EA1ERPRISE CROW1H PLAA PRO1EC1

INTRODUCTION
In today`s` business environment there is a lot oI scope to unlock growth and gain
proIit by making turnaround changes in both top and bottom line processes. The Iirst step
in analyzing any enterprises` growth options would be conducting a thorough due
diligence oI
1) the company and its business process
2) the industry it belongs to,
3) the market competition ,
4) the stage or business cycle the company Ialls in and
5) an analysis oI the customers.

COMPAAY :
We have to analyze the company and its business process i.e. know about the
company background, its history, key management persons involved, their qualiIications,
their area oI expertise. We must also understand the terms oI business oI the company,
what sort oI Iacilities it provides to its dealers and related parties, any legal regulations that
the company is bound with. Knowing the company also means knowing its Iinancials in
and out. To develop a growth plan which can also be implemented we must be sure oI the
ratios oI the company and the hardships that can be caused by any change oI policy we
make, both bottom line and top line. To know the position oI the company we have to
compare it to its peers in the industry or business sector it belongs to. In our Enterprise
Growth Plan Project we are planning to elucidate the growth prospects oI a Company in
the Healthcare Sector. All opinions and Strategies will be designed keeping in mind the
Healthcare Sectors and related consumer requirements. We have to identiIy critical growth
drivers based on evolving strategic directions. In any business and especially healthcare
industry there is a need to continuously deliver better products using better and saIer
technology. As known the healthcare Industry is very heavily regulated and there are a lot
oI legal complications with regard to PATENTS. One oI the major Requirements in this
Business is Research and Development. This also means Huge Capital Spending both in
startup and established enterprises. We will talk about the complicacies oI this business
and how to overcome them in later sections.
IADUS1RY:
Every Industry has diIIerent opportunities and scope Ior expansion. The
diIIerences are because oI the diIIerence between the products and end-user needs. Also at
'`what stage the industry is` determines a lot regarding how much there are chances to
grow. In our case when we talk about the healthcare Industry we must understand that it is
heavily regulated business sector which is bound by the regulations oI the Guidelines
issued by various healthcare agencies Iormed by the government. The major role oI such
Agencies (e.g. US FDA in United States, UK MHRA in United Kingdom, and EMEA in
EUROPEAN COUNTRIES) is to Iorm regulatory guidelines and to make sure that they
are properly implemented. It must also prescribe procedure in case any such guidelines are
properly Iollowed.
There are a lot oI Players in this industry already the reason being once the product
is out oI the research and development stage and is approved Ior commercial production
the Variable cost or Marginal Cost per unit is very low. Also once a product is patented the
Competitors are bound by Legal regulations to not introduce any medicine with the same
composition. There are a lot oI companies who are enjoying the beneIits received out oI
the patented products. Apart Irom this iI any other company wants to produce the same
medicine using the patented Iormula it can do so but by paying Royalties are mutually
agreed terms. This also opens doors Ior new companies who cannot invest huge Iunds in
the Research and Development department but can still start productions and make revenue
iI it is able to negotiate with any company Ior the patented Iormula in exchange oI a
consideration. To leverage the unIolding possibilities, healthcare companies need to have
in place business strategies that are open to change. We have to develop a business model
that is both Ilexible and risk balanced.
COMPE1I1IOA:
As we talked earlier the variable cost per unit is very low compared to the revenue per
unit. This type oI proIit margin naturally attracts a lot oI players in the market. The global
healthcare and medicine landscape has undergone tectonic change in terms oI both
technology and amount oI Iunds involved. Complex changes in drug and medicine
development have caused the industry to make paradigm shiIts through acquisition oI new
Iirms, divestiture, and inorganic expansion. The only way to survive and thrive in such
market is by reIormulating business strategies and cost structure. Whether it be reviving
the research process or reinvent the product pipeline or make inroads into new markets the
importance oI making new partnerships cannot be over emphasized. Competition can be
classiIied into the Iollowing heads
1) Competition offered in terms of cost effectiveness- Many larger Iirms enjoy the
advantage oI larger scale oI business and long term economies which cannot be
achieved be smaller Iirms even by investing sizeable amounts oI Iunds in patent
acquisition and research and development. Even new Iirms can come up with
innovative ideas both with top and bottom-line approaches.
2) Ceneric products- Generic brands are products without a brand name
manuIactured on the same line as existing branded product except the BRAND.
Generic products are usually available as store products sold even by supermarkets
under their own 'store brand. They are mostly oI the same quality. When the
patent protection oI a patented drug expires its generic versions can be launched by
competing Iirms who don`t have to bear the cost oI R&D. There is an impending
patent cliII where many big- selling pharmaceutical companies will lose patent
protection between 2014-2016 and the stage is set Ior an unrelenting decade oI
competition in the bio pharmacy market and this would generate lot oI
opportunities Ior the small and medium Iirms as they can develop generic products
by paying minimum royalties to the patent holders.
3) Product- There are lot oI competing Iirms producing close substitutes and coming
up with better ones in the market every day. The competition Irom these Iirms can
be checked only by Patent Protection, legal battles, and being ahead in In-house
Research and Development Exercises. Also we must strive to bring more and more
products better in technology and eIIective in work.
4) rand- Development oI brand power is very important and its importance cannot
be over stressed. Almost every business takes great care and precaution about its
market image and the marketing strategy oI its products. Brand creation is a very
vital exercise and determines to a great extent how the sales oI the company shall
be. When the market is composed oI established players having great brand value it
is very diIIicult to grow without coming up with new and aIIordable medicines.
USIAESS CYCLE:
A major point oI Iocus when determining any growth strategy is knowing which
stage oI business our Iirm is Ialling in as it determines the Iuture Ilow oI the companies`
decisions and actions. Growth potential Ior research services continues to be promising.
Global majors are increasingly outsourcing a number oI core Iunctions, Irom discovery to
clinical trials and manuIacturing as an eIIective cost cutting strategy. In view oI the Iact
that outsourcing accelerates the research and development process and eIIectively lower
the cost oI innovation, value added research services can be strong revenue accelerators Ior
startup companies in our industry. In case we Iall in the later business stages we can
beneIit by outsourcing our requirements to such companies.
CUS1OMERS:
Emerging market countries with increasing disposable are home to burgeoning
middle class who are investing in healthcare / insurance in lieu oI rising inIectious diseases
rising in such countries especially middle Asia-paciIic regions. We have to recognize new
markets where there are willing customers who are ready to pay Ior world class Iacilities
and technologically advanced medicines with minimum side eIIects.

We develop products Ior:-
Oncology, Metabolic disorders, InIlammation and autoimmune diseases, Toxicology,
Pathology, Polymer Chemistry. Patients as well as many pharma companies depend on us
Ior our healthcare solutions.
CROW1H S1RA1ECY - A COA1IAOUS PROCESS
The plan Ior sustained growth should cover ideas Ior both changes in top line and
bottom-line processes. It is a continuous process and we have to develop various options to
make sure that we continuously strive Ior new and better ideas and products to capture
market share in the pharmaceutical market.
1) Aew usiness Models :- By Growth we mean expansion oI our enterprise in terms
oI market share as well as sheer size oI our organization. Any organization is
Iormed oI people. A number oI employee centric interventions should be
implemented across the company to create a more engaged and competitive talent
pool. New talents and business models are very necessary to keep up with the ever-
changing and challenging business environment. Financially new business models
mean a lot oI money going into consultancy and a lot oI time being expended on
business plan remodeling and implementation.
2) Aew Services :- We have to come up with new services and solutions to attract new
customers. We can come up with specialty hospitals and diagnostic services and
cater to a wider range oI consumers. A chain oI hospitals across the major metros
with world class Iacilities can be a game changer in the services category oI our
Iirm. To support these growth plans a newly instituted quality council should align
quality standards across clinical, inIrastructural and patient related services. New
services should be Iramed keeping in mind the amount oI Iunds that can be raised
and the cost oI arranging such Iunds. Also beIore any expansion is made the
capability oI the management to handle such growth should also be considered.
3) undled solutions:- By opening such healthcare inIrastructure we can pack
bundled healthcare solutions in healthcare packages. For example providing cardio
treatment packages wherein the treatment shall be done at our hospitals, with our
medicines, by our doctors on the basis oI diagnoses Irom our diagnostic machines.
Reputation Ior employing doctors oI immense skill and repute, international
accreditation, and advantageous cost diIIerential can make our hospital chains
magnet Ior patients Irom around the world. The term prevalent in our industry Ior
this is called 'MEDICAL TOURISM '. Such Hospital chains are a very costly
aIIair. Also the company should look into its risk portIolio and consult proIessional
risk managers.
4) Aew Distribution channels:- They would help in Iaster and cost eIIective
distribution oI our products and extending our reach to newer markets. Emerging
and under developed countries still have a very poor system oI distribution oI
medicines where in most oI the cases the medicines do not reach in time to the
doctors. By coming up with a better distribution channel in partnership with major
logistics players we can enhance our market to the reaches oI the backward areas
where the need Ior medicines is even more as there is dearth oI healthcare services.
This will also portray our concern Ior the weaker sections oI the society and can
improve our market image as a socially responsible corporate. Having an eIIective
distribution channel is very necessary to be able to implement any growth plans.
Even otherwise it is very important to reach out to all the consumers oI the products
a company manuIactures.
5) Process improvements:- Today the business world is very Iast and considering the
scale oI business we are in even minor changes in business process might help in
boosting our proIits to a long way. We should hire management consultants and
established independent process consultants to give us expert opinion and provide
us with new ideas. Also our internal audit department should be instructed to
provide us with suggestions on a regular basis providing a list oI business sections
which need updating. Radical changes in process can mean altogether change oI
business machinery. A through capital budgeting decision should be made.
6) "uality Control :- We have to build our organizations reputation on a philosophy
oI putting quality at the heart oI all aspects oI our business. Through regular quality
control audits and adhering to saIer and better technology we must show our end
user that we care Ior them. We must build a strong research capability to
compliment our intellectual talent and helping them in coming up with more
eIIective drugs and medicines.
Our aim should be to develop the cure which have to side eIIects and help
in the betterment oI the society and doing our bit to help the planet. We should
Iocus on establishing our reputation as a quality service provider in the critical
healthcare are oI cardiology and cardiac surgery, orthopedics, neurology and
neurosurgery, urology and nephrology. We should develop a core team oI world
class doctors and proIessors who can come up with advanced and more accurate
procedures including awake heart surgery and minimally invasive brain and spine
surgeries.
7) Engineering breakthroughs :- We have to come up with new methods which
would help in getting cost eIIective production. New technologically advanced
machinery should be installed to enable the company to meet the growing demand
Ior medicines. All medicines should be packed as per the saIety guidelines to
ensure longevity oI liIe oI our product even in extreme conditions. Hiring
technicians with vast knowledge oI operation oI the complex pharmaceutical
machines can help in improving perIormance oI the production department.

IAAOJA1IOA- HOW I1 DRIJES CROW1H
Innovation is to be the cornerstone oI our business. AIIordable Innovation has to be
our mantra to success. Our research encompasses pharmaceutical Iormulation, novel drug
delivery systems, and Iormulations Ior recombinant products as well as process
engineering Ior Active Pharmaceutical Ingredients. We have signed up Ior new drug
discovery programs and dedicated a team oI technicians having expertise in manuIacture oI
nano particles Ior all dosage Iorms to meet the latest advanced technology. We have
successIully created an integrated multi-technology capability to manuIacture all types oI
dosage Iorms including sterile injectables. Highly skilled technicians operate our
manuIacturing Iacilities that are FDA complaint. In our business we have to bring in new
products and Iormulations that are better than the rest and get them patented to have patent
protection. Innovation is the key to growth in our business. The Iaster we are in bringing
the products the bigger our market share will be. ProIit can be derived Irom both top line
and bottom line processes.
1OP LIAE AAD O11OM LIAE CROW1H- HOW 1O ACHIEJE
Top-line measures mean method to increase revenues. This is one way to increase
proIits. This measure calls in Ior development oI marketing and distribution channels that
will help the company in gaining more sales and hence achieve economies oI scale.
Achieving economies oI scale also helps in lower cost oI production which is the emphasis
oI bottom-line measures. Bottom line means Net proIit. Bottom-line measures include cost
cutting exercises. We have to develop innovative ideas to cut cost without aIIecting the
quality oI our products. Analyzing company ratios against the general industry ratio can
help in pointing out our places oI changes.
Also to continuously be able to innovate we must hire new talent chosen by
experienced personnel Irom the industry who have the giIt oI recognizing creativity and
innovative ideas in people. We must also stress on generating awareness in the major
universities where we should express our appreciation Ior human resources and the
rewarding human resource policies at our company. All such growth strategies should be
handled by a key management personnel who is involved only with the implementation oI
the top-line and bottom-line policies. There should be a lot oI emphasis on evaluation oI
the growth programs and they should be continuously updated.
ORCAAIZA1IOAAL S1RUC1URIAC 1O ACHIEJE CROW1H AAD
DEJELOPMEA1
To be able to cope up with the changing business environment we must check on
our organizational structure and the key management personnel. The management should
be provided with tools and independent expert opinions to help in taking major growth
deriving decisions. We must also set up a committee oI experts Irom our industry and
economists and Iinancial advisors who can instruct the board with their invaluable
guidance. The key oI chain oI command should be in hands oI a socially responsible
person who delivers perIormance. The management should organize programs with
Management Institutes to help generate leadership qualities in the management personnel.
Also a customer care department should be maintained which should into speedy redressal
oI consumer complaints. There should be regular perIormance appraisals to tap in the gems
within our Iirm so that they get jobs Iitting their caliber.
The best plan should oIIer a balanced growth plan which combines both Top-line
and Bottom-line techniques. The management should be directly involved in the
implementation oI the Growth plan. The production department should be geared up Ior
any technological or procedural change in the production process. The company should
develop expertise in any core competency and search Ior partners in emerging countries to
exploit the advantages oI synergy. Key to sustained growth is aIIordable innovation.








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