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