world-wide and have not been affected by the economic downturn as this industry has continuous demand. Biotech also implemented a reduction in shipping costs by changing from air freight to sea. The influence on the business strategy from social/economic conditions over the next 1-3 years mainly evolve from increasing demand, increase in exports, interest rates, wage rates, inflation and satisfying customers needs and wants. With low interest rates and demand still increasing Biotech are encouraged to venture into new segments of the industry and take risks in achieving growth.

Labour Market

The market previously was an employees market as the economy was booming and potential employees would have open options and could demand higher salaries and benefits depending on their educational status. This has now changed due to the economic downturn and become an employers market. This is good for employers, as there is a wider choice of candidates accompanied with higher skill sets for the job required.

Biotech was not hit by the economic downturn in relation to layoffs or reduction in demand, instead due to company innovation and desire to succeed in new technology there has been movement into different segments of the market such as the clinical market. Biotech has increased the levels of employment in the last 6 months from 40% to 45% due to the introduction of the clinical segment, thus gaining a greater skilled workforce and greater future opportunities for Biotech.

Legislation & Public Policy

Biotech's strategy to open in Wexford was influenced by the tax incentive within Ireland allowing multinational organisations enter the country and rewarding them with tax relief for 10 years. In 2005 Biotech expanded the Wexford facility and created 125 jobs between 2005 and 2010, with 60% requiring third level qualification. This was achieved by the Wexford facility having the ability to implement new developments and ability to recruit the highly skilled people we require to continue increasing growth worldwide. (

The pharmaceutical industry is highly regulated and has huge legal, regulatory and compliance overheads. Biotech have high legislation to abide by such as consumer protection, environmental, health & safety and employment laws. Biotech's policies are in place and aligned with the quality systems in order to achieve and promote high quality of governance, environment, health and safety and supply chain management practices. Biotech are always pro-active when it comes to pollution prevention, waste reduction and the conservation of natural resources in all areas of our operations. Biotech, have implemented energy reduction, waste reduction and reduction of chemical waste through six sigma projects. By adapting six sigma, Biotech work to continuously improve the workplace, community and environment. Biotech must adhere to environmental health and safety policies very quickly and recognise any risks involved in order to improve company performance.


Technological advancements have made the pharmaceutical industry a competitive environment along with regulatory compliance and patents. This forces other industry participants to react and adapt faster with their competitors. Due to this increase in technology there is also an increase in expenditure to finance the new technologies and research and development. In the long run this does not put investors off as it is the research and development that gains economic growth thus still holding onto the confidence that is lost in most other industries.

Biotech recently entered the clinical segment of the industry which had a huge impact on human resource planning and business strategy. Biotech are also merging with Big Pharma, this addition to the company will change the company structure and its policies due to more regulations associated with the clinical market and future opportunities to move into different segments of the industry. Another area that is in the pipeline for Biotech is the Bio-Analysis segment of the industry. Biotech have to plan carefully in order to ensure their capacity and knowledge to enter different segments is competitive enough to achieve future growth.

Cultural Norms/Values

Biotech's culture is driven by innovation, which in turn adopted six sigma and lean to increase the efficiencies with the company. Managers need an accurate understanding of the organisation's culture in order to direct activities in a productive way. This starts with the hiring process and continues with careful attention to how employees are motivated and rewarded for their efforts. Managers need to continually transmit the values of the culture through positive feedback that gives each member of the organisation a sense of importance.

Product Market Performance

The mass spectrometry market has been growing year on year. Mass spectrometry instruments sales have grown 11% annually since 1995. The pharmaceutical industry has remained highly valued and favourable. Future demand is trending upwards despite competition increasing. This is maintained by research and development and the introduction of new technology into the market, thus giving the customer greater results and removing unnecessary steps of their normal processes. Customers of Biotech have expressed the success of our new technologies and software with regards to quicker results and less paperwork (90% reduction).

With Biotech being in an industry that has favourable market conditions, such as high market share and greater margins of profit, this allowed Biotech to adopt soft HRM approaches such as higher wages and benefits along with driving innovation throughout the corporation and rewarding employees. Market conditions within the industry of Biotech have lead to more sophisticated HR policies being adopted, such as employee development, junior achievement, training programs and many more.

The influence on the business strategy from product market conditions over the next 1-3 years will come increasing demand, increase in exports, entry into new segments of the industry and satisfying customers needs and wants.

Structure /Size

Biotech is a multinational corporation that operates in 27 countries in which 11 are manufacturing plants. Biotech design and manufacture analytical technologies such as liquid chromatography, mass spectrometry, and thermal analysis. Biotech sell and also service their products in more than 50 countries around the world.

With Biotech being a large company they need to approach HR planning in a much more formal way due to their complex business. HR planning is essential in this size of corporation and planning is required when looking at the benefits to offer, managing staff growth, staff required, and the evaluation of performance.

The Human resource functions to be executed are as follows:

Recruiting, Selecting & Hiring

Orienting, Training and retraining

Motivating, Coaching, Mentoring & counselling

Recognising achievements

Empowering & Communicating

Evaluating & Promoting

Laying off & Dismissing

Each employee provides additional input that in turn leads Biotech into success. Careful hiring of qualified employees is a top priority and the retention of these vital employees is even more important. Biotech's benefits package are of high quality and attract potential employees within the industry

Here are some of the benefits you might find at Biotech locations world-wide:

Medical Insurance

Retirement Planning Programs

Sickness and Disability Programs

Life Insurance

Paid Leave

Employee Assistance Program

Employee Relations

Employee Relations is employers working with employees in a way to achieve resolutions to any issues that may arise and by doing so increases morale and motivate employees in return for productivity.

Supervisors are trained on dealing with poor performance and misconduct. The training includes dealing with disciplinary action and resolving employee's grievances within the regulatory guidelines. Employees are also informed of the company's goals, policies, regulations, legislation and are given assistance to correct poor performance, misconduct, and address personal issues that have an affect on them in work.

Workforce Profile

Biotech have a diverse workforce and a diversity management capability in order to keep Biotech effective. The workforce is divided into separate divisions which include production operators, manufacturing technicians, engineers, finance, quality, materials and HR. These all combined lead to Biotech's success in the market.

Biotech have accessed new segments of the industry due to their strong, committed and innovative work force. With Biotech adopting six sigma and lean into the corporation they have been able to improve processes throughout and thus enabling an advantage to venture to other areas of the industry such as the clinical segment. In turn this has enhanced productivity, increased quality standards and increased Biotech's growth within the industry.

Management Values/Ideology

Management values are aimed towards customer success. Biotech creates business advantages for laboratory-dependent organisations by delivering practical and sustainable scientific innovation to enable significant advancements in such areas as healthcare delivery, environmental management, food safety, and water quality worldwide (

Managerial values are significant in explaining variation in human resource decisions on such issues as the founding of health and safety and training and development, commitment to diversity and equality, the importance attached to performance as a basis for reward and the types of criteria that are used to justify the dismissal of an employee.


Biotech have recently phased out two of their mass spec instruments Quattro Micro and Quattro premier XE and made them end of life in order to allow for newer instruments with more advanced technology to be introduced. The transition of this needed to be managed effectively and carefully in order to maintain company success. These two instruments were very popular for many years and to make them end of life could impact the customers that have laboratories validated for these instruments. With this in mind Biotech kept all customers in the loop about the removal of the products and informed them about new product lines that would benefit them. This allowed the customers that required these instruments to purchase more before being made obsolete. The key challenges Biotech face when introducing new products are increasing sensitivity, enhancing specificity and improving productivity.

The introduction of Xevo TQ and Xevo TQ-S was managed very successfully and has been proven by customers to be a success. This advance in performance allows you to accurately measure compounds at a concentration ten times lower than you ever thought possible.

HRM Strategy

An HRM strategy incorporates an organisation's basic philosophy, overall approach and long-term objectives in managing human resources. It forms the basis for the subsequent development of more explicit HR policies and procedures in critical areas of workforce management, such as employee selection and reward management. The responsibility for developing HR strategy rests primarily with top management, aided, as appropriate, by the specialist HR function. HR strategies are often expressed in the form of general statements outlining critical organisational beliefs and values concerning HRM.

The whole purpose for producing any strategy is to provide a coherent response to a complex and potentially risky environment. Consideration is required to when establishing different types of HR strategies and how it may be influenced and shaped by different internal and external factors.

HRM is concerned with the management of organisations workforce. Biotech use the factory system because of the large number of employees.

Competitive Strategy

Biotech seek to outperform their competition fairly and honestly. We seek competitive advantages through superior performance, never through unethical or illegal business practices. To maintain Biotech's valuable reputation, compliance with all our quality processes and safety requirements is essential.


Biotech's main driver is innovation, in order to create technological solutions, products, and services to satisfy the needs and requirements of their customers. Quality systems at Biotech are put in place to ensure that the standards, customers deserve are met and not jeopardised, thus having a positive input on Biotech's reputation, along with meeting statutory and regulatory requirements.

The barrier to entry for the pharmaceutical industry is very high due to the cost of research and development and patent limitations. Advantages are only gained by the company that first initiates new technology and protect them through patents, thus ensuring competitive advantage. Biotech adopted six sigma and lean into the corporation to reduce costs and remove non-value add steps of the processes without jeopardising the high quality standard.