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Situation Analysis

1. About the company

Millennium is a biotechnology firm which initially operated in early stage drug


discovery and later moved on to downstream drug development and its
commercialization.

2. Critical Success factors of


A. Old model:
a. Ability to negotiate alliances with major pharmaceutical firms
b. Research and development.
c. Area expertise both at individual and organizational level
d. Pioneers in leveraging upon technology in pharmaceutical sector

B. New model:
a. Marketing : good distribution, product awareness, development of
marketing and sales force
b. Competitive pricing

Problems identified:

1. Even when the company transited from being a research firm to a


profitmaking firm, there was no transition from entrepreneurial culture to
commercial culture.
2. Research & development of all early stage drugs was terminated and the
potential blockbuster leads were lost in the process.
3. Marketing myopia:
The company adopted an inward looking approach to marketing. For example, the
sales person employed by company for selling both cardiovascular and oncology
drugs were the same which had limited knowledge about these drugs.
4. No structured Merger & Acquisition:
The company adopted merger and acquisition policy as a way to grow and
expand their firm. However, while doing so, they acquired pharmaceutical
firms which had expertise in multiple areas and covered many diseases
portfolio.
5. Unstructured Performance management appraisal: Company had an
informal approach towards employee review process and compensation
awards were the result of relationship within the firm rather than
achievements.
6. Product centric approach
a. Marketing and sales of special category drugs handed over to
salesman of another product category
b. No image development of a market leader in commercial sector,
early acquisition of a wide variety of product and hence leading to
no product synergy
7. Newly designed organizational strategy is not aligned with other factors.
The company adopts a reactive strategy and not a proactive one.
SWOT Analysis

Way ahead:

1. Align the processes of the company with its newly designed strategy. The
company and its employees should shun the start-up culture and adopt a
formal culture of a commercial firm. For this purpose, company can
introduce a formal performance management system,
2. Since millennium is a new entrant in commercial drug development, they
should focus on a limited disease portfolio and establish themselves as
market leader in that profile first rather than focussing on multiple disease
portfolio. Identify drugs whose development and commercialization would
give competitive edge to the company.
3. Upon transition from being a biotech start up to a drug selling company, a
formal performance management system should be introduced. This will
ensure that appropriate employees are held accountable for their
decisions and actions. Employees should be communicated their goals and
deliverables clearly, so that the compensation can be based on their
achievements.
4. In order to fill the position of R&D head, CEO Dunsire should rope in
somebody who has expertise in both research as well as the mindset of
developing commercial product. This will ensure that the R&D department
of the company is in synergy with the companys strategy. For this
purpose, an internal promotion would be a viable option, ensuring that the
employees do not retaliate against the new CEO. This will also ensure that
the employees stay loyal to the organization and do not leave it.
5. Marketing team should be developed and assigned to every disease
portfolio in which the company deals. Separate teams would ensure that
the sales reps have in-depth knowledge of their product and adopt a
focussed approach for making their sales.
6. The resource allocation to commercial and R&D platforms should be
optimized. The company should allocate more funds for the commercial
opportunities. In order to ensure that future product development is not
jeopardised, company can revive their potential leads in which they
invested during their research venture.