(a). Statement of problem or problem(s) facing the firm. State the problem(s) clearly and succinctly. Explain why you believe it (or they) is important. Include information on concepts from the course as needed.
Ans. Biovail Corporation has a Canadian company presence in the world and home. This pharmaceutical company has developed numerous prestigious medicines and legacy pharmaceutical medicines. Their research and development has been taking the firm ahead in the medicine production and distribution of the medicines. Suffering from small problems of media and public relations, and bigger control issues the corporation settled for new people being pushed through the ladder. In all as shown by Chapman (2009), they provide all new medicines of generic products, enhanced formulation of drugs as well as combination products. Numerous managers and high efficiency standards have hitherto set the company apart from others in the market.
The problem of maintaining effective legal priorities and relations left the company management very low on confidence. The recent accident and lower number of calls, delegation of authority and reporting internally or as a press release have led to ascertaining this. The company has good respect in medical community while the incident of accident indicates a large number of problems in Public Relations. Changing payroll and leadership or the ownership of these issues is a clear indication of slow appraisal of pertinent issues.
Another issue of control from the management expects results in a small frame of period such that ever more reporting and management of relevant tasks management is exacting to further aggravate working individuals at the company. Thus the problem of working at exact point of control is an aspect which boils to how the manager takes ownership of problem, task and leads to settle issues making working as also learning easier.
(b). Summary of the situation/analysis of issues.
- Strength – management, high respect, corporate social responsibility, turnover.
- Weakness – lower control, higher resistance to adaptation, flexibility, financial accounting.
- Opportunity – good asset management, efficiency, profits.
- Threat – motivation, employee engagement, debt or capital consolidation.
The company has been thorough with the business inclination and strategic deployment of resources, efforts in the determination of correct partners. The opportunity of asset management, efficiency in resources could become better. The strength needs to underplay yet overcome the imminent threat from lower motivation, high dependence on debt financing on long term basis.
Porter five forces analysis
- Power of suppliers, high
- Power of buyers, very high
- Barriers to entry, low
- Competitive rivalry high
- Availability of substitutes low
The basis evaluation of the market forces leads to Porter five forces analysis. The competitive scale of operations at the company seem to have increased with the market maturity but the decline could set from the accident and media overturning the company community image. High supplier power and buyer strength with good partner relations sets the record for the company. The market offers a low barrier to entry and low substitutes forming the good demand expectations each year.
(c).Strategic alternatives and recommendations for strategy. Present a set of strategic alternatives, evaluate them, and then decide which (are) best.
Strategy for a well entrenched firm in the pharmaceutical market of Canada needs to ascertain the main issues pertinent to business strategic strength – partners, suppliers and also which factors that can be deepened leading to success. Strategic partner’s relations with the firm are strong, financial reserves are good and the firm has a well thought strategy in market sales and deepening relations.
- Effect flexibility from ownership of rules and due diligence,
- Make absenteeism and other habits of employees a strict no
- Provide more room for airing concerns of ownership, delegation and leadership in issues unknown or non-communicated
- Include a stronger chain of command to augment relevant changes to happen
- Imbibe social messaging or employee brand worth assessment regularly
- Guide local media coverage
Since company is a high growing market with high profits one should necessarily enhance social medical community respect to show vividly from press, seminar and workshops.
- Bring better fiscal consolidation from accounting and reporting,
1.Flexibility in operations separated from the due diligence make the way ahead for efficiency in control and authority making the authoritarian central leadership more strong. As the firm sees marked trend in the future with questions related to accident, compensations, due care in settling matters with the loss of sizeable investment , this strategic alternative could deepen system and transformation capability.
2. Making the human resources department to settle employees in the right earnest with company officially announces the end of distance between different cadres or positions. Horizontal level organization against the hierarchical organization style could be debated. While the firm needs to overcome the dissent within itself, this is easier to manage with a horizontal strategic style.
3. Provide means to business communication to happen easily with partners, employees, suppliers and sales department.
4. Invoking a direct chain of command for stronger control and effective means to guide operations is a strategic pass for the incoming issues developing.
5. Taking up the employee brand worth seriously and including employee surveys, partnerships, engagement and shares distributed ESOPs could be a long term win-win move from the management.
6. Media planning, media buy and sustaining high level of public relations activities lead to suppliers and partners being communicated the right community stand vis-a-vis the firm. A long term gesture of goodwill this strategy alternative goes a long way in making way for leadership, resolving issues and others.
7. Financial planning and financing accounting for better preparedness of issues related to accident. Reporting all distribution of asset utilization and demarcating efficiency parameters would lead to better morale and set the tone for future upheavals.
Amongst the alternatives for strategy the third and fourth aspects are better to administer and a traditional cost effective means available for firm. Instead the time taken for the firm in setting up such a strategy for high central control could be debated with a high financial technology deepening based on recent accident demolishing morale. Thus the first is to save the community and partner trust with effective financial planning for accounting which must include better employee branding with due care or diligence in corporate governance.
Craig chapman, April 7 2009, Biovail corporation: Revenue recognition and FOB sales accounting, Harvard Business publishing.