External Factors Affect On Organisations | Case Study

2382 words (10 pages) Essay in Marketing

19/05/17 Marketing Reference this

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External factors have an immediate effect on an organizations planning. Marketing a product takes thorough planning. Managers organize ideas on where to market a product that provides benefits to other countries.

Leading globalization can be difficult because other countries may not want to use a product they are unfamiliar with. Therefore, a thorough explanation of why a product would be beneficial in another country is very important (Moon, 2010). The cell phone for instance has brought forth much controversy. Rates, service areas for Internet, communication, contractual agreements, and a wide range of other issues have been broad topics for subscribers of cell phones. To control globalization, cell phone providers must have management teams that extend enough information about products to other countries to determine if the product is marketable around the globe (Moon, 2010).

Information is organized through technology; via Internet so customers are better informed regarding price, and other vital information before purchasing.

Innovative technology has brought forth social networking sites. Companies such as Google have created blog forums where customers can share thoughts about a product hence, making others aware before purchasing.

1.2.the needs and Expectations of stakeholders in orchid

The board of Piramal Healthcare has approved the spin-off of the New Chemical Entity (NCE) from Piramal Life Sciences, reports CNBC-TV18. The unit will then be merged with parent. According to the company filing with BSE, shareholders will be issued one fully paid up equity share of Rs 2 of parent Piramal Healthcare for every four shares of Rs 10 held of Piramal Life Sciences.

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Investment in NCE research calls for sharper research focus, longer time horizon and higher risk appetite, said a press release. CNBC-TV18 had earlier reported about how Piramal Health is more poised to take the risks arising from the drug discovery business than Piramal Life Sciences.

This demerger is expected to be completed in six months, Ajay Piramal was quoted as saying.

Piramal hopes, ultimately, to re-absorb Piramal Life Sciences back into the company. According to CNBC-TV18, long-term strategies of the company include hiking capacity in active pharmaceutical ingredients segment and formulations business.

1.3. major changes taking place in the external environment it affects stretegy

This process is most applicable to strategic management at the business unit level of the organization. For large corporations, strategy at the corporate level is more concerned with managing a portfolio of businesses. For example, corporate level strategy involves decisions about which business units to grow, resource allocation among the business units, taking advantage of synergies among the business units, and mergers and acquisitions. In the process outlined here, “company” or “firm” will be used to denote a single-business firm or a single business unit of a diversified firm.

Once the firm has specified its objectives, it begins with its current situation to devise a strategic plan to reach those objectives. Changes in the external environment often present new opportunities and new ways to reach the objectives. An environmental scan is performed to identify the available opportunities. The firm also must know its own capabilities and limitations in order to select the opportunities that it can pursue with a higher probability of success. The situation analysis therefore involves an analysis of both the external and internal environment.

The external environment has two aspects: the macro-environment that affects all firms and a micro-environment that affects only the firms in a particular industry. The macro-environmental analysis includes political, economic, social, and technological factors and sometimes is referred to as a PEST analysis.

2.1. Appropriate Tools to analyse Current business Plan

What next? This is the question on the minds of the shareholders. We have drawn up a growth blueprint for the company, segregated into short and medium-term business drivers focusing on ramping up of the existing business verticals, creating front-end marketing organisations and entering new high-growth product segments. In the short term, we have identified key areas which will drive business growth for your company. We will cater to the API needs of Hospira and other global innovators in addition to our regular API and formulation sales in the emerging markets. We will strengthen our geographical presence in key regulated markets like the US, Europe and Japan. Currently, we are marketing around 10 products in the oral cephalosporins segment and 5 products in the NPNC (Non-penicillin, Non-cephalosporin) segment. Your company will further strengthen its product basket for catering to these markets.

Our focus on acquiring front-end marketing companies possessing infrastructure, people, product registrations and approvals will augur well in the medium term. Our product pipeline in the regulated markets will be filled with our own molecules, ANDAs and in-licensed products. This will help us strengthen our product basket and maximise and internalise value which was earlier shared with our marketing partners.

2.2.Orchid Chemicals in its current market

Since inception, your company established a strong foothold in niche therapeutic segments which are relatively uncluttered due to the inherent technical complexity. In doing so, your company grew in size and is now a global name in its operating domains. In recent times, your company’s performance in the global and domestic markets could not translate into robust growth for the company and superior shareholder value creation. This was primarily owing to the sizeable debt burden which weighed heavy on your company’s profitability. With the debt levels coming down and with a strong growth strategy in place, this is set to change going forward.

My fellow shareholders may have a number of apprehensions about the future of the company

2.3.competitive strength and weakness

e expect strong year-on-year growth over the next three years by focusing on the non-penicillin, non-cephalosporin (NPNC) segment where we possess a strong basket of over 73 products spanning diverse therapeutic areas. We possess marketing alliances in the US and Europe with prominent players such as Actavis, North Star and Alvogen for 31 NPNC products. We also expect to capitalise on Para IV opportunities; our 8 Para IV FTF filings provide a revenue potential of about US$ 80 Mn. A favourable outcome in any patent challenge litigation could result in our being awarded the 180-day exclusivity.

3.1. strategic options

What next? This is the question on the minds of the shareholders. We have drawn up a growth blueprint for the company, segregated into short and medium-term business drivers focusing on ramping up of the existing business verticals, creating front-end marketing organisations and entering new high-growth product segments. In the short term, we have identified key areas which will drive business growth for your company. We will cater to the API needs of Hospira and other global innovators in addition to our regular API and formulation sales in the emerging markets. We will strengthen our geographical presence in key regulated markets like the US, Europe and Japan. Currently, we are marketing around 10 products in the oral cephalosporins segment and 5 products in the NPNC (Non-penicillin, Non-cephalosporin) segment. Your company will further strengthen its product basket for catering to these markets.

3.2. comparative understanding of an activity

The performance of your company in the first quarter of the current financial year reflects the start of a robust growth journey. Going forward, your company is well poised to ramp up its API and formulations business based on specific product-market contracts and regulatory filings which will help spread the growth canvas wider. We entered into an out-licensing and distribution agreement with the US-based pharma major Alvogen for marketing 8 oral non-antibiotic generic formulations in the US market. These products cater to the high-growth therapeutic segments of CNS and osteoporosis, among others and have a cumulative addressable market size estimated at USD 8 billion. Your company also recently acquired Karalex Pharma, LLC, a US-based generic marketing and sales services company through an all-cash deal for creating a front-end presence in the US market to deliver generic products to the US customers directly. Karalex Pharma is a leading provider of generic pharmaceuticals, focused exclusively on the US healthcare market.

3.4. future organizational strategy

Our focus on acquiring front-end marketing companies possessing infrastructure, people, product registrations and approvals will augur well in the medium term. Our product pipeline in the regulated markets will be filled with our own molecules, ANDAs and in-licensed products. This will help us strengthen our product basket and maximise and internalise value which was earlier shared with our marketing partners.

4.1. participation from all stake holders

I take the opportunity to thank the Central and State governments, financial institutions, public and private sector banks, government agencies and non-government institutions for extending their support in your company’s growth and development.

4.2. potential options for strategy plan

I thank your company’s valued business stakeholders namely vendors, customers, strategic alliance partners and business associates for their exceptional support during difficult times, in accomplishing our business plans. Most importantly, I acknowledge the critical role played by the employees whose contribution to your company’s business growth has been paramount. On behalf of the Board, I would like to thank all the shareholders for their unstinted support in helping your company enhance its technological and business strengths and remain on the growth path.

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4.3.strtegy plan includes resorce implication:

n the API (Active Pharmaceutical Ingredients) segment, your company increased its cumulative US DMF filing count to 82. The break-up of the total filings is: 30 in the cephalosporin Segment, 39 in NPNC segment, 2 in the betalactam segment and 11 in the carbapenems segment. The cumulative filings of CoS (Certificate of Suitability) for the European market stood at 20 which includes 13 in cephalosporin segment, 6 in the NPNC segment and 1 in the betalactam segment. With a robust product development pipeline, your Company’s filing and approval count is poised to increase in the coming months and quarters.

5.1. organizational Values:

Most organisations are mostly driven by strategies. We are also driven by values.

Corporate Social Responsibility

Respect for the Individual

Excellence

Innovation

Value for Stakeholders

5.2 vission and mission statements:

Vision

Enriching Lives through Innovation in Healthcare

Mission

“Discovery to Delivery”

Orchid is a vertically integrated pharmaceutical company with established research, manufacturing and marketing capabilities across multi-therapeutic domains. We successfully leverage our penchant for science and technology to create niche products and manufacturing platforms leading to attractive growth.

5.3. Future Management Objrctive:

Innovation drives growth. Sensitive to market needs and committed to innovation, here at Orchid we focus on niche product manufacturing platforms, combining cutting-edge technology and the best minds in the business.

Valuing People

We value individuality and creativity. Our unique “People and Process Paradigm” helps achieve the twin objective – emphasis on regulatory and compliance on one hand, while fostering – innovation and creativity on the other.

Peak Performance

We seek to build a sustainable organisational eco-system where one is constantly motivated to attain new heights and empowered to discover new avenues for growth.

Quality

Quality has always been a strong part of Orchid’s proposition. Our quality initiative covers all aspects including product quality, operational quality, environmental quality and finally a good quality of life for our people.

Harmony with Society

We seek to balance environmental impact and economic interest in all our business activities. Committed to the development of the society, culture and economy, we dutifully observe laws; demonstrate high ethical standards and endeavour to preserve the environment.

5.4. Evaluating Stretegy Plan

Government: It has the mechanics to receive and document the needs of society. It also has the legislative and administrative power to take forward development programs.

Industry: It has the strength of technology and managerial skills required to identify solutions and execute projects in a time-bound manner.

NGOs and other Institutions: They penetrate deep into the community to propagate ideas and act as a vibrant feedback mechanism.

We have always believed that enhancing the social well-being of individuals would add a lot more meaning to our overall business existence. Caring for the people and the community has therefore been an important facet of our business philosophy. We are happy that we have influenced the lives of several people in the vicinity of our facilitates through the several initiatives and programmes undertaken by the Trust.

6.1. Schedule for implementing stretgic planning

Our oral non-cephalosporin formulations facility specialises in the manufacturing of nutraceutical products. The facility produces a range of dietary supplements for the advanced markets. Many other high-value products like anti-diabetics, cardio vascular drugs (CVS), anti-depressants and anti-epileptics are manufactured in this facility to cater to the emerging markets.

6.2. To gain commitment from stake holders

We have a long tradition of successful collaborations. Our approach to partnerships has been path-breaking and successful in the Indian pharmaceutical industry in terms of product and market coverage and leveraging each other’s partnership strengths. They are an essential and integral part of our research and business strategy. Every day, we commit ourselves to aligning our capabilities with business opportunities and everything we do is based on being easy to work with to ensure mutual success. We continuously engage in new projects to aid technology development, development of new molecules, chemical process enhancement and innovative drug delivery systems development

6.3.monitoring the evaluation system for the implementation of a strategy plan

rchid has emerged as a full-fledged pharmaceutical corporation with end-to-end connectivity from discovery to delivery. Each alliance we build is based on a shared vision with well-defined goals and objectives. We have the ability to leverage and represent our entire portfolio of products and services based on their core competencies, partner great models, build and sustain operations. By pooling the talents of our science and business teams, we have engaged in numerous collaborations with a range of companies and research institutions. We look to build upon our existing strengths as well as to create new areas of expertise.

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