Professional Documents
Culture Documents
RESTRUCTURING
RESTRUCTURING
Process through which a company radically changes
stakeholders.
NEED FOR RESTRUCTURING
• Poor financial performance
corporate strategy
Reason for restructuring
Dogged by problems of
• Plummeted sales figures
• Demoralized work force
• Government investigations related to manufacturing
violations
• Legal and regulatory challenges
• Hassan(turnaround specialist) was brought in 2003.
SCHERING PLOUGH
• result of the merger between schering
corporation(Schering) and Plough which took
place in 1971.
• offered a promising line of pharmaceutical
products to consumers
• Product line: antibiotics, antihistamines, and
other pharmaeceuticals
• Has undergone a lot of leadership change.
Reason for restructuring
Dogged by problems of
• Plummeted sales figures
• Demoralized work force
• Government investigations related to manufacturing
violations
• Legal and regulatory challenges
• Hassan(turnaround specialist) was brought in 2003.
ENABLING THE STRATEGIC SUCCESS
PEOPLE INFORMATION
ORGANISATIONAL STRATEGIES
FINANCE TECHNOLOGY
STRATEGY AND PEOPLE
People as a resource
•Personal and organisational competences
•Performance management
Strategy
STRATEGY
•Bypassing gatekeepers
Information and strategic
capability:
• Improved services: sales representatives were
influenced to not only sell the products to
customers rather maintain the long term
sustainable relationships with the
customers.
• Competitive performance: to gain an edge
over their competitors, they started
investing a lot on R&D, product
development and leadership competencies
so as to enable them take the managerial
roles in the future.
Information and business models:
• Extended functions:
Maintaining the long term relations
Emphasis on Innovation.
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MANAGING FINANCE
Ø Managing for value (Value and cost drivers)
Ø Funding strategies
§ Customers-
o Provided value for money via Garamycin and Claritin in the
past.
o Faced criticism for Rebetron.
o In 2008,Vytorin and Zetia came under scanner for providing
lesser value for money as compared to a similar generic drug,
Zocor.
o The restructuring exercise focused on providing best-value
products to customers
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Ø Technology diffusion
§ Core competences- focus on employees and Phase III pipeline
of drugs
FUTURE CHALLENGES
• A balance between the huge investment incurred and the pool
of new drugs obtained
PRESENT SCENARIO
• In 2009, they registered revenue of $27.4 billion from which
US comprised $14.4 billion
•
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Managing Finance
Ø Managing for value (Value and cost drivers)
Ø Funding strategies
§ Customers-
o developer contributions - from developers for benefits their
developments gain from land transport infrastructure
improvements
o betterment contributions - from landowners that benefit from
road improvements
o other contributions from approved organisations, community
groups or other entities, eg funding from ACCfunds
generated from road tolls for new land transport
infrastructure, eg the Northern Gateway Toll Roadpublic
transport fares and advertising revenue.
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• Divestment
§ Strategic benefits
§ Financial benefits:
Ø
•
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Future Challenges
• Identification of client and deliverer functions.
• More emphasis on efficiency in the provision of works or
services and the start of contracting out work.
• Public works organizations tend to be replaced by a
Ministry of Transport for policy direction.
• Separation of client and delivery organizations.
Present Scenario
•The total number of employees is 450 and having a
budget of over $ 1 billion (NZD).
•Transit New Zealand and Land Transport New Zealand
will become one body and some of their roles will be
transferred to the Department of Transport.
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Thank You