Strategic Management of Parexel International

This assignment delves into the strategic management of Parexel International Corporation, a leading global biopharmaceutical services organization. It utilizes various analytical tools such as SWOT analysis, VRIO analysis, BCG growth-share matrix, and Porter's Five Forces model to assess the company's internal strengths and weaknesses, external opportunities and threats, competitive landscape, and resource utilization. The analysis highlights key challenges facing Parexel, including decreasing returns on invested capital and intense competition, while also identifying potential opportunities for growth in emerging markets and specialized therapeutic areas.

Business strategy

Executive Summary
Strategic management is a process through which companies are able to implement plans
and strategies in order to achieve target. It helps in overcoming various challenges and maintain
effectiveness of the process. PAREXEL international is second largest pharmaceutical and
biotechnological company of USA. More that 95% of medical products are supplied by this
organisation. They are providing services into through four units i.e. clinical Research service,
clinical Trial Logistic service, PAREXEL Informatics and Consulting. Currently, they are facing
various challenges such as decreased market shares, inadequate resources and poor management,
, ineffective HR planning, etc. There all factors adversely affects growth and profitability of
company due to decrease in customer satisfaction. There are various strategies are applied such
as VRIO, SWOT, PESTLE, Porters 5 force model, market share and HR management strategics.
Through implementing these framework various influencing factors are identified. In order to
overcome identified issues various strategies are recommended such as quality, resource
management, etc. The various issues are faced by company .The company is not bale to allocate
resources,the needs of customers are not fulfilled,lack of profit etc. The huge rivalry is faced by
company in market as PAREXEL is not profitable in conducting studies with specific focus on
market. So the various strategies such as financial need to be made to reduce expenses and cost.
The employees need to be appointed as that better services can be delivered to customers. The
high-quality products and innovative products need to be made by company so as to deal with
competition that is faced in market.

Table of Contents
INTRODUCTION...........................................................................................................................1
Strategic analysis ...................................................................................................................1
Reason behind company is not yielding a competitive advantage.........................................2
Summary of strategic analysis .............................................................................................13
Reflection.............................................................................................................................18
CONCLUSION .............................................................................................................................19
REFERENCES..............................................................................................................................21

Illustration Index
Illustration 1: Porter's Five Force model..........................................................................................9
Illustration 2: Model of strategies HR management......................................................................11
Illustration 3: BCG growth- share matrix......................................................................................12

INTRODUCTION
The process through which companies are able to formulate and implement plans, in
order to achieve their objective is known as strategic management. Ineffective management
creates huge impact on the growth and profitability of firm (Baumgartner and Rauter, 2017 ).
PAREXEL International is multinational company of USA. It is second largest
biopharmaceutical and biotechnological service provider and research organiser across the
world. More than 95% of the medical products are developed by this organisation . The vision
of the firm is to develop advance medical products and therapies and help people worldwide. It is
operating through four different units i.e. clinical Research service, clinical Trial Logistic
service, PAREXEL Informatics and Consulting. In today’s market place, the business group is
facing various strategic challenges such as decreased market shares, inadequate resources and
poor management, , ineffective HR planning, etc. There all factors adversely affects growth and
profitability of company due to decrease in customer satisfaction. The present report is based on
the critical analysis of the strategic challenges being faced by the PAREXEL International group.
In order to analyse the issue in detail, different approaches and concepts have been applied
strategic challenges roadmap, VRIO, SWOT, PESTLE, etc. so as to reduce existing challenges
and supports growth of firm (Borland and et.al., 2016 ).
Strategic analysis
Strategic analysis is a process through which companies are able to evaluate their
business strategies, identified issues and create suitable strategies. . PAREXEL International is
experiencing several business challenges in the current market into different units. Its clinical
Research service is suffering issues due to lack of talented and knowledgeable work force, as a
result, quality of research is getting affected. Clinical Trial Logistic service unit of company is
not producing productive outcomes due to ineffective HR management activities. Along with
this communication process of the firm is also not healthy (David and David, 2017). PAREXEL
Informatics and Consulting is unable to generate good profitability of company and creating
impact on market shares also.
Strategic challenges that is faced by the company
Lack of resources
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The company is not able to gain market shares as the resources are not used effectively.
The resource allocation planning and appointing planning of PAREXEL is dependent on the
global needs for individual function .In conducting studies with particular attention on a market
PAREXEL is not profitable enough as for internal communication a lot of time and hard-work is
needed .And also it is difficult to face additional resources available with specific language
capability. Due to this the projects at this company are facing delays,the customers satisfaction
also decreases due to this. The new business loss is experienced by the company because of the
problems that is faced. The complications that they are facing in allocating resources are that
they don't have a healthy authority .To understand the needs of resources they require a strong
local who know how to manage these things and must have a good skills of language.
Lack of profit
As the needs of the outcomes are not fulfilled at specific time -interval,the company is
facing loss in the profit. The products are not delivered at particular time. In some emerging
markets the investors are less experienced. To deliver reliable the experiences people are need.
Reason behind company is not yielding a competitive advantage
As the business is facing so many issues regarding proper allocation of resources,they do
not have particular language capability .The advantage over rivals can be gained through
competitive advantage. But since the company is experiencing loss of profit as resources that are
needs such as delivering of service at specific time-period is not fulfilled. So customer-
satisfaction is decreasing so it is not bale to gain competitive advantages. As the demands are not
bale to enforced by company properly, delays in projects and loss of new business is taking
place. The huge competition is faced by company from Quintiles IMS Holdings ,Inc. and
Covanve Inc. This is also the reason why the company is not able to gain competitive advantage.
By market research the unsatisfied needs of customer need to be identified. To achieve
competitive advantage through the acts of innovation is the main challenge for companies. The
importance of a firm's core competencies is emphasized by the resource-based view of form. The
core competencies need to be identified by the company. The industry has 0.62 quick ratio
whereas the quick ratio of company is 0.34 which clearly shows that liquidity ratio of company
is low. As a result of this it will not be able to pay the suppliers at particular time -period.
Suitable strategies option
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The suitable strategies will be made by the company in order to deal with issue that is
faced by company .The company need to pay attention on resources by making sure additional
resource are there so that work is does on time. The reporting need to done where the employees
thins that support is not adequate. To employees of team the additional training need to be give.
The guidance can be given so that they can explore their actual skills. With-in house or external
providers the training seminars can be conducted.
In case if workforce is limited due to which the company is not able to manufacture and
deliver produce then in this scenario company will hire or appoint new talents so that all the
product are delivered at appropriate time. Once the deserving candidates that are hired training
can be given to them s that they will be are about company's working.
To cope up with issues of customer satisfaction high-quality products needs to be made.
As now-a-days the customers focus more quality of products rather on price. To deal with rescue
profitability the company will decrease its expense .The financial strategies will be made by
company in order to control the cost. By using VRIO framework the company will evaluate their
resources and capabilities to find out if the company has competitive advantage. The strategies
will be made to bring innovation in company. New technology will be used to increase the
efficiency of business. In the formation of new product and process the companies core
competencies will valuable products. The training sessions will be made so as train workforce on
how to use new technology. To deal with competition that is faced by Quintiles IMS
Holdings ,Inc. and Covanve Inc the company need to focus on lifestyle and preference of
customers and resources ned to be allocated as per requirements.
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4
Illustration 1: Increasing return on invested capital
(Source:Increasing return on invested capital , 2017.)
From the above diagram it can be concluded that returns are not properly generated by the
company due to decline in profit. The return on investment is decreasing continuously from
2015.

In order to overcome these problems various strategic management approaches are
available, through which impact of issues can be reduced. Strategic challenges roadmap, it is
distributed into different stages through which problems are identified, on the basis of that
influencing factors are analysed (DeVaro and Boyd, 2016 ). In the first step of the roadmap
process, identification of challenges takes place. Basis on that process various issues are
identified such as HR activities, skills of employees, resources allocation, communication,
market shares fall, limitation of resources, profitability, etc. Currently, its all the four
departments are facing different challenges based on their resources and operations. These
challenges arose by certain internal and external volatility. PAREXEL international is
experiencing such challenges due to both internal business strategies and external market
environment i.e. competition, consumer demand and others. Some of the internal influencing
factors are like quality of services, lack of resources, ineffective communication channel, HR
management, etc. Along with this there are various external factors are equally responsible such
as customer’s demands, availability of qualitative materials, adherence with the rules and
regulations, etc (Foss and Knudsen, 2013). It arise the need for the company to devise suitable
policies and plans for the successful environment.
Identified issues Strategies approach
Lack of resources VRIO
Customer satisfactions SWOT
Reducing profitability PESTLE
Competitive environment Porter 5 force model
HR management Model of strategies HR management
Decreased market shares Market shares management strategies
VRIO is considered an as internal analysis approach, through which company is able to
analysed and evaluate resources based on internal and external factors. With the help of method
they are able to focus of four criteria such as:
1. Value
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2. Rarity
3. Imitability
4. Organisation
Through applying this strategy into PAREXEL international, strategies challenges based on
resources allocation can be solved.
Resources Value Rarity Imitability Organised to
capture value
Competitive
advantage
Skilled
employees
Yes Yes Yes Yes Sustainable
competitive
advantage
Research and
development
Yes No No No Temporary
difference
Disease
detection and
diagnosis
Yes Yes No Yes Competitive
parity
Quality
measure
Yes Yes Yes Yes Sustainable
competitive
advantage
Table 1: VRIO analysis for PAREXEL
(Source:VRIO analysis for PAREXEL , 2017)
On the basis of above table is analysed that company is required skilled employees in
order to maintain competitive advantaged of the company. Along with this research and
development work of the company is also not able to generate effective outcome. Disease
detection and diagnosis process of PAREXEL international is producing competence results and
quality of services and products are also effective (J. Harrington and et.al., 2014 ). Therefore, it
is analysed that company is facing resources shortage because their resources are not being
utilised effectively. It I creating direct impact on the quality of the services. In order to overcome
these issues resources management approach can be applied. It helps in allocating resources
effectively in order to fulfil meet task.
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SWOT
SWOT analysis is considered as a process through which internal influencing factors can
be determined. It is distributed into four unit’s strengths, weaknesses, opportunities and threats.
For PAREXEL international, it is conducted here as under:
Strengths
1. Strong distributive network.
2. Global existence
3. The high growth rate
4. Effective monitoring system
5. Large customer base
6. Reduced labour costs
Weaknesses
1. Increased cost of the products.
2. Ineffective quality
3. Lack of skilled and knowledgable
employees.
4. Ineffective technologies
implementation
5. The barriers are faced by the industry.
6. The suppliers are missing
Opportunities
1. New services and therapies can be
launched.
2. Different market trends can be
approached.
3. Implementation of technologies helps
in decreasing development cost.
4. Increase in demand.
5. Income level is at a constant increase
Threats
1. Automation is considered as biggest
threat for the company.
2. Gradual increasing market
competition.
3. The increasing costs.
On the basis of above table it is analysed that there are various factors that are creating
direct impact on the quality services and products. Some of them are like gradually increasing
cost of products resulting less business profitability because consumers are moving towards
other brands which is available at least cost. Along with this due to lack of talented employees,
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quality of the services are also getting affected (Ma and Seidl, 2016 ). It also creating negative
impact in market and decreasing their customer’ base.
In order to overcome the such issues, quality management strategic can be be
implemented. With the help of this method company is able to improve manufacturing process
and research work. It supports PAREXEL in order to provide promising services in accordance
with the user requirements. Through this way they are able to meet their expectation level.
PESTLE analysis
PESTLE analysis is a framework through which organisations are able to determine
external factors that are influencing processing of the company. In this process analysis is
considered on the basis of six categories, such as political, economical, social, technical, legal
and environmental (Mejia-Villa and Alfaro, 2015 ). PAREXEL international is able to determine
impact of various factors on the profitability of company.
Political
1. Legal framework in order for
agreement related work.
2. Corruption level
3. Trading charges, rules and regulations
imposed in the form of duties.
4. Organisational safety and security
regulations
5. Employees wages and benefits.
Economical
1. Exchange rates.
2. Interest and inflation rate of company.
3. Economic growth and GDP.
4. Competitive advantages.
Social
1. Education and knowledge level.
2. Demands of customers
3. Environmental and health factors.
Technical
1. Implementation of technologies for
research and diagnosis process.
2. Impact of technologies on research and
services production process.
3. Techniques for maintaining distributing
system.
Legal
1. Consumer rights
Environmental
1. Rules and regulations for maintaining
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2. Employment act
3. Health and safety law
4. Patent and intellectual property right
effectiveness of environment.
2. Waste management system for
healthcare products.
3. Recycling process.
On the basis of above table various factors are identified that are affecting profitability of
the company such as political factors. Some of them are like unstable trading and exchanges
duties applied by administrative bodies affect the budget of company and creates direct impact
on the cost of the products and services. Along with this, employee safety and benefits also plays
significant role (Missiuna, Polatajko and Pollock, 2015). If the firm is failed to provide benefits
to the employees, it will affect their performance and decrease profitability. Therefore, it seems
necessary for the company to hire talented and experienced personnel who are able to meet
consumer expectations by rendering them superb and exceptional quality services.
Besides this, in the economic factors, increased exchange rates, interest and inflation rate,
economic growth and GDP and competitive advantages affects the investment of the company,
due to which their growth and profit get affected. Social factors also create huge impact on the
growth and profitability of company in which change in consumer requirements have an huge
impact. Under this PAREXEL international are facing challenges based on the education and
knowledge level, due to which qualities of products are getting affected. Environmental and
health factors also affect profitability by changing the needs and demands of customers.
Implementation of inappropriate technologies affects the development process of the products
and outcomes of research (Molter and et.al., 2016). It affects the products and services of the
company and decreases their profitability. From the annual report of 2013 to 2014 of the
company, it is analysed that net profit of the company is decreased. However, gross profit is
increasing, along with this admin sales of is also increased.
.
9

On the basis of above analysis it is identified that profitability of company is getting
affected due to external volatile market conditions. In order to overcome them , firm needs to
make strategies of sales maximization. Firm needs to focus on quality management, cost
curtailment plans to improve return.
With the help of this step they are able to monitor all the activities of the sales department. On
the basis of that planning and designing takes place. It helps in overcoming the issues and
increasing profitability.
Porter 5 force model
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(Source: The Porter's 5 force model , 2017)
Porter's Five Forces is framework through which companies are able to identify various
forces that can affect their growth. It helps in identifying their strength and weaknesses. Through
applying this model PAREXEL international is able to analyse competitive environment. It is
distributed into five stages such as:
Competitive rivalry: PAREXEL international is having various rivalry such as 22-
clinpage, E-clinical solution, Pamplona capital, etc. , that are providing effective pharmaceutical
products and services in order to attract customers, thus, intensity of competitive rivalry is very
high (Rahmandad and Repenning 2015). To maintain competitive advantage of company
implementation of advance strategies and techniques is required. If there is intense rivalry
among existing player then prices of product will be lowered down and the industry will face
overall profitability. The huge competition is faced by company from Quintiles IMS
Holdings ,Inc. and Covanve Inc. In a very competitive medical laboratories and research industry
the company operates. By developing sustainable differentiation the company can deal with this
rivalry. In order to compete better with other rivals the company can build scale. Rather than just
competing for small market the company can collaborate with competitors to increase the size of
market.
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Illustration 2: Porter's Five Force model

Bargaining power of suppliers: PAREXEL international is having limited number of
suppliers. However, ratio of suppliers are lower than consumers, due to this they are free to
impose limited bargaining charges on the companies. Under this process PAREXEL
international, is considering suppliers across to get resources at considerable amount.
Bargaining power of customers: There are large numbers of pharmaceutical companies
are providing services, due to this clients are free to get effective bargaining. In this scenario
company is offering attractive bargaining offers it helps in influencing customers and attracting
them. By paying the minimum price as possible the buyers want to purchase the best offerings
that is available. In the long run the pressure is put on PAREXEL international corporation. The
higher bargaining power of customers and their tendency to seek discounts will be will be higher
as the customers base of company is smaller and more powerful .To cope up with this,the
company can build a large base of customers. It will help the company to reduce bargaining
power of customers. The opportunity will also be given to increase its sales in market.
Threat of new entrants: Limited numbers of pharmaceutical and biotechnological
services providers are provided with licenses, due to these very limited problems arises while
entering into new market. It helps them in growing their business and maximising their market.
The pressure on company can be put by new threats in medical laboratories and research as it
will bring innovation. To safeguards its competitive edge the company will build effective
barriers. The innovative new products and services will made to bring new customers.
Threat of substitute products: Under this process various local pharmaceutical
companies local and synthesised products. It increases market competition for other brand.
On the basis of above analysis it is identified that due to limited biotechnological services
providers PAREXEL international is able to expand their business, due local service providers
are increasing competitive environment for the company (Zietsma, Greenwood and Langley,
2014). From the above discussion various factors are analysed that are increasing competitive
environment for the company, due to these PAREXEL is facing various challenges. In order to
overcome those issues, quality management strategy can be applied. Through which the
organisation focus on the quality of products. In this helps in expanding their business at new
market. Along with this it supports the organisation in order to attract maximum clients toward
the quality product of the company. It also plays significant role in order to maintain competitive
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advantage of the company at international level. The needs of customers need to be understand
by company .
Model of strategies HR management
(Sources: Model of Strtegic HR management model, 2017)
Model of strategies HR management is a framework through which companies are able to
determined effectiveness of HR practices based on the internal and external factors. Under
internal factors various elements are included such as culture, policies, strategies and structure
implemented by the company. Along with this external factors are also analysed on the basis of
workplace health and safety legislation, wages act, equal opportunity and others, rules and
regulations. Through implementing this strategic approach PAREXEL international is able to
analyse significance of their HR practices. In this model processes are distributed on the basis of
internal and external environments (Baumgartner and Rauter, 2017). It helps in determining the
factors that affects the business strategies. With the help of this process various factors are
identified PAREXEL international is facing problems based such as communication process,
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Illustration 3: Model of strategies HR management

employee’s skills and functionality of employees. These all issues are creating direct impact on
strategies of the company and creating challenges for them. For the effective workforce
management , firm needs to train their workers and motivate them. Employee also needs to be
provided with better pay scale, bonus, incentives and their performance must be rewarded by the
firm. It helps in motivating them and encourages for better generating outcomes In order to
overcome HR issues and implement effective plans and strategies. HR management approach
can be applied. With the help of this step company is able to improve quality of their planning
and implementation process. Along with this it helps in hiring skilled and knowledgeable
candidates. Through which organisations are able to maximise their quality of services and
increase their growth and profitability.
Market shares analysis
(Sources: The BCG growth – share matrix, 2017)
Market shares management strategies:
Market shares management strategies is a process through which company is able to
identify factors that are affecting market shares on of the company. With the help of this
approach companies are able to find areas where strategies needs to be made for maximizing
market share. PAREXEL international is implements BCG matrix in order to determine factors
that are affecting make share (Borland and et.al., 2016). Through this process four units of the
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Illustration 4: BCG growth- share matrix

company is distributed into four segments such as CSR, CTL, PI and PC. In this CSR is dog unit
of the BCG matrix, as it requires small amount of investment and able to grow better capital. It is
not worth investing in it as they can produce low cash returns However, CTL belongs to the star
unit; it is able to generate huge capital in small amount of time. An ongoing investment is needed
to sustain as they can be market leader. PI is cow as it slow growing industry also produces
effective capital The product development,diversification can take place with this. The share in
market is high with products in low growth market and PC belongs to the question mark (David
and David, 2017 ). As its market shares are high. Also requires large amount of resources and
success rate of this unit is very low. In order to overcome these issues quality management
model can be approached. It helps in improving market shares by providing promising services
to the customers. Much closer consideration is required .
Summary of strategic analysis
As per the analysis it can be determined that company used various business strategy to
understand and stabilise its market in competitive environment. It helps the company in
determining its strengths, opportunities and many other factors which can impact the business
operations. As per the analysis it has been found out that company is facing major challenges
from its rivalries. The major reason behind lacking in competition, is unskilled and dead
employees of PAREXEL. Beside, the company has also identified that there are many more
factors which are impacting its functioning like, waste, shortage, allocation of resources, lack of
skilled staff members and lack of communication between management and workforce which
sometimes leads to disputes within the organisation and further affects the operations for a long
run. Further, in order to make effective functioning, the firm implemented Strategic analysis to
determine and overcome its shortcomings in order to stand out in market competition.
PAREXEL had used 5 strategic approach to evaluate 5 major issue of the organisation which
were, allocation of resources, declining of profits, buyers satisfaction, environment of rivalries,
management of human resources and declining market shares. Furthermore, to recognise the
problems the company implemented various business approaches to these 5 problems.
In accordance to strategic analysis, the company analysed the shortage of resources in the
enterprise by using VRIO model which examined that the company needed the skilled, rare,
valuable and imitable employees in order to increase its market image. Moreover, it has been
examined that to overcome scarcity of resources PAREXEL has measured the quality and
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researched about its products, buyers and competitors in order to resolve the issue of scarcity of
resources. Thus, this process is conducted by resource management team of the entity. To
evaluate the reason behind declining profits and revenue the organisation implemented the
business strategic tool Pestle in which the sales team of the firm scrutinised its political,
economical, social, legal and environmental factors from it can be summarized that increasing
corruption activities, competition, exchange rates, inflation, taxes and fluctuation in regulations
are the major factors impacting the profitability of firm. Moreover, the diversification in demand
of buyers, advancement in technology, legal policies and acts are the issue which interrupts the
smooth functioning of business operation of PAREXEL. According to these External
environment analysis it can be stated that there are various factors which impacts the enterprise
therefore it is important for the company to stay in touch with market fluctuations in order to
attain competitive advantage. Thus, the analysis determines that by examining internal weakness
through Swot analysis assisted the business in discovering its own weakness which is declining
the growth and development of organisation. The Swot analysis examined the issue of declining
buyers satisfaction in which the Quality management team and marketing team discovered the
various factors impacting the satisfaction of customers which were, pricing strategy, quality of
commodities, unskilled labourers and not implementing advanced technology. Besides, the
analysis also assisted the company in examining its strengths which can helps the enterprise in
standing out against its rivalries like, its distribution channel, and monitory system which helped
the firm in accomplishing organisational goals in case of crisis. In accordance to business
approach of Porter five forces, the quality management team of PARXEL, analysed various
factors which comprises substitutes, rivalries, entrants etc. The analysis reviewed that the market
competition for the company is increasing continuously and is very intense. Moreover, it stated
that bargaining power of suppliers is low and customer’s is high which impacted the revenue of
firm which made difficult for the organisation to stabilise its market in competitive environment.
The analysis outlined that there are very few new entrants in the industry of drugs which assist
the entity in growing its market according to its own requirement. Thus, the term threat of
substitute summarized that due to synthesized products the company do not face the change of
substitute because in pharmaceutical industry the firm has to offer drugs at similar prices.
Furthermore to analyse the Human resource management issues the company implemented HR
models to determines the reasons in which the HR team of pharmaceuticals discovered that the
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policies and procedures need to be formulated more appropriately in order to establish effective
business operations. In order improve functioning PARXEL implemented policies and
procedures keeping in mind both factors that is internal and external which will asst the team in
framing policies accordingly. The model helped the company in determining the need of
employee retention and retrenchment in which entity will focused on recruiting skilled and
capable workers according to job requirement and clearing the dead staff which was not effective
enough to contribute performance in order to increase the productivity of company. Thus,
implementing this strategy helped the enterprise in analysing the loopholes behind declining
quality, profits, turnover and growth and development.
The major problem faced by Pharmaceuticals was is decreasing market shares for which
the company implemented market share management strategies. To conduct this process the
quality management team of PAREXEL identified factors which were influencing shares and for
that the team used BCG matrix to evaluate the demand and share of specific drugs from the
company. The matrix denoted the four specific segments of pharmaceuticals in which CSR was
in dog unit and CTL belongs to star unit of matrix. It is conducted buy company to control its
market share because decreasing market share will impact the stock market will can cause huge
amount of loss. The matrix demonstrated that the drugs which are sold on stable pricing have
stable demand but if the company fluctuates the price it is examined that buyers tend to shift
according to their convenient. Henceforth, the evaluation summarized that approaches used by
PARXEL are the best to determine and analyse the loopholes which can assist the entity in attain
organisational goals. The strategic analysis concludes that it is important for the firm to look over
its weakness to stand out in competition and attain profitability.
Selected strategy
There are various strategies that can used by organisation in order to resolves various
issues. These strategies are as follows-
Resource management- Resource management is very effective strategy that can be used by
organisation for development of its resources. The various resources include financial resources,
production resources, technology, inventory etc. This activity assists form in allocation and
effective utilisation of resources. Resource management strategy includes various discussion on
functional and cross functional resource allocation. The resource management process involves
various activities such as resource estimating, analysing the need of human resource
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management. There are various tools such as resource management softer can be used by
organisation for managing resource effectively. This software will assist firm in identifying the
demand and supply of resources. The main objective of this strategy is to ensure that there are
enough availability of human resource in order to carry out various activities, scarcity of
resource should not hamper other business operations, deciding the requirement of resources,
identifying various sources of resources, Resource management helps in smooth functioning of
organisation (Wesseling, Niesten and Hekkert, 2015).
Sales maximisation-This strategy is adopted by enterprise in order to increase its sales and
enhancing profitability. The business unit seeks ways to increase their market share even if they
are generating fewer profits. This strategy can be adopted by organisation
This strategy will assist organisation enterprise in increasing their market share and enhancing
their monopoly power. This strategy will provide the opportunity to business to increase the
price of their product and generate profits. This activity will motivate manger to work for
PAREXEL company as it results into greater prestige and higher salaries. Organisation is
provided by advantage to enhance their market growth this may force competitor to quit their
business. For example increase in use of e-commerce platform by various furniture industries has
badly affecter the shopkeeper selling furniture. The PAREXEL can use online platform for
increasing their sales. This tool will allow organisation to cover wide range of geographical area
and sell their product to new as well as to existing customers. Pricing strategy helps the firm in
reducing competition and enhancing profitability as well as sustainability( Mathur,and Kenyon,
A 2012).
Quality management-The objectives of the quality management strategy is to improve quality
of Company products and service and to assist organisation in fulfilling their objective of
customer satisfaction..Various methods can be identified by using this strategy using which the
firm can plans and control quality of its products. Quality management strategy should outline
the arrangements for quality assurance Including various internal and external audit. The key
responsibilities related to quality should be highlighted. (Houdet, Trommetter and Weber, 2012)
This plans also helps organisation in reducing various cost and time scales. It provides
opportunity to enterprise to increase their efficiency and effectiveness. This activity provides
various quality improvement method which can be used by business for improving quality of
their products, services and operation.
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Long run Profit maximisation-In some case PAREXEL can sacrifice profit in short term in
order to increase their long term profits. For instance by making investment in big projects the
company may incur loss for short time project but this project may generate higher profits in the
future.
Human resource management strategy- Human resource management strategy outlines the
key decisions
that ensures the best fit for Parexel organization. Its is important for firm to frame such human
resource management strategy that need to be match with other strategists. This strategy can be
categorize by business organization into various sub division such as culture, people, resource
system and organization. Employees satisfaction survey can be conducted by firm in order to
identify talented employees. This strategy enables cooperation to retain talented and skilled
employees. In this method the employees are being provided with platform to share their opinion
regarding various policies, procedures, working environment etc. This method assist business
unit in examining the performance of employees and their career development status. The
industry can conduct customer review to determine satisfaction. (Jaber and et.al., 2015).The
other strategy related to human resource management that can be adopted by PAREXEL are:
Leadership of organisation strategy- This strategy includes participation of top corporate
executives and other leaders as role performed by these people have direct impact on
organisation success and growth (Shi, 2016).
Talent strategy-This strategy have focus on forecasting staffing need and developing plans for
recruiting, hiring and retaining top talented and skilled personnel This strategy includes various
activities such as analysing job competencies such as knowledge, skills, qualification, abilities
etc. hat are required for performing particular task. (Gonzalez-Padron Hult and Ferrell, 2016).
High performance culture strategy- This strategy encourages top leader to influence employee
behaviour in organisation. Their main task in this strategy is to motivate staff members to
increase their contribution in achieving firm goals and objectives.. Human resource management
provides support to top leaders in formulating. Various plans to enhance enterprise culture. To
develop such culture which helps employees in improving their performance. This strategy
ensures that each and every employees should get appreciation for giving high performance and
for suggesting innovative ideas (Grünig and Kühn, 2015).
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Reflection
Among various strategies such as resource management strategy will assist PAREXEL
Organisation in allocating their resources and these will enable firm to identify various sources
for availing resources, This strategy include activities such as identifying need of resources ,
resource planning which lead to effective and efficient utilisation of resources. The resource
management plans enable enterprise to make effective and efficient use of resources. This
strategy enables organisation to ensure that business operations are not being hampered by
scarcity of resources. It also provides opportunity to form to reduce its various cost and enhance
its performance and growth. The resource management strategy enables organisation to enhance
its profitability level and reduce costs by eliminating waste. The solution provided by resource
management strategy helps organisation to eliminate common issues related with poor resource
planning such as lack of visibility it means unclarity about employees performance lack of
understanding about talent present within enterprise, number of conflicts related to resources,
under and over utilisation of resources.
On the other hand sales maximisation strategy helps enterprise in increasing their sales
and provides way to gain monopoly power. It provides various methods that can be used by
PAREXEL for increase its profit margin. This strategy includes high salary and prestige that
provides motivation to employees to increase their performance level. This strategy also provides
opportunity to firm in order to reduce competition. Sales maximisation strategy enables
organisation to enhance its customer services . It helps enterprise to reduce risk and assist firm to
increase their customer database.
`Whereas quality management strategy has focus on increasing quality of products and
services that are offered by organisation this helps enterprise in fulfilling their objective of
customer satisfaction. This strategy also provide aids to management in establishing standards
for measuring improvement in quality of products and services. The firm can use this strategy for
developing their brand image, for gaining customer loyalty, retaining existing customers and for
increasing its competitive advantage. This strategy also provides benefit to enterprise to enhance
their productivity and efficiency. Quality management strategies various analyses are being
conducted in order gather feed back from consumers which will help enterprise in improving
their quality of services and will assist organisation in framing effective strategies for launching
of new product. This quality management highlights the responsibilities of individual which
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assist business unit in assuring quality of product. THe solution provided by quality management
strategy assist firms in comparing actual quality with standard one. It also enables organisation
to examine the reason for poor quality of product and services. It provides data related to
customer feedback about the quality of products and need of improvement in quality of services.
It allows enterprise to examine the product and services which require improvement.
Decreased market share is one of the major issue in the organization. This problem can be
resolved by adopting quality management technique. It is the way through which entity can
improve its quality which will support in attracting more people towards the brand. On other
hand it can be critically reflected that quality management requires time and managers have to
monitor quality time to time. That may increase financial burden on the organization. Thus, it is
not effective enough. Whereas quality management strategy can be beneficial in increasing
satisfaction level of consumers. By this way people will get attracted towards the brand thus,
market share of the firm will be increased.
On other hand poor HR management is another issue identified in the workplace. In order
resolving this problems company can take support of effective HR management policies. It can
be beneficial in conducting operations systematically. By this way human resource manager will
hire people by looking upon their skills. It will provide sufferance training to them. That will
help in increasing satisfaction level of staff members and they will retain in the workplace for
longer duration./ Effective management practices requires huge changes, it may be possible that
old staff do not accept changes easily. (Mitchell, and et.al., 2016).
CONCLUSION
On the basis of above report it is inferred that strategic challenges are creating immense
impact on various processing of the companies. In order to overcome them management
strategies are applied. In the present report PAREXEL international is facing various challenges
such as decreased market shares, inadequate resources and poor management, , ineffective HR
planning, etc. due to this direct impact can be analysed on the growth and profitability of
company due to decrease in customer satisfaction. In order to determine the influencing factors
strategic challenges roadmap is applied. With the help of this methods different frameworks are
implemented in order to identify factors that are influencing strategies. In the present various
approaches are considered. Some of them are like VRIO, SWOT, PESTLE, Porter 5 force model,
model of strategies HR management and market shares management strategies. Through these
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approaches factors are identified. In order to overcome those problems different models are
applied such as lack of resources is handled through resource management, customer satisfaction
by quality management, profitability through sales maximisation, HR management is
implemented for maintaining HR activities, competitive environment and decreased market
shares are managed by quality management. With the help of all these approaches strategic
management can be done.
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