Overview As part of the contingency planning for your organization’s exit strategy, you have researched and analyzed a potential alternative buyer
**Include thorough speaker notes** Use attachments attached to create slides.
Overview
As part of the contingency planning for your organization's exit strategy, you have researched and analyzed a potential alternative buyer. As the possibility increases that the original buyer will withdraw from the deal, your VP has asked you to create a short investor pitch to help convince the alternative buyer to acquire the organization.
Prompt
investor pitch that highlights why the identified alternative buyer should be interested in buying the organization in the case scenario. Include a PowerPoint presentation that uses data and visuals you have created in earlier modules to support your pitch.
Specifically, you must address the following rubric criteria:
- Overview: Using relevant information and research completed in previous module assignments, provide a brief overview that addresses the following information (slides 1–3):
- An overview of the organization; include location, size, and market position compared with other competitors in the industry.
- An appropriate reason why the organization’s owners want to sell; you may consider factors such as value creation, competition, synergy, and product diversification to justify your answer. Also, consider the information you obtained from the top competitors’ analyses in previous assignments.
- Important Attributes: Describe three key attributes that make the organization an attractive investment opportunity for potential buyers. (slides 4–5)
- Advantages of Acquisition: Identify two specific advantages the alternative buyer will gain by acquiring the organization and provide a rationale. (slides 6–7)
- Use your research and analysis from Milestone Three to identify advantages specific to the potential buyer organization.
Running Head: 4-1 Report 1
4-1 Report: Potential Alternative Buyer/Competitor Research 2
Potential Alternative Buyer/Competitor Research
The company has found success through its new cancer treatment drugs. The cancer treatment drug market is quite saturated, and the products are mainly expensive because the disease is deadly but curable. The owner of a company is looking to sell the company, and there is one potential buyer as well. Still, due to market volatility because of the pandemic and another economic slowdown, it is expected that the interested buyer will pull out of the acquisition. To counter this setback, I will advise the company about the contingency plan and discuss the financial health of the top 3 competitors or organizations in this life science market.
North American Industry Classification Code (NAICS):
I have used the North American industry classification code website to find out competitors and potential buyers, and I have searched pharmaceutical in the keyword search bar. After the search from the website, the code is 325412. Under this section of code, the top 3 performing companies in terms of sales are Novartis Pharmaceutical Corp, Eli Lilly and Company, and Bristol-Myers Squibb Company. I have also used three criteria to identify these companies as well the international presence of the company, Annual growth in terms of sales, and work on innovation in the company. I have selected these three top companies that can be our potential buyers of all of these companies. I have chosen these criteria because the multinational companies with solid sales numbers and innovative technologies at their disposal can be good potential buyers for our company as they have strong financials to pay for the acquisition (Al‐Ubaydli & McLaughlin, 2017).
Novartis Pharmaceutical Corp:
Novartis Pharmaceutical Corporation is a multibillion-dollar company, and the current market capitalization stands above 207 billion dollars. The company has a presence in almost all developed and emerging economies. The company produces nearly all kinds of medicines related to nearly every disease or virus. The company's financial position is also solid, with a strong balance sheet and income statement. Revenue has shown a good increase recently and is currently standing at 52,877,000,000, which is not the overall highest, but there is a growth in a yearly timeframe. The recent profits have shown a significant increase which is very encouraging. The past growth rate of the company stands at 1.2% annually, which is a good number if we look at the size of the company. Cosentyx is the most selling product of the company. The company should be willing to buy a company whose cancer products are performing well in the market, allowing the company to enter this new market and earn from this opportunity.
Eli Lilly and Company:
Eli Lilly and company is another big name in the pharmaceutical sector. The company's current market capitalization stands above 297 billion dollars, making the company one of the largest pharmaceutical companies in the world. The company is listed on the New York stock exchange, and the share is currently trading at 311 dollars per share. The company is also a multinational company that manufactures and sells its products in multiple countries. The company also has strong financials, and the revenue of the company stands at 28,318,400,000, which shows an annual growth of around 15 percent. Although the cost has increased significantly, the profits seem stable, and it is expected the profit will increase in the future. The past growth of the company's last five years stands at 17 percent per annum, and the growth for the next five years is expected to be around 6.4 percent per annum. The company's most famous products are related to clinical depression drugs, and the company will be interested in buying our company to enter the cancer-related drugs market (Crommelin et al., 2010).
Bristol-Myers Squibb Company:
Out of these three companies I have selected, Bristol Myers is the smallest, with a market capitalization standing at 167 billion dollars. The company's revenue growth is more than any other company I have selected in the past three years. Revenue has doubled in three years and currently stands at 46,385,000,000 dollars, and the profits of the company have also doubled if we compare the earnings of 2018. The last five years' annual growth was around 5 percent per annum, and growth for the next five years is expected to stand at 21 percent per annum, which is an overwhelming number. The company operates in many different countries and should be interested in buying our company because of the vast revenue growth. The current growth trend will motivate the company's management to buy our company and enter the new market of cancer-related drugs (Helešicová et al., 2018).
Conclusion
These companies have huge growth potential and have a solid financial position with growth in revenues and profits. Every company with development and good profit numbers is looking to expand into different markets or another segment of the same market. We have a very successful drug for cancer treatment. These companies would love to enter a market with an already established product that will help the company increase its profit and annual growth of revenue. The contingency plan should be pitching these potential buyers the opportunity to add more growth to their existing business models. The focus should be on getting a reasonable or above the market price of the acquisition. After identifying the buyer, the company should focus on the acquisition process. After the pandemic, the focus shifted toward the pharmaceutical companies and their ability to fight the pandemic. All the companies like to expand. Instead of starting from the start, buying an already established business will help the organization focus on its growth and business-related activities.
References
Al‐Ubaydli, O., & McLaughlin, P. A. (2017). RegData: A numerical database on industry‐specific regulations for all United States industries and federal regulations, 1997–2012. Regulation & Governance, 11(1), 109-123.
Crommelin, D., Stolk, P., Besançon, L., Shah, V., Midha, K., & Leufkens, H. (2010). Pharmaceutical sciences in 2020. Nature Reviews Drug Discovery, 9(2), 99.
Helešicová, T., Pekárek, T., & Matějka, P. (2018). The influence of different acquisition settings and the focus adjustment on Raman spectral maps of pharmaceutical tablets. Journal of Drug Delivery Science and Technology, 47, 386-394.
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Running head: GUIDING COALITION 1
GUIDING COALTION RECOMMENDATION 2
Guiding Coalition Recommendations
Strategic planning is a critical point in national and international companies. There are various definitions of strategic planning by different authors, and the common point is that it is a process by which strategies are made, and efforts are made to achieve the goals and objectives. Strategic planning enables the managers to decide on a better team with influential team members to achieve the goals and objectives. The present discussion is to select a team effective to increase the sales of a potential drug. The drug is new, and it takes a lot to engage the new team in the sales and marketing of a new product.
Recommendation
Mirjam Nilsson is the organization's president, and she has been with the organization for many years. She has a beautiful personality. The purpose of mentioning her in the discussion is not to make her part of the team, but it means that she is head of the company and has to supervise the team throughout her tenure. It is better to involve her in the different aspects like the monitoring and supervision and the guiding person. She has the stamina to guide the employees to increase effective sales.
The first important member of the team to be involved is Satan. He is the human resource manager of the organization and is characterized as "a complacent member of human resources," Stan is usually the point of contact assigned to company-wide committees. Formerly he was involved in a workforce deployment change initiative, with a promotion seven years ago.
Rationale
It is risky to involve him in the team because his job satisfaction is low. He has been unsatisfied because of the few promotional opportunities in his eight-year span. The rationale would be to determine his abilities as a leader and to have the sales team is always linked with the HR team. The HR team has to decide the resources and assign important duties and responsibilities. He will report the matter to the VP of HR and lead the sales team with practical strategies to enhance sales. Their job satisfaction will increase as he is promoted to a new strategic product project. The critical factor is managing and evaluating his performance in the new project.
Chris is the organization's sales executive, passionate about his activities. He is one of the most important members of society as the sales executive essential to the team.
Rationale
He has the personality of observing business matters minutely and with great detail. He is known for "micromanaging," Chris has a realistic sense of his weaknesses and limitations. Chris led the integration of two prior acquisitions at another company and oversaw more than 150 sales reps worldwide. He has been with the organization for the last ten years, and his satisfaction level is two. The employees must be satisfied with the job because the companies are always trying to make the best opportunities for the employees. It is when the company has the opportunity to grab the employees' attention. Chris has Leslie as his team member, and he can engage her in sales-related activities as well. All these activities are essential for the company to sell the product because they can examine the market trends (Salas, 2018).
John Martensson is the third and most important person included in the team, and he is the manufacturing director. He knows the scientific background of the products, and he has fantastic experience dealing with different employees and making different drugs and other products. John is responsible for the scientific research behind the company's flagship oncology drug and "does not stop until the job is done.
Rationale
There is no reason to keep him away from the team because he knows how the drugs are made and what is the right time to introduce them to the market. He believes that the work should not be stopped because of the increasing competition and saturation in the market. In this current project, he knows how sales can be increased and how the customers can be engaged in effective team building. He has been attached to the team for the last twenty-two years and has four satisfaction levels. He has been promoted several times, and it is good to see him in the project. It is expected that he will play an essential role in the success of an organization.
Team Building Strategies
There are different team-building strategies in the organization, and they are as follows. Communication is an essential tool in the organization, and it is seen that if communication among the different departments does not occur, the company will be at risk. Communication among the team members helps the organization grow and increase its success. Three departments are added to the team, and all of them are experts in their duties. Combining all the teams in the project will help them communicate their ideas and grow professionally (Smith, 2018). There are other strategies to build an effective team like enhancement in growth, effective sales, better communication, and professional coordination. The goals and objectives will easily be met after the team building. It is important to mention that an effective team increases the chances of success several times. An ineffective team with a lack of coordination or communication is not suitable, and the product goes wasted. All these critical factors should be kept in mind while making the strategies for team building. In the current project, sales are the primary target, so the people in authority should focus on it (Lacerenza, 2018).
Conclusion
In conclusion, it is essential to mention that the team members are the strength of a company, and it cannot succeed without implementing specific strategies. It is seen in the discussion that certain employees were unsatisfied with the job, and the company has the opportunity to enhance satisfaction. The purpose was not only to look at the employees' choices, but multiple factors were necessary. The company needs to include the manufacturing, HR, and sales representative to increase their collaboration and coordination among the members.
References
Lacerenza, C. N., Marlow, S. L., Tannenbaum, S. I., & Salas, E. (2018). Team development interventions: Evidence-based approaches for improving teamwork. American psychologist, 73(4), 517.
Salas, E., Reyes, D. L., & McDaniel, S. H. (2018). The science of teamwork: Progress, reflections, and the road ahead. American Psychologist, 73(4), 593.
Smith, T., Fowler-Davis, S., Nancarrow, S., Ariss, S. M. B., & Enderby, P. (2018). Leadership in interprofessional health and social care teams: a literature review. Leadership in Health Services.
Zhang, X. C., Lee, H., Rodriguez, C., Rudner, J., Chan, T. M., & Papanagnou, D. (2018). Trapped as a group, escape as a team: applying gamification to incorporate team-building skills through an ‘escape room experience. Cureus, 10(3).
HR-Employee-Attrition
| EmployeeNo. | Status | Age | BusinessTravel | Department | Education | EducationField | Gender | JobRole | JobSatisfaction | MaritalStatus | MonthlyIncome | NumCompaniesWorked | PercentSalaryHike | PerformanceRating | TotalWorkingYears | TrainingTimesLastYear | WorkLifeBalance | YearsAtCompany | YearsInCurrentRole | YearsSinceLastPromotion |
| 1 | Former | 41 | Travel_Rarely | Sales | Associate Degree | Life Sciences | Female | Sales Executive | Very Satisfied | Single | 5993 | 8 | 11 | 3 | 8 | 0 | 1 | 6 | 4 | 0 |
| 2 | Current | 49 | Travel_Frequently | Research & Development | High School or Equivalent | Life Sciences | Male | Research Scientist | Somewhat Satisfied | Married | 5130 | 1 | 23 | 4 | 10 | 3 | 3 | 10 | 7 | 1 |
| 3 | Former | 37 | Travel_Rarely | Research & Development | Associate Degree | Other | Male | Laboratory Technician | Satisfied | Single | 2090 | 6 | 15 | 1 | 7 | 3 | 3 | 0 | 0 | 0 |
| 4 | Current | 33 | Travel_Frequently | Research & Development | Graduate Degree | Life Sciences | Female | Research Scientist | Satisfied | Married | 2909 | 1 | 11 | 3 | 8 | 3 | 3 | 8 | 7 | 3 |
| 5 | Current | 27 | Travel_Rarely | Research & Development | High School or Equivalent | Medical | Male | Laboratory Technician | Somewhat Satisfied | Married | 3468 | 9 | 12 | 3 | 6 | 3 | 3 | 2 | 2 | 2 |
| 6 | Current | 32 | Travel_Frequently | Research & Development | Associate Degree | Life Sciences | Male | Laboratory Technician | Very Satisfied | Single | 3068 | 0 | 13 | 3 | 8 | 2 | 2 | 7 | 7 | 3 |
| 7 | Current | 59 | Travel_Rarely | Research & Development | Undergraduate Degree | Medical | Female | Laboratory Technician | Unsatisfied | Married | 2670 | 4 | 20 | 1 | 12 | 3 | 2 | 1 | 0 | 0 |
| 8 | Current | 30 | Travel_Rarely | Research & Development | High School or Equivalent | Life Sciences | Male | Laboratory Technician | Satisfied | Divorced | 2693 | 1 | 22 | 4 | 1 | 2 | 3 | 1 | 0 | 0 |
| 9 | Current | 38 | Travel_Frequently | Research & Development | Undergraduate Degree | Life Sciences | Male | Manufacturing Director | Satisfied | Single | 9526 | 0 | 21 | 4 | 10 | 2 | 3 | 9 | 7 | 1 |
| 10 | Current | 36 | Travel_Rarely | Research & Development | Undergraduate Degree | Medical | Male | Healthcare Representative | Satisfied | Married | 5237 | 6 | 13 | 3 | 17 | 3 | 2 | 7 | 7 | 7 |
| 11 | Current | 35 | Travel_Rarely | Research & Development | Undergraduate Degree | Medical | Male | Laboratory Technician | Somewhat Satisfied | Married | 2426 | 0 | 13 | 3 | 6 | 5 | 3 | 5 | 4 | 0 |
| 12 | Current | 29 | Travel_Rarely | Research & Development | Associate Degree | Life Sciences | Female | Laboratory Technician | Satisfied | Single | 4193 | 0 | 12 | 3 | 10 | 3 | 3 | 9 | 5 | 0 |
| 13 | Current | 31 | Travel_Rarely | Research & Development | High School or Equivalent | Life Sciences | Male | Research Scientist | Satisfied | Divorced | 2911 | 1 | 17 | 3 | 5 | 1 | 2 | 5 | 2 | 4 |
| 14 | Current | 34 | Travel_Rarely | Research & Development | Associate Degree | Medical | Male | Laboratory Technician | Very Satisfied | Divorced | 2661 | 0 | 11 | 3 | 3 | 2 | 3 | 2 | 2 | 1 |
| 15 | Former | 28 | Travel_Rarely | Research & Development | Undergraduate Degree | Life Sciences | Male | Laboratory Technician | Satisfied | Single | 2028 | 5 | 14 | 3 | 6 | 4 | 3 | 4 | 2 | 0 |
| 16 | Current | 29 | Travel_Rarely | Research & Development | Graduate Degree | Life Sciences | Female | Manufacturing Director | Unsatisfied | Divorced | 9980 | 1 | 11 | 3 | 10 | 1 | 3 | 10 | 9 | 8 |
| 17 | Current | 32 | Travel_Rarely | Research & Development | Associate Degree | Life Sciences | Male | Research Scientist | Somewhat Satisfied | Divorced | 3298 | 0 | 12 | 3 | 7 | 5 | 2 | 6 | 2 | 0 |
| 18 | Current | 22 | Nontravel | Research & Development | Associate Degree | Medical | Male | Laboratory Technician | Very Satisfied | Divorced | 2935 | 1 | 13 | 3 | 1 | 2 | 2 | 1 | 0 | 0 |
| 19 | Current | 53 | Travel_Rarely | Sales | Graduate Degree | Life Sciences | Female | Manager | Very Satisfied | Married | 15427 | 2 | 16 | 3 | 31 | 3 | 3 | 15 | 8 | 3 |
| 20 | Current | 38 | Travel_Rarely | Research & Development | Undergraduate Degree | Life Sciences | Male | Research Scientist | Very Satisfied | Single | 3944 | 5 | 11 | 2 | 6 | 3 | 3 | 3 | 2 | 1 |
| 21 | Current | 24 | Nontravel | Research & Development | Associate Degree | Other | Female | Manufacturing Director | Satisfied | Divorced | 4011 | 0 | 18 | 3 | 5 | 5 | 2 | 4 | 2 | 1 |
| 22 | Former | 36 | Travel_Rarely | Sales | Graduate Degree | Life Sciences | Male | Sales Representative | Unsatisfied | Single | 3407 | 7 | 23 | 4 | 10 | 4 | 3 | 5 | 3 | 0 |
| 23 | Current | 34 | Travel_Rarely | Research & Development | Graduate Degree | Life Sciences | Female | Research Director | Somewhat Satisfied | Single | 11994 | 0 | 11 | 1 | 13 | 4 | 3 | 12 | 6 | 2 |
| 24 | Current | 21 | Travel_Rarely | Research & Development | Associate Degree | Life Sciences | Male | Research Scientist | Very Satisfied | Single | 1232 | 1 | 14 | 1 | 0 | 6 | 3 | 0 | 0 | 0 |
| 25 | Former | 34 | Travel_Rarely | Research & Development | High School or Equivalent | Medical | Male | Research Scientist | Unsatisfied | Single | 2960 | 2 | 11 | 3 | 8 | 2 | 3 | 4 | 2 | 1 |
| 26 | Current | 53 | Travel_Rarely | Research & Development | Undergraduate Degree | Other | Female | Manager | Satisfied | Divorced | 19094 | 4 | 11 | 3 | 26 | 3 | 2 | 14 | 13 | 4 |
| 27 | Former | 32 | Travel_Frequently | Research & Development | High School or Equivalent | Life Sciences | Female | Research Scientist | Unsatisfied | Single | 3919 | 1 | 22 | 4 | 10 | 5 | 3 | 10 | 2 | 6 |
| 28 | Current | 42 | Travel_Rarely | Sales | Graduate Degree | Marketing | Male | Sales Executive | Somewhat Satisfied | Married | 6825 | 0 | 11 | 3 | 10 | 2 | 3 | 9 | 7 | 4 |
| 29 | Current | 44 | Travel_Rarely | Research & Development | Graduate Degree | Medical | Female | Healthcare Representative | Very Satisfied | Married | 10248 | 3 | 14 | 3 | 24 | 4 | 3 | 22 | 6 | 5 |
| 30 | Current | 46 | Travel_Rarely | Sales | Graduate Degree | Marketing | Female | Manager | Unsatisfied | Single | 18947 | 3 | 12 | 3 | 22 | 2 | 2 | 2 | 2 | 2 |
| 31 | Current | 33 | Travel_Rarely | Research & Development | Undergraduate Degree | Medical | Male | Laboratory Technician | Very Satisfied | Single | 2496 | 4 | 11 | 3 | 7 | 3 | 3 | 1 | 1 | 0 |
| 32 | Current | 44 | Travel_Rarely | Research & Development | Graduate Degree | Other | Male | Healthcare Representative | Very Satisfied | Married | 6465 | 2 | 13 | 3 | 9 | 5 | 4 | 4 | 2 | 1 |
| 33 | Current | 30 | Travel_Rarely | Research & Development | Associate Degree | Medical | Male | Laboratory Technician | Satisfied | Single | 2206 | 1 | 13 | 3 | 10 | 5 | 3 | 10 | 0 | 1 |
| 34 | Former | 39 | Travel_Rarely | Sales | Undergraduate Degree | Technical Degree | Male | Sales Representative | Very Satisfied | Married | 2086 | 3 | 14 | 3 | 19 | 6 | 4 | 1 | 0 | 0 |
| 35 | Former | 24 | Travel_Rarely | Research & Development | Undergraduate Degree | Medical | Male | Research Scientist | Very Satisfied | Married | 2293 | 2 | 16 | 3 | 6 | 2 | 2 | 2 | 0 | 2 |
| 36 | Current | 43 | Travel_Rarely | Research & Development | Associate Degree | Medical | Female | Research Scientist | Satisfied | Divorced | 2645 | 1 | 12 | 3 | 6 | 3 | 2 | 5 | 3 | 1 |
| 37 | Former | 50 | Travel_Rarely | Sales | Associate Degree | Marketing | Male | Sales Representative | Satisfied | Married | 2683 | 1 | 14 | 3 | 3 | 2 | 3 | 3 | 2 | 0 |
| 38 | Current | 35 | Travel_Rarely | Sales | Undergraduate Degree | Marketing | Female | Sales Representative | Very Satisfied | Married | 2014 | 1 | 13 | 3 | 2 | 3 | 3 | 2 | 2 | 2 |
| 39 | Current | 36 | Travel_Rarely | Research & Development | Graduate Degree | Life Sciences | Female | Research Scientist | Unsatisfied | Married | 3419 | 9 | 14 | 3 | 6 | 3 | 4 | 1 | 1 | 0 |
| 40 | Current | 33 | Travel_Frequently | Sales | Undergraduate Degree | Life Sciences | Female | Sales Executive | Unsatisfied | Married | 5376 | 2 | 19 | 3 | 10 | 3 | 3 | 5 | 3 | 1 |
| 41 | Current | 35 | Travel_Rarely | Research & Development | Associate Degree | Other | Male | Laboratory Technician | Very Satisfied | Divorced | 1951 | 1 | 12 | 1 | 1 | 3 | 3 | 1 | 0 | 0 |
| 42 | Current | 27 | Travel_Rarely | Research & Development | Graduate Degree | Life Sciences | Female | Laboratory Technician | Unsatisfied | Divorced | 2341 | 1 | 13 | 3 | 1 | 6 | 3 | 1 | 0 | 0 |
| 43 | Former | 26 | Travel_Rarely | Research & Development | Undergraduate Degree | Life Sciences | Male | Laboratory Technician | Satisfied | Single | 2293 | 1 | 12 | 1 | 1 | 2 | 2 | 1 | 0 | 0 |
| 44 | Current | 27 | Travel_Frequently | Sales | Undergraduate Degree | Life Sciences | Male | Sales Executive | Satisfied | Single | 8726 | 1 | 15 | 3 | 9 | 0 | 3 | 9 | 8 | 1 |
| 45 | Current | 30 | Travel_Frequently | Research & Development | Associate Degree | Medical | Female | Laboratory Technician | Very Satisfied | Single | 4011 | 1 | 23 | 4 | 12 | 2 | 3 | 12 | 8 | 3 |
| 46 | Former | 41 | Travel_Rarely | Research & Development | Undergraduate Degree | Technical Degree | Female | Research Director | Satisfied | Married | 19545 | 1 | 12 | 3 | 23 | 0 | 3 | 22 | 15 | 15 |
| 47 | Current | 34 | Nontravel | Sales | Graduate Degree | Marketing | Male | Sales Executive | Satisfied | Single | 4568 | 0 | 20 | 4 | 10 | 2 | 3 | 9 | 5 | 8 |
| 48 | Current | 37 | Travel_Rarely | Research & Development | Associate Degree | Life Sciences | Male | Research Scientist | Somewhat Satisfied | Married | 3022 |
