Strategic Business Development Plan for Biotech Expansion

This report provides a comprehensive business strategy for Biotech, a health supplement company aiming for international expansion. It includes a company profile, SWOT and PESTLE analyses, and Porter’s Five Forces analysis to assess the competitive landscape. The report outlines five major goals and objectives for the Business Unit Strategy, focusing on sales revenue expansion, production line increases, product innovation, supplier protection, and Business Process Re-engineering (BPR). The organizational structure, culture, and a breakdown of products and services are detailed, along with a human resource plan to support the company's strategic objectives. The plan aims to enhance the lifestyle standards of customers through safe, effective, natural, and affordable health supplements in the Asian market.

Running head: BUSINESS STRATEGY OF BIOTECH
Business Strategy of Biotech
The Name of the Student:
The Name of the University:
Author Note:

1BUSINESS STRATEGY OF BIOTECH
Executive Summary
Biotech is a manufacturing company dealing with health supplement products. The vision of
the company is to enhance the lifestyle standard of its customers by providing quality
products. The mission of the company is to satisfy the health needs of the customers through
their safe, effective, natural and affordable health supplements. With this objective, the
company is planning for an expansion by creating a new division in Asia. The company
indulged into developing a range of products, such as Protein and Fitness, Personal Care,
Nutraceuticals, Vitamins and Food Supplements. Biotech has always been customer centric,
meaning that the company has developed products based on the reports on market research on
the customer needs and preferences. This identification of the customer needs has lead the
company to a wider scope of expansion in international markets by providing it a proposition
a new business venture in the Asian market. Therefore, the purpose of this business plan is to
provide the company a strategic plan for the international expansion.

2BUSINESS STRATEGY OF BIOTECH
Table of Contents
Company profile.............................................................................................................3
SWOT Analysis of Biotech............................................................................................3
PESTLE Analysis of Biotech.........................................................................................4
Porter’s Five Forces Analysis........................................................................................5
5 major goals and objectives, which the Business Unit Strategy should look to attain. 7
Organizational Structure................................................................................................8
Breakdown of Products and Services...........................................................................10
Human Resource Plan..................................................................................................13
Conclusion....................................................................................................................15
References....................................................................................................................17

3BUSINESS STRATEGY OF BIOTECH
Company profile
From a small apothecary shop, Biotech became a small manufacturing plant in 1932.
By 1934, Biotech succeeded in expanding the sales into the markets of New York. At this
stage, the sales revenue of Biotech experienced an upsurge, as the customers exposed an
inquisitive nature into the products manufactured. Currently, the annual sales revenue of
Biotech is $35 billion. Barney holds the sole proprietorship of the company. He is a proud
man, as he has emerged successful in taking the operations into the markets of US, Europe,
Asia Pacific, Latin America and Caribbean and Canada (Biotechlife.com, 2018). The
personnel of the company envision enhancement of the standards of lifestyle for the
customers through the delivery of quality health supplements. The mission of the company is
ensuring that the health needs of the customers are catered through the production of safe,
effective, natural and affordable health supplements.
SWOT Analysis of Biotech
Strengths
Wide supply chain network is one of the greatest strengths of Biotech. Typical
evidence of this lies in the presence of huge workforce, which provides support regarding the
efficient execution of the activities. The operations of the company are widespread, which
indicates strong customer base (Biotechlife.com, 2018). Variety in the product lines is
assistance in terms of preserving the purchasing power of the customers. Strategic approach
in terms of expanding the sales is appropriate in terms of dealing with the competitors
effectively and efficiently.
Weakness

4BUSINESS STRATEGY OF BIOTECH
Lack of target segmentation is the cause behind plans like selling the products to
everyone. Selling the products to the local peddlers, receiving commission is illegal. This is a
violation to the ethical code of conduct as well as the buying power of the customers.
Opportunities
Increasing the product line is an opportunity for Biotech in terms of gaining new
customers. Strategic approach in terms of developing long term goals would help the
company personnel in securing their position within the competitive ambience
(Biotechlife.com, 2018). Growing demands for bio-nutraceutical marketplace is an
opportunity in terms of expanding the market share.
Threats
Lackadaisical approach towards the conducting business process re-engineering
would compel the personnel to encounter vulnerability in the market position. Not involving
the HR faculties in the decision-making process would aggravate the complexities in terms of
implementation of the strategies.
PESTLE Analysis of Biotech
Political
Political unrests and harsh tax impositions adversely affects the import and export
activities of Biotech. On the other hand, EU Commission provides guidance and support to
the company in terms of carrying out the activities according to the legislative requirements
(Biotechlife.com, 2018).
Economic
Increase in the sales revenue expanded the market share for Biotech. Accumulating
the health supplement assisted the company in taking the sales revenue to $20 billion. This is

5BUSINESS STRATEGY OF BIOTECH
due to alliance with the trade union members, which helped in dealing with the instances of
inflation, high exchanges rates and high prices of raw materials.
Social
The lifestyle of the customers is changing. In the fast-paced life, the health
supplements need to be such, which provides energy to the customers for dealing with the
pressures (Robson, 2015).
Technological
Social media marketing helps the company in increasing the trafficking of the
audience towards the brand image. Uploading the product specifications on the websites and
the social networking sites helps the personnel in achieving large scale customer satisfaction.
Legal
Adhering to the marketing legislations is assistance in terms of achieving loyalty, trust
and dependence of the customers. Typical example of this is Consumer Protection Act, which
is directly related with the business of Biotech. Complying with the standards and protocols
of European Commission and National Health Survey are mandatory for the company in
terms of ensuring the wellbeing of the customers (Scarborough, 2016).
Environmental
The company staffs use natural ingredients in preparing the health supplements. Using
solid waste management techniques helps in maintaining the cleanliness and hygiene within
the workplace premises.
Porter’s Five Forces Analysis
Threat of substitutes

6BUSINESS STRATEGY OF BIOTECH
As the number of competitors are huge, the threat of substitutes is high for Biotech.
The health supplements by GlaxoSmithKline and Nestle can add vulnerability into the market
position of Biotech.
Bargaining power of the suppliers
The raw materials for the health supplements are the distributors and the agencies,
who rule the markets of US, Europe, America and Canada. Therefore, to extract high prices
for the services, the personnel need to indulge in contracts (Biotechlife.com, 2018).
Bargaining power of the buyers
The customers in the present generation are tech savvy, which indicates their high
bargaining power. Their needs, demands and requirements are ever changing. This is
especially applicable in terms of healthcare. Mention can be made of the women customers,
who are concerned about the health.
Threat of new entrants
The threats of new entrants are high in this case because the start-ups are looking for
market expansion. The product line expansion by established brands can add vulnerability
into the market position of Biotech. Typical example can be health supplements by Nestle,
which would result in customer turnover (Biotechlife.com, 2018).
Competitive rivalry
The competitive rivalry is intense, as the competitors are huge in number. Personal
skincare products of Nestle can give intense competition to the night cream products
manufactured by Biotech.

7BUSINESS STRATEGY OF BIOTECH
5 major goals and objectives, which the Business Unit Strategy should look
to attain
One of the goals is expanding the sales revenue, which can be achieved through the
objective of expanding the market share, maximizing the profit margin and conducting
target segmentation. Expanding the market share into Arab countries would be effective if
standards and protocols of EU are followed. One of the other goals is increasing the
production lines. Here, the objective can be to develop cosmetic products, which have
natural flavours, conducting quality assessment and to conduct total quality management.
This would effectively cater to the health needs of the customers. The third goal, which the
business unit of Biotech can develop is bringing innovation within the products. For this, the
objective would be to revise the recruitment and selection procedures, prepare budget for
training and development programs and conducting marketing mix. If the employees are
trained about the use of technologies, they would be able to manufacture innovative products.
Fourth goal can be to ensure the protection of the suppliers. For this, the objective
would be to develop policies related to the contracts, deals and transactions. Revising the
existing policies along with revision of the legislation and protocols of marketing
legislations would be effective in terms of dominating the suppliers in terms of delivering
quality products to the clients and the customers. Business Process Re-engineering (BPR)
methodology can be one of the goals for Biotech. For this, the objective would be to indulge
in meetings with the experts in terms of conducting review of the business operations. This
review would enhance the awareness towards the need for additional resources. Within this,
consideration of the previous years’ financial reports would be beneficial in terms of
modifying the mistakes.

8BUSINESS STRATEGY OF BIOTECH
Organizational Structure
The organizational structure of the organization consists of the CEO of the business
who takes the overall decisions of the firm’s activities while considering the reports that are
produced by the director executives of South America division, North America division,
European division and Asia Division. It has helped the business in conducting the functions
as per the different market changes in the diverse regions. On the other hand, the R&D,
Purchasing, Finance, HR and IT departments working under the respective regions has helped
in undertaking continuous innovation in the functions that are planned by the business.
Decision making functions of the organization is supported through the knowledge of the
internal and external contingencies that are faced by the business while operating in the
diverse markets. The R&D department of the business has helped in undertaking continuous
innovation in the line of products as per the analysis of the needs of the customers. On the
other hand, the IT department of the organization establishes the link between the
organizational management and the customers to understand their preferences. The data that
is collected by the IT department assists the R&D department of the business in undertaking
modifications in the product design. The HR department identifies the staffing needs of the
business to support the objectives of the firm. on the other hand, the finance department helps
the organizational management in understanding the financial position of the business
through research on cash flows and expenditures. It assisted the organization in
understanding the key areas where change is required to be induced to enhance the
functioning of the business. Purchasing and sales department of the organization has helped
in identifying the resource needs and the capabilities of the organization while operating in
the diverse markets (Tax, McCutcheon & Wilkinson, 2013). Therefore, the integration of the
different departments has helped the management in undertaking proficient decision making
to enhance the operations.

9BUSINESS STRATEGY OF BIOTECH
CEO of Biotech
Executive director of
South America
division
R&D
IT
Finance
HR
Executive director of
North America division
Organizational chart
Purchasing
Executive director of
European division
Executive director o
Asia Division
Organizational Culture
The organization facilitated collaborative decision-making system through involving
the employees in the process. It has helped the organizational management in inducing
positive culture in the same while operating in the diverse regions. The collaborative
decision-making system of the business has helped in facilitating the smooth functioning of
the business. On the other hand, the organization has induced customer-centric culture in the

10BUSINESS STRATEGY OF BIOTECH
organizational functioning, which has helped the same in enhancing the processes through the
identification of the specific inclination of the customers. The understanding of the
preferences of the customers has helped the R&D department of the business in developing
products.
The continuous innovation approach of the organization is facilitated through the
understanding of the needs of the customers while operating in the diverse markets.
Therefore, the induction of positive culture in the organizational context and the coordinative
functioning of the workforce with the management while undertaking a decision have helped
the business in bringing forth improvements in the firm’s performance (Zeynep Ata & Toker,
2012). The smooth functioning IT department of the organization has helped the same in
understanding the preferences of the customers. Understanding the preferences of the
customers has supported the organizational objective of adhering to the healthcare needs
while designing and developing their line of products. It has added to the competitive
advantage of the business while operating in the diverse regions (Spiess et al., 2014).
Active participation of the employees in the decision making and operation processes
of the business has assisted the venture in undertaking the smooth functioning of the same
while operating in the diverse economies. The chief objective of the organization is to sustain
in the competitive markets, which is supported through continuous innovation and Customer-
Centric approach of the same. On the other hand, the active involvement of the employees in
the processes that are designed by the organizational management has helped the business in
undertaking the smooth functioning of the systems.
Breakdown of Products and Services
The different products that are developed by the organization are Protein and Fitness,
Personal Care, Nutraceuticals, Vitamins and Food Supplements as per the identification of

11BUSINESS STRATEGY OF BIOTECH
the requirements of the customers. The products that are developed by the organization are
based on the customer centric needs, which have helped the business in undertaking
continuous modifications in the business models. The involvement of the employees in the
different processes that are designed by the business management has helped the same in
undertaking the smooth functioning of the product development and operations (Meng et al.,
2018). The identification of the need of the customers and thereby framing the business
propositions has provided the venture with a wider scope of expanding in the international
markets.
Communication Plan
Goals Activities Tim
eframe
Commu
nication
medium
Rationale
Promote
innovation in the
products
1. Analyzing the
reports that are
developed by
the IT
department of
the business to
identify the
requirements
of the
customers
2. Undertaking
an analysis of
the required
2- 3
months
Emails,
Social media
platforms
The
innovation in the
line of products
will be helping the
organization in
gaining a
competitive
advantage in the
market over the
existing players