Pharma Corporation: Analysis of Risk, Innovation, and Strategy

This report provides a comprehensive analysis of Pharma Corporation, a growing pharmaceutical organization specializing in innovative products. It examines the risks associated with pharmaceutical research, including regulatory changes, cost-effectiveness, and market volatility, while also highlighting opportunities such as generics, biotechnology generics, and contract manufacturing. The report delves into current managerial techniques used to mitigate risks and capitalize on opportunities, covering pre-clinical, clinical, and post-marketing strategies. Furthermore, it explores the latest practices in change management, emphasizing the importance of planning, governance, leadership, and continuous measurement. The report also examines innovation management, including building an innovation strategy, communicating innovation, identifying opportunities, and implementing with speed. It concludes by discussing the key skills required for innovation managers and change agents, such as implementation, problem-solving, a curious mindset, and collaborative skills. The report offers valuable insights into the strategic and operational aspects of Pharma Corporation, providing a detailed overview of its business environment.

PHARMA CORPORATIONS

Table of Contents
Introduction......................................................................................................................................2
Answer 1..........................................................................................................................................3
1.1 Risk Associated with Pharmaceutical Research...............................................................3
1.2 Opportunities Associated with Pharmaceutical Research.................................................4
1.3 Current Managerial Techniques........................................................................................5
Answer 2..........................................................................................................................................6
2.1 Latest Practices of Change Management...............................................................................6
2.2 Latest Practices of Innovation Management..........................................................................7
Answer 3..........................................................................................................................................8
Answer 4........................................................................................................................................10
4.1 Pharmacorp Organizational Structure:.................................................................................10
4.2 Pharmacorp Organizational Culture:...................................................................................11
4.3 Pharmacorp Organizational Human Resources...................................................................11
4.4 Pharmacorp Technology......................................................................................................12
Answer 5........................................................................................................................................12
5.1 Principles of Project Management.......................................................................................12
5.2 Dynamics of encouraging innovation..................................................................................13
5.3 Innovation Risk Management:.............................................................................................14
Answer 6........................................................................................................................................15
Conclusion/ Recommendation:......................................................................................................16
References......................................................................................................................................18
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Introduction
Pharma Corporation is considered as the growing Pharmaceutical organizations which is
specialized in producing innovative Pharmaceutical products on the global basis. Change and
Innovation management play a vital role in the success of the organizations. Pharma Corporation
has been growing at record levels in current years, but now it has various opportunities to expand
in a number of fields. These are considered as a leader of the world in manufacturing high-
quality generic medicines which help these organizations to rapid growth in the market.
Pharmaceutical sector is contributing a large amount to country. In addition to it, the government
also plays an important role in the success of the Pharma Sector (Braithwaite, 2013). The
government of different countries is developing attractive policies for the success of these
organizations. The main aim of the government is to develop hospitals, improving the quality of
pharmaceutical products, and boosting local access to healthcare. For growing in the
environment the organizations mostly focus on technological innovation which makes them
separate from their existing competitors. Technological innovation has become mandatory for
every organization to survive in the challenging environment. Organizations should struggle to
maintain and achieve competitive advantage. Current trends like globalization, greater
competition, technology fusion, product modernization, and fast product-cycle times have
become very crucial for the growth of pharmaceutical organizations. The foundation of
competitive advantage in the market largely depends on successful innovations of the
organization. The pharmaceutical organizations spend more in conducting research for building
the innovative products. These organizations are producing such products which make the life of
a human being very easier. They are mainly producing medicines, food ingredients, and
intermediate chemistry (Brown, 2015). The organizations are dealing with a broad portfolio of
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materials through which they use automotive and electronic designs while manufacture life-
improving medical and various other products. The main aim of these organizations behind
conducting the business is to help customers in getting success by providing them different
innovative solution. They introduce various new ideas for serving their customers in a significant
manner. These organizations are managing a global network of commercial offices, technical
centers and also manage the additional strategic affiliate production services. The technologies
leading to drug development and discovery are at the limits of the human knowledge. The big
size of the organizations brings various complexities of their technologies and processes. In
addition to it, there is a growing technical capability to provide personalized medicine. All this
provides various opportunities for organizations to target smaller patients group. Pharma
corporations should focus on establishing relevant business strategies for achieving competitive
advantage in the market.
Answer 1
1.1 Risk Associated with Pharmaceutical Research
Conducting Pharmaceutical Research is considered very risky for the organizations. It includes
following risks:
1. Impulsive Nature of Reimbursement and Pricing: Policies of the government keeps on
changing year by year. The government of different countries exercises strict control over
prices of pharmaceutical products by using a broad range of cost-containment measures.
This influences the functioning of pharmaceutical organizations in an effective manner
(Khanna, 2012).
2. Volatility during Regulatory Review: It is necessary for the organizations to generate
increasing amount of data after and before the approval of a new medicine becomes a
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strong risk to pharmaceutical research. Government introduces various regulatory ways
to measure the quality of products. This will not be static it is continuously changing as
per the innovation of products.
3. Cost-effectiveness: It is crucial for the organization to determine further time and dollars
in cost-effectiveness studies because there are no predetermined set of measures by the
payers and the industry (Li, 2014). Measuring the Cost-efficiency is considered an
important task for the organizations to stop ever-increasing healthcare costs.
Organizations should adopt efficient standards to measure the cost-effectiveness of their
products.
1.2 Opportunities Associated with Pharmaceutical Research
The important opportunities for the organizations to growing in Pharmaceutical industry are in
the following areas:
 Generics: Global Generics market is growing continuously. If the organizations
producing generic drugs at lower costs, it will provide them an edge over other generic
production organizations. The world biggest pharmaceutical market is in U.S. People of
U.S consuming generic products in high quantity. This will give them the opportunity to
expand itself in the other areas of the world by producing high-quality generic products.
 Biotechnology Generics: Organizations of China and India could be the first to
introduce biogenerics to the regulated markets and faster than expected. The demand for
biogenerics products is enhancing nowadays. It was estimated that biogeneric products
accounted for 12 % of global pharmaceutical sales during 2008 or about $ 50 billion in
global sales for the year (Gassmann, 2013). Introducing biogenerics products is
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considered a big opportunity for pharmaceutical organizations to grow itself in the
competitive market.
 Contract Manufacturing: It is considered as a growing sector of the pharmaceutical
sector. Organizations can enhance their size by focusing on contract manufacturing
(Haddad, 2014). If the organizations adopted contract manufacturing, they could supply
active ingredients to their potential customers. This helps the organization in conducting
efficient clinical or preclinical trials in an effective manner.
1.3 Current Managerial Techniques
There can be various managerial techniques for managing the risks and opportunities. In the
previous time, the techniques utilized for minimizing the risk seems irrelevant today. As per
growth in technology, the risk level is also enhancing, and its management is also done
through innovative ways. There are some techniques which currently used for managing risk
and opportunities:
 Pre-Clinical: The organizations should measure preclinical requirements regularly.
By using Preclinical techniques, the organization is able to calculate predictive values
of the available risk (Phan, 2016). This will enforce the organization to perform case-
control studies on marketed drugs.
 Clinical: The organizations should support and promote clinical research to determine
the best solution. In conducting the clinical research to find the solutions, the
qualified staff is essential for the organizations because it requires high skill persons
to conducted research.
 Post Marketing: The organizations should pay attention towards past marketing. They
should conduct smaller and shorter clinical trials which help the organization in
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measuring the risk factors in an effective manner. The post marketing techniques
enable the organization to understand available risk though conducting observational
studies.
Answer 2
2.1 Latest Practices of Change Management
In order to implement the change management practices, the organizations require support from
their top managers. Different changes have occurred in the organization which influences several
areas of organization like GMP requirements, employment protection requirements, regulatory
affairs, quality control, marketing, research and development, or authorization requirements
(Schuhmacher, 2013). Therefore, the organization should implement suitable change practices
for implementing change in its functioning. Some change practices followed by the organization
to implement change are following:
 Plan Carefully: For implementing change successfully the organization should formulate
proper plans and strategies. This requires the organization to listing and documenting the
necessary tasks to accomplish and should plan strategies as per the requirement of these
tasks. This will help the organizations in accomplishing these tasks successfully.
 Define Governance: The organizations should define their governance, for implementing
the change successfully. Governance helps the organization in formulating a framework
which helps further in making decisions and formulating pre-determined processes for
implementing the change in a suitable manner.
 Assign Leadership Role: It is necessary for the organization to establish skilled
organizational leaders, both at the upper level and throughout the organization. Leaders
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help the organization in keeping their change management process on track. The selected
leaders should be reliable, efficient, committed to influence others.
 Regularly Measure and Review: The management of the organizations should
continuously measure the implementation of change activities. This helps the
organization in controlling the change outcomes and implementing it in an effective
manner. The main aim of measuring the change management is to identify available
issues and reinforced them immediately.
2.2 Latest Practices of Innovation Management
Innovation is considered an important function of the organization, but the path to enhance
innovation is not always clear. One important thing to note here is that organization doesn't
innovate, people do. The potential of the employees of an organization offers the high benefits
for innovation performance. The following thing should be considered during innovation:
 Build an innovation strategy: The organization should consider that the innovation
activities should focus on the corporate goals and should leverage assets and core
strengths. Pharmaceuticals organization should focus more on developing innovation
strategies on current success to fulfill current goals.
 Communicate the innovation: It is the responsibility of the organizations to aware their
employees about the importance of innovation. Employees need to know why innovation
is necessary for the organization will deliver better results to benefit all.
 Identify the suitable and best opportunities: The organizations can enhance their benefit
level by focusing on the best available opportunities. They should develop criteria to grip
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available opportunities in an efficient manner. The organization should stimulate the best
opportunity by communicating both the decision outcomes and criteria.
 Implement with speed: Innovations only proved beneficial when they are implemented
speedily. Failure to implement good opportunity is one of the biggest issues to develop an
innovation culture. The organizations should ensure that the selected projects are properly
resourced and implemented in a predetermined manner. This will help the organizations
in implemented the innovation in the organization in an effective way.
Answer 3
Innovation is considered the important function for every organization. Innovation is an
important business skill- not just for entrepreneurs but also for the managers of the organizations.
Innovation manager and change agent should have following key skills for business success:
 Implementation skills: The innovation managers should have implementation skills, due
to which they are able to implement the desired innovation strategies in an effective
manner. Having a good idea is worth nothing unless the managers do something with it.
As and when the idea for innovation arises, there is a whole set of implementation skills
linked with putting the idea into practice and bringing into the market. The Innovation
manager and the change agent should have the capability to select the right idea and
implement it in the desired way.
 Problem-solving skills: Innovation is a combination of various problem-solving skills.
Firstly, the innovation manager should have the capacity to recognize the nature of
problem-related to the product and service of the organization which will be solving.
Often the managers should try to a solution without understanding the real problem
(Isidro-Filho, 2013). If the managers efficiently recognize the existing problem, it is easy
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for them to find suitable solutions. Secondly, the innovation managers should have
creative problem-solving skills. Innovators should able to approach problems in different
ways, instead of following a single way. Through this, they are able to approach multiple
solutions for a particular problem.
 A Curious mindset: Innovators always engage in searching better business ideas. They
are always asking questions in order to find suitable solutions for existing business
problem. Innovators should have a curious mindset which forces them to conduct
research on a continuous basis. A curious mindset innovator is able to search best
business opportunities and a mechanism to implement it in an efficient manner. So, it is
considered that innovators should have a curious mindset which makes them different
from others.
 Collaborative skills: The innovators should have the capability to formulate global cross-
functional teams. This will allow innovators to exploit available opportunities more easily
by widening their diverse inputs. Through the collaborative skills, the innovators can plug
into different networks across the globe and across industries. Collaborative skills help
the innovators in managing the innovation. Through collaborative skills the innovators
able to manage different personality types in order to get more multiple outcomes from
their team members (Vila, 2014). Collaborative skills help the innovators in utilizing the
available skills of team members and extract positive result out of it.
 Conflict management skills: Conflict is considered the main important problem in the
success of an organization. The innovators should have conflict management skills, due
to which they are able to remove the available conflict and can use the available
resources in a right direction.
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 Leadership skills: These skills are considered essential for bringing change in the
functioning of an organization. Innovators should have leadership skill due to which they
can manage the workforce efficiently and can implement the change in the desired
manner. This will enable the innovator to lead the diverse workforce in a single direction.
Answer 4
4.1 Pharmacorp Organizational Structure:
It can be said that large pharmaceutical organizations have a strong chemistry-based legacy of
drug development. From the last 2 decades, it could see that small research-oriented
biotechnology organizations focus more on a narrow range of compounds. Small entrepreneurial
organizations often linked with large firms who have enough capital and experience to conduct
large-scale trials under different types of legal structure. Therefore the enhancing trend for the
large-scale organizations is to balance acquired and self-originated compounds, developing
different waves of acquisition and merger activity during the 1980s or 1990s (Schuhmacher,
2013). The National Institutes of Health (NIH) also play a vital role in the development of drug
by allocating its funds across a large size of portfolio; through it does not have a similar goal as
pharmaceuticals organizations which demand more profit from their innovation activities. NIH
formulates various small firms for advancing translational sciences to highlight drawbacks in the
process of drug development. It is necessary for the pharmaceutical organizations to ensure
effective implementation of portfolio management strategies for small firms as well as large
organizations. These organizations mostly focused on fundamental scientific research for
manufacturing drug.
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4.2 Pharmacorp Organizational Culture:
The culture of the organizations is considered as gravity. By adopting the following cultural
factors the pharmaceutical organizations can make themselves innovative:
 Job Security: It is considered an all-time low. In today environment the most important
thing which employees value more than anything in the current market is security. The
managers and their seniors play a vital role in ensuring a sense of security in the
workplace.
 Leadership: The managers of the organization should lead their employees on behalf of
successful examples. The employees want that the organizations should promote a
successful and healthy working culture. Efficient leadership enables the employees to
utilize their full potential for performing their functions. On the basis of such motivation,
they perform outstanding and innovate various new concepts.
 Management: The behaviors of the managers are equally important as those in senior
managers. For leading the innovation in an effective manner the management should be
capable enough to introduce changes (Gassmann, 2013). It can be said that managers play
a key role in formulating the organization culture which makes them different from
others. If the management is strong, they can lead change effectively and can strong its
product base.
If the organizations have such type of culture, they can lead innovation effectively and can gain a
competitive advantage in the market which will make them different from others.
4.3 Pharmacorp Organizational Human Resources
Human resources of an organization play a lead role in enforcing innovation in the organization.
Human resource management connects with innovation on two stages: the organizations in
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general (ex., developing an innovative organization with an innovative climate) and specific
innovation activities (staffing, career development, leadership, employee creativity, teamwork).
If the organizations have high skilled human resources, then the organization can utilize their
skills in the right direction which helps the organizations in following innovative practices.
4.4 Pharmacorp Technology
Technology plays an important role in building the innovative culture of the organizations.
Technology makes it possible for the organizations to conduct efficient research which helps
them in improving the current quality of manufacturing products (Spithoven, 2013). Scientific
technology enables the organization to conduct innovation. Due to this innovation, the
organization is able to introduce innovative products and services for fulfilling the demands of
different consumers. Today is the time of technology, in the absence of technology innovation
cannot perform by business organizations.
So, it can be said that organization culture, its human resources, technology makes them
innovative due to which they can efficiently face the current challenges of the environment.
Answer 5
5.1 Principles of Project Management
Project management is considered a composite activity which has multiple dimensions. The
complexity of the management activity highly depends on the class of the project. The following
principles of project management can be employing by the pharmaceutical organizations:
 Project Goal: The organizations should formulate their project goals behind conducting
the project activity. The answer to this question is that "what has to be done" is a goal.
The organization must develop project structure plan which consists of work packages
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that can be assigned to different resources (Brown, 2015). This Package of work and their
important relationships shows the project structure.
 Project Timeline: A flow chart is considered as a strong tool to visualize the beginning
point, the endpoint, and the order of different work packages in a particular chart.
 Project Milestone: It is considered the main principle of the project management.
Milestone determines different phases of a project and the associated costs or outcomes.
It particularly represents the various decisive steps during the life of the project. They are
determined after a certain number of work packages that linked with each other. This
series helps the organizations in fulfilling the sub-goals of the project.
5.2 Dynamics of encouraging innovation
The organizations should assign some specific tasks to their employees due to which they are
constantly coming up with new innovative ideas to improve the performance of the organization
and themselves. The innovation in the pharmaceutical organizations encouraging by following
ways:
 Organization culture drives innovation: The management of the organizations can
enhance innovation through providing a suitable environment where ideas are tested and
shared regularly (Khanna, 2012). The organizations should invite all their employees to
participate in the decision-making process of the organization which enforces them give
their own views on a particular matter. Testing and sharing of the ideas are considered an
important key which encourages innovation on the workplace.
 Make it easy to test new ideas: The organizations should show their team members that
there are very few hurdles for them to try a new idea. Due to this, if a team member has
any idea, he can easily discuss with us. This step of the organization encourages members
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to take initiatives and give a contribution to the success of the organization by suggesting
innovative ideas.
 Create a channel of organization: The organizations can develop their own channel where
employees can submit their own ideas and put it to the vote. If the idea is voted well then,
the idea can be implemented by the management of the organizations.
5.3 Innovation Risk Management:
Balancing the adjacent, mix of core and transformational innovations is considered one of the
important keys to successfully managing the risk associated with the innovation. Most of the
times, the organizations struggle the most with transformational innovations, this is because they
are performing the functions in a different manner. The organizations should employ different
methods to manage transformational innovation risk. The organization can manage the
innovation risk by adopting following rules:
 Develop a model for judging risk and return: The organizations should formulate a model
which helps them in minimizing the effect of innovation risk and conducted innovation
suitably (Li, 2014). This can be efficiently done by using “mental model” which enables
the managements to measure the trade-off involved in innovation.
 Obtain intimate knowledge and understanding of the user: If the organizations want to
remove the available innovation risk they should obtain understanding and information
about the user. This will help the organizations in giving answers of different question
which helps them in enhancing their knowledge about different innovation problems.
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Answer 6
Corporate social responsibility has become very popular in the academic domain. It is necessary
for every organization to define their roles and duties in society and follow ethical, legal, social
and responsible standards for conducting the operations of the business organization (Moyle,
2013). From a CSR perspective, it can be said that organizations are seen as main drivers in the
process of building a better world and are under the growing pressure to demonstrate accountable
and efficient corporate responsibility. As a result, the organizations are updating and developing
themselves as per the requirements of the CSR policies and programs to enhance their
environmental and social performance. For implementing effective CSR protocols the
organization should follow below-mentioned steps:
 Plan: This means developing a planning process which is completely based on the real
demands of the community, previously maintained by the organizations to determine
their approaches and policies concerning the adoption of the societal approach to social
responsibility (Garay, 2012). It also includes revising and determining legal or
administrative requirements of the organizations which help them in formulating
effective CSR practices. The planning process of the organization should also focus on
building the organization objectives within the framework of social responsibility, that
define, resources, responsibilities, priorities and procedures, roles of the organization
required to fulfill the objective.
 Implementing: It includes preparation of action plan to implement the proposed CSR plan
of the organization. This can be implemented through developing administrative
structures, delegating powers among available resources, raising the awareness level of
the organizations towards social responsibility. The action plan should be implemented in
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such a manner that guarantees systemic intertwining with other available corporate
regulations. This helps the organizations in linking all activities implement plan. Such
link enables the organization to create balance and find different available solutions.
 Evaluation (Check): The efficient performance related to social responsibility relies upon
close evaluation and measurement, instead of revising undertaken activities, the
realization of set activities, the advancement achieved, and other efforts performed by the
experts of the enterprise. The main motive behind regular evaluation is to monitor or
evaluate observance of social responsibility activities (Cheng, 2014) . The organizations
should plan the activities in an efficient way through which they can measure the extent
of realizing targeted goals.
Conclusion/ Recommendation:
After studying all this, it can be concluded that Pharmaceutical organizations have an extremely
composite structure, with abundant brands and decentralize branches. If the organizations want
to implement a change than the organizations should conduct various change approaches at every
step and level of themselves. Management of the organizations should come forward to conduct
a significant environment analysis which helps the organizations in implementing all the changes
as per the requirement of various environmental factors.
Pharmaceutical organizations should develop market penetration strategy for expanding its
market in various areas. The aggressive strategic choice is recommended to the organizations
because they have a solid competitive position which can be flawlessly exploited by them in a
rapidly developing market (Light, 2012). Pharmaceutical organizations should also apply a
market segment expansion approach for niche markets in established economies.
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Pharmaceutical organizations should focus more on product positioning strategy, especially for
their trendy products. This organization generates most of the revenue of their income from these
trendy products. So, it is required that organizations should develop an efficient strategy for the
promotion of their trendy products. Finally, it is also suggested to the organizations that they
should additional grow positive product lines so that it does not drop its attractiveness in the eyes
of the customers.
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