Case Study

BUSINESS MANAGEMENT CASE STUDY  B-PHARMA

SECTION A With reference to B-Pharma, describe two ways in which Corporate Social Responsibility could be important. When carried out e!eri"ent# on ani"a$# and #o"e o% the" &ein' !ain%u$$( )i$$ed* B- Phar"a Phar"a %ound the"#e$+e# in the centre o% contro+er#( re!orted &( "edia out$et# around the '$o&e, B( thi# the %ir" a$"o#t $o#t their re!utation,  A$thou'h* there cou$d &e #o"e a(# #uch a# Cor!orate Socia$ Re#!on#i&i$it( &( hich B- Phar"a cou$d do #o"e &ene%it %or the #ociet(, In thi# ca#e* B- Phar"a #hou$d 'et a$$ the che"ica$# te#ted &e%ore e!eri"entin' on ani"a$#, CSR %or co"!anie# $i)e B- !har"a cou$d &e done &ecau#e dru'# and "edicine# &u#ine## hich re.uire# !rete#tin' on ani"a$# and hu"an &ein'# &e%ore &ein' $aunched in the "ar)et, There%ore* in order to "aintain their re!utation and 'roth in &u#ine##* it i# nece##ar( that the co"!an( ha# to a&ide &( the ethica$ and $e'a$ nor"# Co"!an( can thin) o%% #u&#titutin' ani"a$# ith co"!uted aided !ro'ra""e# to te#t their dru'# &e%ore the( are $aunched, Thi# i$$ &e a +er( inno+ati+e %eature in ter"# o% Cor!orate Socia$ Re#!on#i&i$it(, Hoe+er* co"!an( cannot re!$( on thi# "ethod a$one &ut de%inite$( the re$iance on te#tin' on ani"a$# and hu"an &ein'# cou$d &e reduced, Apply the Boston Consulting Group (BCG matri! to product portfolio.

B-Pharma’s

Mar)et Groth Y- ai# Mar)et #hare Cash Cow

Stars

"igh - Phar"a

Phar"a%$o

Dogs

Problem Child

#ow - none

Pha"atic# and !har"a#$i!

Ca#h Co - Phar"a Thi# i# an i"!ortant dru' o% the co"!an( hich i# #ti$$ 'i+in' re+enue, Hoe+er* &ecau#e it ha# reached #aturation !oint there%ore the chance# o% 'roth are $i"ited, Star# - Phar"a%$o Phar"a%$o i# doin' +er( e$$ in the "ar)et, The dru' i# 'roin' ra!id$( in the "ar)et there%ore on$( in+e#t"ent o% ad+erti#e"ent i# re.uired #o that the dru' can "aintain it# !ea) !o#ition, Pro&$e" Chi$d - Phar"atic# and Phar"a#$i!  Phar"a #$i" i# (oun' &rand o% the co"!an( and can do e$$ in the "ar)et i% a''re##i+e #e$$in' #trate'( i# ado!ted, In thi# a'e hen to &eco"e #$i" i# 'ainin' "o"entu" or$dide, There%ore* the "ana'e"ent #hou$d nurture thi# &rand +er( care%u$$( and con#i#tent$( #o that one da( it "a( %ind !$ace in the /#tar#0 cate'or( o% BCG Matri, 1i)ei#e* Phar"atic# i# a$#o a ne dru' o% the co"!an( hich ha# #hon #ati#%actor( re#u$t# initia$$(, Thi# dru' can &rin' 'ood re+enue to the co"!an( in %uture &ecau#e it i# $in)ed to the co#"etic indu#tr( and there%ore* thi# dru' a$#o re.uire# care%u$ and con#i#tent "onitorin',

Both /!har"a#$i!0 and / !har"ati0 are re$ati+e$( (oun' &rand# hich ho$d tre"endou# !otentia$ to increa#e "ar)et #hare o% the co"!an(, Hoe+er* the co"!an( ha# to a''re##i+e$( ad+erti#e the dru'# and )ee! the !rice# co"!etiti+e #o that in %uture &oth dru'# can earn hand#o"e re+enue and "o+e to /#tar#0 cate'or( o% BCG Matri, With reference to B-Pharma, outline two $ey features of operating as a public limited company.  A# B- Phar"a i# a !u&$ic $i"ited co"!an(* it can rai#e $ar'er #hare ca!ita$ %ro" !u&$ic, Since it can #e$$ it# #hare to the !u&$ic and an(one i# a&$e to in+e#t their "one(* the ca!ita$ there%ore can &e rai#ed "uch hi'her a# co"!ared to the Pri+ate 1i"ited Co"!an(, Groth and E!an#ion O!!ortunitie# - Once the %inance i# rai#ed* &( ha+in' "ore %inance the %ir" i# !otentia$$( a+ai$a&$e in a &etter !o#ition2ter"# that the Pri+ate 1i"ited Co"!an(, The Pu&$ic 1i"ited Co"!an( ha# an ad+anta'e to !ur#ue ne !ro3ect#* ne "ar)et# a# the( decided to 'ro and e!and ithin the Paci%ic Ri", Due to thi#* B-Phar"a a# a&$e to o!en other #"a$$er #u&#idiarie# in other countrie# #uch a# Canada* Chi$e* Meico* Ne 4ea$and* South 5orea and 6ietna",

%!plain the importance of branding for B& 'harma. Brandin' i# a +er( i"!ortant %actor %or %ir"# to )ee! in "ind, A 'ood &randin' increa#e# the +a$ue o% the co"!an(* !ro+ide# "oti+ation to the e"!$o(ee# and e+entua$$( increa#e# their "ora$e, Ta$)in' a&out BPhar"a* the %ir" ha# e$$ e#ta&$i#hed &rand na"e that ha# &een "aintained &( a''re##i+e ad+erti#in' in #!ecia$i#t "a'a7ine#, B-Phar"a8# $o'o i# !re#ent in a$$ it# !roduct#* it# %a"i$( &randin' ha# attracted con#idera&$e &rand $o(a$t( Mar)et re#earch #ho# that "o#t adu$t# acro## Ea#t A#ia reco'ni7e B-Pharma $a&e$# and re'ard the" a# a "ar) o% .ua$it( and #a%et(, B-Pharma dru'# are tru#ted &ut are e!en#i+e, A# B- Phar"a ha# a$read( e#ta&$i#hed their &rand* it i# ea#( %or the %ir" to 'ain "ore

"ar)et #hare, Moreo+er* in thi# hi'h$( co"!etin' '$o&a$ "ar)et* it i# crucia$ to #tand out %ro" the crod, B- !har"a8# &rand na"e i$$ there%ore i$$ he$! the %ir" #tand out %ro" the thou#and# or "i$$ion# o% #i"i$ar or'ani7ation# around the or$d, In addition to thi# B- Phar"a ha# it# #u&#idiarie# in "an( !art# o% the or$d* there%ore* it# i"!ortant %or BPhar"a to ha+e a 'ood &rand here cu#to"er# are $o(a$ hich i$$ e+entua$$( create a 'ood i$$ o% the %ir", escribe two benefits for B-Pharma of a cost&plus (mar$&up pricing strategy for its drugs. B-!har"a %ie# the !rice o% the "edicine &( )ee!in' in "ind the !rice o% #u&#titute "edicine# o% the co"!etitor# in the "ar)et #hare* So that* it #hou$d not $o#e it# "ar)et #hare, When B- !har"a %ie# it# !roduct !rice it )ee!# in "ind the co#t o% !roduction and the co#t o% Re#earch and De+e$o!"ent on the "edicine #o that it can %i the !rice &( addin' nor"a$ !ro%it# #o that co"!an( can earn !ro%it,

Analyse the effecti)eness of Susan *ames+ leadership style at the Canadian subsidiary of B-Pharma Su#an 9a"e# u#ed the autocratic $eader#hi! #t($e in hich #he ha# a$$ the !ro&$e" in her on hand#, She a# not read( to de$e'ate the !oer to the #u&ordinate#, She anted #u!erior #u&ordinate re$ation#hi! to &e c$ear &ecau#e #he )no# that due to autocratic $eader#hi! there are "an( e"!$o(ee# ho i$$ o!!o#e to thi# !o$ic( and i$$ &e de"oti+ated &ut to correct thi# !ro&$e" #he i"!$e"ented !er%or"ance re$ated !a( hich "eant i% a !er#on or)# e%%icient$( he2#he i$$ 'et "ore !a(, B( thi# $eader#hi! #t($e %ir" i$$ &ene%it in ter"# o% &etter or)in' en+iron"ent and there i$$ &e no con%u#ion a"on' the re$ation#hi! &eteen #u!erior and #u&ordinate, E+er( e"!$o(ee ha# &een 'i+en a

!ro!er ta#) to &e !er%or"ed ithin %ied ti"e%ra"e hich i$$ $ead to no de$a(#,