Pulmocit (A): Negotiating Pharmaceutical Products with the Government SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Pulmocit (A): Negotiating Pharmaceutical Products with the Government
This is a two-party negotiation between a pharmaceutical company and a government agency to decide if a new medication will be put on the reimbursement list. The pharmaceutical company has a valuable new product, the government has semi-monopolistic power over whether (or not) drugs are listed. The role-play allows participants to negotiate given the inherent value-creation limitations of the setting.
Swot Analysis of "Pulmocit (A): Negotiating Pharmaceutical Products with the Government" written by Horacio Falcao, Rodrigo Gouveia includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Pharmaceutical Pulmocit facing as an external strategic factors. Some of the topics covered in Pulmocit (A): Negotiating Pharmaceutical Products with the Government case study are - Strategic Management Strategies, and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Pulmocit (A): Negotiating Pharmaceutical Products with the Government casestudy better are - – increasing transportation and logistics costs, cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, there is backlash against globalization, geopolitical disruptions,
banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Pulmocit (A): Negotiating Pharmaceutical Products with the Government
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Pulmocit (A): Negotiating Pharmaceutical Products with the Government case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Pharmaceutical Pulmocit, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Pharmaceutical Pulmocit operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Pulmocit (A): Negotiating Pharmaceutical Products with the Government can be done for the following purposes –
1. Strategic planning using facts provided in Pulmocit (A): Negotiating Pharmaceutical Products with the Government case study
2. Improving business portfolio management of Pharmaceutical Pulmocit
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Pharmaceutical Pulmocit
Strengths Pulmocit (A): Negotiating Pharmaceutical Products with the Government | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Pharmaceutical Pulmocit in Pulmocit (A): Negotiating Pharmaceutical Products with the Government Harvard Business Review case study are -
High switching costs
– The high switching costs that Pharmaceutical Pulmocit has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Effective Research and Development (R&D)
– Pharmaceutical Pulmocit has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Pulmocit (A): Negotiating Pharmaceutical Products with the Government - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Pharmaceutical Pulmocit in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Pharmaceutical Pulmocit is one of the most innovative firm in sector. Manager in Pulmocit (A): Negotiating Pharmaceutical Products with the Government Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the Pharmaceutical Pulmocit are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
High brand equity
– Pharmaceutical Pulmocit has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Pharmaceutical Pulmocit to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– Pharmaceutical Pulmocit is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Horacio Falcao, Rodrigo Gouveia can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Training and development
– Pharmaceutical Pulmocit has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Pulmocit (A): Negotiating Pharmaceutical Products with the Government Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Ability to recruit top talent
– Pharmaceutical Pulmocit is one of the leading recruiters in the industry. Managers in the Pulmocit (A): Negotiating Pharmaceutical Products with the Government are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the Pulmocit (A): Negotiating Pharmaceutical Products with the Government Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Learning organization
- Pharmaceutical Pulmocit is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Pharmaceutical Pulmocit is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Pulmocit (A): Negotiating Pharmaceutical Products with the Government Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Pharmaceutical Pulmocit in the sector have low bargaining power. Pulmocit (A): Negotiating Pharmaceutical Products with the Government has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Pharmaceutical Pulmocit to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Pulmocit (A): Negotiating Pharmaceutical Products with the Government | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Pulmocit (A): Negotiating Pharmaceutical Products with the Government are -
Aligning sales with marketing
– It come across in the case study Pulmocit (A): Negotiating Pharmaceutical Products with the Government that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Pulmocit (A): Negotiating Pharmaceutical Products with the Government can leverage the sales team experience to cultivate customer relationships as Pharmaceutical Pulmocit is planning to shift buying processes online.
Skills based hiring
– The stress on hiring functional specialists at Pharmaceutical Pulmocit has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Pharmaceutical Pulmocit is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Pulmocit (A): Negotiating Pharmaceutical Products with the Government can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Pulmocit (A): Negotiating Pharmaceutical Products with the Government, is just above the industry average. Pharmaceutical Pulmocit needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High cash cycle compare to competitors
Pharmaceutical Pulmocit has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Lack of clear differentiation of Pharmaceutical Pulmocit products
– To increase the profitability and margins on the products, Pharmaceutical Pulmocit needs to provide more differentiated products than what it is currently offering in the marketplace.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Pulmocit (A): Negotiating Pharmaceutical Products with the Government, it seems that the employees of Pharmaceutical Pulmocit don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High operating costs
– Compare to the competitors, firm in the HBR case study Pulmocit (A): Negotiating Pharmaceutical Products with the Government has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Pharmaceutical Pulmocit 's lucrative customers.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Pharmaceutical Pulmocit supply chain. Even after few cautionary changes mentioned in the HBR case study - Pulmocit (A): Negotiating Pharmaceutical Products with the Government, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Pharmaceutical Pulmocit vulnerable to further global disruptions in South East Asia.
Slow decision making process
– As mentioned earlier in the report, Pharmaceutical Pulmocit has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Pharmaceutical Pulmocit even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Products dominated business model
– Even though Pharmaceutical Pulmocit has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Pulmocit (A): Negotiating Pharmaceutical Products with the Government should strive to include more intangible value offerings along with its core products and services.
Opportunities Pulmocit (A): Negotiating Pharmaceutical Products with the Government | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Pulmocit (A): Negotiating Pharmaceutical Products with the Government are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Pharmaceutical Pulmocit is facing challenges because of the dominance of functional experts in the organization. Pulmocit (A): Negotiating Pharmaceutical Products with the Government case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Pharmaceutical Pulmocit can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Pharmaceutical Pulmocit can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Using analytics as competitive advantage
– Pharmaceutical Pulmocit has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Pulmocit (A): Negotiating Pharmaceutical Products with the Government - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Pharmaceutical Pulmocit to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Pharmaceutical Pulmocit can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Pharmaceutical Pulmocit can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Pharmaceutical Pulmocit can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Loyalty marketing
– Pharmaceutical Pulmocit has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Buying journey improvements
– Pharmaceutical Pulmocit can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Pulmocit (A): Negotiating Pharmaceutical Products with the Government suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Building a culture of innovation
– managers at Pharmaceutical Pulmocit can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Leadership & Managing People segment.
Leveraging digital technologies
– Pharmaceutical Pulmocit can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Pharmaceutical Pulmocit to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Pharmaceutical Pulmocit to hire the very best people irrespective of their geographical location.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Pharmaceutical Pulmocit can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Pharmaceutical Pulmocit can use these opportunities to build new business models that can help the communities that Pharmaceutical Pulmocit operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Threats Pulmocit (A): Negotiating Pharmaceutical Products with the Government External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Pulmocit (A): Negotiating Pharmaceutical Products with the Government are -
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Pharmaceutical Pulmocit needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Pharmaceutical Pulmocit can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Increasing wage structure of Pharmaceutical Pulmocit
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Pharmaceutical Pulmocit.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Pharmaceutical Pulmocit in the Leadership & Managing People industry. The Leadership & Managing People industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Technology acceleration in Forth Industrial Revolution
– Pharmaceutical Pulmocit has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Pharmaceutical Pulmocit needs to keep up with the evolution of technology in the Leadership & Managing People sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Consumer confidence and its impact on Pharmaceutical Pulmocit demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Pharmaceutical Pulmocit business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Pharmaceutical Pulmocit high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Regulatory challenges
– Pharmaceutical Pulmocit needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Leadership & Managing People industry regulations.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Pharmaceutical Pulmocit with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Pharmaceutical Pulmocit.
Shortening product life cycle
– it is one of the major threat that Pharmaceutical Pulmocit is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Pulmocit (A): Negotiating Pharmaceutical Products with the Government Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Pulmocit (A): Negotiating Pharmaceutical Products with the Government needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Pulmocit (A): Negotiating Pharmaceutical Products with the Government is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Pulmocit (A): Negotiating Pharmaceutical Products with the Government is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Pulmocit (A): Negotiating Pharmaceutical Products with the Government is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Pharmaceutical Pulmocit needs to make to build a sustainable competitive advantage.
