Home Pharmaceuticals Case Study Structure 2

Gap Analysis I

Home Pharmaceuticals Case Study Structure 2

(See Case Study 2 Assignment in your Study Book)

1.0 Gap Analysis I

1.1 Capability Gap Analysis Table

Functional Area     1	Capability     2	Home Pharma   Description of Home’s capability 3	Average the Capabilities of Closest two (2) Competitors Describe capabilities 4
e.g. Manufacturing	Technological superiority	?	?
?	?	?	?
?	?	?	?
?	?	?	?
?	?	?	?
?	?	?	?
?	?	?	?

1.2 Rate each capability by resource:   

Tangible resources e.g. Physical

?

? ? ? ?

Intangible resources e.g. Brands

?

? ? ? ? ?

Processes & systems e.g. Decision tools

?

? ? ? ?

Organisation culture e.g. Attitudes/work ethic Values ?

?

? ? ? ?

1.3 Capability Narrative:

Capability 1

Capability 2

Capability 3

Capability 4

Capability 5

?    ?  ?    ?

1.4 Collect Evidence:

2.0 Gap Analysis II

2.1 Capability matching:

Key Success Factors (from case study 1) 1	Capabilities (Take the capabilities from S1.3 above. That is, your choice of 5-10 capabilities). Match each capability with each KSF in Column 1) 2
e.g. 1.Research & Development	e.g. technological superiority is …..x, y, z
2.
3.
4.
5.
6

2.2 Capability Rating/Ranking

KSFs   Capabilities (From Table 2.1 above)	1	2	3	4	5	6
Technological superiority
TOTAL Add each column to complete the exercise

2.3 Ranking Narrative:

3.0 Gap Analysis III

3.1 Choose five strategies:

1. ?

2. ?

3. ?

4. ?

5. ?

3.2 Prepare Matrixes:

Corporate Level Matrix

		Products/services
		Existing	New
Markets	Existing	Market penetration	New products/services
	New	Market development	Diversification

Business Level Matrix

		Competitive advantage
		Lower Cost	Differentiation
Competitive Scope	Broad Target	Cost Leadership	Differentiation
	Narrow Target	Cost Focus	Differentiation Focus

3.3 The 5 questions:

Does the organisation plan to grow?

What product & services does it plan to produce?

What customers does it plan to service?

Which generic strategies will it follow?

What position in the industry will it occupy?

1.0 Gap Analysis I

1.1 Capability Gap Analysis Table

Functional Area 1	Capability 2	Home Pharma Description of Home’s capability 3	Average the Capabilities of Closest two (2) Competitors Describe capabilities 4
Manufacturing	Technological superiority	The pharmaceuticals industry of Malaysia, even though has been growing with respect to reputation, has been losing the workers with high quality in comparison with the industry of Singapore and Australia. However, Home Pharmaceuticals has changed this view by manufacturing generics in the local context that are proprietary drugs. Huge importance is being given for new ways of innovation allowing the organization for the establishment of stronger presence within the market of Malaysia.	One significant competitor is Pharmaniaga Berhad that is an organization for holding investments. By its subsidiaries, the company is responsible for the manufacturing, marketing and distributing medical products and pharmaceutical drugs to the private institutions and government hospitals. The organization also has the capability of providing web portal services to trade the products of health care by online sources. Another significant competitor is Kotra Pharma in comparison with the research facilities regarding state of the art that mainly creates a focus over the solutions of health care in the areas of therapeutic. Kotra is known to provide categories of health or vitamin supplements that represents the turnover of the company.
Operational Activities	Balance in Generics and Proprietary	The company has been making attempts to bring balance in both, generics as well as proprietary, however, managed and conceived are important to go forward. In the current context, Home has patented more than 30 local drugs and since recent times, there have been new designs for hearing devices and hearing aids with respect to challenge.	Hovid Berhad is one of the most leading pharmaceutical manufacturers of Malaysia with innovative preparations of medicines and high quality and supplements of health with the distribution of 400 products in more than 50 nations across the globe. CCM Duopharma had opened in the year 1979 that has manufactured and developed irrigational solutions, haemodialysis, injectables, capsules, and tablets. Since recent times, the company has made an agreement for being an exclusive distributor of joint ventures and international products.
Organizational Structure	Centralized Structure	The present CEO for the organization is PK Lee while the position of the chief operating officer is given to Mary Chua. Dr. Paul Greenwood, along with his team having thirty specialist technical with high qualification and the staff of science, heads up development and research. There are three managers of three different divisions for handling the department of OTC, strategic business units of Health Food and Hearing Devices. Each and every single strategic business unit has its own product manager, manufacturing manager, and almost 200 workers within the setting of the factory. Hence, it can be stated that the organizational structure is flat. There is a presence of one major facility of manufacturing situated in an Industrial Park in the region of Kuala Lampur that is responsible for the facilitation of each and every manufacturing for the distribution of each and every product within all of the divisions.	Duopharma has been making a great effort for provision of health services for each and every single individual within the population of Malaysia. Hence, in support to this, the government of Malaysia has been increasing the amount of budget to be invested in the area of health by 14.5 per cent. Hence, the structure of the organization is being given huge importance.

Capability 1 

The capability that has been identified is under the area of manufacturing having a superior position when it comes to technological consideration. The field of technology plays a significant role for the organizations, particularly in the industry of pharmaceuticals. The pharmaceuticals industry of Malaysia, even though has been growing with respect to reputation, has been losing the workers with high quality in comparison with the industry of Singapore and Australia. However, Home Pharmaceuticals has changed this view by manufacturing generics in the local context that are proprietary drugs. Huge importance is being given for new ways of innovation allowing the organization for the establishment of stronger presence within the market of Malaysia. The organization also has the capability of providing web portal services to trade the products of health care by online sources.

Capability 2

The next capability that has been identified is under the area of operational activities that there is maintenance of balance in the generics and the proprietary. The company has been making attempts to bring balance in both, generics as well as proprietary, however, managed and conceived are important to go forward. In the current context, Home has patented more than 30 local drugs and since recent times, there have been new designs for hearing devices and hearing aids with respect to challenge (Wolfe 2010). It is one of the most leading pharmaceutical manufacturers of Malaysia with innovative preparations of medicines and high quality and supplements of health with the distribution of 400 products in more than 50 nations across the globe. It has manufactured and developed irrigational solutions, haemodialysis, injectables, capsules, and tablets. Since recent times, the company has made an agreement for being an exclusive distributor of joint ventures and international products.

Capability 3

The next capability that has been identified is under the area of organizational structure that it is highly centralized in nature. The present CEO for the organization is PK Lee while the position of the chief operating officer is given to Mary Chua. Dr. Paul Greenwood, along with his team having thirty specialist technical with high qualification and the staff of science, heads up development and research. There are three managers of three different divisions for handling the department of OTC, strategic business units of Health Food and Hearing Devices. Each and every single strategic business unit has its own product manager, manufacturing manager, and almost 200 workers within the setting of the factory. Hence, it can be stated that the organizational structure is flat. There is a presence of one major facility of manufacturing situated in an Industrial Park in the region of Kuala Lampur that is responsible for the facilitation of each and every manufacturing for the distribution of each and every product within all of the divisions. Hence, in support to this, the government of Malaysia has been increasing the amount of budget to be invested in the area of health by 14.5 per cent. Hence, the structure of the organization is being given huge importance.

Capability Gap Analysis Table

Technology is no doubt the most significantly important factors that have been influencing the success of the organization prevailing and surviving within the age of technology. Efficient, effective and timely implementation of equipment and tools that help in increasing the speed for the delivery of the information that is primary factor for competitive benefit. However, there is often a rise in the determination of how adoption of tools and integrating them within the business. These contribute in interrupting the business and lead towards failure in the acquisition of software and on frequent is more costly, with respect to resources, money, and lost opportunities that necessitate an approach based on innovation. Hence, this can be considered as being appropriately aligned with the strategic advantages of the organization (Basu 2008). The organization of Home has a number of competitive advantages that show the importance of this capability in accordance with the considerations and strategy important to match the technologies of SAS with key drivers of business at the scale of corporate. The structure of the organization is the set- up of bureaucracy of the organization through which the facilities, staff and other resources being in organization with the effective accomplishment of the purposes for which the establishment of organization has been done. Considering the centralized structure of the organization, it can be stated that there is huge reliability over a single individual for making decisions and providing direction for the organization (Wolfe 2010). The business has been using this particular structure as the owner has the responsibility for the business operations of the company. This has contributed in making the organization highly efficient with respect to the decisions of business. However, by following this particular structure of the organization do not always need significant value for the time of planning. The present CEO for the organization is PK Lee while the position of the chief operating officer is given to Mary Chua. Dr. Paul Greenwood, along with his team having thirty specialist technical with high qualification and the staff of science, heads up development and research. There are three managers of three different divisions for handling the department of OTC, strategic business units of Health Food and Hearing Devices. Each and every single strategic business unit has its own product manager, manufacturing manager, and almost 200 workers within the setting of the factory. Hence, it can be stated that the organizational structure is flat. There is a presence of one major facility of manufacturing situated in an Industrial Park in the region of Kuala Lampur that is responsible for the facilitation of each and every manufacturing for the distribution of each and every product within all of the divisions.

2.1 Capability matching:

Key Success Factors 1	Capabilities 2
1.Research & Development	Research and Development is the main element and key factor of success for the organization, and for having appropriate plans and being utilized for enabling a business organization for the generation of increased amount of wealth with the passage of time. For an organization such as this, research is involved for conducting investigations within the latest technology that are important for the industry of pharmaceuticals. Development is referred to as the process to trial and apply the important technologies. The research and development with technology provides assistance for the development of its strong position within the industry of pharmaceuticals.
2. Appropriate change management	The level of clawback for the generics contributes in incorporating an appropriate balance for increasing the rate of compensation for the simultaneous trends within the rate of proprietary clawback. There has been a new program with the help of this capability for allowing the contractors for the pharmacy of community for the retention of a level being agreed upon regarding the profit being purchased.
3. Competitive Advantage	The organization of Home has a number of competitive advantages that show the importance of this capability in accordance with the considerations and strategy important to match the technologies of SAS with key drivers of business at the scale of corporate (Wolfe 2010). The structure of the organization is the set- up of bureaucracy of the organization through which the facilities, staff and other resources being in organization with the effective accomplishment of the purposes for which the establishment of organization has been done. Considering the centralized structure of the organization, it can be stated that there is huge reliability over a single individual for making decisions and providing direction for the organization.

KSFs   Capabilities	1	2	3	4	5	6
Technological Superiority	3	6	8	1	7	4
Balance in Operational Activities	7	7	5	2	4	9
Centralized Structure of organization	4	7	5	7	8	9
TOTAL Add each column to complete the exercise

Technology is no doubt the most significantly important factors that have been influencing the success of the organization prevailing and surviving within the age of technology. Efficient, effective and timely implementation of equipment and tools that help in increasing the speed for the delivery of the information that is primary factor for competitive benefit. However, there is often a rise in the determination of how adoption of tools and integrating them within the business. These contribute in interrupting the business and lead towards failure in the acquisition of software and on frequent is more costly, with respect to resources, money, and lost opportunities that necessitate an approach based on innovation (Brezis 2008). Considering the centralized structure of the organization, it can be stated that there is huge reliability over a single individual for making decisions and providing direction for the organization. The business has been using this particular structure as the owner has the responsibility for the business operations of the company. This has contributed in making the organization highly efficient with respect to the decisions of business. However, by following this particular structure of the organization do not always need significant value for the time of planning.

Rate each capability by resource

In the literature of management, analysis of gap is comparing the literal performance with the desired or potential performance. If an organization or the company has not been making the best utilization of present resources, or forgoing investment in technology or capital, it may contribute in performing or producing below the level of potentiality (Cassels 2005). This concept has similarity to the being of economy below the frontier for the possibilities of production.

3.1 Choose five strategies:

1. Identifying the Trends: The organization must begin with the gaps that are known. The gaps that are known are the ones having general agreement regarding their significance and identity. For an example, there might be knowledge of about the competitors is regarding the introduction of new products which is approximately 20 per cent faster in comparison with the products being in hand of the organization (Steinman 2009). Since there can be an announcement of press, demonstrations can be made lively which seems to be confirming the claims and a developed record of track related to the competitors, one can have a firm belief that the claims and products are for real. Further ahead, the organization should be giving huge importance to the customers for performing in a well manner.

3. Creation of Backlog for the Potential Gaps: Potential gaps do not seem to be meeting the complete criteria for being considered as the gaps that are known. There might be missing of information regarding the accurate nature related to the impact or its gap involved. The appropriate action should be focused on keeping track related to the potential gap and for assigning someone that is the function of competitive intelligence for the collection of information in a significant manner (Wolfe 2010). Then where there is crossing of the threshold being uncertain, and the evidence seem to be more substantial in nature, there can be escalation of the potential gap with respect to the known status of gap.

4. List of Triggers: Triggers cannot be considered as gaps. Rather, they are announcements, activities, events and such that may contribute in providing signal gaps in the future context. These are highly relevant as a rare combination, organizations have been operating in a vacuum area. Public organizations particularly, signal much of what they are planning to do by each and every category of disclosures (Steinman 2009). If there is attuning with respect to these disclosures, hints can be availed for the future directions of strategies.

5. Identifying the main trends: This should be keeping tracks of the legal, consideration, products, technology and demography and a number of different areas that is relevant. In consideration of technology, the wide trends of things end up becoming cheaper, faster, smaller and increased communication cannot be considered as being revelation for majority of the people.

6. In the literature of management, analysis of gap is comparing the literal performance with the desired or potential performance. If an organization or the company has not been making the best utilization of present resources, or forgoing investment in technology or capital, it may contribute in performing or producing below the level of potentiality (Steinman 2009). This concept has similarity to the being of economy below the frontier for the possibilities of production.

Corporate Level Matrix

		Products/services
		Existing	New
Markets	Existing	Market penetration Sale of more similar categories of the products to the same categories of customers being targeted.	New products/services Sale of new products to the customers that are already a strong base.
	New	Market development Sale of the current products with the customer that are already present.	Diversification Sale of new products to the new base of customers.

Business Level Matrix

		Competitive advantage
		Lower Cost	Differentiation
Competitive Scope	Broad Target	Cost Leadership Mainly having low feasibility for the industry of pharmaceuticals.	Differentiation The production of medicine is small in size but with an attempt for broadening the target with the activities of tourism
	Narrow Target	Cost Focus Focusing on a new wave for the presentation of medicines with cheaper amount of costs.	Differentiation Focus Smaller organizations focusing on the situation of the production being made.

References

Basu, A. 2008. Characteristics of patients receiving pharmaceutical samples and association between sample receipt and out-of-pocket prescription costs. Medical Care, 46, pp. 394-402.

Brezis, M. 2008. Big pharma and health care: unsolvable conflict of interests between private enterprise and public health. Isr J Psychiatry Relat Sci 45 (2), pp. 83–9

Cassels, M. 2005. Selling sickness: How the world's biggest pharmaceutical companies are turning us all into patients. Nation Books, New York.

Steinman, M. 2009. The Neurontin legacy: marketing through misinformation and manipulation. N. Engl. J. Med. 360 (2), pp. 103–6.

Wolfe, M.D. 2010. Rapidly Increasing Criminal and Civil Monetary Penalties Against the Pharmaceutical Industry: 1991–2010. Public Citizen’s Health Research Group.