Case Study - Driving Growth Through Internal and External InvestmentA small European-based pharmaceutical company had a vision of growth from the third tier into the top 10 of the global pharmaceutical industry. They needed a strategic framework to guide both investment in internal capabilities and external corporate development activities along a path that would enable them to realize this vision.
The basic questions included: What are the 2 or 3 alternative pathways available to us and which one makes the most sense for our unique situation? What are the milestones we should use to drive short- and mid-term strategic and tactical objectives? What should be the timing and sequence of major actions we might take -- such as global expansion and acquisition? What barriers can emerge and how can we overcome them as the strategy unfolds?
ApproachThe first phase included an assessment of the current state of the business to help clarify where the largest gaps were between the current status and the vision. In the second phase, an assessment of alternative growth models was made, including an examination of industry benchmarks. Finally, senior management and the board were involved in re-confirming the vision, selecting the way forward and moving ahead with implementation.
Value AddedDuring a ten-year span, the company made a series of internal investments and external acquisitions throughout the world. Today, the company is among the Top 10 in sales, having increased its profitability and realized its R&D pipeline potential.