Overview In your role as a business development manager involved in preparing an exit strategy for the life science organization, you learned that

MBA 699 Fishbone Diagram Template

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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: 5-1 MILESTONE THREE 1

STRATEGIC MILESTONE 3 8

5-1 Milestone Three: Alternative Buyer Research Report and Acquisition Road Map

Alternative Buyer Research Report

A life science organization is a type of business that deals in pharmaceuticals, research, and development or biomedical equipment manufacturing, or biotech medical and food production. Being one of the largest life science organizations gives the company an edge over its competitors. Recently, one of the companies showed some intentions to buy the company, and the owners are also willing to sell the organization to the potential buyer. Still, the management has noticed that the potential buyer might pull out of the offer. So, I need to look into more companies, specifically life science organizations, for potential buyers. The contingency plan demands looking into the financials of the potential buyers and identifying a suitable buyer. 

Alternative Buyers

There are many alternative buyers, and some of them are Alexion Pharmaceuticals, Alkermes, Gilead Sciences Inc, Jazz pharmaceuticals, Johnson & Johnson, Novartis, Nova Nordisk, Regeneron Pharmaceuticals, and Vertex Pharmaceuticals. These companies have solid financials, all of these companies are Multinationals, and these companies have enough resources to buy the organization. Out of these companies, I have chosen Johnson & Johnson as a potential buyer from the list of alternative buyers. (Mazzucato et al., 2020)

Johnson & Johnson is one of the oldest pharmaceutical corporations globally and is around 130 years old. The company produces a wide range of pharmaceutical products. Johnson & Johnson is a multinational organization that sells its pharmaceutical products in over a hundred countries. 

Current Market

Johnson & Johnson mainly focus on Immunology, Cardiovascular and metabolic disease but also produces and sells products related to Infectious disease and vaccines. Most recently, during the pandemic, they also made one of the covid vaccines, which were quite effective against the virus. The company manufactures products related to children's diseases and viruses related to infants and children. One of the best-selling products of Johnson & Johnson is products related to Infants and children, like baby lotion and powder. As the company is multinational, it has a different product focus in other world regions. For example, in third world countries, the company is most famous for infants and children's products and vaccines for infants and children. In developed countries like Europe, vaccines, and products related to infectious diseases are more popular as people rely on the quality of the product. Cardiovascular products are famous around the globe, and doctors and patients prefer these products the company. So, the company operates in a market of all medical or pharmaceutical-related fields. The company is leading the current market in some of the categories, like products related to kids and vaccines. Customers of almost all ages buy the company's products, and around the globe, it is equally famous, and that's why it's the most prominent pharmaceutical organization. They have many competitors in every sector, and in almost every country, it manufactures or sells its products. The total market share of Johnson & Johnson is above 7%. And the closest competitor relative to market share stands at above 2.5 percent, and this information is enough to prove that Johnson & Johnson is the leading pharmaceutical company in the world. (Milanesa et al., 2020)

Financial Situation

As we have discussed earlier, the company is the largest pharmaceutical company. The financial position of the company is also solid and stable because of this pandemic which accelerated the health issue crisis, which as a result, increased the demand for pharmaceutical products, has a very positive impact on the company's financial position. The company's revenue has increased by almost 17 percent in the past two years. Revenue of the company right now is $93,775,000,000, compared to where they stood in 2018 at $81,581,000,000; there is a good increase in revenue. When the revenue increases, the cost of sales also increases. The current price of sales of the company is $29,855,000,000, an increase of around 15 percent if we compare it with the numbers of 2018. The company's operating expenses have seen a sharp increase in 2021 compared to 2020 and 2019, but other income has also seen a sharp decrease recently. The current net income of the company stands at $20,878,000,000, which is up from $14,714,000,000, which is an excellent jump in profits. EPS for the last year was 5.59, and it is expected that the EPS will be above 8 dollars per share this year. The company's balance sheet is also solid, with low debt and high equity. (Livingstone et al., 2021)

Recent Developments

Johnson & Johnson has appointed Jaoquin Donato as its new CEO. Joaquin has 33 years of experience in the company, has worked in all the sectors, and has in many different countries. The new CEO brings vast experience and has worked his way to the top. Recently, the company has won the award of leading Innovation Company globally, and Times magazine also named the covid vaccine of Johnson & Johnson as the world's best invention of 2021. which gives the company massive credibility in the fight against the virus has been very effectively won with the help of vaccines. The most important factor which affected the whole world was the pandemic. Since the pandemic hit the world, almost all big pharmaceutical companies have started research on developing an effective vaccine to beat the virus. After some time, nearly all of the big pharmaceutical companies have invented a vaccine, and Johnson & Johnson's vaccine is one of the most effective vaccines. 

All the events that happened recently will not affect the idea of a potential buyer. As the company is currently so occupied with fighting the pandemic and working on innovation, the new CEO can pose an excellent opportunity to convince him to buy the business. 

Buyer Rationale

Johnson & Johnson is the best option for the life science organization as the company is already working with a very successful business model. Instead of expanding into a new segment of the sector, the company can buy an already successful business and make the company more robust and financially reliable for the investors. The company's goodwill will also play a huge role in acquiring the business. The company has been making good profits and has enough cash to buy an already successful business, so the company is the best option for the life science organization. 

Acquisition Road Map

To acquire a company, the organizations on both sides need to work on a plan to make the transaction successful. The plan needs to be clear, and all the details should be in the plan about how this acquisition process will work. (Lei et al., 2018)

Acquisition Related Tasks

The First step must be about preparing all the acquisition demands and taking all the stakeholders on board for the upcoming acquisition process. Taking the whole management on board and preparing for the acquisition process by teaming up with the relevant people will take around 2 to 3 months. The second step must be preparing for the negotiations related to the sale of the business. The organization should collect all the numbers associated with its finances and the potential price for the whole company. The seller will be looking to buy a good business with sound finances at a lower price, but a buyer will be looking for a good and reasonable price. In this step, the negotiations on the acquisition price will be discussed between the top management of both organizations. This process can take up to 1 month. The third step should be the acquisition price, and the price should be accurately related to the company's financial position. All the numbers posted in the sale document should be without any error because any error will turn the deal out of the table, and the management should be looking to close the information gap. Price negotiations will depend on the financial health of the company and the potential of the business model the company in the future. Executives from both sides should look into the numbers carefully and draft the agreement carefully with all due diligence. This process can take up to 1 month. The Fourth step must look into closing the deal. The CEOs of both organizations should be looking to sign the acquisition papers and complete the transaction carefully with all the funds deposited in the respective accounts. 

References

Mazzucato, M., Li, H. L., & Darzi, A. (2020). Is it time to nationalise the pharmaceutical industry?. BMJ, 368.

Milanesi, M., Runfola, A., & Guercini, S. (2020). Pharmaceutical industry riding the wave of sustainability: Review and opportunities for future research. Journal of cleaner production, 261, 121204.

Livingston, E. H., Malani, P. N., & Creech, C. B. (2021). The Johnson & Johnson Vaccine for COVID-19. Jama, 325(15), 1575-1575.

Lei, Y., Li, N., Guo, L., Li, N., Yan, T., & Lin, J. (2018). Machinery health prognostics: A systematic review from data acquisition to RUL prediction. Mechanical systems and signal processing, 104, 799-834.

Acquisition Plan

PLAN START Step 1 Step 2 Step 3 Step 4 1 1 1 1 PLAN DURATION Step 1 Step 2 Step 3 Step 4 2 3 4 5 ACTUAL START Step 1 Step 2 Step 3 Step 4 3 4 5 6 ACTUAL DURATION Step 1 Step 2 Step 3 Step 4 4 5 6 7 PERCENT COMPLETE Step 1 Step 2 Step 3 Step 4 0.25 0.5 0.75 1

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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).

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