Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation

Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation Description

Orchid Chemicals & Pharmaceuticals Limited (Orchid) is an Indian pharmaceutical company which began operations in 1994. Over a span of 10 years, the turnover of this company has increased from US$11 million to US$153 million. The company's profit after tax registered a five-fold increase, from US$1.3 million to US$6.8 million, in the corresponding period. Early success was a combination of pricing flexibility, lower production cost, and business opportunities in unregulated markets. Orchid decided to explore opportunities for the manufacture of generic drugs in the regulated markets and formulations in the domestic market. Diversification to basic research was also considered. Cooperation and joint ventures were the primary route to expand and explore new molecule discovery. By 2005, Orchid was no longer a single-product company, its business had widened to multiple products in bulk, formulations, and generics, in both regulated and unregulated markets. Orchid was making its presence felt in its novel drug delivery systems and new drug development processes. In 2005, Orchid faced several challenges related to financial leverage and risks, leadership, managerial challenges associated with joint ventures, balancing the new business model, setting global trends in being a pioneer in the industry, addressing shareholders' concerns, and evolving an appropriate organization culture and process.

Case Description Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation

Strategic Managment Tools Used in Case Study Analysis of Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation

STEP 1. Problem Identification in Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation case study

STEP 2. External Environment Analysis - PESTEL / PEST / STEP Analysis of Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation case study

STEP 3. Industry Specific / Porter Five Forces Analysis of Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation case study

STEP 4. Evaluating Alternatives / SWOT Analysis of Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation case study

STEP 5. Porter Value Chain Analysis / VRIO / VRIN Analysis Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation case study

STEP 6. Recommendations Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation case study

STEP 7. Basis of Recommendations for Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation case study

Case Analysis of Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation

Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation is a Harvard Business (HBR) Case Study on Organizational Development , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Organizational Development, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Organizational Development Solutions

In the Texas Business School, Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation

Step 1 – Problem Identification of Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation - Harvard Business School Case Study

The first step to solve HBR Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Orchid Formulations is facing right now. Even though the problem statement is essentially – “Organizational Development” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Orchid Formulations, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation.

The external environment analysis of Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation case study. PESTEL analysis of " Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation

To do comprehensive PESTEL analysis of case study – Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Policy Making Impact on Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation

Government policies have significant impact on the business environment of any country. The firm in “ Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Orchid Formulations is operating, firms are required to store customer data within the premises of the country. Orchid Formulations needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Orchid Formulations in case study Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Orchid Formulations in case study “ Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Orchid Formulations in case study “ Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Taxation & Regulation Impact on Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Orchid Formulations can compete against other competitors.

Government Scheme & Subsidies Impact on Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System & Stability, and its Impact on Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Orchid Formulations needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation

Social Factors that Impact Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation

Technological Factors that Impact Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation

Environmental Factors that Impact Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation

Legal Factors that Impact Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation

Step 3 – Industry Specific Analysis

What is Porter Five Forces Analysis

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation case study. PESTEL analysis of " Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

Step 4 – SWOT Analysis / Internal Environment Analysis

Step 5 – Porter Value Chain / VRIO / VRIN Analysis

Step 6 – Evaluating Alternatives & Recommendations

Step 7 – Basis for Recommendations

References :: Orchid Chemicals & Pharmaceuticals Limited: Managing the Value Chain Transformation case study solution