Algorithm SAL: Strategic Organizational Change

This document discusses the strategic organizational change implemented by Algorithm SAL, a pharmaceutical company. It covers the purpose of the study, methods used, and the implementation of digital platforms. The document also includes information on regulatory affairs and the development of processes for the new franchise.

Running Head: ALGORITHM SAL 0
Strategic Organizational Change
Student Details
2/16/2019

Algorithm SAL 1
Contents
1.0 Introduction.....................................................................................................................2
2.0 Purpose of Study..................................................................................................................3
3.0 Methods................................................................................................................................3
3.1 Developing Processes.......................................................................................................3
3.1.1 Operations Management...........................................................................................4
4.0 Regulatory and Agents.....................................................................................................7
5.0 Implementation of Digital Platforms...............................................................................8
5.1 Real Time Reporting and Event Reporting..................................................................9
5.2 Customer Relationship Management (CRM) Tool......................................................9
6.0 Results................................................................................................................................10
7.0 Analysis of Results.............................................................................................................10
6.0 Conclusion..........................................................................................................................11
7.0 Recommendations..............................................................................................................12
References................................................................................................................................13

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1.0 Introduction
As discussed in the previous assignment, Algorithm SAL has started a chapter of changes in
its managerial structure within the organization to meet the changing needs of environment
and further continue the chapter of growth and success for the organization. And to bring
those changes, company announced the plan of restructuring the complete organization’s
structure which will focus on agility and growth. This change of restructuring organization
has started from senior levels and now progressing towards bottom levels (AandBScotland,
2019). As it is known fact that it takes time to bring any change within a system, therefore
Algorithm SAL has announced a three year plan for implementing changes in the
organization. In December 2017, company announced its first plan for changes which were
focused on the newer hybrid structure which allows focus on the growth pillars of the
company. According to this new structure of Algorithm SAL, the organization has divided
into five franchises which are led by different franchise managers. Every franchise would
have its own management model and team for marketing, sales, regulatory, medical, and
several other functions. The major changes happened in the structure are in the form of
decentralization. And the changes in the structure were dedicated to achieve the objectives of
growth from every franchise. As each franchise in different countries consist of different and
new teams which are run by new managers, has challenge of breaking down and management
of departments (Champagne, et al., 2015).
The previous assignment described changes to reform communication, objectives and vision
of franchise, processes, and motivation for every franchise to win over these changes and
bring success for the organization. For this organization constructed different
transformational teams for each franchise starting from mid mangers. And by the end of

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January 2019, Algorithm SAL has successfully achieved and implemented its first phase of
structural change (Verma, et al., 2013).
2.0 Purpose of Study
As company has successfully completed the first change of change and now it is moving
towards the next step of bringing and implementing changes which include developing
processes for each franchise that matches with the new structure of the organization.
Here, I am also one of among those who are part of this organizational or structure change.
As part of this change, I have been moved to the new location of franchise with an entire
different and new team. Being a part of this new structured transformational team I have
given the task of supporting the team in development of processes related to reporting which
are directly linked with operations. It means that my team and I have the responsibilities of
planning, communicating, and ensuring proper implementation of new development
processes among various departments of the franchise. The operations which are the part of
development process include making requests for budget allocation that means handling sales
and marketing, agents and regulatory which means regulatory agents and teams in different
countries, and finally ensuring the proper implementation of plans on the digital platforms
which include reporting, marketing events trackers, customer relationship management tool,
and event reporting.
3.0 Methods
3.1 Developing Processes
Every business organization whether it be a hospital, a car wash, retail store, a manufacturing
firm, or some other kind of business have three basic areas of function which include finance,

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operations, and sales and marketing. These three basic functions are common for every
organization (Bass, 2019).
Source: (Reference for Business, 2019)
This section discusses about development of processes as mentioned above and their proper
implementation for the new franchise in a different country.
3.1.1 Operations Management
Operations are the key functional unit of any organizational unit. This unit is responsible for
providing services offered or the producing the goods by the organization. Operations are
considered as the main engine of a business organization. Operations management unit is
responsible for managing that core part of the company. Another important factor for any
manufacturing organization is supply chain. Supply chain is intrinsically linked with the
operations and no business organizations could be established without any one of them. An
organizations sequence is supply chain that is facilities, functions, and activities, involved in
manufacturing and delivering a product or services (826National, 2019).
Another important function of a business organization is finance. Role of finance in any
organization is to securing financial resources at reasonable or favourable prices and then
those resources are allocated to all the branches and departments of the organization, as well
as analysis of investment proposals, budgeting, and providing funds for operations (Bhat,
2011).

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Third important function of a business organization is sales and marketing. Operations and
marketing are the primary functions of a business organization. Marketing department of the
organization assesses the needs and wants of the consumers and as per their needs and wants
sell and promote products and services of the organization (Atkearney, 2019).
Request for Funds
Here in this new franchise, manufacturing of pharmaceutical will involve the processes of
supply chain, finance, marketing and sales, and operations. First step to consider is allocation
of finance for various processes which include supply of raw materials for manufacturing of
pharmaceutical, marketing and promotion of products, services, and organization, and
production and selling of products. Capital is also allocated for research and development
(R&D) department for carrying out research processes in the field for providing better and
improved products and services to the customers (Cision, 2015).
To conduct all the above operations, fund of $500,000 will be needed. Below is the
description of budget report needed for the franchise.
Product or Services Capital Required
1. To total fee for business registration $750
2. Expenses on legal documentation such as permits,
licenses, and accounting services
$1300
3. Expenses on marketing for grand opening $3580
4. Business consultant cost $2500
5. Insurance Cost including compensation for
workers, general liability, and property casualty
$2400
6. Capital for rent for time duration of 12 months $105,600
7. Capital for pharmaceutical plant construction $100,000
8. Other start-up expenses including phone,
stationary, and utility deposits
$3000
9. Cost of operation for the 3 months in starting
(employees’ salaries, bill payments, and others)
$100,000
10. Start-up inventory cost (mixing, compounding,
raw materials, blending, packaging)
$80,000
11. Store equipment cost (ventilation, cash register,
signage, security)
$13,750
12. Capital for purchasing distribution vans $60,000

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13. Capital for purchasing gadgets and furniture $4,000
14. Website launching cost $600
15. Opening party cost $5000
16. Miscellaneous $15000
Sales and Marketing Strategy
Target Market: Our market is not limited just a group of people but is expanded up to the
people resides in the target market locations. Market research will be conducted and would
analyse what are the expectations of customers from our organization. The business of
Algorithm SAL is to develop and manufacture generic drugs, distributing and marketing of
generic drugs, and gaining approvals from regulatory for generic drugs. Therefore, target
markets of our organization would be hospitals, retail pharmacy stores, health facilities, and
wholesalers of pharmaceutical products (Toit, 2013).
Marketing function of a business organization deals with the marketing of products and
services of the organization among customers. Therefore, it will be the responsibility of
marketing function to promote new pharmaceuticals company and products to the targeted
customers (Hamel, 2009). This department will also collect feedbacks from the customers
and report to the organization in order to make improvements in required field if there is any
suggestion of customers. Marketing is essential as it provides window to the customers.
Strategies of marketing will include advertising and promotion in mainstream media
including 60 second commercial, infomercial, direct mail, interactive TV, cable TV,
educational newsletters, independent sales reps, and POP displays (Profitableventure, 2019).
Information and communication technology has become advanced and has the power of
influencing and promoting products of our organization to a great extent. Direct personal
selling will also be a good marketing strategy for reaching to the customers who are willing
to try the product. Before making and implementing any marketing plan requires the proper
and complete analysis of the market first. Methods for reaching to these customers includes

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direct selling through health food store chains, country/state fairs, lifestyle catalogues, and
spaces at shopping malls (Mitchell, 2017).
Fund of $3580 is allocated for marketing, advertising, and promotional campaign. A budget
for marketing is given below:
Promotion & Advertising Projected Cost
1. Radio $700
2. Retail Shops $300
3. Magazines $800
4. TV $1000
5. Sample – POP display $280
6. Shows & Conventions $500
4.0 Regulatory and Agents
Starting a business in a different country requires various kinds of permits and licences for
conducting business in that country. Every country has different rules, terms, and conditions
for start-up in that country. Starting a pharmaceutical company is one of the sensitive issues
as a wrong medicine can cause a danger to the life of a person (Franchise, 2019). Therefore,
governments of different countries have strict guidelines for manufacturing and delivering
generic drugs in their country. For regulation on generic drug manufacturing and delivering,
governments of all countries have appointed different regulatory teams and agents who
provide licences and permits to the organizations for generic drug manufacturing and
delivering (CSCMP & Sanders, 2014).
Therefore, to deal with documentation work of various regulatory teams and agents of that
country, pharmaceutical company has regulatory affairs (RA) department which is
responsible for getting approval for products. This department is also responsible for ensuring
that approval of the company remain maintained for as long as the company wants to produce
the product in the market. Algorithm SAL’s franchise also has a department of regulatory

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affairs (RA) which will serve as the interface between the project team and the regulatory
authority, and a channel for communicating with regulatory authority in project continuation
(The Finance Resource, 2019). The aim of this department is to ensure that the plan for the
project anticipates correctly with what is required by regulatory authority before approval
from them for the product. RA will keep update and along line with latest guidelines,
legislation, and other intelligence of regulatory (Malone, et al., n.d.). Role of RA department
will be providing advices to the project team on how to examine the rules in the best way. RA
departments’ role is significant during the development process in order to create good
working relations with the essential authorities, for example, discussion on issues such as
study programme of clinic, divergence from guidelines, and formulation development.
Professional of RA department will provide the best advice on putting the realistic
prescribing information for the considered medicine (PWC, 2019).
Regulatory Affairs (RA) department is also the part of the project team and contributes in the
developing of effective development process. RA department will review all the documents
from the perspective of regulatory and make sure that all documents are clear, complete,
consistent, and the conclusion of that is clear-cut (Hagglof & Holmgren, 2013). RA
department will prescribe the information that is required and the basis of approval from all
around the globe and suggest marketing platform. Documentation that RA will handle
includes regulatory submissions regarding inclusion of new products, applications for clinical
trials, and changes in some already approved products. During proposals and discussions on
legislative changes, RA provides input to the project team (Mallik, 2012).
5.0 Implementation of Digital Platforms
Like every other business organization, a pharmaceutical company also aims for wanting
their customers back to them. This requires the organization to go some extra miles for

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providing full service support to the customer- before, during, and after delivering of product
or service (FGP, 2019). Therefore, the idea is to involve customers in the entire development
process. Implementation of digital technologies in pharmaceutical will help the organization
in providing real time feedback data of the entire value chain that is from end user/consumers
to pharmaceutical and healthcare organizations (Jhajharia, 2017). Digital technologies also
improve the R&D of the organizations which results in enhanced product qualities. Use of
technology for the marketing is another benefit of digital technology. Algorithm SAL will
make use of digital technology for promoting the brand on online portals through making
video content, by conducting online consulting sessions, social media marketing, and various
other options (Florida Tech, 2019).
5.1 Real Time Reporting and Event Reporting
Business processes are going to experience the new way of automation with development in
mobile and cloud technology, sensors, and next generation business intelligence. Business
process such as automation of work flows, streamlined, costs, real time transparency, and
business value of Algorithm SAL can be improved in terms of responsiveness, efficiency,
and agility with the help of technology (Jhajharia, 2017). Now at new franchise of Algorithm
SAL can use automated work flow, streamlined, and enhanced transparency for sales and
operations planning, marketing content, employee on boarding, and launch monitoring
improvement. Advanced automation will also improve clinical trial management that is from
recruitment to submission (Champagne, et al., 2015). More access to the real world data is
going to provide more information to the organization and thus helps in understanding the
effects of drugs. Constant monitoring of effects of drugs will give various signals and by
analysing these signals with respect to reporting to the Drug and Food Administration
(Dawnrm, 2013). This will guide for the development of drugs according to the needs of the

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21st century. Therefore, digital technology not only helps in the discovery of drugs but also in
the monitoring of drug usage (Davis, 2017).
5.2 Customer Relationship Management (CRM) Tool
CRM is an approach that provides support to the customers in a structured way and thus helps
in developing sustainable and long-term relationships with the clients. A technical tool
known as CRM system is developed in order to support CRM processes. This CRM system
provides tools and data required for CRM based on lead database or customers. CRM
software guides the sales team and increases their revenue (PAT Research, 2019). This
software also centralizes organization’s contacts and work of staff for enhancing productivity.
CRM allows increase in efficiency through mobile device support, client contact tracking,
and cloud based databases. Careful tracking of client contact leads to saving time of sales
team as well as eliminate regulations violation. CRM supported database helps in
development and deployment of customized marketing approaches (Mheducation, 2019).
6.0 Results
Above discussion and report on the development of processes in the new franchise provides
several results. The result of the study is that in order to proper functioning of the new
franchise in different country needs proper development of processes which include four
major functions such are operations, finance, supply chain, and marketing. These four
functions are inter-related and thus inter-dependent. It has been estimate that new franchise
will need a fund of $500,000 to conduct various operations and marketing. Effective
marketing strategies will be needed to promote the Algorithm SAL. In order to solve all the
challenges digital technology and implementation of CRM software will help the
organization.

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7.0 Analysis of Results
The results of the study show that operations are the key functional unit of any organization
which leads to the production of products and offering of services to the customers. Addition
to operations there are three other functional unit of Algorithm SAL which are supply chain,
finance, and marketing. These four function are inter related or inter dependent. Finance will
provide the proper and required capital that is needed for the establishment of a new franchise
in a new country (Porter, 2011). Marketing on the other hand will help in promotion of the
organization and thus develop new customers and market for the organization. Digital
technology will play a significant role in the functioning of these four functions and will
ensure the higher productivity and revenue for the organization. These require different teams
for functioning different activities such as sales and marketing team, regulatory affairs
department, and product ion team (Birge, 2015).
6.0 Conclusion
Therefore, from the above discussion it can be concluded that as per the new strategy of
Algorithm SAL which plans for opening of five new franchises in different countries,
company has announced a three year plan to bring these changes in the organization. First
phase of plan has implemented successfully and now company is heading towards the next
step of change process. Every new franchise will have different work model and thus I have
been appointed for helping the new team for creating development process. Algorithm SAL
has constructed different transformational teams to help and assist new franchise which
started from mid managers.
Above discussion shows that every business organization has four major functions which are
operations, finance, supply chain, and marketing. All of these functions are inter dependent.
Operations are the main function which is responsible for producing of goods and services to

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the customers. In order to perform operational function, it will require supply chain that
provides raw material for the production of goods and services, allocation of funds for
purchasing and supply of materials and marketing of the organization, and finally marketing
is necessary for goods and services promotion.
Being a part of the transformational team, company has appointed me for helping the teams
in developing processes for the new franchise. From the complete analysis, it has been
observed that establishment of new franchise will need a fund of $500,000 that will be
needed for the operations, supply chain, and marketing and sales. This fund also includes
research and development processes (R&D). A new regulatory affairs department is
developed that will deal with the documentation of all the licences and permits for legal
establishment and proper functioning according to the laws of particular country. RA
department also assist in providing guidelines to the project team.
All of the challenges will be resolved using the digital technology that will help in
customized marketing, reporting, and feedback from customers through implementing
customer relationship management (CRM) software.
7.0 Recommendations
Although, Algorithm SAL has successfully completed its first phase of change
implementation and now moving towards the second phase of change, here are some
recommendations for the organization in order to successful implementation of second phase
too.
1. Ethical Marketing: Establishing relations with doctors and making connections prior
to new opening will help in directly reach to them for the product promotion.

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Therefore, a survey is necessary which includes various doctors, clinics, hospitals,
and nearby retailers.
2. Pharma Franchise Marketing: This type of marketing needs conducting surveys to
find the competitors of the Algorithm SAL and their performance in the targeted area.
This will provide information about their prices, marketing strategies, product line,
and their position in market. This knowledge will help the organization in creating
their plan and thus building improved strategies.

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our-insights/the-road-to-digital-success-in-pharma

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