The level of organizational maturity at Mallinckrodt Pharmaceuticals is well above average, i.e. a 7 out of 10. For a company closing up on its 150 years anniversary, Mallinckrodt has gone through a lot of mergers and acquisition in the past century, which makes it difficult to gauge their maturity accurately as a stand-alone entity.
The organization structure is designed in the vertical form where positions are categorized as top manager, mid-level manager, first-line manager, and operations personnel to allow for proper reporting channel and unity of command.
At the corporate level, there is the,
CEO – Chief executive officer and head of the organization.
SVP – Senior Vice President and executive president of major functional areas. They
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Using the stages of organization maturity model, Mallinckrodt Pharmaceuticals falls in the Strategic category. Since their most recent spin-off from former-parent company, Covidien LLC. The company has re-aligned itself in the pharmaceutical market to further strengthen themselves as a specialty generic manufacturer and as a brand pharmaceutical manufacturer by multiple acquisitions of companies such as Therakos, Questcor, Ikaria, Cadence, CNS, and Stratatech Pharmaceuticals. In addition, they have spun-off some other section of the company “Imaging API” to Guebert and Curium Pharmaceuticals.
The strategic alignment journey has been bolstered by the solidity of the Performance Excellence business group within the company and embedded in every business unit to help ensure they all are aligned with the overall organizational goal. They have been able to use tools such as the huddle to foster communication of leading and lagging metrics indicator to stay aligned, disciplined, predict/forecast an issue, and visually manage using high quantitative data on a day-to-day
“Structure is the pattern of relationships among positions in the organisations and among members of the organisation. Structure makes possible the application of the process of management and creates a framework of order and command through which the activities of the organisation can be planned, organised, directed and controlled.” (Mullins)
Threat of new entrants is relatively high. Companies forming alliances are potential rivals. Even if earlier such company was not considered to be a threat, after merging with some research and development company or forming alliance with another pharmaceutical company it would become a rival to Eli Lilly. The threat is however weakened by significant research and development costs necessary to successfully enter the business. Eli Lilly’s focus on a relatively narrow market of sedatives and antidepressants weakens the threat of new entrants, but other products that form lesser part of company’s sales such as insulin and others are exposed to high threat of new entrants. The need of obtaining certificates and licenses also weakens the threat of new entrants. Discussed above leads to the conclusion that threat of new entrants is medium.
Arthur, A., Thompson, Margaret, A., Peteraf, John, E. Gamble, A., J., Strickland III. (2014). Crafting & Executing Strategy: The Quest for Competitive Advantage 19e: Concepts & Cases. C6-C25.
1.1 ORGANIZATIONAL STRUCTURE The typically hierarchical arrangement of lines of authority, communications, rights and duties of an organization. Organizational structure determines how the roles, power and responsibilities are assigned, controlled, and coordinated, and how information flows between the different levels of management.
PROBLEM STATEMENT Teva Pharmaceuticals, the first multinational pharmaceutical company in Israel, has become a successful global giant in the industry of generic drugs. After experiencing a long period of success and growth in the generic drug industry against some big western pharmaceuticals, the company had acquired many well known pharmaceutical companies and had achieved its goal of $1 billion. theory seemed to be in trouble in building a new strategy and vision to compete with the rapidly growing generic industry. They confronted two big issues as key hurdles in their way.
Structuring of WLP department –WLP (Volume –II By Rothwell & Henery ) Structure can be define as the formal make-up of the organization of departments, divisions, work, groups, jobs, and individuals. The process of establishing structure is called organization design. The first criteria to assess the quality and effectiveness of WLP department is how the WLP structured in an organization, What roles, jobs, department, division, groups formed WLP function in organization.
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.
Organizational structure refers to the levels of management in a company. It mainly defines how job tasks are formerly divided, grouped and co-ordinated. The organizational structure of a company reflects its culture, management style and leader attitude which is adopted with the addition of the environment around in which it operates. It also determines how the roles, power and responsibilities are assigned, controlled and co-ordinated respectively, in-order to realize the flow of information between the different managerial levels. An organizational structure is important because it determines how the organization will be run in order to meet its aims and objectives, (Cunnee, 2008). He defines an organizational structure as the number of ways used in a business to set up division and specialization of labour focusing on maintaining co-ordination to achieve the same targets. An organisational structure may be flat or high and centralized or decentralized. In a centralized or small organization, the top layer of management has the power to make decisions for the company and has a tight control over the below divisions. In a decentralized or large organization, the decision making power is distributed to extent of the company and greater workload is divided and delegated downward. Some of the key elements which are required to design organizational structure are:
Robbins (2009) defines organization structure as the way “job tasks are formally divided, grouped, and coordinated.” Jackson (1987) describes it as, “a social system which is organized for the attainment of a particular type of goal.” Robbins further explains that
Hierarchical structure of organisation is the tradition form of organising a business. This can be best displayed in a shape of a pyramid, with the owner, CEO or Board of Directors at the top. This top level of management is concerned with planning organising and controlling. They are usually required to develop long and short term strategic plans to achieve the business objectives. They are also responsible for any change to the business such as a change in the Prime Function or introduction of a new product line. The second stage is the Middle Management which coordinates the activities of supervisors. It prepares policies and plans, and has the responsibility for its budgets and for appointing new employees. At the third level of the structure are the supervisors which have the power of concurrent control. They are the link between workers and the top level of management. They are chosen for their technical skills and ability to motivate others.
Corporate level: This level is top of all three and includes Executive Directors Medical, Surgical, health, Deputy Director’s main position of the health services.
In my humble opinion and as an insider looking out I believe that my organization is a blend of these three structures. The professional bureaucracy component has the operating core at the center of the business, as it uses a standardization of skills, and employs both vertical and horizontal decentralization. The organization is relatively formalized but decentralized to provide autonomy to our professionals. In this capacity these professionals provide specialized services to both our internal and external clients. Each division or brand has its share of top management; middle managers; and line staff. The support staff consists of well over one hundred employees per division that work 24/7/365; they provide administrative, technical and maintenance support for the professional operating core. Innovation, branded environments, growth, collaboration and diversity are the goals of each of our divisions.
As long as there has been work to do, there has been an organizational structure to make sure that it gets done in the way that it was planned. Some organizations are small so that a simpler structure with face-to-face communication works best. In this type of organization a formal structure is not necessary. In larger organizations, decisions have to be made, so a structure is created to assign responsibilities and delegate tasks. In an organization of any size or complexity, employees' responsibilities are typically defined by their role and their reporting relationship. These definitions are assigned to positions in the organization rather than to specific individuals. (Fisher, 2000)
A management structure which is also known as an organisational structure is a way of showing the hierarchical arrangement of a business and the way the businesses’ chain of command works. This is normally shown in a chart form. See below for an example.
The decision making process follows a certain chain of command and tasks performed are highly specialized in nature. Matrix structure Most organizations adopt this structure to build their teams. This structure combines functional and product departmentalization structure. The employees in a matrix structure report to two bosses that is the functional and product manager.