+1-817-968-5551
+61-488-839-671
+44-7480-542904About Expert
Key Topics
Requirement
You are required to develop a strategic management plan for an organization of your choice. This may be a company that you are familiar with from your home country.
As companies move forward in the twenty first century, gaining and sustaining competitive edge will be necessary to have a significant impact on market share. Employeeing strategic management analysis provides forward-thinking perspectives to drive business onward as the world marketplace continues to evolve.
Solution
Executive Summary
It has been observed that the various organizations are using advanced technologies in order to develop creative and innovative products in order to satisfy the customers. As the organizations are moving forward in the 21st century, it is very important for them to have a sustainable competitive advantage with the maximization of its overall market value to survive in the competitive world. Further, the organization of Ireland has been taken which belongs to the pharmaceutical and biotech sector of Ireland in order to understand that how the company needs to change according to the change in environment and how the company will be able to gain sustainable competitive advantage from the temporary competitive edge.
Require reliable conflict management assignment help? Sign up and place your order at Allassignmenthelp.com. Our professional writers are experts in providing Database management system homework help at an affordable price. We have helped thousands of students with their management dissertations.
Introduction
The company which has been taken is Élan Corporation Plc from the pharmaceutical and biotechnology sector of Ireland. The company was established in 1969. Élan focuses on building its experience and research in the field of neuropathology like a disease of Alzheimer. The efforts of the company include the various programs which focuses on the inhibitors of small molecules of gamma and beta secretase, the enzymes whose action may impact the accumulation of the plaques of amyloid which is found in the patient’s brain along with the disease of Alzheimer. The company is also focusing on the disease of neurodegenerative like the disease of Parkinson. Élan Corporation Plc studies the trafficking of cells in order to unfold the ways which will offer disease-transforming therapies for the disease of autoimmune such as disease of the inflammatory bowel, multiple sclerosis, and rheumatoid arthritis.
In 1990, the value of the company on the stock exchange of Ireland reached to around € 20 billion. But, in 2002 the scandal of accounting and the reaction of the investors to the global recession, caused a devaluation which resulted in a recession in share price over 90 percent. In 2010, the company was fined $203 million in order to market epilepsy drugs ("Quality Affordable Healthcare Products | Perrigo Company," 2016). Further, the situation analysis of the company is given to understand the competitive advantage and the impact of external environment with the help of management tools. The strategic alternatives are also given which is being developed by corporate and business strategy with the help of management tools. Therefore, the company will be able to sustain in the competitive environment and will be able to gain the competitive edge by achieving business value.
Situation Analysis
Internal Analysis
The internal analysis of Élan Corporation Plc will be done with the help of VRIO framework in order to identify the competitive advantage of the company like what competencies and the capabilities the company possesses.
Management Tool: VRIO Framework
Value-
Under this, the value proposition of Élan Corporation Plc is divided into two types of resources i.e. tangible and intangible in order to understand the competitive advantage of the company (Chiang et al., 2016).
Tangible resource-
Manufacturing unit: the company is the manufacturer of Tysabri, Azactam and Maxipime for the injections in order to deal with the disease of Alzheimer in Ireland and the company is having offshore and the onshore presence of products. The manufacturing unit is situated in Dublin, Ireland.
Human resource: the company has around 8000 employees which come from different cultures and background. The company has developed itself as the best place to work in pharmaceutical and biotechnology sector. The various learning programs are conducted in the company in order to maximize the efficiency of employees to increase the level of productivity. The company uses ESOP to motivate and retain its employees.
Acquired company: recently the company has merged with the Perrigo in order to establish Perrigo company plc.
Intangible resources-
Brand equity: the company is the best place to work, but it doesn't have a good reputation because, in 2010, the company was fined $203 million as it was marketing epilepsy drug.
Social equity: awareness programs are conducted in order to eradicate the disease of Alzheimer. Social development programs are conducted with the help of management of community health by giving training and education.
Brand awareness: the company initiates various programs in order to create awareness among people about the diseases like Parkinson, inflammatory bowel, multiple sclerosis and rheumatoid arthritis. The company conducts medical camps for diagnosing and screening the diseases among people.
Rarity-
Factors Are they rare in the pharmaceutical and biotech industry?
Manufacturing unit No
Human resource No
Products Yes
Brand equity No
Social equity Yes
Awareness of brand No
It can be concluded from the rarity that the products are rare and unique and the social equity is also unique, but most of the factors are not on the side of a rarity.
Imitability-
Factors Are they difficult to imitate in the pharmaceutical and biotech industry?
Products:
Tysabri
Azactam
Maxipime
Yes
Yes
Yes
Human resource No
Manufacturing unit No
Brand equity No
Social equity Yes
Awareness of the brand No
It can be clearly understood that the imitability of products and social equity is difficult and the other factors are easy to maintain in order to achieve competitive advantage.
Organization- In the tenure of support for the organization for its implementation and success the required value chain the company has a robust framework on which it is currently working and if the company will succeed in maintaining it then it will be able to gain and sustain the competitive edge.
It can be clearly understood from the framework that Élan Corporation Plc has temporary competitive edge. The company has to focus on the brand equity and human resource in order to sustain the competitive edge. Furthermore, the company should try to explore new areas to maximize the market share.
External Analysis
The external analysis of Élan Corporation Plc will be done with the help of Porter’s five forces in order to find the threat and opportunities by doing the analysis of task and societal environment (Magretta, J. 2013).
Management Tool: Porter’s Five Forces
Bargaining power of supplier-
The bargaining power of supplier is high because the market is being dominated by the few suppliers and there are no substitutes for the product. The company is not having any choice for the alternative product .Therefore, Élan faces high pressure on the margin.
Bargaining power of buyer-
As the company is linked to the government, so the company has to fulfill desired obligations in order to provide good pharmaceutical products to the various medical facilities of the government. The government’s bargaining power is high as the Élan is not the only provider.
Threat of new entrants-
The company has an assured place in the pharmaceutical and biotech industry to some extent as the government contract safeguards the margin of the company. The company will come under pressure when the contract gets expired.
Threat of substitute-
The company provides unique products to the government, but there is a threat of substitute products if the patient is not able to tolerate the given dose. Then the government might switch to another company.
Rivalry among existing competitors-
The company is having a rivalry with the competitors to some extent as those companies have a different way of working and have modern equipment according to the new technology whereas the Élan was established in 1969, so it has a traditional way of working.
SWOT Analysis
The SWOT analysis is done in order, to sum up, the research which was done by using the management tools.
Strengths-
-
Expertise in products.
-
Strong social equity
-
Generic portfolio of low cost
-
Strong presence in Ireland.
Weakness-
-
Price control of the product which creates pressure.
-
Strict regulations and policies of the government.
Opportunities-
-
Increase sustainable competitive advantage by creating brand awareness.
-
Further acquisitions will help in getting the competitive edge and maximize the overall market share.
Threats-
-
Tough competition in the market from the rivals like The Shire plc.
-
The company may face a financial crunch as it recently suffered a huge loss.
Strategic Alternatives
Corporate Strategy
Under this section, with the help of Ansoff matrix, the alternative growth will be generated. Further, the external threats and opportunities will be matched with the internal weaknesses and strengths.
Management Tool: Ansoff Matrix
This management tool will help in understanding the markets and the products which are able to the Élan Corporation Plc. The Ansoff matrix recommends that the company’s attempt to expand and sustain relies on its market or the products in the new market (Rothaermel, F. T. 2015).
Market penetration-
The strategy of the market penetration begins with the existing or present customers of the company. The Élan Corporation Plc can increase its usage of the product, and the risk is less.
-
52% of the patients will be the new users.
-
5% of the volume of the market will widen due to maximized compliance.
Product development-
The strategy of product development is to come up with new products. As the company will be introducing new product after the merger and the risk is moderate.
-
Treatment of atherosclerosis.
Market development-
In this stage, the company will follow the strategy of market development by moving further from its current customer base to attract the new customers for the existing product and the risk is moderate.
-
Creating awareness among people about the diseases by conducting programs
-
Testing vouchers to check autoimmune disease in order to diagnose the disease.
Diversification-
In this stage, the company will diversify and will try to move out of its present market and products in order to explore the new areas and location and the risk is high.
-
Acquisition with other companies in order to establish a new company to test and implement new products.
Therefore, Ansoff matrix helps in generating the alternative growth, and it has been understood that the company has temporary competitive advantage and it should involve in some more acquisitions in order gain and the sustain the competitive advantage and should be more careful while diversifying. As it is very important to make changes in the innovation and technology in order to compete with the rivals in the competitive industry of pharmaceutical and biotech sector.
Place Order For A Top Grade Assignment Now
We have some amazing discount offers running for the students
Place Your OrderBusiness Strategy
Under this section, the competitive strategy will be generated with the help of porter’s generic competitive strategy which will further allow the Élan Corporation Plc to achieve competitive advantage over its competitors (Tanwar, R. (2013).
Management tool: Porter’s Generic Competitive Strategies
Cost leadership-
-
The company should try to reduce the cost of distribution and production.
-
The company should set the lowest prices in order to value the ratio.
-
The company should have a control on the supply chain.
-
The company should reduce the cost of indirect and direct operations.
Therefore, the Élan Corporation Plc will be able to target more customers as the company will get the broad market scope with the low-cost competency. The company will be able to attract new customers, and the distribution of products will maximize. This will further help the company to sustain the competitive edge.
Differentiation-
-
The company should concentrate on differentiating the substitute products of the competitors.
-
The company should identify their potential as compared to the rivals.
Therefore, the Élan Corporation Plc will be able to gain the competitive advantage and will become sustainable from the temporary one. The strategy of differentiation will help the company to identify the unique competencies with a broad market scope (Hill et al., 2014). The company will be able to manufacture new products according to its demand in the pharmaceutical and biotech industry. Further, the Élan Corporation Plc will be able to improve and maximize the overall market share with the help of the government.
Market segmentation-
-
The company should focus more on its marketing strategy in order to create brand awareness.
-
The company should try to expand a company in such a location where there is less competition and less or no substitute products exist.
Therefore, the Élan Corporation Plc should focus on the cost in order to get a sustainable competitive advantage, and the company should also focus on the differentiation in order to gain differentiation in the target market. But for the market segmentation, the scope of the market is narrow, but it also has unique competency with low cost (David et al., 2016).
Therefore, if the company will use the given strategies which are generated with the help of Ansoff matrix and the porter's generic competitive strategies, then the company will be able to gain sustainable competitive advantage.
Conclusion
It has been understood from the report that the organizations should change their way of working according to the time and technology as people prefer innovative and creative products. As the report states that the Élan Corporation Plc is the company of pharmaceutical and biotech sector, the company was established in 1969, so it has temporary competitive advantage. The company can even face the financial crisis as it was recently fined. Therefore, it is very important for the company to gain a sustainable competitive edge in order to maximize the overall market share. The report included the VRIO framework which helped in doing internal analysis, and the porter's five forces were used for the external analysis. Further, the SWOT was done for the company on the basis of internal and external analysis. Then, the Ansoff matrix helped in understanding and generating the corporate strategy for the company and further the porter's generic competitive strategies were used in order to generate the business strategy for the Élan Corporation Plc. Therefore, now the company will be able to gain the sustainable competitive advantage with the increase in overall market share.
REFERENCES
-
Chiang, Y. M., Chen, W. L., & Ho, C. H. (2016). Application of Analytic Network Process and Two-Dimensional Matrix Evaluating Decision for Design Strategy. Computers & Industrial Engineering.
-
David, F., & David, F. R. (2016). Strategic Management: A Competitive Advantage Approach, Concepts and Cases.
-
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an integrated approach. Cengage Learning.
-
Magretta, J. (2013). Understanding Michael Porter: The essential guide to competition and strategy. Harvard business press.
-
Quality Affordable Healthcare Products | Perrigo Company. (2016). Perrigo.com. Retrieved 22 October 2016, from http://www.perrigo.com/
-
Rothaermel, F. T. (2015). Strategic management. McGraw-Hill.
-
Tanwar, R. (2013). Porter’s generic competitive strategies. Journal of Business and Management, 15(1), 11-17.
Give your grades a boost
Just share your requirements and get customized solutions on time.
-
1,168,768 Orders
-
4.9/5 Overall Rating
-
5,052 Experts
