Strategic Management of Novo Nordisk Corporation

Running head: Strategic management
Strategic management

Strategic management
Table of Contents
Introduction.................................................................................................................................................3
Part A...........................................................................................................................................................3
Background of the organization..................................................................................................................3
External environment analysis.....................................................................................................................3
General environment...............................................................................................................................4
Industry environment...............................................................................................................................5
Opportunities and threats.........................................................................................................................6
Internal environmental analysis...................................................................................................................6
Intangible and tangible resource capabilities...........................................................................................6
Core competencies...................................................................................................................................6
Value chain analysis................................................................................................................................7
Strengths and weaknesses........................................................................................................................7
Part B...........................................................................................................................................................7
Summary SWOT.........................................................................................................................................7
Corporate and business level strategies.......................................................................................................8
Strategic issues............................................................................................................................................9
Recommendations.....................................................................................................................................10
Conclusion.................................................................................................................................................11
References.................................................................................................................................................12
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Strategic management
Introduction
The main aim of this paper is to explain business activities and operations of the firm.
Novo Nordisk Corporation has been selected in the report. It is the biggest pharmaceutical
company which renders pharma and drugs products to the customers. Apart from this, it provides
brief information about the external and internal environment of the company. It depicts how the
firm is overcoming on the competitors by using porter five forces analysis, corporate and
business level strategies. Internal and external environment play a significant role in the
organization. No company can survive its activities without evaluating and analyzing the macro
as well as micro environment. Further details of the task have been detailed below.
Part A
Background of the organization
Novo Nordisk A/S is a Danish multinational pharmaceutical corporation with it’s
headquarter is located in Bagsvaerd, Denmark. The corporation was incorporated in 1989
through a merger of two companies. The firm provides its products in more than eight countries
and its offices are situated in approx 75 countries. The organization manufactures and delivers
pharmaceutical products and services such as diabetes care medications and devices (Novo
Nordisk, 2018). The firm manufactures enormous brands under the various brand names which
include Novoseven, Victoria, Levemir, Novoeight and Novolin R. There are approx 40000
employees employed in the firm. The organization is a member of the Europeon federation of
pharmaceutical industries and associations (EFPIA).
External environment analysis
An external environment is composed of all the outside elements that influence the
business activities and operations (Brandon, 2014). An organization cannot control on external
environment. There are two types of external environment such as micro environment and macro
environment.
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Strategic management
General environment
There are various external factors such as political, economic, social, technological, legal
and environmental that influences the growth and success of the firm (Chitour, 2013). These
external factors have been discussed below.
Political: Nono Nordisk (A Danish pharmaceutical) company is facing various challenges due to
political instability. Political factors are major challenges for the pharmaceutical industry.
Political factors include bureaucracy, trade control, corruption level, education law, and antitrust
law. These factors are became a cause of worry for the drug distributors, investors and drug
makers who are worried that under increasing pricing pressure. The firm needs to focus on
political factors to beat the competitors in the global market (Hannigan, 2014).
Economic: Economic factors also influence the business activities and operations of Nono
Nordisk (A Danish pharmaceutical) company. The growth and success of the pharmaceutical
company is connected with GDP. It is assumed that economic situation of several countries has
not yet fully recovered. Furthermore, the condition of the healthcare industry is not good. The
economic factors include employment rate, interest rate, exchange rate, inflation rate, and foreign
exchange rate. The firm is trying to improve the rate of employment and economic situation of
the country.
Social: The socio-cultural elements present opportunities and threats as well. These factors
include customs, values, beliefs, culture of the people. These factors affect the growth rate of the
company. Some other problems such as obesity which is common problem across the world,
affects the all age groups. Social factors also influence the demand of the company’s products
(Epstein and Buhovac, 2014).
Technological: Technology can bring several opportunities for the Novo Nordisk Company as
well as healthcare sector. Increasing of social networking has given several new and innovative
opportunities for the pharmaceutical industry. In addition, social media also plays a significant
role in healthcare sector. Innovative technologies help to reduce production costs of the firm.
Environmental: There are enormous environmental risks are connected with pharmaceuticals.
Several types of pharmaceutical residues may pollute the environment of the country. In
addition, people are getting ill due to low quality of environment such as water pollution, as well
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