Australian Biopharmaceutical Industry Challenges

This assignment delves into the complexities of the Australian biopharmaceutical industry. It examines various factors influencing this sector, including government policies, innovation strategies, market access hurdles, and the growing emphasis on environmental sustainability. Students are tasked with analyzing these challenges and identifying potential solutions to foster growth and competitiveness within the Australian biopharma landscape.

Running head: SUSTAINABLE MANAGEMENT FUTURES ASSIGNMENT
Sustainable Management Futures Assignment
Name of the Student
Name of the University
Author Note

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Table of Content
Introduction......................................................................................................................................3
Background, introduction and importance of company to the Australian and international
business landscape:-CSL Limited....................................................................................................3
Research, analysis and discussion of sustainability related strategies and issues found in CSL
Limited.............................................................................................................................................8
Future strategies management should engage in...........................................................................12
References and Bibliography.........................................................................................................14

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Introduction
The following report is based on the sustainable strategies of the organizations running
the operation in Australia. It is certain that business sustainability is observed when the
organization is engaged in maintaining environmental sustainability. Thus, to understand the
sustainability in business, the present report considers the organization CSL limited, Australia,
which is a global specialty biotherapeutic company that develops as well as delivers innovative
biotherapies. The organizational operation of CSL includes the necessity of environmental
sustainability. In order to analyze the importance of environmental sustainability, the report
provides the background to the organization, industrial environment, competitors’ position.
Likewise, the report goes forward highlighting the issues related to the sustainability initiatives
of the organization. Based on the analysis, suitable suggestions have been provided that help to
contribute to the implementation of sustainable environmental initiatives.
Background, introduction and importance of company to the Australian and international
business landscape:-CSL Limited
Background information of the company- CSL Limited
CSL is a global specialty biotherapeutic organization that manufactures as well as
delivers innovative biotherapies that help to save lives of millions. Highly developed and
innovative services of CSL limited help people with life-threatening medical conditions live long
lives. In addition to this, the major facilities in Australia, Switzerland, UK, CSL and US employs
over 17000 staffs working in more than 30 nations (Csl.com.au 2017). The major areas of

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expertise of CSL Limited are plasma products, vaccines & Pharmaceuticals and Research &
Development.
Management and organizational structure
The board and management of CSL is responsible for oversight of the management and
provides the strategic direction. The global leadership group of the company is responsible for
the regular operation of the firm. Chairman John Shine Ac and the CEO and MD Paul Perreault
are at the top of all management layers (Csl.com.au 2017). The firm develops a matrix
organizational structure where the employees maintain a dual reporting relationship with their
managers.
International business environment and Australian context
The organizations in the global environment are running the operation in a dynamic
business environment where economic stability remains as the major challenge for the company.
However, due to the technological advancement, the organization in such sector are developing
their services and serving people giving them a high quality of service (Sen and Cowley 2013).
In Australia, the organizations find the opportunities and potential business environment where
they could continue the operation with sustainability. Moreover, Australia is technologically
developed and economically developed, which helps the business to innovate and grow. In
addition to this, the firm receives support from government, which means that Australia
government has been supportive towards the development of biotherapeutic services, which
certainly backed the firms to maintain strong long-standing strategic partnership with the
academic institutions (Dunlop 2011). Moreover, as due to the technological advancement, the
firms find it easy to pay attention to the Research & Development.

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PESTLE analysis
Political-It has been observed that commonwealth of Australia remains as the federal
constitutional monarchy under parliamentary democracy. Australia has a strong national
government with efficient and transparent legal framework, which helps to maintain
sustainability in business (Tranter 2011).
Figure 1: PESTLE analysis
(Source: Tranter 2011)
Economical- If the scenario of 2008 is omitted from the analysis, it can be mentioned
that Australia is economically developed, which provides potential growth opportunity for the
businesses in Australia (Dijk et al. 2013).
Social- Due to the economic stability in the nation, people tend to maintain trendy life
style. Moreover, the education sector of the nation is rapidly developing now, as almost 9.5%

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GDP contributed for the education and adult literacy is almost 99% (Dodgson et al. 2011). This
scenario indicates that people expect a healthy life style.
Technological –Australia is technologically developed as the nation spends nearly $15.7
billion on research and development. As put forward by Hakansson (2015), Australia business
accounted for the highest expenditure on research and development, which is nearly 54%. The
business here find strong backup for their growth and expansion.
Legal –Australia’s legal system is developed on a fundamental rule of law, justice as well
as the independence of the judiciary. Non-compliance to trade regulation could lead to
cancellation of license of the trade (Bishop et al. 2015).
Environmental-In order to fight against the global warming and maintain the
environmental sustainability, the nation is concerned about the use of water and other resources.
To resolve the issues of water crisis, the nation ordered the large organizations such as oil and
gas, chemical manufacturing factories, soft drink and beverages firms to recycle the resource like
water (Wheeler et al. 2013).
Industry analysis
The current biotherapeutic industry of Australia has been analyzed with strategic tool porter’s
five forces.
Bargaining power of the customers –(LOW)- Even though Australia is economically
and technologically, no large organization has been able to make a dominating position in the
market as CSL Limited. Thus, customers have limited options when it comes to biotherapies.

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Bargaining of the suppliers-(Moderate)- The suppliers demand is moderate in
biotherapic sector in Australia due to the absence of adequate number of firms (Kaczmarek et al.
2013). Despite the availability of technological resource, the suppliers of raw materials in
biotherapies did not find sufficient number of purchasers. Thus, CSL Limited has many options
for buying the require materials.
Threats of new entrants (Low)- The nation is much concerned about the trade
regulations when it comes to health sector (Takeuchi and Kameda 2012). Thus, due to the strict
regulations and taxation policies, the organizations from other nations find it challenging to get
in the market.
Figure 2: Porter’s five forces Analysis
(Source: Takeuchi and Kameda 2012)

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Competitive rivalry- (Moderate)- The existing organizations in the biotherapic industry
in Australia are yet to come up with a mass stroke. The existing firms are such as Baxer
International Inc, SANOFI and GRIFOLS SA (Navaneethaselvan and Puranik 2013).
However, in terms of growth and profits, CSL Limited is ahead. Thus, the level of competition in
the biotherapic industry is moderate.
Threats of substitute products- (Low)-Threats of substitute product in the biotherapies
are comparatively low. Despite the technological improvement in the nation, when it comes to
health, people do not take risk applying any secondary methods (Desanvicente-Celis 2012).
Research, analysis and discussion of sustainability related strategies and issues found in
CSL Limited
Sustainability practice of CSL Limited
Ensuring the safety and quality of the products and therapies remain as the most
significant sustainability aspect. It is critical to the value chain as well as most critical to the
patients that rely on them for quality of life and the life style. When it comes to innovation, CSL
limited focuses on the most innovative manufacturing approach to improve the safety profile.
Moreover, in the context of sustainability, organization’ ultimate strategy is to provide value
through meeting unfulfilled needs as well as improving patients’ experience (Csl.com.au 2017).
Keeping the patients at the core of its focus, CSL seeks to provide sustainable financial growth
for the investors. This is usually achieved by the firm through high quality, focused research as
well as developed competencies. Across the value chain of CSL, the employees drive the
strategy and underpin the delivery of products. In this context, it is observed that Corporate
Responsibility (CR) is governed by a global steering committee reporting to Chief Executive

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Officer and the Managing Director. The major purpose of CR steering is to support material
aspects identification and to drive the awareness, integration as well as the persistent
enhancement of CR throughout the organization. However, in this process, the firm ensures
alignment with CSL’s strategic objectives as well as operational priorities.
Organizational commitment to ethical behaviors
The code of responsible business practice explains the standard of behavior expected of
employee and their parties. Organization’s CRBP also underpins the approaches to corporate
responsibility and drives the promise to patients. CSL’s long held-values guide the performance
as well as interaction with the stakeholders. In this phase, they focus on certain aspects such as
customer focus, innovation, integrity, collaboration as well as superior performance
(Csl.com.au 2017). Under the customer focus, the firm is passionate about meeting the needs of
its customers and when it comes to innovations, the organizations always implement the better
ways to implement things. While focusing on the integrity, the organization maintains the ethics
and principles in all its services. CSL’s commitment is not only about the commitment to
enhance active listening in regard to the dynamic expectation of the diverse stakeholder;
however, also to check transparent disclosure on how the firm is addressing those expectations.
Going forward , it has also been identified that in each year, the firm notifies the stakeholders of
publication of sustainability report as well as provide the stakeholders with the access to an
anonymous survey where they could provide feedback on multiple sections of reporting.
Commitment to environmental sustainability
The organization identifies the significance of conducting the operation in an environmentally
responsible way. A shared accountability for Environment, Health and Sustainability run by the

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director of Global Environment has been observed. In this context, Pannell et al. (2012)
commented that water as well as other natural resources is necessary inputs to the production of
life-saving therapies. In addition to this, the firm is committed to minimize these environmental
influences without compromising to safety, quality as well as the affordability of the chemicals
and medicines. The goal of the firm is to have zero accidental release, non-compliance as well as
environmental related penalties.
Economic models of sustainability
As put forward by Bătăgan (2011), economic models suggest to sustain the opportunity
generally in the form capital. According to Boons et al. (2013), the classic definition developed
by economist Robert Solow, the organizations should think of sustainability as an investment
issue in which, the business must us returns from the use of natural resources to enhance new
opportunities of equal or the greater value. In addition to this, this model also indicates that
social spending on poor as well as environmental safety and protection, while probably
justifiable on other grounds, takes away this investment; thereby, competes with the commitment
to sustainability. In other perspective, the economic model could look different. This means if
the business does not assume that natural capital remains always interchangeable with the
financial capital, the opportunity of sustainability for future requires strong conversation
measures to protect the ecological goods. This model of sustainability indicates that organization
profits should be related to sustainability of environmental resources. Taking this fact into the
consideration, CSL limited took all initiatives to protect and preserve the environmental
resources. For example, the integration of product enhancement steps into the manufacturing
purification method and the development of more stringent clean room temperature as well as
humidity control have balanced the energy.

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Planning and strategy
Analyzing CSL’s vision, mission and values and their relation with sustainability
Vision and values- CSL is about safety, quality and the customers that people serve. The
extensive research and development and the range of support services exhibit organization’s
ongoing commitment to those who rely on the products (Csl.com.au 2017). The interests of
stakeholders are considered as the major priority for CSL; thereby, the organizational activities
are aligned with the environmental sustainability objectives. The organization is concerned
about the protection of resource and as sustainability approaches. Likewise, the five core
competency values underscore the commitment to provide the effective and possible therapies
and conditions. The vision and values of the company include five different aspects such as
patient focus, innovation, integrity, collaboration and superior performance. All these aspects are
for the betterment of both the organization and internal and external stakeholders involved in the
operation.
Organizational mission- Environment, safety as well as sustainability is committed to
drive the firm towards health, safety and environmental excellence to protect health and safety of
organizational members and others, protect natural resources and reduces organization’s
influence on the environment.
How CSL managed to develop an effective workforce
The firm is committed to attract as well as retain the world-class candidates who are
praised and valued for their own contribution to meet the business objectives. Moreover, the firm
identifies and rewards the individuals based on their performance through different monetary and
non-monetary benefits (Csl.com.au 2017). The organizational approach includes the action of

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giving rewards providing recognition more often instead of providing on annual performance
system. The firm develops a flexible work agreement aligning with the commitment to develop a
life balance, which certainly helps to maintain the balance between the personal as well as work
responsibilities.
Future strategies management should engage in
Creating recycling/ sustainability coordination position
The position of responsibility would be the coordination as well as promotion of effective
sustainability efforts on the organizational operation to highlight or create a strong presence as
the community leader in the field of environmental sustainability. The major duties could involve
energizing as well as coordinating the presently fragmented organization’s recycling effort, the
enhancement of environmental sustainability knowledge as well as additional consciousness
regarding the environment. The funding for such initiative should include the administrative
budget as well as additional sources could be considered. One significant option might include
the utilization of an existing position to carry out such function.
Improvement in the communication efforts- a sustainable website
It is expected that advancement in green technology as well as practices in the types of
materials could be recycled, the opportunities for communities as well as the individuals to
support the environment are not properly understood, and they might not be even the general
knowledge. Thus, to increase awareness, a dedicated sustainability could provide excellent
opportunity scope to deliver information to all parties involved and the community to figure out
what CSL is doing to maximize environmental sustainability.

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A public commitment to sustainability
The firm needs to work on public initiatives to demonstrate their commitment to the
reduction on the use of excessive natural resource. The organization should make commitment to
the developed plans as well as take actions that could result in the measurable reduction in the
use of natural resources such as water and other fossils.

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References and Bibliography
Bătăgan, L., 2011. Smart cities and sustainability models. Informatica Economică, 15(3), pp.80-
87.
Bishop, A., Lloyd, D., Soulis, T. and McKee, G., 2015. Perspectives from CROs on the
Australian clinical trial environment. Australasian Biotechnology, 25(2), p.29.
Boons, F., Montalvo, C., Quist, J. and Wagner, M., 2013. Sustainable innovation, business
models and economic performance: an overview. Journal of Cleaner Production, 45, pp.1-8.
Boons, F., Montalvo, C., Quist, J. and Wagner, M., 2013. Sustainable innovation, business
models and economic performance: an overview. Journal of Cleaner Production, 45, pp.1-8.
Csl.com.au. (2017). CSL Ltd is a leader in plasma protein biotherapeutics. [online] Available at:
http://www.csl.com.au/about [Accessed 17 Oct. 2017].
Desanvicente-Celis, Z., Gomez-Lopez, A. and Anaya, J.M., 2012. Similar biotherapeutic
products: overview and reflections.
Desanvicente-Celis, Z., Gomez-Lopez, A. and Anaya, J.M., 2012. Similar biotherapeutic
products: overview and reflections.
Dijk, A.I., Beck, H.E., Crosbie, R.S., Jeu, R.A., Liu, Y.Y., Podger, G.M., Timbal, B. and Viney,
N.R., 2013. The Millennium Drought in southeast Australia (2001–2009): Natural and human
causes and implications for water resources, ecosystems, economy, and society. Water Resources
Research, 49(2), pp.1040-1057.

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Dodgson, M., Hughes, A., Foster, J. and Metcalfe, S., 2011. Systems thinking, market failure,
and the development of innovation policy: The case of Australia. Research Policy, 40(9),
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Dunlop, J.N., 2011. Comparative foraging ecology in the dark tern guild breeding off
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Kaczmarek, M.C., Valenti, L., Kelly, H.A., Ware, R.S., Britt, H.C. and Lambert, S.B., 2013.
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Navaneethaselvan, D. and Puranik, S.B., 2013. The Opportunities and Challenges Involved in
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Pannell, D.J., Roberts, A.M., Park, G., Alexander, J., Curatolo, A. and Marsh, S.P., 2012.
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Sen, S. and Cowley, J., 2013. The relevance of stakeholder theory and social capital theory in the
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