Corporate Strategies of CSL Free-Samples-Myassignmenthelp.com

Question: Discuss about the Corporate Strategies of CSL. Answer: Introduction CSL is a worldwide recognized biotherapeutics organisation which significantly delivers as well as develops the pioneering biotherapies which aid in live saving and also help the individuals with the serious medical illness live full lives. There are around 30 overseas nations where the company has made a renowned presence with its efficient operations and approximately 17,000 employees (CSL, 2017). The primary area of business are the US, United Kingdom, Switzerland, Germany and Australia. Development and growth of CSL through the application of corporate strategies CSL works globally with a vision to have its primary focus on five major elements including customer focus, innovation, integrity, collaboration and superior performance. The company works with a mission statement to address the needs of maximum number of the individuals suffering from serious and threatening medical illness. By the means of its innovative therapies it mission is to save thousands of lives (CSL, 2017). The core competencies are the one because of which CSL has gained such a renowned brand recognition and worldwide presence. Its core competencies comprises of extensive capacity of research and development which offers innovativeness to the company, honest and ethical activities, high level of collaboration which provided strength to the company to undertake major projects, and the best quality of services. With these core competencies, the company is expanding globally with a rapid rate (CSL Behring, 2017). Successful strategies deployed in the past There are several corporate strategies which the company has taken use of and implemented in the organisation for achieving continuous success and growth. Following are the few strategies which CSL has incorporated for achieving huge success. Emergent Strategies Research and development Partnerships: the company has made huge investments in the research and capital department for the development of the new and innovative products. There has been made several partnerships with various numerous academic institutions for supporting the pioneering research programs. Thus, this strategy helped CSL in developing new and innovative product (CSL, 2015). Growth Strategies Global expansion: CSL have already expanded in business in almost 30 nations. Expanding sales and products offerings in these overseas regions is one of the growth strategies of the company to increase its glob al reach, customer base and sales. Current strategies of CSL Following are the current strategies which the company is taking sued of for having increased market share and greater revenues with high markets sustainability. Strategic Partnership Tying partnership knots with large hospitals: It is the current strategy of the company to have further growth i.e. ton to have partnerships with large and big hospitals where the medicines of CSL can directly be served to the patients and thus expanding the use of CSL drugs in major hospitals. Growth Strategies Expansion: Being a successful past strategy, the expansion strategy is also one of the current growth strategies of the organisation. CSL is also planning to expand its business operations in many of the untapped and new regions in the overseas countries. Thus, it can have huge brand recognition and growth by having expansion in other countries (Greenblat, 2010). Ethical and Sustainable Approach By having past history of indulging several unethical practices, the company now have a strategic move to work on high ethical standards and sustainability approach so that there can be improved support from the Government as well as from the legal authorities so that theere can be maintained the smooth functioning of the companys business practices (Stetson, 2017). Business practices of CSL and their criticism Criticism 1: Criticism by FDA (Food and Drug Administration) of US about objectionable practices and conditions and high level of manufacturing flaws in vaccines manufacturing Business practice: the manufacturing operations of CSL were found to be unethical and inappropriate. The vaccines manufactured by the company were criticized because of the high level of manufacturing flaws in them. It was also revealed that the workers even do not wore masks at the time of manufacturing of these vaccines. There were also conducted deficient checks and investigations which revealed that there are issues and problems in some of the processes which the organisation is not concerning upon. The company was also criticised by FDA for the no adequate evaluation of the testing conducted for the raw material. The company take use of the raw material without any proper analysis (Hall, 2011). Its Outcome: the outcome of this unethical business practice and the criticism faced by the company was that there was conducted strict scrutiny of the manufacturing processes and the raw material of CSL. The FDA issued a warning letter against the organisation by raising severe concerns regarding the manufacturing processes. And also warns CSL that if these issues are not fixed then the authority will withdraw the license from the company of selling the products in the US markets. Criticism 2: Criticized for artificially hiking the prices of plasma-derivative protein therapies Business practice: there was an unethical business practice in which CSL deliberately involved. The scam was related to the price-fixing of the plasma-derivative protein therapies. There was involvement of CSL Plasma Inc., CSL Behring LLC and CSL Limited in the scandal. The company unethically and secretly fixed the prices of the blood plasma derivatives immunoglobin and albumin for raising the prices of some of the particular therapies (247LawsuitNews, 2017). Its Outcome: The outcome of this scandal and unethical business practice was that a Blood Plasma Antitrust Suit was filed against the CSL. The company paid $64 million to resolve the issue and to escape from the consequences of this scandal. The organisation also ruined it brand image as well as there was huge criticism from the customers, Government, law regulating bodies, industry as well as the stakeholders (Broady, 2017). SWOT Analysis of CSL Following is the SWOT analysis of CSL which provides in-depth analysis of the companys strengths, weaknesses, opportunities and threats. The analysis will help the organisation in understanding its weak points where it needs to work, its strengths of which it can use to grow, the relevant opportunities to help in planning business expansion and the relative threats for making appropriate plans for contingencies and future moves. Strengths The industry of biotechnology is booming with a rapid rate across the globe and CSL is one of the most renowned and recognized brand in this industry and specifically in Australia. The Research and Development department of the company is highly efficient and have enough capacity to have continuous innovations in the operations of the business. Possessing a vigorous RD capacity offers numerous competitive advantages to the company (CSL, 2017). The operations of CSL are extended in the niche segments of genetics, anti-venom, vaccines, etc. this offer extensive market reach to the company and provide strength of extended customer base. There are some of the products which are the core strengths of the company such as cell culture reagents, anti-venom, vaccines and blood plasma derivatives. These products have a strong market share which offers great revenues to the company and strengthen its market share (Researchandmarkets, 2017). Weaknesses The biggest weakness of the company is the diseconomies to scale which is due to the improper management of the large workforce which results in increasing outputs and increasing marginal costs. There are several ethical issues in which the company has indulged. Because of all those issues, the brand image of CSL has been deteriorated and this is one of the weaknesses for its future sustainability and brand reliability. Three is required huge capital investments for the development of every new innovation or technology as a huge amount of research is to be conduct for the creation of the new products (CSL, 2016). Opportunities There are opportunities available for the company related to have increased awareness regarding the usage of enzymes, stem cells, etc. The company has an opportunity to expand its operations in these areas. There can also be done integration of the technologies i.e. to have integration of biotechnology with the nanotechnology and the innovative technologies present in the market. The integration of these technologies will result in development of next generation and pioneering medicines and other medical products. The company also has an opportunity of tying up with numerous big and large hospitals and encourage the use of its products and stem cells (CSL, 2017). Expansion in various other untapped overseas nations and also domestic regions. Threats The biggest threat to CSL is of the government laws and regulations which are extremely strict and restrict all kind of unethical work and production of the drugs or medicines. There is an essential requirement of skilled and competent labour who can handle the biotechnology realigned aspects and operations. The insufficient amount of labour restricts the effective business functioning (CSL Limited, 2017). There are several other biotech organizations who have already initiated the off shoring some if their business operations. One major example of this is the starting up of operations in China of the absolute volume of the medical chemistry contract work. Organisational culture or leadership style of CSL CSL has a strong and vigorous organisational culture which supports the business function and the mission and vision statement of the company. The organisational culture of CSL comprises of the five core values which guides the working of the company. The first core value is customer focus, the company is highly committed to its customers i.e. the patients which requirement medications. The company make efforts to offer the most required medicines to the individuals and improve their lives. To improve the customer focus, the company also conducts education al programmes, support and sponsor the patient programs and also invest high in medical research. The second core value is innovation; CSL invests a lot in its research and development, this result in development of innovative medicines, vaccines and other innovative biotherapies. The next core value is integrity; the company remains committed to the legacy of helping and providing services to the patients who are primarily depends upon the products of CSL for their lives. The company try to maintain high ethical standards in its operations. Another value of CSL is collaboration; the organisation collaborates with the home healthcare organisations, pharmacists, nurses, physicians, investigators, plasma donors and patient groups. There is collaboration with all these individuals for achieving improved results. The fifth and the last core value of CSL is superior performance; the company is highly performance-driven as well as customer-focused (CSL Behring, 2017). The organisation works in such an environment which encourages innovation and strives hard to serve the best possible products to the individuals. Paul Perreault, the CEO of CSL is one of the leaders of the company who have supported the success and growth of the organisation in numerous ways. From motivating the employees to planning the strategies, in every aspect, Paul has sustained the development of CSL. Paul has its major contribution in the improvement of the organisational culture by linking the core values with all the operational functions. Paul works and follows the patient-centric leadership where the needs of the patients are the key priority of the organisation and the individuals working for the organisation (CSL Behring, 2016). Paul always tries to maintain an organisational culture which supports the fulfilment of the patients requirements with utmost quality and high standards products and services References 247LawsuitNews, 2017. Plasma-Derivative Protein Therapies Antitrust Litigation. Accessed on: 9th May, 2017. Accessed from: https://www.247lawsuitnews.com/multi-district-litigation/mdl.asp?case=Plasma-Derivative+Protein+Therapies+Antitrust+Litigationid=127 Ashley Hall, 2011. CSL to address drug manufacturing concerns. Accessed on: 9th May, 2017. Accessed from: https://www.abc.net.au/news/2011-09-29/csl-to-address-drug-manufacturing-concerns/3041910?pfmredir=sm CSL Behring, 2017. CSL CEO Paul Perreault Focuses on Patient-Centric Leadership in Pharma. Accessed on: 9th May, 2017. Accessed from: https://www.cslbehring.com/newsroom/Paul-Perrreault-Keynote-at-eyeforpharma-2016-on-Patient-Centric-Leadership?tabSelections=1255923338766currentPage=2 CSL Behring, 2017. Vision Values. Accessed on: 9th May, 2017. Accessed from: https://www.cslbehring.com/about/csl-behring-vision-values.htm CSL Behring, 2017. Vision Values. Accessed on: 9th May, 2017. Accessed from: https://www.cslbehring.com/about/csl-behring-vision-values.htm CSL Limited, 2017. Company Description. Accessed on: 9th May, 2017. Accessed from: https://gmsnet.kr/kor/grobal_research/1.CSL-Limited.pdf CSL, 2015. CSL Annual Report 2014-15. Accessed on: 9th May, 2017. Accessed from: https://www.annualreports.com/HostedData/AnnualReports/PDF/ASX_CSL_2015.pdf CSL, 2016. CSL Annual Report 2015-2016. Accessed on: 9th May, 2017. Accessed from: https://www.csl.com.au/docs/527/647/CSL_AR16_Sec,0.pdf CSL, 2017. About CSL. Accessed on: 9th May, 2017. Accessed from: https://www.csl.com.au/about CSL, 2017. Innovation. Accessed on: 9th May, 2017. Accessed from: https://www.csl.com.au/corporate-responsibility/innovation.htm CSL, 2017. Investment in RD. Accessed on: 9th May, 2017. Accessed from: https://www.csl.com.au/research-development/investments.htm CSL, 2017. Our Centenary - Celebrating 100 years. Accessed on: 9th May, 2017. Accessed from: https://www.csl.com.au/centenary/CSL100.htm Gavin Broady, 2017. CSL To Pay $64M To Escape Blood Plasma Antitrust Suit. Accessed on: 9th May, 2017. Accessed from: https://www.law360.com/articles/478472/csl-to-pay-64m-to-escape-blood-plasma-antitrust-suit Greenblat, E. 2010. CSL injects expansion plans into its strategy. Accessed on: 9th May, 2017. Accessed from: https://www.smh.com.au/business/csl-injects-expansion-plans-into-its-strategy-20100217-oe1t.html Researchandmarkets, 2017. CSL Limited (CSL) - Financial and Strategic SWOT Analysis Review. Accessed on: 9th May, 2017. Accessed from: https://www.researchandmarkets.com/reports/1315558/csl_limited_csl_financial_and_strategic_swot.pdf Stetson, 2017. CSL 501 Evaluation and Assessment. Accessed on: 9th May, 2017. Accessed from: https://www.stetson.edu/artsci/counselor/media/Courses.pdf