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Case study
Publication date: 1 August 2024

Renuka Kamath and Aditya Karthic I

After completion of the case study, students will be able to appreciate the challenges in managing a pharma sales team by learning the nuances of business hygiene, learn how new…

Abstract

Learning outcomes

After completion of the case study, students will be able to appreciate the challenges in managing a pharma sales team by learning the nuances of business hygiene, learn how new managers taking over a pharma sales team analyze data of a sales territory by balancing both quantitative and qualitative factors, evaluate the challenges of performance management of sales teams and balancing the expectations of various stakeholders, understand the approach of sales and effort hygiene – correlating data points that may not be directly connected but have a dependency and learn to forecast and build a business projection

Case overview/synopsis

Innov-Health’s dermatology (skin and hair) division in West Bengal, an Eastern state of India, recently hired Pradeep Vir as the area business manager. Innov-Health, a leading 100-year-old global healthcare player, was headquartered in the USA, with categories spanning oncology, immunology, neurosciences, metabolic, dermatology and pain management. Its brand Acnend, an acne cream, the only product in the division, was a market leader in India. Acnend required doctors’ prescriptions to be bought and was sold by pharmacies via distributors. In India, Acnend was doing well at the end of the first quarter (January–March) of 2022 in a highly competitive product category. Vir had just joined the West Bengal territory with four major cities, each with a district manager (DM). The position had been vacant for the past three months, but the DMs had done well in their sales performance for Quarter 1. All of them had achieved their targets, so Quarter 2, when he joined, started on a high note. But Salil Govind, the regional sales manager, his boss, was very concerned that a territory that had no manager had been consistently doing so well. He was concerned that the territory had far greater potential than the Quarter 1 projections had laid out. Govind now wanted Vir to re-work the Quarter 2 projections of West Bengal on priority since April had already begun. As Vir started working on the data, he was perplexed. While at a very obvious level, all four DMs were outperforming, there were gaps in varying degrees in the effort levels of each. The cumulative key performance indicators such as inventory, call average and doctor coverage and the data essentials for business hygiene[1] were worrisome and needed to be addressed. In addition, the doctor coverage, resulting in conversion, left a lot to be desired. However, he was conscious that he was new to the organization and would have to tread carefully. He wanted to do well. Vir got down to analyzing and taking action.

Complexity academic level

This case study is suitable for use in graduate-level management programs. It can be useful in courses such as sales management, marketing strategy and marketing analytics. The case study is also well suited to introducing students to the basics of sales, sales productivity, territory management, managing a team and business forecasting. The case study provides students a step-by-step understanding of business hygiene, and how just looking at overall sales numbers may not be conclusive, but a deep dive into effort and productivity is far more useful for forecasting.

Supplementary materials

Teaching notes are available for educators only.

Subject code

CSS 8: Marketing.

Details

Emerald Emerging Markets Case Studies, vol. 14 no. 3
Type: Case Study
ISSN: 2045-0621

Keywords

Open Access
Article
Publication date: 12 July 2024

Esha Upadhyay and Rohit Kumar

Wockhardt Ltd. is a global, research-based pharmaceuticals and biotechnology company headquartered in India. The company went through an ambitious period of growth, mainly using…

Abstract

Purpose

Wockhardt Ltd. is a global, research-based pharmaceuticals and biotechnology company headquartered in India. The company went through an ambitious period of growth, mainly using acquisitions as its primary inorganic growth strategy until the 2008 financial crisis. This period saw Wockhardt struggling to meet its financial obligations while at the same time confronting legal and regulatory challenges. Post this period, the company executed several strategic changes to its businesses to facilitate a recovery. The case asks students to assess Wockhardt’s strategic response to the crisis and its future success as a pharmaceutical company in an industry marked by intense competition.

Design/methodology/approach

The case is based on secondary data sources and publicly available information. The company’s data and its history over the past six decades have been examined. Newspaper articles, journal articles, company annual reports and analyst firm reports have been used to gather information and have been cited accordingly. Financial data have been obtained from the Centre for Monitoring Indian Economy (CMIE) Prowess database.

Findings

The case highlights some interesting findings from Wockhardt’s handling of its financial problems and subsequent recovery process. Key insights come from its multi-pronged strategy to first stabilize and then continue to expand its core pharmaceuticals business by identifying new markets for its products and alternate channels for growth.

Originality/value

Previous cases on Wockhardt have focused on the financial aspects of the crises, particularly the corporate debt restructuring (CDR) process that was undertaken, the challenges of hedging foreign currency risk and the drawbacks of using foreign currency convertible bonds (FCCBs). In this case, we emphasize the unique aspects of Wockhardt’s business strategy, from its initial acquisition-based inorganic growth, its crisis response and management and finally the strategic execution of its recovery and continued expansion.

Details

IIM Ranchi Journal of Management Studies, vol. 3 no. 2
Type: Research Article
ISSN: 2754-0138

Keywords

Article
Publication date: 11 September 2024

Md Mostain Belal, Vinaya Shukla, Salman Ahmad and Sreejith Balasubramanian

The pharmaceutical industry is facing significant pressure to tackle antimicrobial resistance (AMR). Other ecological, societal and regulatory pressures are also driving the…

Abstract

Purpose

The pharmaceutical industry is facing significant pressure to tackle antimicrobial resistance (AMR). Other ecological, societal and regulatory pressures are also driving the industry to “go green”. While such a (green) transition could be possible through appropriate green practices’ implementation, the present understanding about it is superficial and vague. A key reason is the lack of green practices’-related studies on pharmaceuticals, which are also insufficiently comprehensive. This knowledge gap is sought to be addressed.

Design/methodology/approach

A systematic literature review (SLR) was conducted with 73 carefully selected articles, then subjected to thematic content analyses for synthesising the relevant themes and sub-themes.

Findings

Around 76 operational-level green practices covering all key stakeholders across the drug lifecycle were identified. It was revealed that designing drugs having accelerated environmental degradability is important to combat AMR. Also, redesigning existing drugs is environmentally more resource-intensive than developing new ones with significant cost-saving potential in solvent recycling and flexible manufacturing, both of which are not common at present. With regards to green-related barriers, stringent quality requirements on drugs (and therefore risks in making relevant green-oriented modifications) and time-consuming and costly regulatory approvals were found to be the key ones.

Practical implications

The operational green practices’ framework developed for individual pharmaceutical supply chain stakeholders could help practitioners in benchmarking, modifying and ultimately, adopting green practices. The findings could also assist policymakers in reframing existing regulations, such as Good Manufacturing Practices or GMP-related, to promote greener drug development.

Originality/value

This work is the first systematic attempt to identify and categorise operational-level green supply chain practices across stakeholders in the pharmaceutical sector.

Highlights

  • Biodegradability of drugs is more important than environmental degradability.

  • Flexible manufacturing process design (or quality by design) reduces resource wastage.

  • Ecopharmacovigilance is effective in combating PIE and AMR-related issues.

  • Upstream and downstream coordination is key to greening pharma operations.

  • Costly and time-consuming regulatory approval is a key barrier to greening pharma processes.

Biodegradability of drugs is more important than environmental degradability.

Flexible manufacturing process design (or quality by design) reduces resource wastage.

Ecopharmacovigilance is effective in combating PIE and AMR-related issues.

Upstream and downstream coordination is key to greening pharma operations.

Costly and time-consuming regulatory approval is a key barrier to greening pharma processes.

Details

Management of Environmental Quality: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1477-7835

Keywords

Article
Publication date: 6 May 2024

Sucharita Bhattacharyya, Bibek Ray Chaudhuri, Susmita Chatterjee and Debashis Chakraborty

The Indian pharmaceutical industry currently faces multiple challenges, including rising costs and slowing export growth, which in turn have limited its ability to expand presence…

Abstract

Purpose

The Indian pharmaceutical industry currently faces multiple challenges, including rising costs and slowing export growth, which in turn have limited its ability to expand presence in global canvas. Given the nature of sectoral dynamics, a pharmaceutical firm must undertake huge investments in R&D to introduce product innovation, in turn enhancing market share and sustaining profit streams. The development of novel medicines, confirmed by the granting of patent rights, provides a pharma company edge over its competitors. In addition, presence of innovator firms within the industry invigorates the sectoral value chain and raises efficiency. Hence, it is important to analyze whether granting patent rights enhances the exports of pharmaceutical products in the Indian context.

Design/methodology/approach

The current study explored this question using a simultaneous-equation framework. Specifically, the authors use the methods developed by Davidson and MacKinnon (1993) and Greene (2003) to obtain heteroscedasticity-consistent estimates. The time-series properties of the data were further probed, and robust estimates were used to test the theory. Methods developed by Baltagi (1981) have been used further to refine the authors’ estimations.

Findings

After controlling for relevant variables, it is observed that granting of patents caused a significantly positive impact on pharmaceutical exports. Furthermore, the change in the patent administration regime had a significant impact on patent fillings, which further impacted their exportability. Compared to patents granted patents filed had a higher impact on pharmaceutical exports.

Originality/value

This study attempts to apply the framework developed by Goldstein and Khan (1978) with necessary modifications to suit the context of a developing country. The application of the 3SLS method to estimate the export supply equation for pharmaceutical products is a novel approach to the research question in general and to the Indian context in particular. System autocorrelation and heteroscedasticity tests were performed to refine the results further.

Details

Indian Growth and Development Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1753-8254

Keywords

Book part
Publication date: 17 June 2024

Nidhi Mittal and Sangeeta Mittal

Research and development (R&D) is a vital strategy for firms to sustain their competitive locus and profitability in the global marketplace. Therefore, the existing research is…

Abstract

Purpose

Research and development (R&D) is a vital strategy for firms to sustain their competitive locus and profitability in the global marketplace. Therefore, the existing research is engrossed in the correlation between firm performance (FP) and R&D intensity (RDI) meta-analysis. It also examined the ‘Type of Firm’ as a moderator in this relationship.

Need for the Study

This study is motivated by its potential to address existing knowledge gaps, guide decision-making, influence policy and contribute to advancing theoretical and practical insights in the domain of business, economics and innovation.

Methodology

This study is based on the secondary data. The researcher uses ‘Meta- Essentials 1.5’ for meta-analysis covering the studies of developed and emerging economies from 1985 to 2022.

Findings

The outcome conveys a small effect of magnitude between RDI and FP. It also indicates the positively significant linkage between them, directing that investing in R&D projects leads to improvement in the performance of companies. It also points out that private firms engaging in R&D activities have a negative while public firms have a positive correlation with their performance.

Significance

Understanding this linkage is imperative as it aids managers in making strategic decisions, the government in funding research-related schemes and investors in choosing R&D projects for investment.

Open Access
Article
Publication date: 16 May 2024

Yeonjin Cho and Hyunjeong Nam

This paper aims to identify and report the differential effects of activity control and capability control on role stressors, which subsequently affect salespeople’s job…

Abstract

Purpose

This paper aims to identify and report the differential effects of activity control and capability control on role stressors, which subsequently affect salespeople’s job satisfaction and sales performance.

Design/methodology/approach

Drawing on job demands-resources (JD-R) theory, the authors defined active control and customer demandingness as the job demands and capability control as the job resource, and designed their relationship with role stressors, which are indicated as role ambiguity, role conflict and role overload. The authors enrolled a sample of 223 industrial salespeople from pharmaceutical companies. After collecting the data, the authors used structural equation modeling using AMOS to test and estimate causal relationships along with a two-step approach to examine the interaction effect. The authors have also tested the simple slope of two-way interactions. All of the measured variables were identical to those used in previous studies.

Findings

The study findings indicate that behavior-based control can be counterproductive. Reducing activity control can decrease role stress, increase job satisfaction and improve job performance; increasing capability control, however, can reduce role stress and increase job satisfaction and performance. It is also important to acknowledge the external environment of the sales context in which behavior-based control is most effective: whereas high customer demandingness and capability control are related to reduced role stress, high customer demandingness and activity control are related to increased role stress.

Practical implications

Sales managers should recognize that different control management regimes reinforce or mitigate salespeople’s job stressors and outcomes under specific conditions (i.e. work environments marked by higher or lower customer demandingness).

Originality/value

Drawing on JD-R theory, the research shows that a behavior control (i.e. activity control and capability control) has differential, and even opposite, psychological consequences.

Details

Journal of Business & Industrial Marketing, vol. 39 no. 13
Type: Research Article
ISSN: 0885-8624

Keywords

Book part
Publication date: 28 May 2024

Gautam Samaddar and S.K. Bhogal

The pandemic slowed down most industries globally, but health care maintained its steady growth, and for Pharma, it was a boom. Considering the comparatively better economic…

Abstract

The pandemic slowed down most industries globally, but health care maintained its steady growth, and for Pharma, it was a boom. Considering the comparatively better economic condition of India than other developed countries post-COVID-19, and the Russia–Ukraine war, multinational manufacturers of medical equipment companies are focusing on securing the maximum share of wallets from India through partnerships with health care service providers. The study tried to analyze the impact of the strategic key account management (KAM) partnership between multinational medical technology (MedTech) companies and health care service providers, from a global perspective. For the study, primary data were collected through questionnaires survey, and secondary data through a review of literature. The chi-square was tested using IBM SPSS software, and based on the results, three null hypotheses were rejected and one was accepted. Secondary data reveal that the Indian health care sector is highly competitive from a global perspective which can be observed by Nos of Venture Capital (VC) investment in health care, massive growth in medical tourism, and huge investment by international pharmaceutical companies in India. This partnership will help to develop more clinical packages through a clinical trial in India in a cost-effective way which will drastically reduce the manufacturing cost of high-tech medical equipment giving them an edge in global competition and also improving return on investment (ROI) for the partners.

Details

Contemporary Issues in International Trade
Type: Book
ISBN: 978-1-83797-321-7

Keywords

Article
Publication date: 21 December 2023

Rick Hardcopf and Rachna Shah

This study investigates whether a firm that has experienced an environmental accident (EA) is less likely to conduct a product recall. If true, it would indicate that EAs tempt…

Abstract

Purpose

This study investigates whether a firm that has experienced an environmental accident (EA) is less likely to conduct a product recall. If true, it would indicate that EAs tempt firms to hide operational problems that need to be revealed. The logic is that both events are operational failures that damage a firm's reputation and share price. Following an EA, a firm may avoid a discretionary product recall to avoid providing additional evidence of operational incapability and social irresponsibility and thereby triggering amplified reputational and market penalties.

Design/methodology/approach

The dataset is compiled from several public and private sources and includes 4,355 product recalls, 153 EAs and 120 firms from the industries that often recall products, including automotive, pharma, medical device, food and consumer products. The study timeframe is 2002–2013. Empirical models are evaluated using hazard modeling.

Findings

Results show that EAs reduce the probability of a product recall by 32%, on average. Effect sizes are larger when accidents are more frequent or more severe and when recalls are less severe. Through post hoc analyses, the study finds support for the proposed mechanism that firms avoid recalls due to reputational concerns, provides evidence that EAs can have a lengthy impact on recall behavior, and shows that firms are more likely to avoid recalls managed by the CPSC and NHTSA than recalls managed by the FDA.

Originality/value

Prior studies in operations management (OM) have not examined the impact of one negative event on another. This study finds that EAs tempt firms to hide operational problems that need to be revealed. While recalling fewer defective products is of concern to consumers and regulators, should EAs influence a broader set of discretionary operational decisions, such as closing/relocating a production facility, outsourcing production or conducting a layoff, study implications increase significantly.

Details

International Journal of Operations & Production Management, vol. 44 no. 7
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 10 November 2023

Paul Langley and Alison Rieple

This empirical study uncovers emotional sensemaking factors that cause changes in management perceptions about wicked strategic problems under dynamic complexity. These perception…

Abstract

Purpose

This empirical study uncovers emotional sensemaking factors that cause changes in management perceptions about wicked strategic problems under dynamic complexity. These perception changes improve understanding of, and solutions to, the wicked problem.

Design/methodology/approach

Senior managers from three large organizations in different sectors participated in gaming simulation workshops. The strategic issues at stake were intractable and divisive. Qualitative methods captured participants' perceptions of the problems and the dynamic complexity that they faced and how they changed.

Findings

Flawed management perceptions were revised as sensemaking processes were catalyzed by emotions of shock/surprise that came from experiencing unexpected stakeholder conduct within a simulation. The plausibility of the conduct was strengthened because managers were role-playing stakeholders. The shock/surprise emotion uncoupled attachment to entrenched beliefs, leading to a willingness to revise the flawed perceptions. The changed perceptions created new insights for a solution to the wicked problem.

Practical implications

Practical implications are how management practitioners can improve the tackling of wicked strategic problems through the use of shock and surprise in a gaming simulation.

Originality/value

This research extends theory on the role of emotions in sensemaking under dynamic complexity. The authors uncover how a hierarchy of managers' emotions used in sensemaking explains the catalytic effect of the shock and surprise of unexpected stakeholder conduct on revisions to their perceptions of the outcomes of the dynamic complexity.

Article
Publication date: 5 December 2023

Yushi Jiang, Sobia Jamil, Syed Imran Zaman and Syeda Anum Fatima

This paper investigates the interactional relationships between sustainable human resource management (SHRM) and organizational performance (OP). Sustainable HRM is an approach…

Abstract

Purpose

This paper investigates the interactional relationships between sustainable human resource management (SHRM) and organizational performance (OP). Sustainable HRM is an approach that links HRM and sustainability. These studies focused on integrating HR with sustainable developments, such as economic and social aspects, in favour of focusing on the environmental aspect. Organizational change is an ongoing process that has to be managed effectively to keep the change in place for a long time.

Design/methodology/approach

A framework was offered to estimate the cause-and-effect relation of the SHRM and OP factors. Data is gathered from professionals from various pharmaceutical industries. This study applied two methods, Fuzzy AHP and DEMATEL Type II. These techniques are used to understand the cause-and-effect factors and their interactions.

Findings

It was observed from the findings that the factor of SHRM, such as Social Justice (F2), Green Job Design (F5), Green Training (F6) and Implementation of Green Policy (F8), was the most critical for the pharmaceutical sector that effects Financial performance (F13), Customer Satisfaction (F15) and Market performance (F14). Pharmaceutical firms ought to coordinate public health advocacy efforts, engage in healthcare initiatives and provide financial support for environmentally friendly efforts that improve social and economic conditions.

Practical implications

For this sustainability, managers concentrate on creating an environment that is healthy and acceptable, and they work hard to mitigate the impact of natural factors and repair damage done to the environment; it is essential to move towards sustainable development to resolve environmental problems. Improving HR efficiency is among essential HRM responsibilities, as they expand the knowledge base of the workforce, enhance human capital, and eventually create valuable intangible assets and promote and encourage sustainable pharmaceutical products for some years.

Originality/value

This research paper has presented exclusive worth to the SHRM and organizational performance literature as it employs fuzzy FAHP and DEMATEL type 2. There is less research on SHRM in the pharmaceutical sector with these factors. In addition, FAHP and TYPE 2 DEMATEL are used in very few researches on SHRM approaches.

Details

Journal of Organizational Effectiveness: People and Performance, vol. 11 no. 2
Type: Research Article
ISSN: 2051-6614

Keywords

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