Swot analysis of biotech industry

SWOT Analysis Of Biotech- USE RESOURCES PROVIDED ONLY

This week, the group from Expert Foods Consultants has been tasked with conducting internal and external analysis of the infant food industry, assessing Biotech’s future in the industry and developing the business strategy for Biotech as they move forward. You will need the Biotech Company Profile to complete the analysis.

You have been tasked with conducting a SWOT Analysis of Biotech and the infant formula industry; a PESTLE analysis using the location identified during Week 2 (Ohio) for the new offices; and a Porter Five Forces analysis for the industry. The group lead has requested that the analysis tools be accompanied with explanations that will breakdown the results of each analytical tool’s discoveries. With the results of this analysis, Biotech leadership should be able to make critical decisions on the types of products (and their corresponding ingredients) the company will use during its initial product line launch.

In addition to the internal and external analysis, you have been tasked with identifying four (4) major business goals that Biotech should initially be focused on as they venture into the infant formula industry. These goals should focus on defining the entry strategy that the organization should follow as it tackles moving into an industry new to the organization. These goals should be robust but also attainable. Having clear attainable goals is great, but the goals also need to have clearly defined and explained objectives that will measure the progress to achieve these goals. Meeting these objectives should result in the future success of their corresponding goals. When writing these objectives, ensure they can clearly be related to the four goals established as critical during entry into the infant formula industry.

Instructions for Completing Phase I

Step 1: Write an Introduction paragraph

The Introduction paragraph is the first paragraph of the paper and will be used to describe to the reader the intent of the paper. This intent should be understood prior to reading the remainder of the paper so the reader knows exactly what is being covered in the paper.

Step 2: PESTEL Analysis

You will develop a PESTEL analysis by completing the following tasks:

Discuss Biotech's general environment and develop a PESTEL analysis of the infant formula industry that has an impact on Biotech;

Provide explanations for the results of each element of the PESTEL using research and the course material. The analysis will provided specific details that include explanation of why and how – generalizations are unacceptable.

Step 3: SWOT Analysis

You will develop a SWOT analysis by completing the following tasks:

Create a SWOT Table setting it up as follows. Make sure to cite each item in the table. Insert the table into the paper. Note that the table template can be found under the Syllabus module;

SWOT

Strengths

Weaknesses

Opportunities

Threats

Analyze Biotech and the infant formula industry. The weaknesses and threats should draw from the PESTEL analysis;

Provide explanations for the results of each of the elements of the SWOT using research and the course material. The analysis will provided specific details that include explanation of why and how – generalizations are unacceptable.

Note: You may not use a SWOT analysis that is already completed and available on the Internet. A zero will result if used as the analysis has to be the result of your research and your own development.

Step 4: Porter’s Five Forces Analysis

You will develop a Porter’s Five Forces Analysis by completing the following tasks:

Develop the Porter’s Five Forces Analysis providing explanations for the results of each of the Five Forces using research and the course material. The analysis will provided specific details that include explanation of why and how – generalizations are unacceptable.

Step 5: Goals and Objectives

Using the results of the PESTEL, SWOT, Five Forces:

Identify 4 major goals the Business Strategy should look to attain, with explanations as to the importance of each goal and why the goals are relevant to the strategy;

Identify a minimum of 3 objectives (per goal) necessary to accomplish each goal. Explain why the objective fits the goal. Note: Three is the minimum so to earn additional points, more objectives are needed.

Make sure the goals and objectives are not general in nature. They need to be specific to Biotech entering the infant formula industry.

Step 6: Competitive Analysis

You will perform a competitive analysis by completing the following tasks:

Identify Biotech’s three major competitors in the infant formula industry;

Using Biotech's three competitors analyze the competition's products and services explaining features, value, targets, etc. What are the competition's strengths and weaknesses and what is the market outlook for the competition?

Step 7: Review the Paper

How to Set Up the Analysis

Create a Word or Rich Text Format (RTF) document that is single-spaced, with double spaces between paragraphs. Use 12-point font. The final product will be 7-9 pages in length excluding the title page and reference page. Write clearly and concisely. Do not exceed 9 pages.

BOOK LINK: https://courses.lumenlearning.com/boundless-management/chapter/strategic-management/

Biotech Health and Life Products

Company Profile

Welcome to Biotech!

The assessment projects for this class will examine different facets of the leadership of

Biotech Health and Life Products, Inc. You will be exploring leadership within Biotech

with the driving question of “what skills does a Biotech leader need to lead the company

now and in the future?”

History

Wilford Barney was a young apprentice working for Peter Ulan, owner of a small apothecary shop in Yonkers, New York. During his apprenticeship, Barney created a general energy elixir that was based on a home remedy of his mother’s back in Ireland. The elixir was produced specifically for many of Ulan’s special customers. Made of all natural ingredients the elixir provided B12 and other vitamins to promote a healthy immune system. The energy boost was noticeable after only a week’s use. The reputation of the elixir grew.

In 1922, Barney took over Ulan’s apothecary shop renaming the business, Barney’s Apothecary. At that time, Barney decided to bottle his elixir and sell the formula to everyone rather than selected customers. Barney also gave bottles of the elixir to local peddlers who sold the product along with their wares receiving a commission on each bottle they sold. By 1929, the product was well known in Yonkers. Encouraged by the success in Yonkers Barney decided to branch out to New York City.

In 1932, Barney built a small manufacturing plant near the store where he mixed and bottled the elixir for sale. By 1934, Barney expanded sales by putting the elixir in a quarter of the apothecary shops in New York City. Sales were booming and customers inquired about other products that Barney’s had.

In 1936, Barney started a new product called Night Relief, another of his mother’s recipes. This product offered relief from night sweats and anxiety caused by menopausal symptoms or nerves. When this product proved a “secret success” with the ladies, Barney decided to bring his mother, Irene, from Ireland, and put her to work making new natural products. With his mother’s help, Barney grew the business into a small but successful manufacturer of natural “life products”. Barney coined “life products” because the products tracked natural life events in the human body and attempted to improve the customer’s discomfort in dealing with them.

The name of the company was changed to Barney’s Elixir and Life Products. The business continued to grow and with his mother’s death in 1938 the company had a gross revenue of $178,000 a year. The depression took a toll on company profits but people

still needed the boosts to their health and were able to afford Barney’s products as opposed to the medicine offered by doctors and hospitals. During World War II the company supplied the troops with a natural caffeine (Stay Clear) product that would keep soldiers awake for long periods of time and heighten their mental alertness. Government contracts derived from Stay Clear boosted the revenue of the company considerably and ushered in a new wave of interest of natural products.

By 1950 Barney turned over the reins of the daily operations of the business to his children but remained on the Board of his family owned company. By this time, the company had expanded its manufacturing plants and sales nationally to include Detroit, Michigan, Los Lunas, New Mexico, Chicago, Illinois and Atlanta, Georgia. The revenue of the company was now close to 2.5 million dollars.

In the 1960’s the social climate in America had changed and pharmaceutical companies took on greater importance in the treatment of people’s health. The discovery of new drugs and better health care shifted the confidence in the American perspective away from natural products to traditional western medicine. Although the counter culture of America still supported natural supplements, popularity for Barney’s products waned.

In 1965, Wilford’s granddaughter, Geraldine, took over the Research and Development Department (R&D) after receiving a degree in chemistry from Harvard. She had been trained as a child by her grandmother, Wilford’s mother, and knew how the recipes should look. However, she had new ideas and with the approach of the 1970’s, was ready to join the “Anjolie perfume commercial” lifestyle depiction of a 70’s women that “they could bring home the bacon and fry it up too.”

Due to the downturn in sales by 1970, the company turned to other countries for its sales base. Starting in Germany and other European countries where natural products are highly credible, Barney began to license the sale of the company’s products to local manufacturers. The name recognition grew and by the 1980’s the company was grossing over 4 million dollars in gross sales. The company moved to overseas operations and manufactured in Germany. Wilford Barney died in 1981 shortly after seeing his first grandchild, Maximillian Barney, take over the President’s positon of the company.

Studying the trends in the 1990’s about the resurgence of natural health products “Max” as he liked to be called, decided it was time for Barney’s to focus on the new interest in homeopathic and natural products especially at home in America where sales were static. In 1996, Max, wanting to get a sleeker and more modern feel to the company’s products changed the company name and logo. No longer was Barney’s a mom and pop operation but is an international business. Barney’s Elixir and Life Products was now Biotech Health and Life Products. While the products would continue to show the old Barney logo, for name recognition the new logo would take prominence on the packaging.

By 2000 the company was grossing about 1.1 billion in sales with an increase in market share. By 2012, Biotech had a 20% market share of the supplement business with

Approximately $25 billion in sales. The company is interested in expanding into infant formula.

. Currently sales for the company are at $45 billion. Maximillian Barney is still President and CEO. The stock is still held by the family and all senior management positions are held by family members.

Current Company Vision: To help provide everyone with the healthiest life possible in the most natural of ways.

Current Mission: To develop products that are safe, effective, affordable and natural with the customer’s health always their primary goal.

Current Fact Sheet

Headquarters Yonkers, New York Worldwide web address www.biotechlife.com President Maximillian Barney 2016 Gross Sales US$ 45 billion Employees 38,000 in 6 countries worldwide

Manufacturer Operations

United States Battle Creek, Michigan, Albuquerque, New Mexico,

Elkton, Maryland, Peoria, Illinois and Atlanta, Georgia

Europe England, France, Netherlands

Asia Sapporo, Japan

South and Central America and Caribbean Salvador, Brazil

Canada Product

Lines

Major Competitors

Calgary, Canada

Protein and Fitness; Personal Care, Vitamins and Food Supplements, Infant Formula (Pending)

Protein and Fitness-GNC,

Personal Care- Nestle Skin Care- Galderma, SA; Glaxo, Merke, General Mills.

Vitamins and Food Supplements- GNC, Natures Plus, Natrol, Nature’s Way, Nature’s Bounty, Hain Celestial Group, Inc, Schiff Nutrition International, Nestle

http://www.biotechlife.com/
Current Business Philosophy

Biotech has determined its long-term goal planning pattern should be no longer than three years. Three years seems more flexible than the seven year planning pattern previously used as change in the business climate is making it imperative to be more flexible. The need for innovation and competitive advantage ideas are the main focus for the next two years along with the company’s commitment to becoming a triple bottom line company. Sustainability both for profit and planet is foremost in the minds of the leadership. The development of a triple bottom line company is in the best interest of the company because of the need to keep a strong natural product image link to the community and the desire for the company to be socially responsible. Protection of the suppliers and control over product quality is critical to the development of a sound “life product.”

Current Growth Plans Business and Sales Biotech is looking to expand and is exploring the opening of a new manufacturing, sales, and distribution facility in the next year. Currently, products are sold through t h e U S a n d i t s European division but there is a great demand for its current product in Malaysia and China as well as in the United States. It was decided by senior leadership to explore a potential manufacturing and sales presence in these three areas, which would potentially increase sales and would fall under the control of a new Executive Director. As in keeping with the all-natural products, the company wants to bring a greener footprint to its new facility going beyond what many competitors have in place. This as an opportunity to gain market share; and introduce a new product line. This effort would provide a good test case for new products that would position Biotech as a leaders in innovative technology. Product Development Biotech is looking to develop an infant food line. The company has recently expanded and is now interested in pursuing infant formula.

Current Eco Sustainability Commitments Currently, Biotech has current commitments to build housing for several communities in Brazil and India where natural pharmaceutical ingredients are produced. The program reflects the company’s strong commitment to making the company a triple bottom line company by the year 2021.

Innovation and Adaptability

Development of organizational structure and culture changes are being made to introduce more collaborative decision making as well as bringing the divisions closer together in the area of shared resources and communication. The emphasis is to encourage the exchange of ideas, create an environment that fosters new ideas and makes change easier in implementation of initiatives. Biotech is concerned that the stateside organization is driving the other overseas divisions and that new ideas are being encouraged because of the cultural differences in staff. Customer innovation

workshops run by the various divisions have highlighted that R&D in Europe and Australia see differences in consumer preferences from US consumer preferences, and Biotech would like to incorporate this knowledge in its future facility. It is believed that US controlled resources are ignoring these product preferences and are thus impeding overseas sales. Corporate leaders are trying to examine how to answer this cultural gap.

Current Corporate Culture Being a family owned business, Barney’s new image has made the family a little less cohesive since it seeks to be a sleeker less clan like organization. Still the family leaders are committed to keeping the family history as a symbol for the company. It is believed that the family cultural connection gives support to collaborative decision making something the Company has been successful in promoting throughout the organization. It is also seen by the owners that their family and employees makes up the company’s customers. The family wants to encourage a customer centric culture, one that allows employees to see everything through the perspective of the customer and to make decisions with the customer’s view always paramount. Furthermore, there would be a companywide accountability to the customer in all departments. The owner wants a workforce that gives an extraordinary customer experience in every product it makes.

Current Organizational Structure

This company has a geographical division structure. However, within each division is a functional structure with production and sales at the hub. R&D, HR, IT and Finance have small staff in each division whose primary job is to liaison with headquarters to implement the decisions made by them.

Above all the Divisions is the President and CEO Maximillian Barney Housed in headquarters is the R&D, HR, IT, and Finance Divisions

Executive

Director North American Division

Executive Director European Division

Executive Director N e w D i v i s i o n (Infant Formula)

Executive

Director South America Division