Takeda Pharmaceuticals This is a Strategy Evaluation and Guidance Report. Key aspects of this report are evaluating the company past performance (be as negative as possible) and
Takeda Pharmaceuticals
This is a Strategy Evaluation and Guidance Report.
Key aspects of this report are evaluating the company past performance (be as negative as possible) and explain why they have failed while their competitors have succeeded.
Then follow the template by giving potential solutions and how to improve their strategy and performance.
Executive Summary
[here you present a short introduction to your organisation and the key points from your Strategic Analysis, Strategy Development and Strategy Implementation chapters.
About 100 words]
Strategic Analysis
External strategic analysis
[here you present a summary of the external analysis you have done in the background with clear interpretation. Remember, you should not present the underlying analysis, just your critical interpretation of it. Your interpretation should be illustrated with graphs and tables where relevant. Each sub-section should be clearly labelled. Important areas to discuss are:
the industry/sector/market, its size, growth or decline, structure, relevant macro trends, etc
levels of competition, competitors their valuations and market shares (historical, current, trends, etc) including that of your own organisation, strategic groups/competitor sets, critical success factors, potential for ??Blue Oceans, etc
financial benchmarking (your organisation vs strategic competitors)
customers and changes in their behaviour and buying habits over time
opportunities and threats
About 750 words]
Internal strategic analysis
[here you present a summary of the internal analysis you have done in the background with clear interpretation. Remember, you should not present the underlying analysis, just your critical interpretation of it. Each sub-section should be clearly labelled. Important areas to discuss are:
the resources and capabilities of the organisation, or lack thereof
important resources and capabilities for competitive advantage (VRIO), etc
relevant financial performance issues (in addition to the above financial benchmarking)
relevant stakeholders and governance
history and culture
strengths and weaknesses
About 750 words]
Strategy development next three years
[here you present (1) the existing strategy of your organisation, (2) TWO future strategic options you have developed to hold or reverse their decline in market share with a clear and detailed rational based on your External and Internal strategic analyses, (3) the evaluation of your strategic options and (4) the strategy you recommend based on the evaluation.
If you are developing a strategy for a business unit or division of your organisation, please consider any implications for the wider organisation.
If the one or both alternative strategies you have developed is different from their current strategy than please consider that in your evaluation, this is very important.
About 750 words]
Strategy implementation for the next three years
[here you present a discussion of the key aspects for implementing your strategy such as changes to the organisational structure, required cultural changes, performance tracking, changes to leadership, speed of change required, obtaining the required resources for success, overcoming barriers to change, a timescale (GANTT chart), etc.
About 750 words]
Appendices
[here you present any information that you wish to refer to in the main body of your report, please note that this is not a ??dumping ground for your analysis work or other material that does not contribute to main argument of your recommended strategy. What you present here is unlikely to contribute to your mark. About 400 words]
PROPOSAL
Takeda Pharmaceuticals
This is a Strategy Evaluation and Guidance Report.
Key aspects of this report are evaluating the company past performance (be as negative as possible) and explain why they have failed while their competitors have succeeded.
Then follow the template by giving potential solutions and how to improve their strategy and performance.
Takeda Pharmaceuticals
Takeda Pharmaceuticals Company Limited is a Japanese multinational pharmaceutical company that operates worldwide. The business unit being reviewed is Takeda Pharmaceuticals U.S.A, Inc. This unit is Takedas largest outside of Japan contributing to 30 percent of the companys global revenue. The company primarily focuses on oncology, gastroenterology, neuroscience, rare diseases and vaccine development. Takedas market share has been gradually decreasing over the past 5 years, losing to direct competitors such as Roche, Novartis and Pfizer.
Figure 1 Revenue data gathered from each companies annual reports (2020)
Figure 2
Strategic Competitive Challenges
Takeda possesses internal and external challenges which negatively impact the organisation. These challenges directly contribute to the consistent decline in market share alongside share price as investors are dissuaded by the potential risks of investment.
Some of the issues Takeda faces include:
Internal mismanagement
Lack of innovation
Wrong investment decisions
Failure to acquire appropriate talent
Poor marketing decision
These problems are left unchecked resulting in failure to formulate an appropriate response strategy.
In the HR department there is clear evidence of mismanagement. Its competitors can simply attract more talent given its strong presence in universities and associate programmes. Meanwhile Takeda offers little incentives for medical graduates seeking vital positions within the industry.
Industry research also suggests Takedas employees on average are paid 10-20 percent less than their direct competitors for the same position. This decreases the possibility of recruitment and retention.
Figure 3
Comparing experimental drug breakthroughs provides a clear insight into the companys research and development practices. The industry has developed significantly more drugs compared to Takeda despite it having 2.7 percent of market share in the same period.
Figure 4
Some of the marketing decisions Takeda has made has also been questionable, using ineffective methods, often neglecting the key aspects of modern marketing strategies. An example of this is the lack of a social media presence.
Its acquisition history in the past decade has also contributed to the poor liquidity. Its recent purchase of Shire Ltd. has placed Takeda into a further 5.75 trillion yen of debt, resulting in further reduction of share price.
Once all these challenges are taken into consideration, it is not surprising to see the current downward trajectory Takeda has experienced. All these failures contributed to a breakdown of trust amongst investors which resulted in a reduction of stock price alongside with stagnated revenues.
Research plan
The research plan consists of an overview into the industry trends which will be used to benchmark Takedas performance against its competitors. This provides technical insight into challenges that are commonly shared which allows the strategy to be extrapolated.
Analytical Tools
SWOT
STEEP
Information Sources
Monthly Index of Medical Specialties (MIMS)
MIMs is a drug reference utilised by medical professionals on pharmaceutical compounds. This tool is vital in understanding changes in the industry along with the key competitors involved in the market.
Industry Timeline
A timeline of major events occurring in the industry – which can be found on Fame, Orbis, Lexis and Mintel.
Pharmaceutical Industry News
Industry Reports
Industry reports contrasted with Takedas annual reports will provide insight into the internal struggles.
Annual Reports
Financial Reports
Performance Analysis
Key Acquisitions
New Drug Development
Talent Management
Balance Sheet
Income statement
Report Development Chart
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