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    Archana
    B-Pharma is a public limited company that produces pharmaceutical drugs. It has faced controversy for testing drugs on animals that were painfully killed. To improve its reputation and practice corporate social responsibility, B-Pharma should test chemicals before experiments and consider computer simulations to reduce reliance on animal testing. As a public limited company, B-Pharma can raise large amounts of share capital from the public and has opportunities for growth and expansion. Branding is also important for B-Pharma as it helps the company stand out and maintains customer loyalty due to its established brand name.

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    Case Study

    Uploaded by

    Archana
    2K views5 pages
    B-Pharma is a public limited company that produces pharmaceutical drugs. It has faced controversy for testing drugs on animals that were painfully killed. To improve its reputation and practice corporate social responsibility, B-Pharma should test chemicals before experiments and consider computer simulations to reduce reliance on animal testing. As a public limited company, B-Pharma can raise large amounts of share capital from the public and has opportunities for growth and expansion. Branding is also important for B-Pharma as it helps the company stand out and maintains customer loyalty due to its established brand name.

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    B-Pharma is a public limited company that produces pharmaceutical drugs. It has faced controversy for testing drugs on animals that were painfully killed. To improve its reputation and practice corporate social responsibility, B-Pharma should test chemicals before experiments and consider computer simulations to reduce reliance on animal testing. As a public limited company, B-Pharma can raise large amounts of share capital from the public and has opportunities for growth and expansion. Branding is also important for B-Pharma as it helps the company stand out and maintains customer loyalty due to its established brand name.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    2K views5 pages

    Case Study

    Uploaded by

    Archana
    B-Pharma is a public limited company that produces pharmaceutical drugs. It has faced controversy for testing drugs on animals that were painfully killed. To improve its reputation and practice corporate social responsibility, B-Pharma should test chemicals before experiments and consider computer simulations to reduce reliance on animal testing. As a public limited company, B-Pharma can raise large amounts of share capital from the public and has opportunities for growth and expansion. Branding is also important for B-Pharma as it helps the company stand out and maintains customer loyalty due to its established brand name.

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    The key takeaways are that B-Pharma engages in corporate social responsibility activities like reducing animal testing and maintains its brand reputation. It also uses strategies like the BCG matrix and cost-plus pricing.

    B-Pharma classifies its drugs like Pharmax, Pharmaflo, Pharmatics and Pharmaslip in the BCG matrix categories of cash cow, stars and problem child based on their market growth and share. This helps in analyzing their portfolio.

    As a public limited company, B-Pharma can raise larger capital from the public and has more opportunities to pursue growth through new projects and market expansion.

    BUSINESS MANAGEMENT CASE STUDY

    B-PHARMA

    SECTION A

    With reference to B-Pharma, describe two ways in which Corporate


    Social Responsibility could be important.

    When carried out experiments on animals and some of them being painfully
    killed, B- Pharma found themselves in the centre of controversy reported
    by media outlets around the globe. By this the firm almost lost their
    reputation.

    Although, there could be some ways such as Corporate Social


    Responsibility by which B- Pharma could do some benefit for the society.

    In this case, B- Pharma should get all the chemicals tested before
    experimenting on animals.

    CSR for companies like B- pharma could be done because drugs and
    medicines business which requires pretesting on animals and human
    beings before being launched in the market. Therefore, in order to maintain
    their reputation and growth in business, it is necessary that the company
    has to abide by the ethical and legal norms

    Company can think off substituting animals with computed aided


    programmes to test their drugs before they are launched. This will be a
    very innovative feature in terms of Corporate Social Responsibility.
    However, company cannot reply on this method alone but definitely the
    reliance on testing on animals and human beings could be reduced.

    Apply the Boston Consulting Group (BCG) matrix to B-Pharmas


    product portfolio.
    Market Growth
    Y- axis
    Market share
    Cash Cow Stars

    High - Pharmax Pharmaflo

    Dogs Problem Child

    Low - none Phamatics and pharmaslip

    Cash Cow - Pharmax


    This is an important drug of the company which is still giving revenue.
    However, because it has reached saturation point therefore the chances of
    growth are limited.

    Stars - Pharmaflo
    Pharmaflo is doing very well in the market. The drug is growing rapidly in
    the market therefore only investment of advertisement is required so that
    the drug can maintain its peak position.

    Problem Child - Pharmatics and Pharmaslip


    Pharma slim is young brand of the company and can do well in the market
    if aggressive selling strategy is adopted. In this age when to become slim is
    gaining momentum worldwide. Therefore, the management should nurture
    this brand very carefully and consistently so that one day it may find place
    in the stars category of BCG Matrix.

    Likewise, Pharmatics is also a new drug of the company which has shown
    satisfactory results initially. This drug can bring good revenue to the
    company in future because it is linked to the cosmetic industry and
    therefore, this drug also requires careful and consistent monitoring.
    Both pharmaslip and pharmatix are relatively young brands which hold
    tremendous potential to increase market share of the company. However,
    the company has to aggressively advertise the drugs and keep the prices
    competitive so that in future both drugs can earn handsome revenue and
    move to stars category of BCG Matrix.

    With reference to B-Pharma, outline two key features of operating as a


    public limited company.

    As B- Pharma is a public limited company, it can raise larger share capital


    from public. Since it can sell its share to the public and anyone is able to
    invest their money, the capital therefore can be raised much higher as
    compared to the Private Limited Company.

    Growth and Expansion Opportunities - Once the finance is raised, by


    having more finance the firm is potentially available in a better
    position/terms that the Private Limited Company. The Public Limited
    Company has an advantage to pursue new projects, new markets as they
    decided to grow and expand within the Pacific Rim. Due to this, B-Pharma
    was able to open other smaller subsidiaries in other countries such as
    Canada, Chile, Mexico, New Zealand, South Korea and Vietnam.

    Explain the importance of branding for B- Pharma.

    Branding is a very important factor for firms to keep in mind. A good


    branding increases the value of the company, provides motivation to the
    employees and eventually increases their morale. Talking about B-
    Pharma, the firm has well established brand name that has been
    maintained by aggressive advertising in specialist magazines. B-Pharmas
    logo is present in all its products, its family branding has attracted
    considerable brand loyalty Market research shows that most adults across
    East Asia recognize B-Pharma labels and regard them as a mark of quality
    and safety. B-Pharma drugs are trusted but are expensive. As B- Pharma
    has already established their brand, it is easy for the firm to gain more
    market share. Moreover, in this highly competing global market, it is crucial
    to stand out from the crowd. B- pharmas brand name will therefore will
    help the firm stand out from the thousands or millions of similar
    organizations around the world. In addition to this B- Pharma has its
    subsidiaries in many parts of the world, therefore, its important for B-
    Pharma to have a good brand where customers are loyal which will
    eventually create a good will of the firm.

    Describe two benefits for B-Pharma of a cost-plus (mark-up) pricing


    strategy for its drugs.

    B-pharma fixes the price of the medicine by keeping in mind the price of
    substitute medicines of the competitors in the market share, So that, it
    should not lose its market share.

    When B- pharma fixes its product price it keeps in mind the cost of
    production and the cost of Research and Development on the medicine so
    that it can fix the price by adding normal profits so that company can earn
    profit.

    Analyse the effectiveness of Susan James leadership style at the


    Canadian subsidiary of B-Pharma

    Susan James used the autocratic leadership style in which she has all the
    problem in her own hands. She was not ready to delegate the power to the
    subordinates. She wanted superior subordinate relationship to be clear
    because she knows that due to autocratic leadership there are many
    employees who will oppose to this policy and will be demotivated but to
    correct this problem she implemented performance related pay which
    meant if a person works efficiently he/she will get more pay.

    By this leadership style firm will benefit in terms of better working


    environment and there will be no confusion among the relationship
    between superior and subordinate. Every employee has been given a
    proper task to be performed within fixed timeframe which will lead to no
    delays.

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