Name Chaithanya Reddy Sadu

IUD 08PMP03528
Enrollment No. 08BS0002864

SUBJECT: Business Strategy

FACULTY NAME: Prof. A. Lakshmi Narasimha

TOPIC: Implementation of 7’S strategy at Dr.Reddy’s Laboratories

Student signature: Faculty signature:

Introduction to the company

It has significant presence in the regulated markets of USA, Germany and UK where it offers high
quality medicines at affordable prices.
Strengths
• World-class distribution capabilities
• Strong product portfolio and an attractive pipeline
• Proven ability to garner market share
• Credible track record of successful “Day 1” launches
• Strong relationships with key distributors, pharmacy chains and insurance funds.
Partnering Opportunities
• In-licensing, co-development and product opportunities in difficult-to-make generics
• Product portfolio expansion
• Partners with unique platform technologies for product development
Our Branded and Unbranded generic products offer affordable alternatives to innovator brands, both
directly and through key partnerships.
Unbranded Generics
Manufacturing Bandwidth
• 7 Formulation plants [6 in India (1 USFDA approved), 1 in US]
Product Portfolio
• Integrated product development center
• 50+ products marketed in the US
• 130+ ANDAs filed till date. 69 ANDAs pending approval at the USFDA, of which 32 are Para IV and
19 are FTFs.
• 160+ products marketed in the EU
• 200+ branded formulations marketed in India, Russia and other emerging markets
• Among the top 10 generic companies in the US; ranks 5 in Germany; the 7 largest Generic Pharma
company in Russia and among the largest pharma companies in India.
Branded Generics
Our Branded Generics portfolio offers over 200 products in the major therapeutic areas of gastro-
intestinal, cardiovascular, pain management, oncology, anti-invectives, pediatrics and dermatology. Its
top brands enjoy leadership positions in our key markets of India, Russia & the CIS, Romania and
Venezuela.
India
• Among the largest pharmaceutical companies
• Product portfolio of over 200 brands across 13 therapeutic areas
• Market leader in gastro-intestinal, cardiovascular, pain management and oncology
• 2000+ sales and marketing team
• 300,000+ doctors and 1900+ stockists
• Near 100% coverage of KOLs and key institutes
• Stamlo, Omez, Reditux, Nise, Ketorol are market leaders in their respective category
Russia
• Among the top 15 pharma companies. 14 in retail segment
• Fastest growing international branded generic company by volumes
• Top 5 brands occupy the 1 spot in their respective molecule space
• 4 brands [Omez, Ketorol, Nise and Ciprolet] among Top 100
• Strong presence in gastro-intestinal, cardiovascular, anti-Infective, oncology, pain and dermatology
• Building capabilities in wellness and nutraceuticals
• 300 + sales and marketing team
Global oncology
Strengths
• One stop portfolio solution with a broad product basket for launches across the globe
• Established capabilities in chemistry and biology enabling strong IP positions
• Low cost development and manufacturing operations
• Strong commercial infrastructure in focus geographies
Partnering opportunities
• Partners for commercialization of our portfolio
• In-licensing opportunities in:
- Differentiated Products and NCEs (phase III, registered, marketed)
- Complimentary basket of oncology products
• Co-development and joint commercialization of molecules

Takeovers

Promius Pharma is a branded Specialty company with a portfolio of in-licensed dermatology products and
an internal pipeline in different stages of development. Promius Pharma's current portfolio contains
innovative products for the treatment of psoriasis, atopic dermatitis and seborrhea dermatitis.

Strengths
• 2 products in the market: EpiCeram Skin Barrier Emulsion and Scytera Foam, 7 products in pipeline
• Track record of successful partnerships with Ceragenix, Foamix, Sinclair and Antares
• Strong portfolio of in-licensed and co-developed dermatological products and an internal pipeline under
development
• Strong and committed sales force
• State-of-the-art integrated product development center in Hyderabad, India
Partnering opportunities
• In-licensing and product opportunities in branded dermatology space
• Interested in late stage (phase II, Phase III, ready-to-market, or in-market) opportunities for development
and commercialization
• Out-licensing, co-development and commercialization partners for internal programs for market outside
of the US

We view generic biopharmaceuticals as an integral part of our mid to long term growth strategy and
believe that building depth in development and manufacturing capabilities will be critical in accessin this
opportunity. We have made significant efforts in this direction and have over the years succeeded in
creating world class infrastructure and a highly capable team.

Strengths
• Proven generic biopharmaceutical development capabilities with two marketed products - Grafeel
(filgrastim) and Reditux (rituximab), in emerging markets
• Developed and launched Reditux (rituximab) - the world's first generic monoclonal antibody
• Pipeline of eight generic biopharmaceuticals in various stages of development with two in clinical
development
• The product portfolio spans multiple therapeutic areas - oncology, auto-immune diseases and CNS
• GMP facilities to manufacture Biologics, in adherence with global regulatory requirements at a
significant cost advantage

Partnering opportunities
• Partners with intent and capabilities to commercialize generic biopharmaceuticals in specific
geographies
SWOT ANALYSIS
STRENTHS
➢ Wholly owned subsidiaries in US and
Europe
➢ Joint ventures in China and South
Africa
➢ Markets pharmaceutical products in
115 countries
➢ Partnerships with global
pharmaceutical companies like
Novartis, NOVO Nordisk, etc.
➢ Strong product portfolio
➢ Manufacture and market over 250
medicines targeting a wide range of
therapies
➢ Wide range of anti-cancer drugs
developed
➢ Over 100 APIs developed
➢ Six New Chemical Entities(NCE)
➢ Low cost base
➢ Contributes to company’s high profit
margin of around 34% of sales
➢ Partnerships with key players in the
market keeps its cost base down
➢ Research Driven & Global Talent
➢ Expertise in developing innovative
product formulations
➢ 6120 employees worldwide including
951 scientists in which 323 are
dedicated towards new drug discovery
research
WEAK NESS
➢ High amount of revenues from overseas
➢ India - a rich source of Active
Pharmaceutical Ingredients (APIs),
hence major source of revenue is
exports of APIs. May loose out to
western world, especially Europe,
where currency is much more stable
than the Indian Rupee
➢ Over-reliance on partnerships
OPPORTUNITIES
➢ Take a drug all the way to market
➢ Take a molecule from its pipeline all
the way to the market place cost-
effectively market
➢ Buy back of the integrated drug
development company from ICICI
Ventures and Citigroup
➢ Domestic Generic drugs market
➢ In another 4-6 years, many product
patents obtained after the 2004
legislation will go off providing an
opportunity to the company increase its
domestic footprint in Generics
THREATS
➢ Needs to gain FDA approval for all
sources and products
➢ Products have to pass strict FDA trials
before going to market, which can be
costly and time consuming
➢ This may delay the company entry to
particular markets which affects
revenue
➢ Competition from US and European
TOWS ANALYSIS
SO STRATEGIES
➢ With its low cost base and wide product
portfolio, it can penetrate into the vast
domestic market.
➢ It can leverage upon its huge research
and development team to discover more
drugs.
➢ It can partner with huge pharma retail
outlets like Hetero and Apollo to
promote more of their products.
ST STRATEGIES
➢ By leveraging on the low cost
advantage, vast human resources in the
R&D team it can expand its domestic
market thus reducing the loss risk in
case of losing US and European
market.
➢ Increase the German market position by
introducing new products into the
market.
Implementation of &7s strategy
Organizational Structure at Dr. Reddy’s Laboratories
Organizational charts:
1. Formal reporting relationships - High
2. Levels in hierarchy - High
3. Span of control - High
4. Departmentalization- High
Functional Structure: Functional structure with horizontal linkage
Systems to facilitate:
a. Coordination
WO STRATEGIES
➢ By buying out the integrated drug
development company from ICICI
ventures and CITI group the company
can actively manufacture its own drugs
using API, with this it can hedge the
threat of losing its market to western
players in the API export market.
➢ As in next four years, many product
patents obtained after the 2004
legislation will go off providing an
opportunity to the company increase its
domestic footprint in Generics.
OT STRATEGIES
➢ Take a molecule from its pipeline all
the way to the market place cost-
effectively market to reduce the cost of
obtaining approval.
➢ The above strategy also helps to rapidly
enter the markets where approvals take
long time.
 b. Communication
c. Integration
Ladder of mechanism for Horizontal linkage and Coordination

5
4
Amount
of 3
horizontal 2
coordinati 1
on

L LOW HIGH

Cost of Coordination in time and human resources

1-Information systems
2-Direct contact
3-Task forces
4-Full time integrators
5-Teams

SYSTEMS
Formal and informal procedures that support the strategy and structure (Systems are more
powerful than they are given credit).
Various elements of system are:
➢ Communications practice and system
➢ Management reporting system
➢ Approval process
➢ Planning/budgeting system
➢ Rewards system including appraisal
➢ “Rules”
STRUCTURE
For proper utilization of the Structure the following steps can be followed:
➢ Tasks define jobs
➢ Jobs define skills required
➢ Skills (and other considerations) define staff
○ Over time skills change as staff gains knowledge and experience, and as
technology and corporate infrastructure mature
➢ Collection of jobs basis for structure
SKILLS
 ➢ Distinctive competencies – what the company does best, ways of developing or shifting
competencies
➢ In case of this company while Job Design it is to be considered whether the existing
employees have the necessary skills and knowledge to fulfill proposed / expanded job
requirements?
STAFF
➢ Human Resource Development at HPL has been an integral part of the Company since its
inception. It has had a significant strategic role in the Company's growth process and
continues to do so. It is a function that has contributed to the bottom line of the Company
and has built the HPL family. HPL today boasts of a strong online competency profiling
system for its employees.
✔ It is to be kept in mind that the people of HPL are ways of shaping their basic
management values
✔ Proper HR management processes should be used to develop new managers who can lead
the organization.
Importance should be given to the ways of introducing new employees and managing
careers, socialization processes.

STYLE/CULTURE
The culture of the organization, consisting of
– Organizational culture: the dominant values, beliefs and norms which develop
over time and become relatively enduring features of organization life
– Management style: The precise way in which the control system influences the
behavior depends on the style of functioning of the manager (i.e where they spend
their time and attention, what they allow, what they reward, etc)
Dr. Reddy’s basically follows an External Control System where decision making authority
rests with the top management – Centralized in practical operations
Regarding organization culture, HPL follows 3 following rules those are reflected from their
Vision statement.
1. Respect for Individual
2. Customer Satisfaction
3. Dedication to Excellence
The company can follow the following aspects for improving its culture:
✔ Customer Delight: A commitment to surpassing the customer expectations. (and not
only fulfilling)
✔ Leadership by Example: A commitment to set standards in the business and
transactions and be an exemplar for the industry and their own teams.
✔ Integrity and Transparency: A commitment to be ethical, sincere and open in their
dealings.
✔ Fairness: A commitment to be objective and transaction-oriented, thereby earning trust
and respect.
 ✔ Pursuit of Excellence: A commitment to strive relentlessly, to constantly improve
themselves, their teams, their services and products so as to become the best.
STRATEGY – MAXIMISING THE VALUE

8 USFDA approved facilities (6 in India, 1 in Mexico and 1 in UK)

- 3 Technology Development Centers (2 in India and 1 in UK)
• Among the top three API players glob

MD
Mr.Satish reddy

MANUFACTURING PROCUREMENT MARKETING & FINANCE PROJECTS

SALES Head Head Head
Head

GM- FINANCE

PURCHAS STORES LOGISTICS DGM-

E

Chief
Manager-
FINANCE

Manager Manager Manager Manager Manager Manager

Corporate Plant Marketing Payroll &
Treasury Taxation
Finance & Finance Fund
Accounts

OFFICER-