ACC7023: Strategic Management Report 2022

ACC7023: Strategic Management
Lecturer: Martin Beaver
Student: Amro Mousa
Word Count:
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Bayer Business Report
1.0 Introduction
Business strategy analysis is a significant aspect in the study of business as
the process of such analysis report involves several business-critical
considerations. In the instant report, the researcher will dive through Bayer
AG’s strategic analysis looking at the performance of the company from
corporate level with a focus on business and functional level strategy analysis.
Part A
2.0 Strategic Analysis
At the pharmaceutical segment, Bayer in terms of enhancing its sales margin
tends to focus on researching, establishing and marketing specialised
medicines that offer effective clinical benefits and values at the same time.
Moreover, the information shows that in its innovative product lines, the brand
enabled to attain its therapeutic facilities for patients and at the same time it
also manages to satisfy the emerging needs of its physician and health
insurers (AG, 2019). Inference can be drawn from the previous discussion
that the brand not only focuses on researching and developing innovative
product lines but also provides equal attention on the emerging demands of
its customers and shape their service lines accordingly to meet their needs to
the maximum.
3.0 Environmental analysis
In BAYERS environmental analysis, this report will focus on the PESTLE
model that is in the appendix (1). This model, there are a variety of factors
that BAYER should be aware of especially in the pharmaceutical and
agricultural group. When it comes to the legality BAYER should be aware of
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all the changes in regulations in the regions around the world. For instance,
19 European countries including Germany ban the import of any genetically
modified seeds or organisms (GMO). This ban is put in place because there
are fears that it can cause harm to humans and that it could lead to a
reduction in plant diversity. (2017) euronews
This links nicely with the food safety which is also an environmental factor.
Political and Legal
It has been identified that despite that impact of BREXIT, the UK
pharmaceutical brands have managed to follow the potential changes
introduced to the regulatory procedures and imposed strategies accordingly
(Kwon, 2018). Despite the legal hindrances, the pharma segment in its
manufacturing operations has made significant advancements including
Bayer.
Economic
The records of 2017 show that the pharmaceutical products' annual turnover
in the UK has been over 42 billion and the gross revenue of its retail medical
products has been 5 billion of British pounds (Stewar, 2019). Hence, it shows
a decent uprising trend.
Social
The employment standard of the market has been stable, where the stable
operation of the pharmaceutical sector has also created decent employment
opportunities in the market.
Technological
The chosen sector in the present time is focusing on 'Data Integrity' to adopt a
variety of integrated informatics platforms for the inclusion of Chromeleon
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Chromatography data software’s (CDS) to assist the brands to comply the
regulatory requirements to enhance productivity (Chopra, 2017).
Environmental
The UK government has passed strict instruction to the pharmaceutical
brands to keep the environment secured. The manufacturing, production and
retailing actions shall be initiated following regulatory guidance to prevent
pollution.
3.1 Stakeholder analysis
The stakeholder groups (appendix 6) is pulled from directly from BAYERS
sustainability report in 2019. BAYER has nicely presented their stakeholders
in a ‘Dialogue’ this helps them ‘recognise important trends and developments
in society and their markets at an early stage and take this information into
account when shaping their business” BAYER report (2019).
Furthermore, this report used the Mendelow matrix to help identify the key
stakeholders and their influence on BAYER. There is a relationship between
Mendelow matrix and BAYERS stakeholder dialogue in which most of the
stakeholders are in the same groups.
Stakeholders identified mainly to be influential to BAYER include suppliers
and their investors these stakeholders will need to be managed in various
ways for example for suppliers are essential to achieving good economies of
scale, to elaborate more on this point BAYER will need to maintain a good
relationship with their suppliers to get the raw materials to produce the
required products.
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