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

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 andScytera Foam, 7 products in
pipeline
• Track record of successful partnerships with Ceragenix, Foamix, Sinclair andAnt ares
• 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
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
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

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
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
b. Communication
c. Integration

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