Analysis of Strategic Management Concepts and Frameworks

The provided assignment content consists of academic articles and books on strategic management, performance management, market orientation, and knowledge management. The authors of these works include Freeman, Gebhardt, Hitt, Harrington, Lunnan, Nag, Nerur, Oubiña, Robertson, Swayne, Van Weele, Verbeke, Wheelen, and Zack. The articles cover topics such as the design and use of performance management systems, market orientation, alliance performance, intellectual structure of strategic management, and knowledge management. Additionally, there are online sources including Strategic Organization and What is Strategic Planning?, which provide information on the definition and importance of strategic planning.

Strategic Management
Analysis

Table of Contents
INTRODUCTION...........................................................................................................................1
SECTION 1 Mission and Vision of Biocon India Group................................................................1
SECTION 2 Five forces are as give below of Biocon India Group................................................3
SECTION 3 VRIO Framework of Biocon......................................................................................5
SECTION 4 Corporate strategies for Biocon India Group..............................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategy management analysis is a process to formulate and implement a strategy to
achieve objectives and goals of the organization. This analysis first scan the factors that are
present in internal and external environment then implement and formulate a strategy. Strategy
management can also be defined as the decisions that manager takes which shows the
organization performance. Managers also conduct SWOT analysis of the strategy which includes
strength, weakness, opportunities and threat. Biocon is an Indian Pharmaceutical company that
was establishes in 1978 (Freeman, 2010). It is expertise in manufacturing enzymes and also
focused in fermentation process that was dominated by Japanese company. It is the first
company that produced products related to healthcare through solid state fermentation. Company
provides many comforts to the employee and there is flat organizational structure in the
organization. The purpose of this report is to identify and analyses the external and internal
environment of the company. To knows the various factors so that the company make their
strategies and plan accordingly. So that the company can attain their organisational goals and
objective more effectively (Swayne, Duncan and Ginter, 2012).
SECTION 1 Mission and Vision of Biocon India Group
Vision of Biocon India Group is to require the career prospects by becoming one of the
most recognized and know centre of advance learning in bioscience and in biotechnology. To
meet the level of the competitive sector is the mission which is achieved by training and
developing the industrial talent for the biopharma. Values of this organisation is to graduate and
empower the bioscience graduates with the basis industrial proficiency to develop they skills in
career prospects in the biopharma sectors. To increase the opportunities there are aspiring
biotechnologists in the sector of industry so to connect the academia and industry (Hitt, Ireland
and Hoskisson, 2012). Many science projects are introduced to the new growing students who
have talents in this field. To achieve the better business they have to plan a strategy so the top
most executives make a plan like strategic objectives and missions for the company which is of
big scale. Market strategy and products are roughly down the line which is done by the
managers. Because of small planning charm, all the strategies are all turned by the planners.
There are some of the phases in strategy planning which as helped in improving the ways of
effectiveness, corporate planning system which are hence, proved. Phase are as follows:
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Basic planning of finance
forecast based planning
Externally oriented planning
Strategies management
In the financial problems most of the companies use to trace the origins of a planning system to
reduce the annual budgeting process. On the basis of annual expense budgets are to develop the
costs, forecast revenue, and capital needs and to identify limits (Van Weele, 2009). Functional
performance as compared to the budget targets are reported by the information systems.
Powerful business strategies are made by Biocon India Group, which are rarely formalized. The
planning is mainly depended on the CEO of the team and to improve the conditions of the
company. They should have knowledge where the product is lacking in the market. Planning
must be done on the bases of the product knowledge so to improve the market value. Forecast
based planning are types of plans which are made before starting the products. It also differs
from the budget in the length of the frame. In success of every organisation and every project is
critical so its better to sign the job to the right person and in the right way through which one can
make difference in the success (Wheelen and Hunger, 2011).
Stakeholder management is step used by every organisation because its a very important
discipline which is used by successful people which ensures that their projects is successful. It a
technique which defines the success of the people when other companies are failed to reach its
goals. Its support building plan used to achieve the targets. Important of using a stakeholder-
based approach is that opinions can be used of the most powerful stakeholders to shape the
projects before the starting stage of the project. It will not only support the project, their input
can also improve the quality of the project (Nerur, Rasheed and Natarajan, 2008). To make the
project more successful the company must take help of the powerful stakeholders which will
help to win more resources – this makes it more likely. Its better to communicate with the
stakeholders so that they can help to understand the plan which makes sure what are the benefits
are going to be gained by this project early and frequently. The stakeholders support actively
when ever its necessary. Every company should know what kind of stakeholders there are hiring.
Stakeholder can be both organisation and people so its better to communicate with them. The
project must be attractive and the communication must be clear so that the stakeholders must be
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eager to join the organisation and start helping the project in the better way (Crook and at. el.,
2008). Position on the grid are:
 People must fully get engage and make the great efforts which satisfies in high
power,who are interested.
 To keep people satisfied use high power and put enough work so that they don't get bored
 With project details people are very helpful. To reduce the raising issues people should be
adequately informed, and talk to them.
 Excessive communication must be avoided so to increase the work level.
SECTION 2 Five forces are as give below of Biocon India Group
In the given case the five forces play a very important role which helps the business. It is
a framework that attempts to the level of competition within an industry and business strategy
development. It draws upon industrial organization economics to derive five forces that
determine the competitive intensity and therefore attractiveness of an Industry. It helps in
industry and business strategy development (Nag, Hambrick and Chen, 2007). It also identify the
power which lies in the business situation. In this its is to understand the strength of the current
position of the product plan. To avoid and improve the mistakes and weakness forces are used.
It helps in shaping the industries strength and weakness. In this concept its the analyse in which
competitive environment works with company's work or the product. This is the theory which is
based on the five forces which determines the attractiveness of the market. The government
should have impact on the industry or not. The earlier stages are more turbulent which is
considered in the industries life cycle (Verbeke and Yuan, 2010). Industries characteristics are
changing the dynamic factors. Five forces are as give below of Biocon India Group:
The threat of entry: In the marketing activities the competitors can enter from any
channel, function, industry. Due to the above barriers and regulatory constraints the threat of
entry posed by the new or potential competitor is a low competitive. Bulk purchasing is benefits
with associated. Demand for generic versus brand name drugs has increased because of the costs,
Generic drug companies do not have the high costs associated with the research & development
of new drugs and that allows them to sell at cheaper prices (Robertson, 2008). The closeness of
substitute products is a HIGH competitive force. Where the products exists the market price
raises high and comes meets to the better hikes by this the customers also switch to other
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products. The uniqueness of the products or the services as control. To preserve a favourable
position and take fair advantage have strong and durable barriers to entry. Substitution is easy
and viable. The suppliers are more helpful as the company needs the suppliers need (Ambrosini
and Bowman, 2009).
Degree of rivalry among existing firms: Its a high competitive force among the existing
firms in the degrees of rivalry . Rivalry are high among the main companies in the industry. This
is most likely to be high where entry is likely; there is the threat of substitute products, and
suppliers and buyers in the market attempt to control. This is why it is always seen in the market
of the diagram. Market attractiveness will be reduced by offering services and undifferentiated
products.
Bargaining power of buyer: Due to price increase of generic drugs regular patients have
lost bargaining power. The bargaining power of buyers is a medium competitive force .
Hospitals & other health care organizations buy in bulk quantities and exert pressure on
pharmaceutical companies to keep prices in check. Bargaining is the point when patients have a
point to less the amount of the products (Eden and at. el., 2009). Government will take action
which will introduced new laws be that will weaken our competitive position in the market. The
Champagne brand cannot be copied by large players in a market that the large grocery chains. In
a business the few buyers are powerful. If there are a large number of undifferentiated, small
suppliers small farming businesses supplying the large grocery chains. One fleet supplier of
trucks to another the cost of switching between suppliers is should be low.
Bargaining power of suppliers: In the competitive forces the suppliers power
bargaining is low. Handful of the large players which as decreased the bargaining power of
suppliers in the sales for the pharmaceutical industry concentrate. Switching to one software to
another the cost is high. Where the brand is powerful the power is high (Harrington and C.
Ottenbacher2011). Bargaining in the suppliers power is large in the sales which helps a lot in the
business.
Closeness of substitute products: The costs of branded drugs have increased the
demand for generic versus. Many drugs are not at all related to the research and development
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which are too costly and are sold at cheap price . The closeness of substitute products is a high
competitive force (Zack, McKeen and Singh, 2009).
SECTION 3 VRIO Framework of Biocon
Organizations uses many tools to identify the internal and external environment in order
to competitive advantage. One of the tool that identify the internal sources is VRIO analysis.
When company wants to identify the strength and weaknesses of the environment then this is the
best method to use. It is a structural process that is used for firms resources and competitive
advantage. VRIO in the context of Biocon is stands for:
V- It is used to identify that either resources has any value or not for the organization. if those
values exploit opportunities then that value is useful for the organization. If these valued
resources are useful then It can increase the customer value. This is done by cut down the prices
of product and add any unique feature to product (Lunnan and Haugland, 2008.). It is important
to continuously monitor the value of the resources due to changing factors in external and
internal environment because these changing factors can decrease the value of the resources.
Biocon Company focused on the manufacturing of enzymes that add value to the medical
industries and give the new opportunities to these industries.
R- These resources are adopted by very few companies and competitive advantage is
high in the market. Rarity means organizations have rare valuable or unique resources among
their competitors. If rare and unique features are not there in the product then company have no
competitive advantage. Biocon is the only company that provide products that are related to
healthcare and these are made by solid state fermentation. So company here provide rare and
unique products that lead to competitive advantage (Ferreira and Otley, 2009).
I- If the resources are not imitable then only they can lead in competitive advantage. If a
firm have valuable, rare and not imitable product than can enter into the competition and can
also gain first mover advantage in the company. Innovative companies are there that based on
non- imitable products. Biocon enter into the pharmaceutical industry but they manufacture their
own enzymes and due to solid state fermentation they got first mover advantage.
O- Here it is the role of the company to maintain the structure, policies and management
of the organization to know the valuable, rare and non imitable products. After these valuable,
rare and non imitable products company can go in competitive advantage. Biocon company
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realize these uniqueness in the product and their products are not imitable so they can lead to
competitive advantage (Oubiña, Rubio and Jesús Yagüe, 2006).
Biocon's strategic capabilities provides competitive advantage in the form of cost and
uniqueness of the product. Company should use the competency and core competency of the
firm for the sustainable competitive advantage. Competency in the form of skills, abilities and
knowledge that are used in distributing the resources to the consumers and in core competency
activities are there to maintain the competitive advantage of the company. Competitive
advantage is important for the organization and without the sustainable competitive advantage
organization may suffer in their long time success. Competitive advantage is based on the
strength and weaknesses of the organization. Strength gives a sustainable competitive advantage
to an organization and weaknesses may prevent organization from sustainable competitive
advantage (Gebhardt and at. el., 2006).
Biocon company get competitive advantage in leadership in cost, uniqueness in product
and focus on targeted customers.
Leadership in cost is the important for factor for the organization. If company provide their
products in low cost as compared to their competitors then it will attract more customers. It can
increase the demand of the product and profitability of the organization. It is beneficial for price
sensitive customers. Differentiation means uniqueness in products. Customers attract more
towards the unique products. This can also increase the profitability of the organization and also
attract customers. Some people are not price sensitive so they will buy the product that is unique
and these people are known as brand loyal people. Focus is another strategy that focus on group
of people that are brand loyal and price sensitive (Freeman, 2010). This strategy also make the
organization sustainable in competitive advantage. Biocon focused on a group of people who are
price sensitive so they made drugs according to the preference of the customers and for some
brand loyal customers they provide unique features. The company also provides health related
products and in those products they provide unique feature so brand loyal people can purchase
these products.
SECTION 4 Corporate strategies for Biocon India Group
The market of pharmaceutical is facing the huge volatility and ans uncertainty. This
market having a tough competition form the various multinational companies. There are various
internal and external factors which affects the pharmaceutical industry greatly. In involves the
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price control of the medicine, the policy change like FDI, licensing, acquisition from the
multinational companies, increase in the competition. These all factors are beyond the control of
Biocon. The top management of the company requires a long term strategic plan to make them
competitive in the market (Swayne, Duncan and Ginter, 2012). There are the following corporate
strategies which can be sued by the company to meet the future challenges and to make them
profitable in the market. There are mention bellow:
Review product portfolio: The impact of new policies are great impact on the market share and
profitability of the company. The company operating in a limited geographic area are reduces the
strength of the company. There fore organisation requires to change their product portfolio and
expand their market share in different countries are help to maintain the market share and
profitability of the company. The manager focus on therapeutic class synergies, increasing share
of prescription, adding innovative and better margin products.
Build customer centricity: To meet the current challenges and make competitive in the market
requires to focus on the customer centric approach. And provide their customers value
proposition. The company can make customer segment and focus on individual segment which
also help to maintain in the market (Hitt, Ireland and Hoskisson, 2012). The company can
directly contact with the clients, hospitals, clinics, direct patients to connect with the direct
mechanism. The company can also focus on the digital marketing make them profitable.
Strengthen operational capabilities: This is the right time to the management to revisit the
operational capabilities of the company. Company requires to use the advanced technologies and
innovations in the production process and other important aspects which help to give the
competitive advantage to them. The company can use the latest technology in the overall process
which help to increase the performance and efficiency in the operations.
Value creation by alliances: In the pharmaceutical industry a large number of companies are
make the industry more competitive. Which is not good for the company (Van Weele, 2009).
There are big companies are also avail in the market. The top management of the company
requires that to make alliance with them. It can give the competitive superiority for the company.
The company can make the joint venture with a domestic or an multinational companies can help
to maintain their market share.
Focus on research and development: Another corporate strategies of the company is to focus on
the research and development so that they can make the better products. For that the company
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requires that to invest a large amount on research. These research investment can give the long
term investment to the company. And provide the strategic advantage to the organisation.
CONCLUSION
The above mentioned report has been concluded that the significance of strategic
management to set the goals and objectives of the company. And make the strategies to attain
these targets. This report described that the mission and vision of Biocon India. Apart from that it
also described that the external and internal analyses of the company. There are the various
strategies which help to meet the future challenges and help to maintain the market share and
profitability of the company.
REFERENCES
Books and Journals
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Ambrosini, V. and Bowman, C., 2009. What are dynamic capabilities and are they a useful
construct in strategic management?. International journal of management reviews.
11(1). pp.29-49.
Crook, T.R. and at. el., 2008. Strategic resources and performance: a meta‐analysis. Strategic
management journal. 29(11). pp.1141-1154.
Eden, C. and at. el., 2009. Integrating modes of policy analysis and strategic management
practice: requisite elements and dilemmas&star. Journal of the Operational Research
Society. 60(1). pp.2-13.
Ferreira, A. and Otley, D., 2009. The design and use of performance management systems: An
extended framework for analysis. Management accounting research. 20(4). pp.263-282.
Freeman, R.E., 2010. Strategic management: A stakeholder approach. Cambridge University
Press.
Gebhardt, G.F. and at. el., 2006. Creating a market orientation: A longitudinal, multifirm,
grounded analysis of cultural transformation. Journal of marketing. 70(4). pp.37-55.
Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2012. Strategic management cases:
competitiveness and globalization. Cengage Learning.
J. Harrington, R. and C. Ottenbacher, M., 2011. Strategic management: An analysis of its
representation and focus in recent hospitality research.International Journal of
Contemporary Hospitality Management. 23(4). pp.439-462.
Lunnan, R. and Haugland, S.A., 2008. Predicting and measuring alliance performance: A
multidimensional analysis. Strategic Management Journal. 29(5). pp.545-556.
Nag, R., Hambrick, D.C. and Chen, M.J., 2007. What is strategic management, really? Inductive
derivation of a consensus definition of the field. Strategic management journal. 28(9).
pp.935-955.
Nerur, S.P., Rasheed, A.A. and Natarajan, V., 2008. The intellectual structure of the strategic
management field: An author co‐citation analysis.Strategic Management Journal. 29(3).
pp.319-336.
Oubiña, J., Rubio, N. and Jesús Yagüe, M., 2006. Strategic management of store brands: an
analysis from the manufacturer's perspective. International Journal of Retail &
Distribution Management. 34(10). pp.742-760.
Robertson, C.J., 2008. An analysis of 10 years of business ethics research in Strategic
Management Journal: 1996–2005. Journal of Business Ethics. 80(4). pp.745-753.
Swayne, L.E., Duncan, W.J. and Ginter, P.M., 2012. Strategic management of health care
organizations. John Wiley & Sons.
Van Weele, A.J., 2009. Purchasing and supply chain management: Analysis, strategy, planning
and practice. Cengage Learning EMEA.
Verbeke, A. and Yuan, W., 2010. A strategic management analysis of ownership advantages in
the eclectic paradigm. Multinational Business Review. 18(2). pp.89-108.
Wheelen, T.L. and Hunger, J.D., 2011. Concepts in strategic management and business policy.
Pearson Education India.
Zack, M., McKeen, J. and Singh, S., 2009. Knowledge management and organizational
performance: an exploratory analysis. Journal of knowledge management. 13(6).
pp.392-409.
Online
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Strategic Organization. 2016. [Online]. Available through <http://soq.sagepub.com/>. [Accessed
on 19th December 2016].
What is Strategic Planning?. 2016. [Online]. Available through
<http://balancedscorecard.org/Resources/Strategic-Planning-Basics>. [Accessed on 19th
December 2016].
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