Business Strategy of Biotech

Biotech is a manufacturing company dealing with health supplement products. The company is planning for an expansion by creating a new division in Asia. The purpose of this business plan is to provide the company a strategic plan for the international expansion. It includes SWOT analysis, PESTLE analysis, Porter's Five Forces analysis, organizational structure, breakdown of products and services, and communication plan.

Running head: BUSINESS STRATEGY OF BIOTECH
Business Strategy of Biotech
The Name of the Student:
The Name of the University:
Author Note:

1BUSINESS STRATEGY OF BIOTECH
Executive Summary
Biotech is a manufacturing company dealing with health supplement products. The vision of
the company is to enhance the lifestyle standard of its customers by providing quality
products. The mission of the company is to satisfy the health needs of the customers through
their safe, effective, natural and affordable health supplements. With this objective, the
company is planning for an expansion by creating a new division in Asia. The company
indulged into developing a range of products, such as Protein and Fitness, Personal Care,
Nutraceuticals, Vitamins and Food Supplements. Biotech has always been customer centric,
meaning that the company has developed products based on the reports on market research on
the customer needs and preferences. This identification of the customer needs has lead the
company to a wider scope of expansion in international markets by providing it a proposition
a new business venture in the Asian market. Therefore, the purpose of this business plan is to
provide the company a strategic plan for the international expansion.

2BUSINESS STRATEGY OF BIOTECH
Table of Contents
Company profile.............................................................................................................3
SWOT Analysis of Biotech............................................................................................3
PESTLE Analysis of Biotech.........................................................................................4
Porter’s Five Forces Analysis........................................................................................5
5 major goals and objectives, which the Business Unit Strategy should look to attain. 7
Organizational Structure................................................................................................8
Breakdown of Products and Services...........................................................................10
Human Resource Plan..................................................................................................13
Conclusion....................................................................................................................15
References....................................................................................................................17

3BUSINESS STRATEGY OF BIOTECH
Company profile
From a small apothecary shop, Biotech became a small manufacturing plant in 1932.
By 1934, Biotech succeeded in expanding the sales into the markets of New York. At this
stage, the sales revenue of Biotech experienced an upsurge, as the customers exposed an
inquisitive nature into the products manufactured. Currently, the annual sales revenue of
Biotech is $35 billion. Barney holds the sole proprietorship of the company. He is a proud
man, as he has emerged successful in taking the operations into the markets of US, Europe,
Asia Pacific, Latin America and Caribbean and Canada (Biotechlife.com, 2018). The
personnel of the company envision enhancement of the standards of lifestyle for the
customers through the delivery of quality health supplements. The mission of the company is
ensuring that the health needs of the customers are catered through the production of safe,
effective, natural and affordable health supplements.
SWOT Analysis of Biotech
Strengths
Wide supply chain network is one of the greatest strengths of Biotech. Typical
evidence of this lies in the presence of huge workforce, which provides support regarding the
efficient execution of the activities. The operations of the company are widespread, which
indicates strong customer base (Biotechlife.com, 2018). Variety in the product lines is
assistance in terms of preserving the purchasing power of the customers. Strategic approach
in terms of expanding the sales is appropriate in terms of dealing with the competitors
effectively and efficiently.
Weakness

4BUSINESS STRATEGY OF BIOTECH
Lack of target segmentation is the cause behind plans like selling the products to
everyone. Selling the products to the local peddlers, receiving commission is illegal. This is a
violation to the ethical code of conduct as well as the buying power of the customers.
Opportunities
Increasing the product line is an opportunity for Biotech in terms of gaining new
customers. Strategic approach in terms of developing long term goals would help the
company personnel in securing their position within the competitive ambience
(Biotechlife.com, 2018). Growing demands for bio-nutraceutical marketplace is an
opportunity in terms of expanding the market share.
Threats
Lackadaisical approach towards the conducting business process re-engineering
would compel the personnel to encounter vulnerability in the market position. Not involving
the HR faculties in the decision-making process would aggravate the complexities in terms of
implementation of the strategies.
PESTLE Analysis of Biotech
Political
Political unrests and harsh tax impositions adversely affects the import and export
activities of Biotech. On the other hand, EU Commission provides guidance and support to
the company in terms of carrying out the activities according to the legislative requirements
(Biotechlife.com, 2018).
Economic
Increase in the sales revenue expanded the market share for Biotech. Accumulating
the health supplement assisted the company in taking the sales revenue to $20 billion. This is

5BUSINESS STRATEGY OF BIOTECH
due to alliance with the trade union members, which helped in dealing with the instances of
inflation, high exchanges rates and high prices of raw materials.
Social
The lifestyle of the customers is changing. In the fast-paced life, the health
supplements need to be such, which provides energy to the customers for dealing with the
pressures (Robson, 2015).
Technological
Social media marketing helps the company in increasing the trafficking of the
audience towards the brand image. Uploading the product specifications on the websites and
the social networking sites helps the personnel in achieving large scale customer satisfaction.
Legal
Adhering to the marketing legislations is assistance in terms of achieving loyalty, trust
and dependence of the customers. Typical example of this is Consumer Protection Act, which
is directly related with the business of Biotech. Complying with the standards and protocols
of European Commission and National Health Survey are mandatory for the company in
terms of ensuring the wellbeing of the customers (Scarborough, 2016).
Environmental
The company staffs use natural ingredients in preparing the health supplements. Using
solid waste management techniques helps in maintaining the cleanliness and hygiene within
the workplace premises.
Porter’s Five Forces Analysis
Threat of substitutes

6BUSINESS STRATEGY OF BIOTECH
As the number of competitors are huge, the threat of substitutes is high for Biotech.
The health supplements by GlaxoSmithKline and Nestle can add vulnerability into the market
position of Biotech.
Bargaining power of the suppliers
The raw materials for the health supplements are the distributors and the agencies,
who rule the markets of US, Europe, America and Canada. Therefore, to extract high prices
for the services, the personnel need to indulge in contracts (Biotechlife.com, 2018).
Bargaining power of the buyers
The customers in the present generation are tech savvy, which indicates their high
bargaining power. Their needs, demands and requirements are ever changing. This is
especially applicable in terms of healthcare. Mention can be made of the women customers,
who are concerned about the health.
Threat of new entrants
The threats of new entrants are high in this case because the start-ups are looking for
market expansion. The product line expansion by established brands can add vulnerability
into the market position of Biotech. Typical example can be health supplements by Nestle,
which would result in customer turnover (Biotechlife.com, 2018).
Competitive rivalry
The competitive rivalry is intense, as the competitors are huge in number. Personal
skincare products of Nestle can give intense competition to the night cream products
manufactured by Biotech.

7BUSINESS STRATEGY OF BIOTECH
5 major goals and objectives, which the Business Unit Strategy should look
to attain
One of the goals is expanding the sales revenue, which can be achieved through the
objective of expanding the market share, maximizing the profit margin and conducting
target segmentation. Expanding the market share into Arab countries would be effective if
standards and protocols of EU are followed. One of the other goals is increasing the
production lines. Here, the objective can be to develop cosmetic products, which have
natural flavours, conducting quality assessment and to conduct total quality management.
This would effectively cater to the health needs of the customers. The third goal, which the
business unit of Biotech can develop is bringing innovation within the products. For this, the
objective would be to revise the recruitment and selection procedures, prepare budget for
training and development programs and conducting marketing mix. If the employees are
trained about the use of technologies, they would be able to manufacture innovative products.
Fourth goal can be to ensure the protection of the suppliers. For this, the objective
would be to develop policies related to the contracts, deals and transactions. Revising the
existing policies along with revision of the legislation and protocols of marketing
legislations would be effective in terms of dominating the suppliers in terms of delivering
quality products to the clients and the customers. Business Process Re-engineering (BPR)
methodology can be one of the goals for Biotech. For this, the objective would be to indulge
in meetings with the experts in terms of conducting review of the business operations. This
review would enhance the awareness towards the need for additional resources. Within this,
consideration of the previous years’ financial reports would be beneficial in terms of
modifying the mistakes.

8BUSINESS STRATEGY OF BIOTECH
Organizational Structure
The organizational structure of the organization consists of the CEO of the business
who takes the overall decisions of the firm’s activities while considering the reports that are
produced by the director executives of South America division, North America division,
European division and Asia Division. It has helped the business in conducting the functions
as per the different market changes in the diverse regions. On the other hand, the R&D,
Purchasing, Finance, HR and IT departments working under the respective regions has helped
in undertaking continuous innovation in the functions that are planned by the business.
Decision making functions of the organization is supported through the knowledge of the
internal and external contingencies that are faced by the business while operating in the
diverse markets. The R&D department of the business has helped in undertaking continuous
innovation in the line of products as per the analysis of the needs of the customers. On the
other hand, the IT department of the organization establishes the link between the
organizational management and the customers to understand their preferences. The data that
is collected by the IT department assists the R&D department of the business in undertaking
modifications in the product design. The HR department identifies the staffing needs of the
business to support the objectives of the firm. on the other hand, the finance department helps
the organizational management in understanding the financial position of the business
through research on cash flows and expenditures. It assisted the organization in
understanding the key areas where change is required to be induced to enhance the
functioning of the business. Purchasing and sales department of the organization has helped
in identifying the resource needs and the capabilities of the organization while operating in
the diverse markets (Tax, McCutcheon & Wilkinson, 2013). Therefore, the integration of the
different departments has helped the management in undertaking proficient decision making
to enhance the operations.

9BUSINESS STRATEGY OF BIOTECH
CEO of Biotech
Executive director of
South America
division
R&D
IT
Finance
HR
Executive director of
North America division
Organizational chart
Purchasing
Executive director of
European division
Executive director o
Asia Division
Organizational Culture
The organization facilitated collaborative decision-making system through involving
the employees in the process. It has helped the organizational management in inducing
positive culture in the same while operating in the diverse regions. The collaborative
decision-making system of the business has helped in facilitating the smooth functioning of
the business. On the other hand, the organization has induced customer-centric culture in the

10BUSINESS STRATEGY OF BIOTECH
organizational functioning, which has helped the same in enhancing the processes through the
identification of the specific inclination of the customers. The understanding of the
preferences of the customers has helped the R&D department of the business in developing
products.
The continuous innovation approach of the organization is facilitated through the
understanding of the needs of the customers while operating in the diverse markets.
Therefore, the induction of positive culture in the organizational context and the coordinative
functioning of the workforce with the management while undertaking a decision have helped
the business in bringing forth improvements in the firm’s performance (Zeynep Ata & Toker,
2012). The smooth functioning IT department of the organization has helped the same in
understanding the preferences of the customers. Understanding the preferences of the
customers has supported the organizational objective of adhering to the healthcare needs
while designing and developing their line of products. It has added to the competitive
advantage of the business while operating in the diverse regions (Spiess et al., 2014).
Active participation of the employees in the decision making and operation processes
of the business has assisted the venture in undertaking the smooth functioning of the same
while operating in the diverse economies. The chief objective of the organization is to sustain
in the competitive markets, which is supported through continuous innovation and Customer-
Centric approach of the same. On the other hand, the active involvement of the employees in
the processes that are designed by the organizational management has helped the business in
undertaking the smooth functioning of the systems.
Breakdown of Products and Services
The different products that are developed by the organization are Protein and Fitness,
Personal Care, Nutraceuticals, Vitamins and Food Supplements as per the identification of

11BUSINESS STRATEGY OF BIOTECH
the requirements of the customers. The products that are developed by the organization are
based on the customer centric needs, which have helped the business in undertaking
continuous modifications in the business models. The involvement of the employees in the
different processes that are designed by the business management has helped the same in
undertaking the smooth functioning of the product development and operations (Meng et al.,
2018). The identification of the need of the customers and thereby framing the business
propositions has provided the venture with a wider scope of expanding in the international
markets.
Communication Plan
Goals Activities Tim
eframe
Commu
nication
medium
Rationale
Promote
innovation in the
products
1. Analyzing the
reports that are
developed by
the IT
department of
the business to
identify the
requirements
of the
customers
2. Undertaking
an analysis of
the required
2- 3
months
Emails,
Social media
platforms
The
innovation in the
line of products
will be helping the
organization in
gaining a
competitive
advantage in the
market over the
existing players

12BUSINESS STRATEGY OF BIOTECH
funds to
support the
development
of the new line
of products as
the business
offering
3. Making the
R&D
department
aware of the
different
changes in the
needs of the
customers
Formulati
on of a promotion
strategy to expand
the organization in
Saudi Arabia
1. Consultation
with
promotional
and advertising
agencies
2. Making the
sales
department
aware of the
objectives of
7- 9
months
Emails,
newsletter,
social media
platforms
Market
expansion will be
helping the
organization in
upholding the
efficacy of the
business
sustenance while
designing the
products as per the
needs of the

13BUSINESS STRATEGY OF BIOTECH
organizational
growth
customers.
Human Resource Plan
Human resource management is a strategic approach of the management of an
organisation for the purpose of increasing the performance of the employees and gain
competitive advantage. In this age of globalisation, the market scenario is continuously
changing, and only the organisations that have a flexible, innovative and dynamic approach
can success under such uncertain circumstances (Lengnick-Hall, Beck & Lengnick-Hall,
2011). Therefore, in order to gain resilience, organisations need to develop effective human
resource plans. Hence, the director of Biotech needs an effective human resource plan for the
new Asia Division to identify the future human resource needs of the organisation. The
human resource plan is a step-by-step process that follows the following process.
Determination of Human Resource Needs
The new division currently has only the Director of the company, and needs the
Assistance Division Directors (ADD) in IT department, R&D, purchasing, HR and finance
department. Each of these departments needs to be staffed sufficiently in order to function
efficiently. The company also needs enough workers for the manufacturing of the products,
and necessary management and supervisors for the monitoring. Apart from the employees
that need to be hired, there is also a need of proper facilities for the training of the selected
employees. In addition to this, an effective evaluation strategy also needs to be developed for
the evaluation of the selected employees.
Determination of Recruiting Process

14BUSINESS STRATEGY OF BIOTECH
After determining the needs, the next step that follows is the determination of the
recruiting process of the employees. Advertisements will be posted in newspapers in Asian
countries for the hiring of factory workers. Asian countries, such as India and China, are
known for their skilled labours. Therefore, it is expected that there will be a number of
responders with prior experience who would submit their resumes. A specialised recruiter
will be appointed for the recruitment of the several directors, both nationally and
internationally, through a submission of resumes and interviews (Bratton & Gold, 2017). In
order to recruit staffs for the several divisions and supervisors, an announcement will be
made in the local newspapers and magazines. Given the cultural circumstances, it is best to
recruit these employees from locality. In each division, the company must recruit enough
people so that it is able to select only the most qualified candidates.
Employee Selection Process
The selection of factory workers will be based on their skills. After taking time to
thoroughly check the resumes in terms of skills and experience, the labours will be selected.
The resumes of the applicants for the supervisory and staff role will also be thoroughly
checked, and then the applicants with required skills and experience will be called for the
interview. The interview is the final step of the selection process. In this process the intellect
of the candidates will be evaluated and their willingness and to work will be identified. After
the interview, the candidates with the best qualities and possibilities will be selected and a
formal mail will be sent to them with the joining date and process. The HR department will
conduct these hiring processes. The specialised recruiter will select the three most appropriate
applicant for each of the director posts, and after the interview with the interview panel,
which consists of HR manager, the director, and the recruiter, the most suitable candidate will
be selected for the director posts.
Providing Training Facilities

15BUSINESS STRATEGY OF BIOTECH
Although the selection would be based on the qualities and skills of the candidates,
there will be training program for them after the joining. Training is significant as it makes
the employees feel valued. Expensing on the competence and growth of the employees
demonstrate that the company is committed to its employees and keeps the employees
retained (Nkosi, 2015). Therefore, for the factory workers, training programs will be
developed according to the various division of works they will be doing. The staffs will also
go through trainings as per the requirements of their job profiles.
Determining the Process of Evaluation
Another important way of retaining employees is the evaluation of their work as it is
another opportunity for the companies to demonstrate their commitment towards the
employees (Kakar, Raziq & Khan, 2017). Therefore, a planned evaluation strategy needs to
developed. The achievement and progress of each employee will be recorded on a weekly
basis. After each month, the reports will be compared and matched with the prior evaluation
before the hiring. This will provide a clear idea on how each employee is working and the
progress, production, and achievement. Each new employee will be evaluated based on this
report. The human resource planning also includes estimating a budget for the recruitment
process and training programs.
Work Culture and Safety
Safety is the most crucial consideration in any circumstances. The employees will
work without any worry if they are aware that they work under a safe environment.
Therefore, proper safety measures will be taken in the company policy, both in terms of
workplace and personal. Work culture is another significant issue when it comes to employee
retention and increase productivity. A positive work culture would provide a positive mind
set to the employees which subsequently increase their work efficiency (Baldassarre, 2015).

16BUSINESS STRATEGY OF BIOTECH
Thus, it is important to create a policy regarding all the safety measures, behavioural issues,
and the interests of both the employees and the organisation (Merchant, 1982).
Conclusion
Strategic approach is beneficial for Biotech in terms of achieving the planned market
expansion. For this, development of real and achievable goals needs to be developed, which
would improve the focus in the business activities. Business process re-engineering is
appropriate in terms of upgrading the standards and quality of the business operations.
Marketing mix is crucial in terms of gaining an insight into the prospective customers, who
would increase the sales revenue and profit margin.

17BUSINESS STRATEGY OF BIOTECH
References
Baldassarre, R. (2015). 10 Ways to Successfully Manage Virtual Teams. Retrieved from
https://www.entrepreneur.com/article/244197
Biotechlife.com 2018, About us, Retrieved 14th September 2018 from www.biotechlife.com
Bratton, J., & Gold, J. (2017). Human resource management: theory and practice. Palgrave.
Kakar, P., Raziq, A., & Khan, F. (2017). Impact of Human Resource Management Practices
on Employee Retention: A Case of Banking Sector in Quetta Baluchistan. Journal of
Management Info, 4(3), 5-11.
Lengnick-Hall, C. A., Beck, T. E., & Lengnick-Hall, M. L. (2011). Developing a capacity for
organizational resilience through strategic human resource management. Human
Resource Management Review, 21(3), 243-255.
Matt, C., Hess, T., & Benlian, A. (2015). Digital transformation strategies. Business &
Information Systems Engineering, 57(5), 339-343.
Meng, F. J., Shwartz, L., Galambos, G., Su, Z., Zheng, J., Xu, J., ... & Liu, X. (2018, March).
Opportunities and Challenges Towards Cognitive IT Service Management in Real
World. In 2018 IEEE Symposium on Service-Oriented System Engineering
(SOSE) (pp. 164-173). IEEE.
Merchant, K. (1982). The Control Function of Management. Retrieved from
https://sloanreview.mit.edu/article/the-control-function-of-management/
Nkosi, S. M. (2015). Effects of Training on Employee Commitment, Retention and
Performance: A Case Study of a Local Municipality in SouthAfrica. European
Journal of Business and Management, 7(15), 104-108.
Parés, M. (2015). Market‐Based Social Innovation: Are Business Strategies and Social
Change Compatible?. Public Administration Review, 75(4), 628-631.

18BUSINESS STRATEGY OF BIOTECH
Robson, W. (2015). Strategic management and information systems. Pearson Higher Ed.
Scarborough, N. M. (2016). Essentials of entrepreneurship and small business management.
Pearson.
Serra, C. E. M., & Kunc, M. (2015). Benefits realisation management and its influence on
project success and on the execution of business strategies. International Journal of
Project Management, 33(1), 53-66.
Slocum, J., Lei, D., & Buller, P. (2014). Executing business strategies through human
resource management practices. Organizational Dynamics, 43(2), 73-87.
Spiess, J., T'Joens, Y., Dragnea, R., Spencer, P., & Philippart, L. (2014). Using big data to
improve customer experience and business performance. Bell labs technical
journal, 18(4), 3-17.
Tax, S. S., McCutcheon, D., & Wilkinson, I. F. (2013). The service delivery network (SDN) a
customer-centric perspective of the customer journey. Journal of Service
Research, 16(4), 454-470.
Venkitachalam, K., & Ambrosini, V. (2017). A triadic link between knowledge management,
information technology and business strategies. Knowledge Management Research &
Practice, 15(2), 192-200.
Zeynep Ata, U., & Toker, A. (2012). The effect of customer relationship management
adoption in business-to-business markets. Journal of Business & Industrial
Marketing, 27(6), 497-507.