Salix Pharmaceuticals: A Business Strategy Analysis Terricell Cromartie Grand Canyon University: LDR 620 January 8, 2014 Salix Pharmaceuticals, Inc.: A Business Strategy Analysis A successful business relies strongly on strategic planning and development. Businesses strategies define a company’s future through vision and mission statements, marketing, operations, and financial performance. The purpose of this paper is to analyze and evaluate the business strategy of a public traded company, Salix Pharmaceuticals, Inc. Throughout this paper, the writer will provide a company overview, a SWOT analysis, and explore the strategic objectives and contingency plans of Salix Pharmaceuticals, Inc. Author’s selection and company overview There are a large number of public traded companies in the United States; as a registered nurse, the author recognizes the impact the company has in improving patient care. Salix Pharmaceuticals is a specialty company located in Raleigh, NC that provides treatment and interventions to patients with gastrointestinal (GI) disorders. The company is led by Chief Executive Officer, Carolyn Logan and has raised over $4 billion dollars to date (Salix Pharmaceuticals, 2013). Salix’s mission is “commitment to being the leading U.S. specialty pharmaceutical company, licensing, developing, and marketing innovative products to healthcare professionals to treat GI disorders in patients”(Mission section, para.1). The mission statement for a company is strategic in itself; the statement purposefully guides the company’s direction, decision-making, and total impact global impact. GI disorders affect many Americans annually and Salix has committed to the developing and marketing medications. The U.S.... ... middle of paper ... ...ences Daft, R. L. (2010). Management. Retrieved from http://gcumedia.com/digitalresources/c engage/2009/management_ebook_9e.php MarketLine (2012). Company Profile: Salix Pharmaceuticals, Ltd. Retrieved from http://content.ebscohost.com/pdf27_28/pdf/2012/8OZE/01Oct12/83290980.pdf?T=P&P= AN&K=83290980&S=R&D=bth&EbscoContent=dGJyMNHX8kSeqLY4wtvhOLCmr0u eqK9Ss6y4S7WWxWXS&ContentCustomer=dGJyMPGut06vrLJNuePfgeyx44Dt6fIA Salix Pharmaceuticals, Inc. (2013). Advancing treatment in gastroenterology. Retrieved from http://www.salix.com/about-us/index.aspx Salix Pharmaceuticals, Inc. (2013). Comprehensive compliance program. Retrieved from http://cdn.salix.com/salix/assets/pdf/about/Comprehensive_Compliance_Program.pdf Salix Pharmaceuticals, Ltd. (2013). Code of business conduct. Retrieved from http://cdn.salix.com/salix/assets/pdf/about/Salix_Code_Bus_Cond.pdf
Mission and vision statements communicate strategic goals. “To provide superior patient-centered care using appropriate and innovative evidence-based practices” is a mission better aligned with Amedisys new direction. Additionally, “Drive growth by delivering a full range of holistic health care services, while cultivating a culture of compassion” is a vision that could be used to inspire employees to achieve Amedisys’ purpose.
In implementing a strategic plan for Coastal Medical Center, our consulting team has conducted many analyses and formed numerous strategies in order for Coastal Medical Center to be successful. Such assessments include an internal analysis, external analysis, gap analysis, and SWOT analysis. In conducting these analyses, our consulting team was able to better understand the internal environment, external environment, where the organization currently stands in terms of performance, and the major strengths, weaknesses, opportunities and threats that oppose the Coastal Medical Center. From our inquiry, we will be able to establish a strategic plan that best fits the organization’s needs.
The strategic recommendations provided will improve and enable the business to cope with the competitors, while the implementation of the strategy section will outline the way to go about achieving these alternatives in the business setting. Lastly, we put up a discussion on the evaluation procedures and necessary controls for the business. In the case study, it was discovered that there were sources of opportunities in which the company would invest.
"In the past two decades or so, health care has been commercialized as never before, and professionalism in medicine seems to be giving way to entrepreneurialism," commented Arnold S. Relman, professor of medicine and social medicine at Harvard Medical School (Wekesser 66). This statement may have a great deal of bearing on reality. The tangled knot of insurers, physicians, drug companies, and hospitals that we call our health system is not as unselfish and focused on the patients' needs as people would like to think. Pharmaceutical companies are particularly ruthless, many of them spending millions of dollars per year to convince doctors to prescribe their drugs and to convince consumers that their specific brand of drug is needed in order to cure their ailments. For instance, they may present symptoms that are perfectly harmless, and lead potential citizens to believe that, because of these symptoms, they are "sick" and in need of medication.
Mission Statement: We provide expert care and innovative solutions in pharmacy and health care that are effective and easy for our customers.
The current health care system can be difficult to navigate and often medical centers need management tools to help them develop strategic plans within their organizations. The SWOT-Analysis is one strategic tool that health care centers can use to formulate a roadmap for their organizations. The SWOT-Analysis examines internal capabilities (strengths and weaknesses) and external developments (opportunities and threats) when determining a strategic plan for an organization (Van Wijngaarden, Scholten, & Van Wijk, 2012). Van Wijngaarden et al. (2012) explains for SWOT-Analysis to prove meaningful throughout an organization, it is important for stakeholders to be part of the brainstorming to identify its’ internal capabilities and external developments. However, there are a few drawbacks to the using the SWOT-analysis tool that are important for health care centers to remain cognizant of when developing their strategic blueprints. Helms and Nixon (2010) state the SWOT-Analysis can be vague and too simplistic when developing a strategic course for an organization; it can be difficult to classify variables into the four SWOT quadrants; and no definite strategic path is identified after the SWOT-analysis is completed. For these reasons, they explain it can be helpful to use additional analysis tools in addition to the SWOT-analysis. One such tool the U.S. Army Medical System uses is the balanced-score card. The balanced-score card can assist health care centers in the clarification of their strategic objectives and goals, and facilitates communication throughout the organization (Chan, 2006). Chan (2006) also reveals balanced-score cards allow for constructive employee feedback l...
Strategic planning is crucial for the success of all business endeavors. Analyzing currents trends in technology, consumer markets, competition, and the workforce can play a pivotal part in whether or not the organization can survive. Overtime, strategic planning strategies must be modified in order to compensate for changes in the industry. Goals and strategic planning often necessitate change to ensure that the organization is performing at peak level, while offering the most beneficial and quality services to consumers.
Among the hundreds available, perhaps the most well-know model of strategic planning has the SWOT (for strengths, weaknesses, opportunities, and threats) appraisal of internal and external environments as its centerpiece. But whatever the model, following decades of research across hundreds of organizations, empirical evidence on the effectiveness of strategic planning is mixed at best. Of we try to answer the question why do we need a plan for achieving the targets or establishing the credibility and many questions which has the only answer and that is a strategic plan suitable to the structure of any organization.
Fast Company,(139), 69-70,73,16. Retrieved from Research Library. Document ID: 1870795761. Wheelen, Thomas L. & Hunger, J. David, (2010). Strategic management and business policy.
The company shows a flat organization in which there are few layers of management but has broad span of control. According to the chart, the company develops a decentralized authority in the level of their management due to which they focus more on adapting to what customer wants based on decision making from the lower level managers who are more familiar in the local conditions. This type of authority allows them to understand customers such as patients’ needs in order to develop strategies to fulfill this requirement According to Figure 1, they primarily focus more on the health care system and invested in about $7.5 billion dollars in research and development to create a strong product portfolio. The culture of this organization demonstrates a formal organization in order to guide the lines of authority as well as the responsibility for the company. According to Johnson and Johnson Credo statement, their main focus is towards the responsibilities of the doctors, nurses, and patients as well as their employees. They also state their growing responsibilities toward the shareholders and to the communities in order to research and develop new innovations in towards civic improvement to the communities. This entails that they fully care for their customers and employees in which its shows in
My current employer, Mayo Clinic, is a world renowned not-for-profit hospital that has been established for 150 years. Mayo Clinic is the first and biggest integrated not-for-profit medical group practice in the world and is a well-known brand name that is recognized world-wide. Working for an organization where the primary value is the needs of the patient come first, the organizations domain is held to a higher standard. The mission statement is to encourage hope and contribute to health and well-being by providing the best care to all patients through integrated clinical practice, education and research (Strategic statement of Mayo Clinic, 2012). The vision statement is that Mayo Clinic will offer an unparalleled experience as the most trusted partner for health care (Strategic statement of Mayo Clinic, 2012). In the medical field, innovations, research and technology motivate the business to perform and deliver care in a new standard. Mayo Clinic has a logo of three shields that are interlocked, presenting patient care, research and education.
Business strategy is the means by which firm’s plans to achieve its goals and objectives. It can also be termed as organization long-term planning. The strategy covers periods between 3-5 years and sometimes longer. Businesses use two major types of strategy, general or generic and competitive strategies. The overall strategy involves strategies of growth, globalization and retrenchment. The competitive advantage includes low pricing, product and customer differentiation. We will look at the business strategy used by Marks and Spenser (Cole, 1997). The company is a British multinational located at Westminster London and specializes in clothes and luxurious food products.
10. Collis, David, and Troy Smith. "Strategy in the Twenty-First Century Pharmaceutical Industry:Merck&Co. and Pfizer Inc." Harvard Business School, 2007: 8-12.
Medicine, medical supplies, and medical treatment are multi-billion dollar industries crucial to the wellbeing of the public. Doctors and other members of the health-care industry do their best to provide excellent care for the nation’s sick and injured, while scientists and researchers work to develop new drugs and technologies to fight disease. We often view medical care as a basic human right; something that all persons, rich or poor, should have access to in times of need. But despite our notions of what healthcare should be, those who make a living in this industry, specifically owners of firms, must contend with the same economic questions facing businesses in any industry. To learn more about this vast service industry, I interviewed Dr. Martin Slez, a dentist/oral surgeon and owner of a medical practice that provides both general care and specialized treatments for oral diseases. Of the topics discussed, firm goals, pricing, costs, and technology stood out as particularly interesting and unique facets of the organization, as they differed considerably from those in other industries.
...lopment industry as well as the strengths and weaknesses within the company. The Business Strategy should reflect the main issues that determine the long-term