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<p><b>PLIVA launches new strategy for the 21st century </b></p>
<p><b>PLIVAs new vision and new strategy represents the companys response to 
  the challenges that globalisation is setting before pharmaceutical companies. 
  At the same time, it represents an adjustment to the times and circumstances 
  which characterise this industry at the end of the 90s and will depict the 
  trends in the next decade. The new organisational model focuses on pharmaceutical 
  business as the core area of the companys activities. </b></p>
<p>Zagreb, 17 December 1998 </p>
<p>At its meeting held on 16 December 1998, PLIVAs Supervisory Board supported 
  the PLIVA XXI concept which defines the companys strategy for the 21st century. 
  The PLIVA XXI project is moving into its implementation phase with a business 
  reorganisation model which is the result of solutions developed earlier regarding 
  strategy and business processes. </p>
<p>Although PLIVA is today considered the most successful company in Croatia and 
  largest pharmaceutical company in the region and has in the last five years 
  recorded excellent business results as well as continuous growth and development, 
  it is necessary to redefine its organisational structure for the company to 
  continue to grow and strengthen its position in the pharmaceutical industry. 
</p>
<p>Several major factors influenced this decision being taken. With competition 
  on target markets increasing, including both large multinational companies and 
  local companies, and taking into consideration the anticipated further consolidation 
  of the pharmaceutical industry, it will become ever harder for companies to 
  differentiate themselves and achieve competitive advantages, especially in response 
  to customer needs. Also, it is necessary to create the preconditions that will 
  allow the company to compensate for losses that the company may incur after 
  the patent for PLIVAs drug azithromycin expires. </p>
<p>That is why PLIVA commenced the PLIVA XXI project in co-operation with PriceWaterhouseCoopers 
  more than a year ago with the intention to redefine its vision and business 
  strategy. The goal of the new vision and strategy is to ensure continuous long-term 
  growth of the company, increase shareholders value, and develop key processes 
  and skills, as well as the corporate culture that will support PLIVAs strategy. 
</p>
<p>The PLIVA XXI project is divided into three phases. Initial activities were 
  focused on analysing the current situation, which helped to determine what areas 
  needed to be changed and to what extent. Throughout the entire process the guiding 
  idea was a new vision of PLIVA as the leading pharmaceutical company in Central 
  and Eastern Europe, able to generate superior response to customer needs and 
  expand in other markets (USA, Western Europe and Asia) while continuing to invest 
  largely in research and development, and thus become the most significant middle-sized 
  pharmaceutical company on a global level. The main strategic feature of future 
  business operations is the Customer Intimacy concept, which is a new business 
  philosophy which hasnt been applied totally in the pharmaceutical industry 
  up to now. The basic characteristic of this concept is understanding customer 
  needs better than the competition and responding to them with products and operating 
  solutions which exceed the expectations of customers. </p>
<p>After defining the strategic concept, the second phase was concentrated on 
  developing solutions by re-engineering key support processes such as: strategic 
  planning and budgeting, developing new products, production and marketing planning 
  and integrating primary and secondary production. At the same time, the task 
  of the project team at that stage was to prepare the company to accept the necessary 
  changes and use new ways of working and new behaviour which would result in 
  establishing an entrepreneurial and winning corporate culture that supports 
  the companys goals. Prior to the implementation phase, a new organisational 
  model was designed in order for the implementation of solutions to be fully 
  supported with an appropriate organisational structure.</p>
<p> The new organisational model is in line with the new strategy and key processes. 
  It defines the pharmaceutical business as the core business of the company and 
  the business activity which is most responsible for achieving corporate goals. 
  Therefore, all internal resources have been allocated for that purpose. The 
  intention is to also have integration on a horizontal level, thus giving PLIVA 
  Krakow, and all pharmaceutical companies owned by PLIVA in the future, the same 
  level of independence in decisions, as well as responsibility, as the central 
  pharmaceutical operations have. Such an organisation should result in faster 
  and better response to the needs of local customers.</p>
<p> Within the process of integrating all the pharmaceutical aspects of the business 
  into one unit, New Product Development has been established as an independent 
  organisational unit which reflects the dedication of the company to innovation 
  as one of it major values. On the other hand, the newly appointed Portfolio 
  Management Board will enable research and development activities to be fully 
  focused on achieving pharmaceutical goals. While the implementation of designed 
  solutions is underway, the organisational model will be further developed in 
  accordance with a previously defined transitional plan until the new organisational 
  model is fully implemented. </p>
<p>Commenting on the new strategy and organisational structure, Zeljko Covic, 
  President of PLIVAs Management Board said: PLIVA has shown its willingness 
  to change, accepting capability to change as an asset that distinguishes successful 
  companies. Even though PLIVA has good financial results and keeps strengthening 
  its growth, the company has decided to undertake a significant business restructuring 
  process because the management wants to ensure all the preconditions for long-term 
  sustainable development, which in concrete terms means equipping the company 
  to be able to acquire new skills for the 21st century. I believe that the new 
  strategy and new organisational model will define PLIVA as a company whose major 
  activities are focused on further strengthening its core-business - pharmaceuticals. 
  This will enable PLIVA to become a fully integrated company that can continue 
  to increase shareholders value. </p>
1	dpavlin	1.1	<p><b>PLIVA launches new strategy for the 21st century </b></p>
2			<p><b>PLIVAs new vision and new strategy represents the companys response to
3			the challenges that globalisation is setting before pharmaceutical companies.
4			At the same time, it represents an adjustment to the times and circumstances
5			which characterise this industry at the end of the 90s and will depict the
6			trends in the next decade. The new organisational model focuses on pharmaceutical
7			business as the core area of the companys activities. </b></p>
8			<p>Zagreb, 17 December 1998 </p>
9			<p>At its meeting held on 16 December 1998, PLIVAs Supervisory Board supported
10			the PLIVA XXI concept which defines the companys strategy for the 21st century.
11			The PLIVA XXI project is moving into its implementation phase with a business
12			reorganisation model which is the result of solutions developed earlier regarding
13			strategy and business processes. </p>
14			<p>Although PLIVA is today considered the most successful company in Croatia and
15			largest pharmaceutical company in the region and has in the last five years
16			recorded excellent business results as well as continuous growth and development,
17			it is necessary to redefine its organisational structure for the company to
18			continue to grow and strengthen its position in the pharmaceutical industry.
19			</p>
20			<p>Several major factors influenced this decision being taken. With competition
21			on target markets increasing, including both large multinational companies and
22			local companies, and taking into consideration the anticipated further consolidation
23			of the pharmaceutical industry, it will become ever harder for companies to
24			differentiate themselves and achieve competitive advantages, especially in response
25			to customer needs. Also, it is necessary to create the preconditions that will
26			allow the company to compensate for losses that the company may incur after
27			the patent for PLIVAs drug azithromycin expires. </p>
28			<p>That is why PLIVA commenced the PLIVA XXI project in co-operation with PriceWaterhouseCoopers
29			more than a year ago with the intention to redefine its vision and business
30			strategy. The goal of the new vision and strategy is to ensure continuous long-term
31			growth of the company, increase shareholders value, and develop key processes
32			and skills, as well as the corporate culture that will support PLIVAs strategy.
33			</p>
34			<p>The PLIVA XXI project is divided into three phases. Initial activities were
35			focused on analysing the current situation, which helped to determine what areas
36			needed to be changed and to what extent. Throughout the entire process the guiding
37			idea was a new vision of PLIVA as the leading pharmaceutical company in Central
38			and Eastern Europe, able to generate superior response to customer needs and
39			expand in other markets (USA, Western Europe and Asia) while continuing to invest
40			largely in research and development, and thus become the most significant middle-sized
41			pharmaceutical company on a global level. The main strategic feature of future
42			business operations is the Customer Intimacy concept, which is a new business
43			philosophy which hasnt been applied totally in the pharmaceutical industry
44			up to now. The basic characteristic of this concept is understanding customer
45			needs better than the competition and responding to them with products and operating
46			solutions which exceed the expectations of customers. </p>
47			<p>After defining the strategic concept, the second phase was concentrated on
48			developing solutions by re-engineering key support processes such as: strategic
49			planning and budgeting, developing new products, production and marketing planning
50			and integrating primary and secondary production. At the same time, the task
51			of the project team at that stage was to prepare the company to accept the necessary
52			changes and use new ways of working and new behaviour which would result in
53			establishing an entrepreneurial and winning corporate culture that supports
54			the companys goals. Prior to the implementation phase, a new organisational
55			model was designed in order for the implementation of solutions to be fully
56			supported with an appropriate organisational structure.</p>
57			<p> The new organisational model is in line with the new strategy and key processes.
58			It defines the pharmaceutical business as the core business of the company and
59			the business activity which is most responsible for achieving corporate goals.
60			Therefore, all internal resources have been allocated for that purpose. The
61			intention is to also have integration on a horizontal level, thus giving PLIVA
62			Krakow, and all pharmaceutical companies owned by PLIVA in the future, the same
63			level of independence in decisions, as well as responsibility, as the central
64			pharmaceutical operations have. Such an organisation should result in faster
65			and better response to the needs of local customers.</p>
66			<p> Within the process of integrating all the pharmaceutical aspects of the business
67			into one unit, New Product Development has been established as an independent
68			organisational unit which reflects the dedication of the company to innovation
69			as one of it major values. On the other hand, the newly appointed Portfolio
70			Management Board will enable research and development activities to be fully
71			focused on achieving pharmaceutical goals. While the implementation of designed
72			solutions is underway, the organisational model will be further developed in
73			accordance with a previously defined transitional plan until the new organisational
74			model is fully implemented. </p>
75			<p>Commenting on the new strategy and organisational structure, Zeljko Covic,
76			President of PLIVAs Management Board said: PLIVA has shown its willingness
77			to change, accepting capability to change as an asset that distinguishes successful
78			companies. Even though PLIVA has good financial results and keeps strengthening
79			its growth, the company has decided to undertake a significant business restructuring
80			process because the management wants to ensure all the preconditions for long-term
81			sustainable development, which in concrete terms means equipping the company
82			to be able to acquire new skills for the 21st century. I believe that the new
83			strategy and new organisational model will define PLIVA as a company whose major
84			activities are focused on further strengthening its core-business - pharmaceuticals.
85			This will enable PLIVA to become a fully integrated company that can continue
86			to increase shareholders value. </p>