Strategic Recommendations for Hikma

Question: Discuss about the Strategic Recommendations for Hikma Pharmaceuticals PLC. Answer: Introduction The study evaluates specific strategic recommendations to help the executive team members of Hikma Pharmaceuticals PLC so that the strategic interventions can influence the decision-making of the executives. By identifying the concepts and management principles suitable for long-run sustainability of the business framework of Hikma Pharmaceuticals PLC, the recommended strategy planning activities have been presented in the study paper (Cole, Elliott, 2007). Precisely, the study includes the mission, vision, and objectives of Hikma Pharmaceuticals PLC providing a brief description of the firm. In the context of the strategic planning activities, a SWOT analysis has been conducted to evaluate the current organisational strengths, weaknesses, opportunities and threats associated with the business structure. Furthermore, the relevant study has focused on four verified strategy planning activities that can be considered for the organisational business perspective. By evaluating each of the strategy, the most convincing strategic intervention has been suggested providing valid justification (Zajas, 2013). To finish, a list of strategic recommendation has been included in the study paper. Organizational Background The study paper has concentrated on the strategic planning activities of Hikma Pharmaceuticals PLC, a multinational pharmaceutical corporation deals in branded and non-branded generic medicines. Comprehensively, the company manufactures medicines for a larger target market and one of the leading pharmaceuticals companies in the UK market (Cartwright, 2010). The London-based medicine manufacturing organisation has got 29 manufacturing plants in eleven countries around the globe. In the underlying section, the mission, vision, and value of the firm have been briefed as follows: Mission Hikma Pharmaceuticals PLC is committed to improving the standard of living through the products manufactured by the organisation ("Vision and Values", 2017). The dedicated workforce of Hikma Pharmaceuticals PLC has aimed to deliver high-quality medicines at affordable prices to the target audience in crucial therapeutic areas. Vision Hikma Pharmaceuticals PLCs corporate vision is to introduce modern pharmaceuticals medicines at the international level. Through strategic acquisition and growth in the organic medicine sector, the company has continued to register high standards of business responsibility towards the target consumers. Moreover, the central idea of the business operation is to attain long-run business sustainability providing essential medicines to every section of social public influencing the living standard of people. Values and Objectives Integrity and excellence can be identified as the two leading values for Hikma Pharmaceuticals PLCs business. Without compromising the reality, the company operates the business following honesty and honour ("Vision and Values", 2017). Alternatively, quality and excellence of the business have set the trend for the other competitors to be followed. The success model of the business of Hikma Pharmaceuticals PLC is based on management and teamwork. Through diversified business model, Hikma Pharmaceuticals PLC has wanted to be one of the leading manufacturers of generic branded medicines at the international level. SWOT Analysis The SWOT analysis for Hikma Pharmaceuticals PLC has been analysed in this section as follows: Strengths Quality Products and Extensive Sales: The supply of quality drugs at the reasonable price range and extensive sales of Hikma Pharmaceuticals PLC have been the leading strengths of business in the UK, Middle East and North American market. Efficient RD Team: The efficient research and development team of Hikma Pharmaceuticals PLC has largely contributed to the growth of the business formulating latest drugs in therapeutic areas (Shekem, 2013). Attractive drug licensing partners: Hikma Pharmaceuticals PLC has got numerous drug licensing partners that are increasing the business proposition and internationalisation opportunities adding strength to the business framework. Weaknesses Dependency on the UK market: In the competitive business structure, Hikma Pharmaceuticals PLC is widely dependent on the United Kingdoms pharmaceutical market for sales perspective. As a result, such single market dependency has been a major weakness for Hikma Pharmaceuticals PLC. Limited presence in developing countries: Hikma Pharmaceuticals PLC has a limited business operation in emerging economies such as India, Russia, etc. Meanwhile, limited business presence in developing nations has been a weakness for Hikma Pharmaceuticals PLC (Cartwright, 2010). High reliance on popular medicines: Hikma Pharmaceuticals PLC has put more marketing value on blockbuster drugs. Therefore, high reliance on leading medicines has been a considerable weakness for the pharmaceutical company. Opportunities Partnership with global pharmaceuticals companies: Through building new business partnerships with leading global pharmaceutical corporations, Hikma Pharmaceuticals PLC has created substantial growth opportunity in the global market (Cole, Elliott, 2007). Strong Product line: Development in strong product line has opened up new business opportunities for the company. Furthermore, new drug patenting and focusing on FDA approval have steadily contributed towards growth model of Hikma Pharmaceuticals PLC (Cartwright, 2010). New opportunities in emerging markets: During internationalisation of business, Hikma Pharmaceuticals PLC has significant opportunities to explore the emerging countries. Thus, the business expansion can support the revenue model of the company Threats Severe drug development guiding principle: The changing principles of drug development guidelines are a major threat for Hikma Pharmaceuticals PLC. Hence, it is important for the management to consider the drug development guiding principles to be safe from the legal obligations. Increasing competition: On the other hand, several new companies are entering the pharmaceutical industry with new patents and innovative medicines. Hence, the rising competition in the market is another major threat for Hikma Pharmaceuticals PLC. Stringent government policies: Furthermore, the government policies in the pharmaceutical industry are hard and the company needs to follow different rules and regulations. Hence, the changing rules and regulations of the government guiding the operations of pharmaceutical industries can be considered as a primary threat for the business. Strategy planning activities to accomplish the success factors The four identified strategy planning activities have been illustrated herein as follows: Internal Analysis Internal analysis is used to evaluate the core competencies of the firm to observe the factors leading to the competitive advantage of the firm in the market. Different theories and strategic analysis models are used by the modern analyst to conduct the internal environment analysis (Grant, Jordan, 2015). First is the core competency model that is also known as VRIO or VRIN framework used to analyse the competencies of the organisation that are valuable, rare, imitable and non-substitutable (Koumparoulis, 2012). On the other hand, the portfolio analysis is conducted to evaluate the product and service range of the organization. In other words, the portfolio analysis helps the management to judge the success of the products and services in the market by analysing its substitutability and demand in the market. Furthermore, the internal strategy analysis is also used to evaluate the performance of the workforce in order to identify the capabilities of the organisations. Hence, internal analysis is helpful for the management to observe and evaluate the internal strength of the organisation and develop strategies and tactics to achieve the desired goals and targets (Lee, Jose, 2008). On the other hand, the internal analysis activity makes the management aware of the competencies of the organisational structure and the higher level executives of the firm. Conclusively, the internal analysis will help Hikma Pharmaceuticals PLC to develop adequate strategies on the basis of their internal strengths. Demand and Competition Analysis The demand and competition analysis is a part of industry analysis that helps Hikma Pharmaceuticals PLC to get aware of the current factors in the external market that influence the business of the firm (Grant, Jordan, 2015). The demand analysis helps the firm to analysis the current and future demand for its products by conducting a survey and market research (Pehrsson, 2007). On the other hand, the competition analysis can be conducted to analyse the strengths and weaknesses of the rivals to identify the opportunities and threats for Hikma Pharmaceuticals PLC. Different external environment analysis tools can be used by the management to conduct the demand and competition analysis. For example, the PESTEL analysis tool can help to evaluate the external market factors such as the political factors, economic factors, socio-cultural factors, technological factors, environmental factors and legal factors that impact the demand for its products (Michael, 2013). On the other hand, the Porters Five Force analysis can be conducted to analyse the market drivers such as the buyers power, suppliers power, current rivalry, substitution of products, and entry of new rivals that impacts the operations of the organisation. Hence, the demand and competition analysis activity is quite essential in planning the strategies of the firm. Analysis of Marketing Strategy In order to increase the efficiency of the business of Hikma Pharmaceuticals PLC, analysis of current marketing strategy will be evident to determine the long-run viability of business operations (Baker, 2014). By including significant corporate vision to the marketing strategy, organisational executives can evaluate commendable marketing activities. By investigating the existing marketing concepts and structure, customer-oriented marketing concepts can be accurately introduced (B. Dent, Bozeman, 2014). On the hand, by conducting a comprehensive marketing audit, review of the developing marketing trends as well as changing consumer behaviour can be recognised. The analysis of marketing strategy will examine the marketing 7Ps so that strategies and objectives can be overridden according to the requirement. Alternatively, the analysis of current marketing strategy can identify the lack of activities associated with marketing and promotion. Precisely, based on consumer behaviour, pricing, advertisements, and distribution channels can be set to get the maximum benefits in the target market (Banerjee, 2016). To achieve sustainable marketing objectives, monitoring of the marketing tactics and corrective measures must be developed to boost the sales in the target market. Financial Analysis Hikma Pharmaceuticals PLCs management must consider financial strategy analysis so that the shareholders values can be maximised in a substantial way. Through financial analysis of the firm, Hikma Pharmaceuticals PLC can focus on sales margin, costs, and financing. Invariably, the competitive pharmaceuticals industry has got the significant potential to explore (Kim, Min, 2015). Therefore, by increasing the sales margin, Hikma Pharmaceuticals PLC can support the shareholders value. On a practical term, such strategic move can be impressive for long-run growth (Jain, 2011). Alternatively, by focusing on margin, cost reduction strategy can be formulated so that significant costs i.e. production costs, marketing costs, etc. can be reduced contributing towards the business success of the firm (Duan, 2011). Notably, the strategic financial analysis can deliver significant financing opportunities to the enterprise that can be a substantial cost factor leading to business growth. Comprehensively, the strategic financial analysis will identify the change in the exchange rates and modern trends of industry to maintain the financial obligation in a more effective manner (Zajas, 2013). Justification of the selected strategy planning activities On the basis of the above strategy planning activities, the demand and competition analysis is one of the most effective strategic interventions that can be implemented by the management to influence the role of the executive and better understand the principles and concepts of a well designed strategy process (Shekem, 2013). Furthermore, the internal analysis will be helpful for the executives to evaluate the strengths of the workforce and organisation on a whole. Additionally, the marketing strategy analysis and financial analysis will help the organisation to minimise the marketing and financial risk of the firm (Jain, 2011). Hence, the strategy planning activities will help the management to develop effective strategies to seek competitive advantage in the market (Shankar, 2011). On the other hand, the understanding of the strategic planning activities will help the organisational executives to understand the current status of the internal and external environment to meet the fut ure challenges. Recommendations By considering the above analysis, the following recommendations are provided to the executives of the firm to improve the strategy planning process: Conduct market survey: There is a need of conducting a market survey to analyse the demand of the products. On the other hand, the market survey helps the executives to understand the satisfaction level of the customers and observe their demand. Furthermore, the market survey is the primary data collection tool for conducting the external analysis. Develop strategy making plan: Additionally, the management must develop strategy formulating plan to conduct the strategy planning activities adequately. The success of the strategy relies on the planning process and the information used to formulate the strategies. Hence, understanding of the strategy planning theories is quite important for the executives of Hikma Pharmaceuticals PLC. Implement and monitor strategy: The executive must have the idea of implementing and monitoring the strategy. Hence, it is important for the management of Hikma Pharmaceuticals PLC to communicate the new strategies and objective of the firm to the lower level employees to effectively implement the strategies. The line managers and supervisors must be trained to monitor the strategies. Performance review: Finally, there is a need of performance review to observe the success of the implemented strategies and strategy planning process. A feasibility report can be developed while planning the strategies. On the other hand, productivity metrics, efficiency metrics and goals metrics can be used to evaluate the performance of the strategy implemented by Hikma Pharmaceuticals PLC. Conclusion By considering the above analysis, the management of Hikma Pharmaceuticals PLC must effectively use the strategy formulation theories in order to successfully implement the strategies. On the other hand, the executives of Hikma Pharmaceuticals PLC must be aware of the strategy planning activities to develop adequate strategies for improving the performance of the organisation. Additionally, the management need an effective strategy formulation plan to meet the future challenges and develop successful tactics to seek growth in the current market scenario. Furthermore, the executives must take care of the changing legal frameworks and enhance employee engagement to effectively manage the upcoming challenges. References Dent, E., Bozeman, P. (2014). 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