Assesment 3 0028285 OT - academic assignment with distinction marks PDF

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SECTION 1: PERSONAL DETAILS First Name

Surname

MEET

Student ID

GAJJAR

College

0028285OT

Course

TORRENS UNIVERSITY

MBA (ADVANCED)

SECTION 2: ASSIGNMENT INFORMATION Subject Name

Lecturer Name

STRATEGIC MANAGEMENT

ALAN DYMOND

Assignment Title

Word Count

CONTEMPORARY ANALYSIS

2200

Is your assignment being submitted on or before the published due date? if yes, skip to declaration SECTION 2A: ASSIGNMENT EXTENSION Have you been approved for an extension? (if no skip to declaration) Who approved your extension What is the approved extension date? SECTION 3: DECLARATION I declare that except where I have referenced, the work I am submitting in this attachment is my own work I acknowledge and agree that the assessor of this assignment may, for the purpose of authenticating this assignment, reproduce it for the purpose of detecting plagiarism I have read and am aware of the Academic Integrity Policy available on the Torrens University Education website

Student Signature

Date 01/05/2020

RECEIPT - INDIVIDUAL ASSIGNMENT COVER SHEET - STUDENT COPY First Name MEET

Subject Name: STRATEGIC

Surname

Student ID

GAJJAR

0028285OT

MANAGEMENT

Assignment Title: CONTEMPORARY

Lecturer Name: ALAN

DYMOND

ANALYSIS

Received by full name, signature & date:

Torrens University Australia operates through the following legal entity: Torrens University Australia Pty Ltd, ABN 99 154 937 005, HE PRV12209, RTO No. 41343, CRICOS 03389E

Gajjar M.G 0028285OT

Contemporary Analysis Name: Meet Gajjar Roll no: 002285OT Subject: MGT604 Strategic Management Assignment: Final assignment Faculty: Alan dymond

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EXECUTIVE SUMMARY Novartis is one of very large pharmaceutical company in world. Novartis is highly focused in healthcare industry. This report will talk about new strategic influences by organization and give focus on Contemporary analysis. There is very high competition in pharmaceutical industry so there is very high industry and market requirements to think strategically. As we all know innovation is key part for any organization as per current market situation. Novel approach in traditional products always give additional boost to any organization.

Contents EXECUTIVE SUMMARY ............................................................................................................... 1 INTRODUCTION ............................................................................................................................. 3 AIM .................................................................................................................................................. 3 DISCUSSION ................................................................................................................................... 3 CORPORATE LEVEL STARTEGY ................................................................................................. 3 Strategic alliances .......................................................................................................................... 4 INTERNATIONAL CORPORATE STRATEGY .............................................................................. 7 NETWORK CORPORATE STARTEGY .......................................................................................... 7 IMPLEMENTATION OF STARTEGY ALLIANCES ...................................................................... 8 Kotter’s eight-step process ............................................................................................................. 8 Framework for change ................................................................................................................... 9 SILENT KILLERS FOR STARTEGY IMPLEMENTATION ......................................................... 10 RESEARCH & DEVELOPMENT................................................................................................... 10 Cultural adoption ......................................................................................................................... 10 PORTER’S FIVE FORCES............................................................................................................. 11 STRATEGY & SUSTAINABILITY ............................................................................................... 13 PRACTICES LEADING TOWARDS SUSTAINABILITY (PLETSUS) ......................................... 13 BALANCE SCORECARD.............................................................................................................. 14 TRIPPLE BOTTOM LINE APPROACH (TBA) ............................................................................. 16 CONCLUSION ............................................................................................................................... 16 RECOMMENDATION................................................................................................................... 16 REFERENCES................................................................................................................................ 18

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INTRODUCTION Potential of pharmaceutical market is very high. Changing domestic and international market trends leads to enhance competitive advantage. Research and development in life saving medicines, advances in novel drug delivery systems (NDDS) and general move towards patented medicines has resulted Novartis (other large-scale pharmaceutical manufacturers as well) actively working on novel approach in drug delivery system. Novartis changing their marketing strategy as per needs of current market. Following are three strategic influences which are implemented in Novartis 1. Research and development 2. Sustainable marketing approach 3. Emerging market AIM The aim of this report is “Contemporary analysis of implementation of new strategic approaches to meet current market trends by Novartis” DISCUSSION Continuous development is the key for success for any organization. Pharmaceutical and healthcare industry seek continuous development in strategies because there is very high competition in market as well as very high entry barriers. Top management should work on right direction achieve organization’s goals in current competitive era. CORPORATE LEVEL STARTEGY Corporative strategy is always working on the corporate level and always meets the organizational goals and current market needs. This is the strategy where top management

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and employees works together to achieve same objective. Following more discussion about that, (Baumgartner, 2008)

TOP MANAGEMENT

CORPORATE LEVEL STARTEGY EMPLOYEES

Strategic alliances Strategic alliances are primary type of strategy which followed at corporate level. There are many types of the strategic alliances which can further divided into sub parts. -

Strategic alliance is primary source followed by corporates

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This will allow corporate firms to determine either their plans are suitable or not, there is any gaps in new policies or strategies

Following are various types of strategic alliances

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strategic alliances

Joint venture

Equity strategic alliance

Non-equity strategic alliance

There are three reasons behind strategic alliance by market type, -

Slow cycle

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Fast cycle

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Standard cycle

A business level corporate strategy always enhances organization’s growth and market share of new and existing products. Moreover, it will give competitive advantage to the company and can take advantage of current needs of market. (stubbs,2015) 1. Complementary strategic alliances Combine partner companies always create new values and it is further divided into vertical and horizontal. 2. Competition response strategy

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In this type organization hire sales representative and develop marketing team. This will help organization to stay in high competition and meets current market trends. 3. Uncertainty reducing strategy This can be use for fast cycle market. This will decide the market and industrybased risk ratings for the company. 4. Competition reducing strategy This will avoid access market competition. It will further divide into two parts, -

Explicit collusion

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Tacit collusion

Assessment of business-level strategy Assessment of business level strategies are highly crucial. It will give strategic competitive advantage for any business. Alliances used to reduce competition are more likely to achieve organization goals and requirements. Horizontal alliances are very difficult to achieve and can overcome the business rivalry. There are three kind of corporate level strategy.(porter,2012) -

Diversifying strategic alliance

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Synergistic strategic alliance

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Franchising

There is broader prospect in scope of managerial motives, such as market share growth and competition. Moreover, it requires to monitor things to determine ideas and values.

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INTERNATIONAL CORPORATE STRATEGY This is the strategies to target the emerging markets and foreign market for Novartis. 1. Cross border strategic alliance This type of alliance in which company combine their all the resources in one place and works together. There are many reasons to make cross border line but following are essential, -

When firm is multinational

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Limited development

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To follow international government policies

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Facilitate organization core business

2. Synergistic strategic alliance -

Facilitates risk sharing

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Partner for any market

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Difficult to manage but good for management style

NETWORK CORPORATE STARTEGY In this type of strategy where multiple divisions or firms follow the same objective. In this kind strategy all the companies represent similar goal and fulfill the personal goals and strategies. There are two types of the network corporative alliance, (Baumgartner, 2008) 1. Stable alliance networks 2. Dynamic alliance networks

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IMPLEMENTATION OF STARTEGY ALLIANCES When organization implementing new strategies and new ideas in company than continuous improvement is highly necessary. Novartis is one of most successful in market with changes. Top management and employees are more prone to adapt to changes. Implementations of new strategies are very high to take adaption and those are very crucial for top management. (porter,2014) Novartis should follow the change management models to implement changes in organization, Kotter’s eight-step process

Kotter’s eight-step process for leading to change. These steps are as follows:

1.

Make sense of urgency

2.

Build a guiding coalition

3.

Form a strategic vision and plans

4.

Hire new employees

5.

Enable process by removing barriers

6.

Make short-term wins

7.

Keep acceleration

8.

Institute change

There are very high changes for organization and company have to follow the all the changes in right ways. There are many kind of data are available for model of change and model of rate. 8

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Change management also increase the political conflicts. If organization is operating in one state or territory than sudden changes in any strategies leads to conflicts between various stakeholders and employees. Framework for change There is various kind of the frameworks for change. Adapting change is most essential thing in current developing era. Step-1 Idea and its context It is highly regarded that initial point of the idea is very deep and need proper implementation and evaluation strategy by top management. Step-2 Define change initiative Evaluate the climate for Change Develop a change plan Find and cultivate a sponsor Prepare your target audience, the recipients of change Create the cultural fit — Making the change last Develop and choose a change leader team Create small wins for motivation Constantly and strategically communicate the change Measure progress of the change effort

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SILENT KILLERS FOR STARTEGY IMPLEMENTATION High cholesterol in arteries and in blood is known as silent killer for body. But improper planning for strategies also works like unwanted cholesterol for the system. Following are working as a silent killer for any system, (Baumgartner, 2008) 1. Unethical business practices 2. Conflicts in top managements 3. Poor relationship with manager 4. Poor relationship with stakeholders 5. Poor communication 6. Less hold on employees 7. Poor leadership skills

RESEARCH & DEVELOPMENT Novartis implemented new strategy in market and will focus on innovative molecules. This change should adopt by employees and by top management of organization. World is moving towards innovation and new technological products as a leader in healthcare industry Novartis should focus on new technologies and continue to work towards innovation. There is very high approach in the rate of consent in the development theories. Cultural adoption Cameron and quine (1999) noted that there are very high cultural influences in organization. Novartis is most culturally diverse organization with high development of new molecules. 10

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1. Clan culture This kind of culture needs involvement of the all the stakeholders from business. There is very high trends in the clan type culture and its involve broad spectrum of range in organization. 2. Adhocracy culture There is very high chance of the adoptability in this kind of culture. This approach is extremely necessary and takes several data to identify more about multi-cultural. 3. Hierarchy culture Cultural hierarchy is present in any large-scale organization. Novartis is globally recognized organization and it takes more data and rate about cultural hierarchy. 4. Market culture Market is continuously developing, and it needs more authentic management to run large scale organizations like Novartis. Externally and internally it reflects the stability control for Novartis. (Baumgartner, 2008)

PORTER’S FIVE FORCES Michel porter invented this theory in the year 1990 published from Harvard university. This theory reflects the competition among the industry and their competitors. There is very wide prospects of benefits regarding the buyers and suppliers like key stakeholders.

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THREATS OF NEW ENTRANTS

THREATS OF SUBSTITUTES

PORTER'S FIVE FORCES BARGAINING POWER OF BUYERS

BARGAINING POWER OF SUPPLIERS

1. Threat of new entrant Novartis is leader in pharmaceutical industry. But there is always a strong eye keeping by competitors from other companies. Industry rivalry everywhere among entire industry. 2. Threats of substitutes Novartis should follow the approach of generic products. There is very high chances of product and brand substitution at retail level. If Novartis also follow the approach of generic products in market than company take advantage from this as well. 3. Bargaining power of suppliers There is always a high bargaining power at the stakeholder level. They are having advantageous parameter at the rate of diversity. The most promising parameter for

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Novartis is company can reflect on novel drug delivery approach in marketing plan. 4. Bargaining power of buyers Consumer is the king in any industry. Doctors and patients are consumers for Novartis. There is very high negotiation from buyer level as well as from consumer level.

STRATEGY & SUSTAINABILITY Sustainable and environmentally friendly marketing approach is very well known among the industry. There is very high value proposition for products. Novartis also following towards sustainable approach into their products as well as in marketing plan. (Quine,1999) -

Biodegradable products

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Green buildings

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Water retention technology

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Automation

PRACTICES LEADING TOWARDS SUSTAINABILITY (PLETSUS) Stubbs and cocklin (2008) describes pletsus. It is widely known as sustainability and practices if we change anything for practices approach there is very high level of approach in the market. These include following, 1. People This includes customers, suppliers, and various stakeholders among organization 13

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2. Product This include design, manufacturing and management of the product 3. Place This include manufacturing facilities and distribution of end products 4. Process Various kind of process to manufacture products this include, -

Process patents

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New technology in process manufacturing

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Contract manufacturing

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Third party manufacturing

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Quality control

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Quality assurance

5. Profits This include organization’s financial results, cash flow and balance sheet which directly proportional to revenue for Novartis. (Quine,1999)

BALANCE SCORECARD Balance scorecard is to estimates the performance of the organization. It measures the performance of the strategic management across four perspectives, 1. Financial perspective This perspective is directly proportional to the profit of organization. Following parameters are interlinked with this, 14

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Balance sheet

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Profit and loss accounts

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Cash flow

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Loans

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Currency exchange

2. Customer perspective There is very high influence from the buyers and suppliers. Customer estimates products on following bases, -

Quality

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Price

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Service

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Life

3. Internal process This process fulfills the requirements of shareholders and customers. Performance delivery estimates are the key essential criteria for any business. This perspective raises the question about shareholder or organization perspective. (Quine,1999)

4. Organizational capacity This is commonly known as growth and learning outcomes for organization. This relates to

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Human behavior

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Management behavior

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Technology

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Capital

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Infrastructure

TRIPPLE BOTTOM LINE APPROACH (TBA) It reflects common unit of measure and decided from the sustainability and rate of growth. Financial matters can easily determine in currency and growth of organization is directly proportional to the implementati...