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Business Administration (Marketing).

MBA.

Although it has become fashionable to talk about how things business are changing at a nanosecond pace owing to hyper-competition, disruptive technologies and empowered consumers; the real change has been based on digital revolution and management of information. Most of the new introductions are entering a phase of facelessness from being innovative within a year of their appearance; whereas, as per one estimate, the breakeven volume is achieved after three years. This puts insurmountable financial pressure on marketing companies. In order to remain ahead of competition, they are introducing more and more new products in growth areas. In this paradoxical, complex situation; a reputed marketer in the pharmaceutical arena like Artichem entered a maturing market of Omeprazole whereas growth areas like Lansoprazole, Pantoprazole and Esomeprazole were still open to them. Did they make a mistake? Was it a bad idea to embark upon? Should they go for introducing new molecules even after a successful launch in the same segment?

The student shall be able to: explain the term “positioning” and shall be able to explain why he should go ahead with introducing a brand in an existing and maturing product category; explain the term “product life-cycle” and shall be able to take rational decision in the midst of pressing circumstances to manage a new product in a likely to decline market; and explain the term “new product development” and shall be able to apply the theories of new product development for brand success.

Nil.

Learning outcomes (objectives and outcomes) are as follows: to understand the brand positioning, brand building and category extension decisions of a pharmaceutical brand (operative in one of the most competitive and regulated industries in a developing country); to analyze the outcomes of decisions pertaining strategic sales, branding, marketing and strategic restructuring to overcome the challenges of growth; and to design strategic solutions for developing brand equity.

This case explores the strategy of launching and establishing a pharmaceutical brand in an industry that tends to be a highly technical and the most regulated industry. It depicts market research data, industry analysis, stiff competition and regulatory affairs, and elaborates various strategic decisions taken by the company. The primary data for the case is accumulated through in-depth interviews from six industry experts on pharma marketing who were well acquainted with Maple Pharma and secondary data is gleaned from substantive literature. Maple Pharmaceuticals launched Starpram, a high-growth, high-potential generic antidepressant brand (in the central nervous system category) containing Escitalopram molecule/chemical. It had expertise cum competitive advantage in cardiovascular and anti-diabetic streams, but such initiative appeared category extension, with the intention to diversify risk and expand the company to achieve greater economies of scale. The first year sales revenue for Starpram appeared too bleak to spur further product inaugurations. Consequently, strategic overhaul transpired to establish the brand in the highly fragmented pharmaceutical industry. The firm lacked experience in anti-depressants category, coupled with poor sales, marketing mix and overall marketing strategy. Eventually, the management exercised strategic restructuring to establish brand equity and observed growth.

Study levels/Applicability graduate (MBA), MS, PhD (management sciences).

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CSS 8: Marketing.

Used hypodermic needles were found in Stanton Convention Centre. The Centre’s department heads suggested installing secure needle receptacles. June Patterson, General Manager, quickly learned this was a divisive issue. Heated arguments focussed on two opinions: first, the Centre owed employees a safe working environment and needles constituted a significant risk to safety. Second, other department heads believed that presence of needle boxes would diminish customers’ perceptions of the Centre. According to one, “You wouldn’t find needle boxes in nice restaurants or golf courses.” Having promised a decision by the next meeting, Patterson mulled the question over and wondered how to proceed.

This case was written based on information obtained in interviews with the manager described in the case. The manager’s name, the name of the organization, and the city where it is located have all been disguised.

The authors use this case as the first contact with cases for our incoming MBA cohort in the summer pre-session to acquaint them with the basics of case analysis. However, this compact case could be used in many management courses, graduate or undergraduate, to illustrate difficulties in management decision making for different stakeholder groups.

The concepts most central to our discussions of the case are management decision making and the influences of diverse stakeholder opinions on those decisions.

This case focuses on ethics issues arising from the tobacco trade. Government as regulator of that trade and guardian of public health faced complex political, financial and ethical issues in discharge of its responsibilities. The harms resulting from tobacco use were well-known and had generally attracted adverse decisions from governments everywhere. The company offering tobacco products for sale, Carreras Ltd., had generally continued to do well financially despite those adverse decisions. Government, in the present case, had introduced legislation to penalize tobacco use in public places, and in so doing, raised several ethical issues such as punishing smokers for using a legal, widely distributed product; classifying cigarettes as harmful to health yet allowing its wide distribution and sale; continuing to derive substantial tax revenue from sale of a harmful product; enabling Carreras to profit from sale of said harmful product; offering little help to smokers to break their nicotine addiction. Students should be asked to identify and recommend solutions to the ethical issues faced by: the government and its “point man”, the Minister of Health as they sought to reduce the public’s use of a harmful product. The smoker who may be even addicted to a product is known to cause or contribute to a host of serious diseases. Students were to identify and recommend solutions to ethical issues faced by the players in the case. One of these players was Carreras whose operations were facing severe regulatory and public relations headwinds. Another was the nonsmoking public whose health was put at risk even though they did not use the product. The sentences could be reworded to read; Carreras, in its continued efforts to justify selling a harmful product. Nonsmokers who, despite not using the product, suffered adverse health consequences because of its use by others.

Cigarette smoking has been linked to a long list of serious diseases including several cancers, cardio-vascular disease, pulmonary ailments and stroke. Despite several government actions over the years to reduce cigarette smoking, it remained widespread and continued to take a heavy toll on public health. The government’s latest gambit, the Public Health (Tobacco Control) Regulations introduced in 2013, represented the first legislation specifically designed to restrain smoking in “public places”. Carreras Ltd., a subsidiary of British American Tobacco (BAT), had been the only significant provider of cigarettes in Jamaica for several decades and in the period allocated for public feedback, mounted a fierce assault on the Regulations, and galvanized other private sector interests to join in that effort. The case addresses the interaction between government’s roles as guardian and financier of public health, the public’s right of choice, and a company’s right to sell a legal product, albeit one deemed harmful to public health. That government derived substantial tax receipts from trade in that product added another layer of complexity to the matter. The Minister of Health, Dr Fenton Ferguson, was the government’s point man and our protagonist.

Final year University students of Management would have been exposed to ethics theories. Many management courses do not devote enough effort to the study of the interplay between the ethical, financial, and legal and the issues that can arise therefrom to complicate decision-making. The case was structured to invite exploration of this interplay.

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CSS 11: Strategy

Competitive strategy.

Post-Graduate (MBA/Doctoral) level courses.

This paper aims to examine the evolution of Himalaya Drug Company (hereinafter referred to as Himalaya), an Ayurveda-based pharmaceutical-wellness company. Over the eight decades of its history, Himalaya has built a reputation for Ayurveda-based formulations that conform to allopathic standards and are accepted globally. In the recent years, Himalaya dramatically strengthened its competitive position of “scientific Ayurvedic products” through its entry into fast-moving consumer goods (or consumer-packaged goods), categories of wellness products as well as over-the-counter (non-prescription) drugs. This case describes the focused differentiation strategy of Himalaya and sets out the challenges it faced/would face in sustaining its focused differentiation strategy, as it enters into highly penetrated categories such as toothpastes and soaps (that were traditionally dominated by broad differentiators and broad cost leaders).

The outcomes are as follows: to exemplify the logic of focused differentiation, where a competitor commands a higher willingness to pay than its average competitors, by narrowing its target segments; to illustrate how the firm’s entire set of activities are tailored to meet the specific needs of a set of carefully chosen products, narrow customer segments, of defined geographic markets; to highlight how a combination of tradeoffs and fit helps protect the firm’s competitive position from its potential imitators; and to demonstrate the limits of a focused strategy, specifically relating to growth, and how a company such as Himalaya can overcome such limits.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 11: Strategy.

Benecol Spread, a cholesterol-lowering margarine, was a product with unusual media-planning challenges. With a narrow target group and unproven market potential, Johnson & Johnson needed to get the most “bang for the buck” from its Benecol advertising. Would a media-planning model (optimizer) requiring executives to quantify their judgment on several key inputs be helpful in this process? A spreadsheet accompanying the case allows students to weight the target groups and to choose among different advertising vehicles to form the best possible media plan.

The area of focus is on internationalization strategies, specifically on developing suitable strategies to support an internationalization initiative of a new medical device company.

This case is designed for final year undergraduate and MBA students. It is suitable for courses of organizational management, organization theory and design, strategic management, and international business as well as international marketing.

GranuLab, a medical device company that produced the synthetic bone graft substitute GranuMaS, aspired to be a high-growth company. To achieve this aspiration the company had made plans for internationalization, which include penetrating the ASEAN, Middle East, Latin American, and African markets within the next five years. By December 2010, GranuLab had completed the construction of its new manufacturing facility in Shah Alam, about 30km from Malaysia's capital city of Kuala Lumpur. This manufacturing facility had the capability to produce high volumes to support the company's high growth plan. However, the company's internationalization processes had taken longer than expected and this has led to a low business volume. By mid-2012, the company was forced to make a quick decision as it had suffered a year and a half of operations losses. GranuLab had to formulate a strategy as to how to position GranuMaS and penetrate the targeted markets. Failure to internationalize would incur even greater losses and might hinder the achievement of its high growth aspiration by 2015.

This case is designed to stimulate case analysts' thinking into providing recommendations for the appropriate internationalization strategies to be adopted by the management team to ensure that the company could succeed in achieving its goals. The case will expose students to the concepts and theories of strategic management, international business, international entrepreneurship; and facilitate the development of students' abilities to apply those concepts in managerial situations.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Start-ups, entrepreneurship, innovation and innovative practices, risks, uncertainties, differentiation, internationalization, competition, business models, operationalizing and implementing strategy.

The case is suitable for MBA students.

Vinay moved to the capital city of a Northern Indian state, which also happened to be a commercial hub, after his family business failed. The family succumbed to living in a room without electricity and doors. Vinay had dreamt of establishing his own business empire by being a successful entrepreneur. Steered by this intent, he established a pharmaceutical company with the name of Ayuvayur Pharmaceuticals. The challenge was to establish an innovative Ayurveda-based pharmaceutical products-based firm and to build a leading business empire with a customer focus. Progress was not smooth and the challenges ahead multiplied. Despite his ability to cope with barriers, risks and uncertainties, Vinay and his business, was challenged to grow globally and emerge from its nascent structure. How should the business expand?

Students can discover the following key learning points: how an enterprise is born; the importance of entrepreneurial recognition and orientation; the lead characteristics of an entrepreneur; how a start-up is born despite the unfamiliarity of the entrepreneur with the field he enters; the role of innovation in a small enterprise; and the risks, barriers, uncertainties and challenges associated with entrepreneurial activity.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Operations and human resourcing.

This case study is intended for use in graduate, executive level management and doctoral programs. The case study illustrates a combined IT and HR driven participative management control system in a flexible organization structure. It is intended for a class discussion rather than to illustrate either effective or ineffective handling of an administrative situation.

The case describes the situation of managing unskilled workforces (≥14,000 workers) during the construction phase of the 4 × 250MW power plants both for purposes of turnout as well as due compensation, in the event of an accident. The approved labour forces appointed for 45 × 8 h. Man-days after a rigorous fitness test and approvals of the safety officer are allocated housing and other necessary amenities and a commensurate compensation system.

These include: illustrating typical organizational responsibility structure at a construction site of a large power plant; illustrating the planning and administrative control mechanism in implementing strategy at a construction site of a large power plant; offering students the opportunity to understand and view a typical operational (project) structure; allowing students to speculate adaptations in the wake of an ever-changing business and company environment; and providing an opportunity to introduce a power scenario in India, Indian labour laws and radio frequency identification technology and to relate this to the case in context.

Teaching notes are available; please consult your librarian for access.

This case examines the decision by the Swiss pharmaceutical Roche Holding AG (Roche) to offer a record $42 billion bond in February 2009. In light of a pending acquisition of U.S. biotechnology leader, Genentech, Roche management planned to sell $32 billion in bonds at various maturities from 1 year to 30 years and in three different currencies (U.S. dollar, euro, and British pound). In a context of substantial uncertainty in both world financial markets and the value of the Genentech deal, students are introduced to the pricing of corporate bonds by being invited to price Roche's bold global offering.