Strategic Management and Innovation in CSL

This assignment delves into the strategic management practices employed by CSL, a leading global biotechnology company. It examines CSL's mission statement, core values, and how these principles guide its operations. The analysis further explores CSL's commitment to innovation within the pharmaceutical industry, referencing research on R&D costs and open innovation models. Additionally, the assignment considers the broader impact of CSL's activities, including their contributions to environmental sustainability and economic growth.

Running head: SUSTAINABLE MANAGEMENT AND MARKETING
Sustainable management and Marketing
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Table of Contents
Introduction......................................................................................................................................3
Organizational structure...............................................................................................................4
International business and management......................................................................................4
External environment of CSL..........................................................................................................5
Planning...........................................................................................................................................7
Mission statement........................................................................................................................7
Vision statement..........................................................................................................................7
Values..........................................................................................................................................8
Goal setting practices of CSL..........................................................................................................8
Planning process of CSL.............................................................................................................9
Approach of planning process of CSL.............................................................................................9
Human resource management policies of CSL.............................................................................10
Recruitment and selection..........................................................................................................10
Workforce management.............................................................................................................11
Style of leadership being practiced................................................................................................11
Value chain of CSL.......................................................................................................................12
Recommendations..........................................................................................................................12
Conclusion.....................................................................................................................................13
Reference.......................................................................................................................................14

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Introduction
In the current business scenario, sustainability is the key source of surviving in the
competitive business scenario. This is due to the reason that, with the increase in the average
demand and consumption in the global scenario, it is important to have sustainable approach to
have enough resources for the future generation (Tilman and Clark 2014). Thus, in relation to
this recent phenomenon, business organizations are also initiating sustainable business
approaches in order to enhance their potentiality in the market.
CSL is the one of the leading biotechnology firms in the world, which develops
pharmaceutical products including vaccines and medicines (CSL 2018). They are based in
Victoria, Australia and having their branches in different locations around the world. CSL is also
known for their effective and extensive approach to sustainability. They effectively aligned their
core business processes in relation to the sustainability, which in turn helps them to have
favorable impact on their business operation.
This report will discuss about the business environmental factors that are being faced by
them in their global operation. In addition, the approach of their planning, human resource
management, leadership in relation to their sustainability will also be discussed in this report.
Moreover, the supply chain of them will also be discussed along with identifying the
recommended steps that will further help them to step their business operations.

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Organizational structure
CSL maintains hierarchical structure in their organization with having dedicated board of
managers who look after the operational, financial and business plan of the organization. They
are having global leadership group to look after the daily activities of the organization (Tran and
Tian 2013).
Organizational structure of CSL
International business and management
Currently, CSL is having their branch offices in multiple locations around the world
including the United States, Indonesia and the United Kingdom. In addition, they are their
market presence in more than 30 countries around the world. As of 2017, the annual revenue of

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CSL stands at US$ 7 billion. Manufacturing sites of them are currently located at 8 countries
around the world. Moreover, they are having 19000 employees in all their facilities around the
world. However, the operational facilities of them other than in Australia are acting as strategic
business units of them with having separate management for every unit.
External environment of CSL
Political-legal  The political and legal scenario in the global scenario is
different and varied and thus, it will have diverse impact on
the business operation of CSL.
 Moreover, there are various stringent legislations being
maintained by different countries, which will have negative
impact in their global operation (Dawson 2015).
 With difference in governmental systems and processes in
different countries, the operational barriers faced by them.
 Government of Australia is easing the legal formalities for the
foreign investors, which in turn attracting more global
competitors.
Economic  Demand for pharmaceutical products is ever increasing with
the increase in the health issues around the world.
 With the business operation of CSL is situated in different
locations around the world, the market segregation of them is
more effective.
 Showing good growth in the recent years as per their annual

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report.
 Moreover, with the entry of more global companies in the
pharmaceutical sector in Australia, the competition is rapidly
increasing (Dimasi, Grabowski and Hansen 2016).
Socio-cultural  One of the key challenges being faced by CSL is the less
acceptance of medicine in some conservative parts of the
world.
 Using of animal based materials in the medicine is having
negative impact on the market.
 The socio-cultural environment of Australia is advanced.
However, with the presence of number of competitors in the
market, the bargaining power of the buyers is more.
Technological  CSL is known for the use of latest technologies in terms of
security and innovation.
 They are having more than 1500 employees for research and
development for further development.
 The recent industrial trend in the pharmaceutical industry is
inclined towards latest innovation and thus it is important for
CSL to stay updated with their offerings (Schuhmacher et al.
2013).
 However, with having more competition in the market, it will
cost more CSL to rapidly upgrade their technology in their
business operation.

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Planning
Mission statement
The mission statement of CSL states their desire to deliver the medicines for all kind of
diseases including those for which, no medical treatment is their till now. Moreover, it is also
their mission to provide products to the patients at cheaper rates (Williams, Morrell and Mullane
2014). Thus, the mission statement of CSL has sustainable approach due to the fact that,
determination of the requirement of the patients is being given the major concentration.
According to their mission statement, it can be concluded that, their policy is to cover the major
market share, which will ultimately enhance their revenue generation.
Vision statement
As per the information being available in their official website of CSL, their vision is to
be the most innovative pharmaceutical organization in the entire industry with having the major
market coverage and customer base (Calder 2014). Their vision statement states that, with the
help of the innovation and patient focus, they gain the market leadership status. Similar to their
mission statement, the vision statement of CSL also focused more on the factors such as
innovation and patient welfare. Thus, according to their policy, if the patient welfare and
innovation can be effectively fulfilled, then it will eventually gain the market share and revenue
for them.

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Values
The value statement of CSL focused on the fundamental factors that are valued by them
for their sustainable success. According to their official website, some of their fundamental
factors are the saving the life of the people, protecting the lives and being a reliable and
trustworthy brand in the global market. In accordance to these factors, they have designed their
organizational process including their internal and external stakeholders. Thus, from the above
discussion of their mission, vision and value statement, it can be concluded that, their planning
process can be termed as sustainable due to the reason that, they have designed organizational
process for long term sustainability rather than short term profitability.
Goal setting practices of CSL
Goal setting process of CSL is being based on around different steps. One of the key
steps involved is the determination of the requirement of market. It is important for them due to
the reason that, the variance and intensity of the diseases and health concerns of the major
portion of the global population is rapidly evolving and thus it is important for CSL to determine
the current requirement in the market (Loock, Staake and Thiesse 2013). Information being
gained from the determination of the market requirement is being further analyzed to set the goal
and objective. Another step involved is the analysis of the need of the customers. This is due to
the reason that, the cost of the medicine may get higher depending on the various factors which
may not be affordable for the majority of the sections. Thus, with determining the need of the
customers, CSL get the fair idea about how to initiate the affordable production of the particular
products and design the organizational process accordingly.

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Planning process of CSL
The planning process of CSL involves various steps and types in order to have the
holistic impact on the organization. Operational and tactical planning are the key types of
planning processes being initiated by CSL (Dibrell, Craig and Neubaum 2014). With the help of
the operational planning, the upper level management of CSL initiate the decision making
process according to the information being gathered. This helps them to have the planning road
map for the long run and in accordance to that; other organizational activities are being
implemented. On the other hand, initiation of the tactical planning helps them to design the
planning process in the lower level according to the approach of the strategic planning.
However, sustainability of CSL is being gained from the effective and efficient
collaboration between the processes of strategic and tactical planning. This is due to the reason
that, CSL involves the effective communication process between the upper and lower level of the
management (Belansky et al. 2013). Tactical planning is being initiated according to the
approach of the strategic planning of the upper level management and strategic planning is being
further evolved from the feedback gained from the tactical planning process.
Approach of planning process of CSL
CSL involves innovative planning process in their business operation. As per the
information on their official website, innovation is being in the forefront from their initial stage
of operation from 1916 (Volberda, Van Den Bosch and Heij 2013). The innovative approach is
being initiated in having dual advantages for them. One of the key advantages being gained by
CSL is the offering of more advanced products to the patients along with covering more rare

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diseases. Another advantage being gained by them is the efficiency in the manufacturing process.
The more innovative will be their production process, the more will be the efficiency of the
production process and reduction in the cost.
Thus, from the above discussion, it is being seen that, customer or patient is the key
orientation factor for CSL according to which, the entire organizational structure and activities
are being designed. Moreover, with having the innovative approach, the efficiency of the
production process is also be considered, which will further help them to enhance the
sustainability of them. Moreover, the initiation of the corporate social responsibilities of them
including the disaster relief programs and adhering to business ethics also helps them to enhance
their sustainability (Servaes and Tamayo 2013).
Human resource management policies of CSL
The human resource policies of CSL are extensive and cover all the associated
stakeholders. Some of the key human resource strategies being initiated by them are the gender
equality and diversity in the workforce. According to the information in their website, 54 percent
of their total workforce is women and 46 percent is men. Thus, they are one of the few business
organizations to have the majority of the women employees in place (Kabeer and Natali 2013).
Moreover with having the diversity in their workforce, CSL gains the advantages of gathering
diverse and varied feedback and opinion from the employees with better exchange of ideas.
Recruitment and selection
CSL is having effective policies in terms of recruitment and selection process of new
employees. They maintain talent pool for the selection of the new employees. Moreover, the
source of attracting new talents is more for them including online sources and referral programs

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for the existing employees. The selected employees went through various stages in order to
check their compatibility and in the end induction process is being followed to effectively place
them in the organization (Lamba and Choudhary 2013).
Workforce management
One of the key sustainable steps being initiated by CSL in managing their workforce is
the maintenance of the ethics with the employees and encouraging quality in the workforce
without having any discrimination. Moreover, strategies such as job rotation and job division are
being initiated by them to create effective working environment in the organization (Caillier
2013). Various activities related to employees’ engagement and motivation such as reward,
recognition and work life balance are being initiated in order to enhance the productivity and
effectiveness of the employees.
Style of leadership being practiced
The leadership style being maintained in CSL is also being designed in sustainable
manner. As per the information being available in their official website, employees are being
encouraged to provide feedback and opinion in the decision making process (Baker et al. 2013).
One of the key traits being identified in the management of CSL is the enthusiasm of the leaders.
The leaders of CSL are being considered as energetic and expressive in dealing with the
employees. This is having positive impact on the employees. Moreover, the strategic decisions
being initiated by leaders is according to the need of the customers and thus, employees are also
being directed to provide effective service to the customers.
Reward is being initiated by the leadership of CSL in order to influence the employees in
enhancing their performance and productivity. Moreover, reward power is being initiated

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without any discrimination. It helps in enhancing the organizational productivity. The leadership
style practiced in CSL can be termed as transformational style of leadership (Avolio and
Yammarino 2013). This is due to the reason that, the leaders of CSL is having positive influence
and charisma among their employees. It helps in enhancing the sustainability of the organization
due to the reason that, he more motivated and influenced will be the employees, the more will be
the competitiveness of the organization.
Value chain of CSL
As per the information on the annual report of CSL, supply chain management of them is
effective and the suppliers are being made to adhere with the regulations of CSL in terms of
quality and environmental impact. ERP system is also being maintained by them to have
effective collaboration with the suppliers. Implementation of the new technologies helps in
determining the requirement of the suppliers and designing the organizational activities
accordingly. With having the suppliers adhering to the sustainable policies of CSL, the
effectiveness of the sustainable policies of CSL is being maintained.
Recommendations
 It is recommended that, CSL should initiate their production unit in the developing
countries such as India and China. These countries are having lower cost of resources
along with favorable infrastructure for the business organizations. Thus, it will help them
to further reduce the cost of the production.
 Situational leadership should be initiated by them due to the fact that, they are having
their operations in different countries. Thus, each country is having different business

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environment, which cannot dealt with same approach of leadership. Hence, situational
style of leadership will help in adapting with the change in the business environment.
 Contingency planning should also be initiated by CSL in order to have backup plans in
case of any unwarranted incidents. It will act as plan b in the case of the failure of their
existing planning process.
Conclusion
Thus, from the above discussion, it can be concluded that, CSL is having effective
business process and activities adhering with the sustainability. This report discussed about the
human resource, leadership and value chain strategies of CSL in view of their sustainability. It is
being seen that, he key mission and vision of them is to develop in more sustainable manner and
to be the global leader in their industry. Some recommendations are being discussed in this
report which will further help them to enhance their sustainability of their business operation.

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