Strategic Management Project: Home Pharmaceutical Case Study Analysis

This project is a strategic management analysis of Home Pharmaceutical, covering various aspects of strategic planning and execution. It begins with a capability gap analysis, comparing Home Pharmaceutical's functional areas and capabilities with those of its competitors. The project then delves into key success factor (KSF) analysis, evaluating Home Pharmaceutical's capabilities in relation to KSFs such as innovation, R&D, and global footprint. It includes a rating of KSFs with capabilities and an evaluation of Home Pharmaceutical's ability to compete in the market. The project further explores competitive advantage, resources, capabilities, and competencies. It examines the relationship between resources, capabilities, and competencies, highlighting the importance of KSFs in achieving organizational goals. The project also covers strategy evaluation, identifying models for success and financial indicators. Finally, it discusses corporate and business-level strategies, strategic decisions, and the future direction of the organization, including the application of generic strategies.

Running head: STRATEGIC MANAGEMENT
Strategic Management
Name of Student
Name of University
Author Note

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Table of Contents
PART-A.....................................................................................................................................2
Question 1: Capability Gap Analysis.....................................................................................2
Question 2: KSF Capability Analysis.....................................................................................3
Question 3: Rating KSF with Capabilities.............................................................................4
Question 4: KSF/Capabilities Evaluation...............................................................................6
1. Explaining rating of KSF....................................................................................................6
2. Explaining ability of Home Pharmaceutical in the competitive market.............................7
PART-B......................................................................................................................................8
Question 5: Competitive Advantage......................................................................................8
Question 6: Key Success Factor...........................................................................................10
Question 7: Strategy Evaluation...........................................................................................11
1. Identifying models for success strategy...........................................................................11
2. Identifying financial indicators.........................................................................................12
3. Explaining application of social media and Corporate Social Responsibility.................12
Question 8: Strategic Development......................................................................................13
PART-C....................................................................................................................................14
Question 9: Corporate and Business level strategies............................................................14
1. Corporate level strategy....................................................................................................14
2. Business level strategy.....................................................................................................15
Question 10: Strategic decisions..........................................................................................15

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1. Explaining meaning and selection of strategies...............................................................15
2. Defining the future of the organisation............................................................................16
3. Following a generic strategy............................................................................................16
Reference..................................................................................................................................17

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PART-A
Question 1: Capability Gap Analysis
Column 1: Functional area Column 2: Home
Pharmaceutical
Capabilities
Column 3: Capabilities of
closest competitors
Selling of pharmaceutical
drugs
1. Good wholesale prices;
popular among customers; a
strong distribution system
2. PB manufactures and sales
drugs; KP is a trusted
healthcare brand; HB
provides innovative medical
preparations: 0
Reputation in the countries 3. Gradual progress in the
market; local research made
by the managers
4. KP is the trusted
pharmaceutical firm in
Malaysia; HB has a wide
distribution of products: +1
Ability to provide solutions
to diseases
5. Highly skilled research
teams; provides best
estimates about the
occurrence of a disease
6. PB has facilities that
provide online health check-
up; PB has also expanded its
hospital network; HB
supplements over 400
healthcare products: +1
Powerful presence in the
international market
7. Have grown in the
international market;
Researchers are normally
from international market
8. PB expanded its healthcare
facilities; KP exports its
vitamins to five other
countries; CD signed deals in

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the international market: 0
Innovativeness 9. Creation of wireless
Bluetooth and FM
technology are major
innovations; improved
capital provides innovation
10. The competitors rely
more on the traditional
approach: -1
Table 1: Capability Gap Analysis
(Source: Created by author)
Question 2: KSF Capability Analysis
Column 1: Key Success Factors
(Pharmaceutical industry)
Column 2: Home Pharmaceutical
Capabilities
KSF 1: Innovation Creation of wireless Bluetooth and FM
technology help in reducing the hearing
problems for about 1 in 6 people of the
population
KSF 2: Strong R&D The R&D team of the company is mainly
from the local markets. Apart from this the
researchers from Malaysia is also involved in
gaining success
KSF 3: Global footprint The company have developed and
manufactured medicines that are widely
popular in the global market. The innovative
nature of the hearing aids makes it globally
significant. The cost of the company,
however, have increased with the increase in

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global recognition
KSF 4: Innovative culture Home Pharmaceutical develops an innovative
culture in order to help people across the
world to understand the reputation of the
company. The growth of capital have injected
a new innovative and technical competence
in the company
KSF 5: Process management The company can forecast the requirements
that can help in managing the resources. The
ability to involve researchers and gain the
approval of the customers is helpful for
increasing the reputation of the company.
Table 2: KSF Capability Analysis
(Source: Created by author)
Question 3: Rating KSF with Capabilities
KSFs
Column 1:
Home
Pharmaceutical
Capabilities
KSF 1:
Innovation
KSF 2:
Strong R&D
KSF 3:
Global
footprint
KSF 4:
Innovative
culture
KSF 5:
Process
management

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1. Good
wholesale
prices; popular
among
customers; a
strong
distribution
system
7 3 7 8 4
2. Gradual
progress in the
market; local
research made
by the managers
5 6 6 9 2
3. Highly skilled
research teams;
provides best
estimates about
the occurrence
of a disease
4 7 5 7 10
4. Have grown
in the
international
market;
Researchers are
normally from
9 6 4 7 8

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international
market
5. Creation of
wireless
Bluetooth and
FM technology
are major
innovations;
improved capital
provides
innovation
3 9 6 4 6
Total 28 31 28 35 30
Table 3: KSF and Capabilities Rating
(Source: Created by author)
Question 4: KSF/Capabilities Evaluation
1. Explaining rating of KSF
After the analysis of the tables, it can be seen that the capabilities of Home
Pharmaceutical vary with the KSFs. The capabilities depend upon the resources available in
the company and the ways by which the company can apply it in order to build its reputation.
In this regard, it can be said that the highest rated capability is the high rated research teams
that help in the development of the medicines. The research team can provide a useful
estimation of the occurrence of a disease. Not only this, the management of the research team
is well taken care of by the managers of the company.

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On the other hand, the analysis shows that the gradual progress in the market is
considered as low for the company. The way by which the company establishes growth in the
market affects the process management of the organisation. The researchers take a
considerable amount of time in order to complete the research resulting in the stunted growth
of the reputation in the market. The managers of Home Pharmaceutical identify market
researchers that are local in order to reduce the cost of employment. Hence, this can be
considered as a lower attribute of the company.
The reason behind these factors being the highest and lowest is the fact that the
company invests heavily in developing a proper research of the medicines. This can help the
company to establish a competitive advantage, as the competitors are superior. The common
factor in the highest and lowest rating is the process management of the company. The
process management of the company includes the production, process and customer
management in Home Pharmaceutical. The researchers are given the required benefits in
order to conduct the research in a considerable manner. The slow of growth in the market
degrades it from achieving its target. Thus, the high and low valued capabilities posses a
common attribute that helps in understanding the flaws of the company.
2. Explaining ability of Home Pharmaceutical in the competitive market
The analysis of the competitors and capability table provides evidence that Home
Pharmaceutical does not dominate the competitors. Most of the times it has been seen that the
company either is at par with the capabilities of the competitors or lack the capabilities
possessed by the competitors. This provides evidence about the fact that Home
Pharmaceutical need to develop its reputation in the country and provide proper solutions to
prevent diseases. However, the company excels in the innovation department. The fact that it
has introduced the process of innovation as part of the organisational culture is a huge

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positivity for the organisation. The analysis provides evidence that supports the competitive
ability of Home Pharmaceutical in the industry.
The analysis shows that the pharmaceutical industry is largely grown in the modern
world. Countries like China and Malaysia have excelled in the industry and have developed
fierce competition in the market. The rival companies of Home Pharmaceutical have a rapid
international success owing to the collaboration that has with other countries. In this regard,
Home Pharmaceutical lacks the ability to excel in the international market and create a
reputation that can catapult the company to success. However, with the innovative nature of
the business, the company can convert its weakness and create opportunities to excel in the
regional as well as the international market at a rapid rate. Hence, the industrial chances of
survival and success of the company are balanced between its abilities and drawbacks.
PART-B
Question 5: Competitive Advantage
According to Hill, Jones and Schilling (2014), in order to gain a competitive
advantage, it is necessary to identify the factors that provide for competence in the market.
These factors include the resources, capabilities and competencies that a company possess.
Resources: The resources indicate both physical as well as natural resources.
Employees are considered as the most important resource for an organisation as without
employees an organisation cannot succeed. The tangible, intangible and human resources
make way for the development of organisational capabilities. In the case of Home
Pharmaceutical, the company has loyal employees that dedicate themselves to the innovative
culture of the company. The fact that the new capital investment has made the company gain

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innovativeness is a positive factor for the company that helps in the development of
capabilities within the organisation.
Capabilities: The capabilities of the company depend upon the type of employees
they possess. This is because the skilled employees can perform better and efficient work that
can help in improving the goals of an organisation. Peppard and Ward (2016) stated that the
capabilities of an organisation determine the KSF. This, in turn, determines the type of
strategy that an organisation needs to adopt in order to maintain a competitive advantage in
the market. Home Pharmaceutical develops these capabilities based on the support from the
resources it possesses. This leads to increasing the competencies in the market.
Competencies: The competencies result depending upon the strength of the resource
and the capabilities in the market. Competencies in an organisation depend upon the KSF and
the strategy that is implemented by the managers. Without proper competencies, it can be
difficult for the organisations to gain a competitive advantage. The level of competency
involved in Home Pharmaceutical can help it to outwit its competitors by creating a stable
platform for competition. Thus, the relation between the resources, capabilities and
competencies follow in a systematic manner in an organisation. Each level remains depended
on the other in order to provide an advantage to the organisation.

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Figure: Relation between resource, capability and competency
(Source: Peppard and Ward, 2016)
Question 6: Key Success Factor
Key Success Factors can be described as the combination of important factors that are
necessary for attaining the goals of an organisation. A company need to focus on the
development of certain areas that can help in improving a company and ensure that the
company gain a competitive advantage in the market (Wheelen and Hunger, 2017). A unique
KSF can help in attaining the organisational goals and formulate strategies that can help in
the success of an organisation. In the case of Home Pharmaceutical, the KSF of the company
lies in its ability to develop innovative products that help in increasing the reputation of the
company. In this regard, a link between the organisational capabilities and KSF can be
established in order to develop proper strategies. It can be said that without proper
capabilities the success of an organisation cannot be determined.