The original case was about Chiron, a biotechnology company, in the United States. Chiron was acquired in 2006 by Novartis, a Swedish company formed by the merger of Ciba-Geigy and Sandoz Laborites. Since Chiron itself no longer exists, we have focused our case around Novartis as of 2013. Novartis specializes in diagnostic services, generic and name brand medications, ophthalmological tools, as well as a small segment in pet health. The business prides itself in producing the latest drugs, hiring the best talent, and being a global leader in the pharmaceutical industry. Over the years the company has survived by focusing on its internal development in addition to a series of mergers, acquisitions, and corporate restructurings. Being a pharmaceutical company, the entire population is impacted: patients, physicians, employees, hospitals, and investors are some of the most important stakeholders.
We first began our analysis of Novartis by evaluating the company’s strategic direction. Novartis’ mission statement is to care and to cure. They are a company that wants to discover, develop, and successfully market innovative products to prevent and cure disease, to ease suffering, and to enhance the quality of life. Novartis also hopes to provide a shareholder return that reflects outstanding performance and to adequately reward those who invest their money, their time, and their ideas in their company. Like most companies in the industry, Novartis’ vision is to become the best pharmaceutical company through the achievement of sustainable and profitable growth. Novartis has a performance oriented culture and top down leadership style. By having a performance oriented culture the business pushes creativity and free thinking while focusing on collaboration and innovation. A top down leadership style is needed for Novartis to be able to achieve its corporate goals.
Next we focused on the five pieces of the internal strategy diamond. The company has six primary product categories: diagnostic services, pet health, eye care, patented drugs, generic drugs, and vaccines. Novartis distributes their products and services through the use of sales staff and a global shipping network. Their target market consists of hospitals, physicians, and pharmacies all over the world. This company has grown rapidly over the past twenty years, and their exceptional talent, research and development, and patents for products have all greatly contributed to their success. Novartis has been fortunate enough to have not only grown internally, but also externally. Their internal growth is attributed to the company’s focus on making new drugs and successfully marketing them. Externally the company has been able to grow due to acquisitions, mergers, and partnerships with other companies. The details pertaining to the staging of Novartis will be address shortly.
Novartis differentiators have been able to set them apart from the rest of the competition. Those differentiators include:...