BUSINESS POLICY ASSIGNMENT 1

PREPARED BY:

RIMAL PATEL ROLL NO. 23 V SEMESTER MBA EVENING BATCH MS UNIVERSITY – BARODA

PROFESSOR – Dr. B L V Narayanan

Page 0 of 7

................................................................0 3.................................0 TABLE OF CONTENTS TABLE OF CONTENTS .................................................................................................0 2............................................0 7.......0 5..........1.............................................................. 5 STRATEGY MAP .................................................................................................................................. 9 REPRESENTATION IN DIAGRAM ................................................................... 4 OPPORTUNITIES .. 2 INTRODUCTION – GEA GROUP............0 6.................0 8.............. 10 Page 1 of 7 .................................................................................... 3 INTRODUCTION – INDIAN PHARMA MARKET ............................... 1 ASSIGNMENT QUESTIONS ......0 1.................................................................................................................0 4.................... 7 STRATEGIC RESOURCE AUDIT .............................................

Do a strategic resource audit for the opportunity chosen and then identify the appropriate strategy for obtaining this strategic resource.M. Finally represent this process in form of a comprehensive diagram. 3. Page 2 of 7 . 4. Clearly explain the components of the strategic map and indicate their linkages and how each strategic objective leads to the final objective.UNIVERSITY –FACULTY OF MANAGEMENT STUDIES MBA—EVENING BATCH—SEMESTER FIVE ASSIGNMENT –BUSINESS POLICY 2. Evaluate these opportunities in terms of value to your firm and logically explain which one you choose as the best. . There is no restriction on group discussion and consultation.0 ASSIGNMENT QUESTIONS This assignment is based on the firm where you are working or one of your choice. kindly identify three significant opportunities for the firm of your choice. Please answer the following questions: 1. Having done a PESTLE analysis and having linked it to Industry analysis.S. 2. Kindly indicate clearly which firm you have chosen and give a two page write up of your firm as introduction to your assignment. Create a strategy map to achieve the identified objective based on the identified opportunity. This is an individual assignment.

05. All the relevant documents of the name change are enclosed along with qualification document. Further our company‟s name was changed to “GEA Process Engineering India Pvt. GEA Wiegand GmbH – Germany. CA‟s working in our Organisation. Denmark which is part of GEA Process Engineering Division (GEA P. This SBU deals with Engineering & Manufacturing of Machines used in Pharma Market for making Tablets / Powder / giving complete contained solution.3.2 billion Euros. GEA P-Division is a significant group of GEA AG. Pharma Systems SBU & Niro Engineering Unit (NEU).e. Our Company‟s name has been changed to “GEA Process Engineering (India) Limited‟ from “L&T-Niro Limited” w. GEA Process Engineering SAS.Division). Commerce Graduates. thus have direct access to GEA – P Division companies like Niro A/S. Food & Dairy (FODA) SBU. a major Multidimensional Conglomerate. We. Diploma. In which industry is the firm you are working for? I am working with Pharma BU of GEA Group & hence will be discussing more in detail with Pharmaceutical & its growth. This is consequent to acquisition of 50% stake in the joint Venture Company – L&T-Niro Limited & the Dairy Industry business of Larsen & Toubro Limited by Niro A/S. we are now fully owned subsidiary of GEA Process Engineering Division.f 22nd September. Ltd” recently. having different SBUs namely – Chemical SBU. France. Various Engineers work with Project Managers in a team to complete the projects. Beverages & Breweries SBU. We have Engineers.“Global Engineering Alliance” which is a constellation of leading global companies specialized in process & thermal engineering having combined turn-over of 5. Currently our organization has more then 200 Employees. Projects are headed by project Managers. etc which are global leaders for Dryers & Evaporators for various applications. Denmark. Hierarchy prevails in the organization where Engineers report to Manager directly. Barr-Rosin Ltd – UK. Page 3 of 7 . Consequent to this acquisition.0 INTRODUCTION – GEA GROUP As a part of Larsen & Toubro Limited (L&T).

Sandoz. benefiting from new discoveries and a lax regulatory environment. Novartis 2 etc. Hoffman -La Roche. Switzerland when dyestuffs were found to have antiseptic properties.4. Its origins can be traced back to the nascent chemical industry of the late nineteenth century in the Upper Rhine Valley near Basel. The industry expanded rapidly in the sixties. During this period healthcare spending boomed as global economies prospered. The new regulations revoked permanent patents and established fixed periods on patent protection for branded products. Ciba Geigy (the product of a merger between Ciba and Geigy). Over time many of these chemical companies moved into the production of pharmaceuticals and other synthetic chemicals and they gradually evolved into global players.0 INTRODUCTION – INDIAN PHARMA MARKET The modern pharmaceutical industry is a highly competitive non –assembled global industry.g. a result of which the market for branded generics emerged. The industry witnessed major developments in the seventies with the introduction of tighter regulatory controls. Page 4 of 7 . The introduction and success of penicillin in the early forties and the relative success of other innovative drugs institutionalized research and development (R&D) efforts in the industry. especially with the introduction of regulations governing the manufacture of „generics. Most are still going strong today. A host of modern pharmaceutical companies all started out as Rhine -based family dyestuff and chemical companies e.

kindly identify three significant opportunities for the firm of your choice. Hence one of the opportunity is to sell R&D machine at low cost with better quality – to enable us to get orders for future production scale machines. Concentrate on selling of Containment Technology for pharma market.0 OPPORTUNITIES Having done a PESTLE analysis and having linked it to Industry analysis. Customer prefer to use same brand of machine for production scale batches as well – it is because very easy for customer to use production scale machine of same brand.5. Selling R&D Machines at low cost & better quality to push in production scale Machines. Evaluate these opportunities in terms of value to your firm and logically explain which one you choose as the best? Three Significant opportunities: 1. Value will solely depend on sale of R&D machine. Page 5 of 7 . It can be approximated to around 1 bn Euro. Once the product is developed on particular brand of pilot machine & is stabilised. There are many huge companies who are into manufacturing of potent products & export to foreign market – for them it is extremely important to maintain certain level of containment & GEA is pioneer in this technology. Again for those customer who already have developed their product on some other brand R&D machine may not wish to replace their R&D machine. In India there is vast market for containment. While manufacturing certain tablets / powder viz. 2. This holds true only for customers who are setting green field R&D plants. This is because when recipe once freeze on “X” brand of R&D machine can simply be magnified on production scale machine. cancerous medicine. Moreover R&D Machines from GEA have linear scalability – hence recipe development from R&D machine to production scale machine is very linear. solvent based product – it is extremely necessary that operators involved in this manufacturing should not be exposed to certain OEL (Operator Exposure Level) beyond which can cause them health problem. In Pharma industry – R&D is done on small machines.

5 billion since there will not be many customers who will replace their entire line when only particular machine is to be replaced & labour cost is cheaper. Thus looking at this three opportunities & evaluating the values – I will like to go for 4th Opportunity since the revenue growth (target market) will be huge with increased manufacturing capacity. 8. Increase marketing concentrating solution based approach rather than individual selling. Since the Pharma Market is booming & expected to grow at exponential rate – hence will be sale & thus revenue Page 6 of 7 . 3. Additionally more batches can be taking as time between batch will be reduced – thus giving customer complete solution. This includes selling of Integrated line rather than single machine. 4. Hence it will be wise to take this as opportunity since the value of market is 5 billion Euro.09bn Euro is export sales of which approximately 75% is containment products. There is nobody in India who can give Containment solution & GEA world-wide is renowned as technology leader in containment solution. Looking towards expansion & boom in Pharma Market – Increase the plant capacity by establishing new plant to cater future increased demand of pharma Machinery. This includes giving customer closed transfer of product & single operator can handle complete line.Manufacturing of such medicines is tremendously increasing as it is exported to foreign market to get price advantage. But the estimated value will be around 0. Thus this refers to ultimately Financial & Customer Success.

 Outstanding Supplier relationship  Efficient use of Manpower o Customer Satisfaction: Page 7 of 7 . This will fulfil two demands: 1) The cost of Machine will decrease. The Main function of this unit will be: 1) High Technology Tools 2) Full Automated Machines 3) Efficient use of Manpower.  Aligned to run more machines at a time. This Strategy will be employed by company by establishing new units.  Provide Technology Support.  Internal Perspective: o Operations Management:  Fully Automated. 3) Excellent Quality  Learning & Growth Perspective: o Human Capital:  Process Improvement capabilities.  Deliver People Proposition. 2) The delivery time of Machine will reduce. o Information Capital:  Electronic supplier relationship  Electronic inventory Management  Electronic component tracking system in the shop.0 STRATEGY MAP Create a strategy map to achieve the identified objective based on the identified opportunity. Clearly explain the components of the strategic map and indicate their linkages and how each strategic objective leads to the final objective? There are two Strategies: 1) Complete Solution Strategy 2) Low Cost Strategy.6.

Innovations:  Fixtures for Machining & assembling  High Speed tools  Process Innovation  Customer Perspective: o Offer Machine of Good Quality: o Low cost o Perfect Quality o Speedy Purchase. o Cash Flow.   o Quality Service Quality Relationship Develop Customer trust. o Consistency  Financial Perspective: o Productivity Strategy. o Become Industry cost leader o Revenue Growth Strategy o Revenues from new Customers. Page 8 of 7 . o Increase customer‟s account.

The workers would be trained before plant would start.7.  Human Resources: This is also important resource for running the new plant. the technology would not be a major concern. o Machinery: Few machines would be transferred from old plant & second hand machines would be purchased in auction. The company has decided to employ a HR recruitment agency for recruiting the workers. o Building: The company will be taking a loan from the bank for this purpose. Hence.  Technology Resources: The company already has an experience of 25 Years in this industry. Inputs are required in following areas: o Land: Company has already purchased a land. Page 9 of 7 .0 STRATEGIC RESOURCE AUDIT Do a strategic resource audit for the opportunity chosen and then identify the appropriate strategy for obtaining this strategic resource? Low Cost Strategy The Resources required for this strategy are:  Financial Resource: This is main resource as the company would require financial input for setting up new plant.

8. Fixtures for machining and assembling ---------------------------------------------------------------------------------------------------Learning Capable.0 REPRESENTATION IN DIAGRAM Finally represent this process in form of a comprehensive diagram? The strategy map would be as below: Financial Perspective LONG TERM SHAREHOLDER VALUE Productivity Strategy Become Industry Cost Leader Revenue Growth Strategy 1. Efficient use of Manpower 2. Outstanding Supplier Relationship 3.Lowest Cost 2. Motivated and Technologically Enabled Workforce And Growth Human Capital Information Capital Perspective 1. Increase customer’s account ---------------------------------------------------------------------------------------------------Customer “Offer machine of good quality with competitive price in lowest Perspective lead time” 1. Aligned to run two machines at a time 1. High Speed Tools 3. Revenues from new customers 2. Process Innovation Perspective 1. Electronic Supplier Relationship 2. Process Improvement Capabilities 2. Fully Automation 2.Perfect Quality 3.Speedy Purchase ---------------------------------------------------------------------------------------------------Internal Operations Innovations Management 1. Electronic component tracking system in the shop Page 10 of 7 . Electronic inventory management 3.

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