CSL Behring: Strategic Analysis and Innovation

This assignment requires a comprehensive analysis of CSL Behring's strategic decisions, particularly focusing on their approach to innovation. Students need to examine CSL Behring's product differentiation strategies, how they leverage technology and research to maintain a competitive edge in the biotechnology market. Additionally, the analysis should consider the company's sustainability initiatives and how they integrate these into their overall business strategy.

Running Head: Sustainable Management and Marketing
CSL
Sustainable Management and Marketing

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Executive Summary
This report will include the competitive analysis of CSL Company. It is a pharmaceutical
company and has developed effective goodwill in the industry with the effect of delivering
qualitative medicines. Along with the competitive analysis, this report will also focus on the
marketing strategies adopted and implemented by the organization in order to attain their desired
goals and the objectives. In marketing strategies of CSL Company, marketing mix tool will be
discussed in relevance with acquiring the effective position in the target market along with
gaining competitive advantage. Along with this, various aspects of the company will be
discussed such as strategic planning; human resource management, leadership and the
controlling value chain and technological aspects will be covered. The last part of the report will
include the recommendations through which the company could improve its performance in
order to enhance their goodwill in the target market along with accomplishing the desired goals.

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Table of Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................3
Background..................................................................................................................................3
Strategic Planning............................................................................................................................5
Human Resource Management........................................................................................................7
Leadership........................................................................................................................................8
Control Management.......................................................................................................................9
Future Managerial Strategies.........................................................................................................10
Recommendations & Conclusion..................................................................................................11
References......................................................................................................................................12

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Introduction
CSL Limited is a biotechnology company based in Melbourne, Australia. Their major functions
are to research, manufacture and develop products and medicines in relation to protect the severe
human medical conditions. Their major products are blood plasma, vaccines, derivatives, and
antivenom and cell culture reagents. These are majorly used in genetic research and various
medical manufacturing applications. The company was founded in 1916 and its headquarters are
situated in Parkville, Melbourne, Australia. Company’s current CEO is Paul Perreault and
company has made their presence in the overseas market through delivering effective products
and vaccinations. In order to increase their global presence, qualitative and quantitative analysis
will be executed with the view to examine the value of the organization in the target market
along with determining their capacity with the volume and size of the market. Their products and
vaccinations are the strong evidence of their goodwill and this has helped the organization to
increase their effectiveness along with gaining adequate competitive advantage in the global
biotechnological industry. Their products are their speciality and these specialised products have
made the significant image of the organization in the Australian as well as in the global market.
In 2016, their revenues were $6.923 billion under which their net income was recorded at $
1,769 million in the same year. In order to expand the organization’s functionalities in the
overseas market, human resource aspect, strategic planning overview of the company and the
value chain analysis will be executed with the view to analyse the strengths of the company in
order to match up with the challenges which will be raised during expansion of the organization
(CSL, 2017).

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Background
Initially CSL Limited was operating in the name of Commonwealth Serum Laboratories. It was
founded in 1916 by Australian Government and their primary activities are to cure the human's
severe diseases. In order to perform this function in an appropriate manner, they had invented
few advanced types of machinery and vaccination through which various severe diseases of
humans could easily be cured. Some of the effective devices and vaccination invented by
Commonwealth Serum Laboratories are blood plasma, derivatives, cell reagents, etc. With the
help of its biotechnological vaccinations and medicines, company has developed an effective
image in the global market. In Australia and in other parts of the globe, several institutes,
colleges, and hospitals are dependent upon the products produced and manufactured by CSL
Limited. Their qualitative and effective products, medicines and other related products have
helped them to attain their desired goals along with curing the humans of severe diseases. Along
with these activities, CSL Limited also focuses on preventing the environment and its related
factors. Some of the environmental factors which are prevented by the organization are restoring
rainwater, utilisation of natural resources in an appropriate manner along with preventing other
natural resources such as land, air, etc. This has helped them to develop their positive image in
the target market (CSL, 2017).
Company operates with the consideration of legal, political and other factors and on the basis of
necessary policies and regulations in relevance with avoiding the errors in their functionalities.
With the help of these procedures, organization is being able to enhance its performance in the
target along with providing them qualitative medicines and vaccinations. Company’s major
activities are concerned towards the public, thus, the prices of their products and services are also

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affordable through which it has gained the leading position in the biotechnology industry. Two
major competitors of CSL Limited are Baxter and Grifols and both of these perform the same
functionalities as of CSL in the Australian pharmaceutical industry (Armstrong, et. al., 2015).
(Source: CSL Limited Annual Report, 2017).

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(Source: CSL Limited Annual Report, 2017).

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Strategic Planning
Under strategic planning procedure, organization arranges its activities in an appropriate manner
on the basis of their significance. Apart from these, major factors which are considered in the
planning procedure are company’s strengths and weaknesses. This helps the company to operate
its activities appropriately in relevance with accomplishment of their targets. In the global market
context, it is required to arrange the organizational activities in an appropriate manner through
which desired goals could be attained (Barea, 2015). CSL Limited has put the research and
development functionality at the top in relation to fulfilling their primary objective i.e. curing
human's severe diseases. While performing the strategic planning activity, organization consider
following points in order to attain better and effective outcomes:
Patient: They are the obligatory responsibility of the organization. CSL Limited’s major concern
is to serve the patients in an appropriate manner and providing them medicines and other
vaccinations which could help them to cure of severe diseases (Bueno, Merino & Murcia, 2016).
Rich Performance: For accomplishing the goals, management always tries to increase their
performance with the help of adopting unique and advanced strategies. Their unique products
have become their identity and these have helped them to develop an effective position in the
global pharmaceutical industry.
Innovation: Organizational primary activities lead to the development of certain effective and
efficient products which could help them to attain their objectives. Thus, they had invested a
huge amount in the research and development process to innovate new technologies so that
customer satisfaction level could be enhanced. This will also help the organization to develop

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their image as the innovative brand and it will help to gain the competitive advantage along with
acquiring the adequate market share (Clarysse, et. al., 2014).
Integrity: This is a most crucial factor through which organization could make its positive image
in the market. CSL has adopted this facto in their functionalities in order to produce qualitative
and effective medications and vaccinations.
Team Work: It is another factor through which organization could uplift its performance along
with acquiring the desired targets. This plays crucial role in order to accomplish the tasks as well
as to gain the effective outcomes.
Along with these factors, CSL Limited’s vision and mission are developed in order to attain the
unique image in the biotechnological and pharmaceutical industry. Their major vision is to
provide the all relevant devices and medications through which people could be able to serve
themselves in relation to the initial stage of the diseases. Apart from this, company also
manufacture various products which are effective enough to help the people in curing the severe
diseases such as cancer. Their secondary objective is to save the environment and natural
resources and for the same, they had adopted the approaches such as holistic and eco-friendly.
These approaches are adopted with the view to use the eco-friendly packaging for the produced
goods along with utilising the natural resources in an effective manner. This shows the
company’s responsibilities towards the people as well as towards the environment and society
which has become the crucial factors in relevance with gaining the competitive advantage in the
target market. With the help of these strategies, organization has been capable enough to develop
an effective position in relevance with the dynamic business conditions as well as on customer
satisfaction (CSL, 2017).

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Adequate quality measures have also been adopted by the company in relevance with increasing
the effectiveness of their products and medication. In the biotechnological and pharmaceutical
industry, companies need to pass certain quality tests before introducing their products and the
services in the physical market. Thus, to pass those quality tests as well as to fulfil the motive of
producing qualitative products and services, company has adopted various measures in relevance
to fulfilling the industry's requirements. Providing qualitative products and the services helps the
organization to develop unique image, as well as their planning related objectives, could also be
attained subsequently (Grajales, et. al., 2014).

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Human Resource Management
Human Resource Management is an essential part of every organization as these are the person
who makes the assumptions of the top level management into reality. Thus, it is required that the
management needs to adopt certain effective strategies through which these crucial resources
could be managed in an effective manner. CSL Limited’s management has adopted significant
strategies through which they had accomplished the goal of managing human resources in an
appropriate manner. The very first step they had implemented in their workplace is allocation of
duties in an appropriate manner. Allocation of the tasks on the basis of employees’ ability and
capability leads to accomplishment of the particular task in an effective manner.
In order to attain more positive outcomes, organization has implemented the strategy under
which a large amount of the company’s profits will be invested towards the research and
development department (Lainez, et. al., 2014). This will be done for increasing the effectiveness
of the organization along with determining the various other ways for the purpose of fulfilment
of the organizational objectives and to serve the public in an effective manner as well. With the
help of new techniques and innovations, organization would easily be able to uplift its
performance over the competitors. Organizational management has also adopted certain effective
strategies through which team work, cooperation, and related factors could be implemented
within the workplace with the view to gain the adequate success and growth related factors
(Pagell & Shevchenko, 2014).
Apart from the above strategies, organization has also focused on the training and development
programs for improving the efficiency of the employees. This has increased the opportunities in

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relation to gaining desired goals and objectives. With the effective training and development
programs, organization will be able to enhance its employees’ efficiency. With the help of these
strategies, organization is able to develop an effective image in the industry along with
developing significant image in the industry. Further, organization has implemented the
strategies in relevance to providing safe and secure workplace. This increases the efficiency of
employees along with developing positive image in their perceptions. For motivating them,
company has adopted the strategy for fulfilling employees’ needs. Fulfilment of employees’
basic needs is the real determinant factor for motivating towards the work. Along with this,
reward management has also been implemented by the organization in their workplace for
managing the human resources appropriately (Quintana-García & Benavides-Velasco, 2016).

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Leadership
In order to attain desired goals and objectives for enhancing the organizational performance, it is
required to implement unique and effective strategies. This is necessary in order to stand out
from its competitors along with differentiating its products and services from them. CSL Limited
has a global leadership group which is responsible for developing leadership styles and strategies
for accomplishing the tasks in relevance with acquiring the positive outcomes. The leadership
group of the company is responsible for developing effective strategies in order to enhance their
functionalities. Leadership style implemented within the workplace is democratic leadership
style. This style has the potential to extract the positive outcomes as it invites the employees in
the decision making process of the organization. Other than the decision making process,
employees are involved in every process of the organization which leads to development of
relationship amongst the management as well as amongst the employees (Schaltegger & Burritt,
2014).
Organization also gets advantage with this leadership style as it generates various ideas to
accomplish the certain tasks and on the basis of organizational requirement, an appropriate
decision could be adopted and implemented. This leads to development of an effective image in
the employees’ perception along with increasing their effectiveness. Democratic leadership style
is appropriate enough to implement certain required attributes for gaining the desired outcomes
such as team work, integrity, communication management, interaction, and the like (Short,
Toffel & Hugill, 2016).

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Control Management
In order to provide effective and efficient products, it is required by the management to
implement certain controlling and evaluation measures through which the functionalities could
be performed on the basis of management’s expectations. This also leads to the development of
effective control over organizational activities through which the appropriate outcomes could be
originated. CSL Limited is engaged in the production of crucial devices and products which are
effective enough to fulfil the desired objectives (Witcomb, 2015). Their products are meant to be
manufactured for curing the severe diseases to humans. Thus, it is required to adopt and
implement certain effective controlling measures through which quality of the products and
services will not be compromised and the purpose of manufacturing lifesaving medications could
be fulfilled appropriately (Strand, 2014).
In order to increase the effectiveness of the organization in the target market along with
ascertaining the opportunities for organization to improve its performance, it is necessary to
implement the change in the management and the functionalities as well. This leads the
organization to increase their efficiency and the effectiveness along with delivering qualitative
products. Implementing the control management also plays crucial role in order maintain the
goodwill of the company and it also leads to attainment of adequate competitive advantage in the
target market (Tseng, Lim & Wong, 2015).

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Future Managerial Strategies
Following are certain crucial strategies for improving the organizational performance:
Product Strategy: In order to enhance the effectiveness of their products, CSL Limited should
adopt product differentiation (Hoberg & Phillips, 2016). This strategy is capable enough to
differentiate the company’s products from its competitors as well as it is also effective in
improvisation in customer satisfaction level as well as it is essential to acquire competitive
advantage (De Loecker, 2011). Company’s primary products are:
 Vaccinations;
 Antivenom;
 Plasma Therapies; and
 Cell culture reagents.
Pricing Strategy: Organization needs to focus on their pricing strategy in order to attract large
number of customers. The most appropriate strategy as per the organizational functionalities is
cost leadership pricing strategy. This helps the organization to reduce unnecessary and irrelevant
costs which reduces cost of production. Ultimately it leads to reduction in the final prices of the
products which could be treated as the effective factor for attracting large number of customers
in relevance with acquiring the market share (Banker, Mashruwala & Tripathy, 2014).
Promotional Strategy: This strategy plays crucial role in order to enhance the organizational
effectiveness in the target market. With the help of promotional strategy, organization could
spread awareness amongst the target audience in relevance with their products and services. At

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one time, large number of audience could be covered in relation to developing effective image in
the target market (Datta, 2010).

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Recommendations & Conclusion
Organization has been recommended that for maintaining the same sort of goodwill in the
Australian market, change management, appropriate pricing strategies, product differentiation
and the like strategies needs to be adopted. Along with ascertaining the opportunities for the
organization to expand their business in the overseas market, it is required to uplift their
performance and for the same, adaptation of advanced and trending strategies is necessary.
From the aforesaid information and in the limelight of above analysis, it can be concluded that
CSL Limited is performing quite well in order to uplift their performance and to fulfil their
desired objectives. This report includes the analyses in relation to determining the sustainable
management and marketing related factors for the organization.

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References
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015, Marketing: an introduction,
Pearson Education.
Banker, D.R., Mashruwala, R. and Tripathy, A., 2014. Does a differentiation strategy lead to
more sustainable financial performance than a cost leadership strategy?. Management
Decision, 52(5), pp.872-896.
Barea, J.M., 2015, Future challenges and perspectives for applying microbial biotechnology
in sustainable agriculture based on a better understanding of plant-microbiome interactions,
Journal of soil science and plant nutrition, 15(2), pp.261-282.
Bueno, E., Merino, C. and Murcia, C., 2016, Intellectual Capital as a Strategic Model to
Create Innovation in New Technology Based Firms, In Competitive Strategies for Small and
Medium Enterprises (pp. 93-105). Springer International Publishing.
Clarysse, B., Wright, M., Bruneel, J. and Mahajan, A., 2014, Creating value in ecosystems:
Crossing the chasm between knowledge and business ecosystems, Research Policy, 43(7),
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CSL, 2017, Board & Management, retrieved from http://www.csl.com.au/about/board-
management.htm.
CSL, 2017, CSL Behring Acquires Biotech Company Calimmune and its Proprietary Stem
Cell Gene Therapy Platform, retrieved from http://www.csl.com.au/investors/CSL-Behring-

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Acquires-Biotech-Company-Calimmune-and-its-Proprietary-Stem-Cell-Gene-Therapy-
Platform.
CSL, 2017, Our products areas, retrieved from http://www.csl.com.au/products.
Datta, Y., 2010. A critique of Porter's cost leadership and differentiation strategies. Chinese
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De Loecker, J., 2011. Product differentiation, multiproduct firms, and estimating the impact
of trade liberalization on productivity. Econometrica, 79(5), pp.1407-1451.
Grajales III, F.J., Sheps, S., Ho, K., Novak-Lauscher, H. and Eysenbach, G., 2014, Social
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differentiation. Journal of Political Economy, 124(5), pp.1423-1465.
Lainez, M., González, J.M., Aguilar, A. and Vela, C., 2017, Spanish strategy on bioeconomy:
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Quintana-García, C. and Benavides-Velasco, C.A., 2016, Gender diversity in top
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firms, Long Range Planning, 49(4), pp.507-518.

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Schaltegger, S. and Burritt, R., 2014, Measuring and managing sustainability performance of
supply chains: Review and sustainability supply chain management framework, Supply
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Short, J.L., Toffel, M.W. and Hugill, A.R., 2016, Monitoring global supply chains, Strategic
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