Course: BUS 4403 - Business Policy and Strategy

Instructor: Chris Lorenz Marcelo

Due Date: 12/7/2023
The Biocon India Group (Case study)
Week 4 Written Assignment
 India's biopharmaceutical sector has provided the market with goods and services at rates

that are competitive on a global basis. The Biocon India Group is India's largest

biopharmaceutical company in charge of producing enzymes in large quantities. The company

founder and current Managing Director, Kiran Mazumdar-Shaw, founded Biocon India as a joint

venture with Biocon Ireland in 1978. Later, in 1989, Ireland Unilever purchased Biocon, and

Biocon India bought out Unilever's stake in the business in 1998. Since then, the organisation has

grown while continuing to be privately held, forcing it to make important strategic decisions

(Kalegaonkar et al, 2008).

The Biocon India Group had many strategic decisions to make, which impacted the

health of their business. For example, to complete the drug research and discovery value chain,

the Biocon Group had to make a strategic choice about whether to launch its own clinical trials

company or outsource.

Another strategic option for Biocon India Kalegaonkar et al (2008) argues is to pursue

company growth by letting its subsidiary Clinigene enter the market and provide services in

clinical trials to the full extent of its capabilities. It is a difficult choice since doing so runs the

danger of outgrowing the parent firm, but failing to pursue Clinigene also risk keeping Biocon

India in its existing position and stranding them in the generic medicines industry.

Employees and management from Biocon India, Clinigene, Syngene, shareholders,

clients, suppliers, and other external stakeholders, including the government and financial

institutions are the main parties involved in the issue.

The mutually reliant relationship of the groups associated is a result of the ties between

them. Any actions made by the management of Biocon and its affiliates Clinigene and Syngene
would immediately impact the workforce. Also, the company's shareholders can direct its course

of action, and any alteration will affect the clientele and its goods and services.

Moreover, the government established the rules and guidelines that the business must

abide by. Furthermore, these choices affect suppliers since the demand for raw materials may

increase or decrease depending on Biocon's decisions. The financial institutions are involved

since they have the power to influence the firm by offering financial support when required.

In making these strategic decisions, the Biocon India business gains a competitive

advantage in clinical research and some benefits from expansion that are substantial since they

will aid the company's financial growth. But there were some risks involved with making these

decisions. Kalegaonkar et al (2008) claim the risks involved Clinigene outgrowing its parent firm

Biocon and damaging the business collaborative culture.

Secondly, if there are many employee requirements, applying the company culture may

be problematic, and the employees may wind up being loyal simply to Clinigene. Finally, it

would contradict the founder and Biocon directors’ goal of creating an entirely integrated drug

development firm in India.

The main organizational feature that sets Biocon India apart are that there are no

hierarchies, and employees are encouraged to speak directly to the person they coordinate with.

They also value transparency, mutual respect, and teamwork; even the lowest-ranking staffs are

encouraged to speak up and contribute their thoughts (Kalegaonkar et al, 2008).

 Offering performance awards based on team performance rather than individuals; the

company promotes excellence and cooperation. Therefore, Biocon is ready to reject a candidate

with strong academic background and professional experience if that individual is not a team

player since they feel that the attitude of their workers is more significant than their

qualifications.

A business might pride itself on flexible structures and informal hierarchies. However,

new leadership or business partnership may impact organizational designs. Therefore, new

processes may be implemented and enforced. Biocon having this type of structure mentioned

above may have some threats. For instance, the subsidiary firm Clinigene, if Biocon pursues

Clinigene, their workers would not have time to chat informally in the office since they will be

required to work outside, at the trial sites or field.

My advice to Biocon India is to pursue Clinigene despite the dangers. Growth and

success involve risk-taking. Therefore, I believe they can be successful in a new sector with

Clinigene and overcome the possible hazards if they are cautious. Their concern about the

business structure and culture can easily be dwelt with by having training and frequent meetings

or seminars and emphasizing the relevance of their organizational culture to everyone.

 Reference

Kalegaonkar, A., Locke, R., & Lehrich, J., (2008). Biocon India Group
https://my.uopeople.edu/pluginfile.php/1705674/mod_page/content/8/
BioconIndiaGroup.pdf