Transforming a pharmaceutical business:
Optimization in a family business environment
A pharmaceutical company, established in the late 1980s by a married couple, was confronting intense competition from global players, putting its long-term viability at risk. To expand and evolve into a full-service pharmaceutical company (FIPCO), it was crucial to revamp its business operations and roll out a fresh strategy. Moreover, the couple's three sons, who had grown up alongside the business, each took on significant roles within the company.
Context
Optimize business processes and scale the company to a full-service pharmaceutical company.
Ensure that the transition to the newly formulated strategy took into account family dynamics and the roles of each family member in the business.
Objectives
Approach
From initial analytics and conversations with family members, a picture of the current state of affairs was formed. This was followed by sessions with each family member to identify their respective visions for the future of the business and their roles in executing the new strategy. Once goals and strategy were agreed upon, areas of responsibility and resources were identified for each area of the business.
A strategy for the next five years was developed covering all aspects of the business including production, marketing, and management.
Implemented 95% of the strategic plan in the first year, including optimizing production processes and launching new products.
Increased involvement of all family members in the management and growth of the business.
Results
Conclusion
The transformation of the pharmaceutical business to a FIPCO in a family-run environment required careful planning and building communication among family members. Through collaborative efforts and a well-defined strategy, the company successfully adapted to new challenges and remains on the path to growth and prosperity.