Question

VilNET Limited, a pharmaceutical company in Ghana, was reviewing their performance over the years and realized that their strategic goals are always skewed towards financial measures. Management has decided to consult you as an expert in strategy and leadership to help the organization reorganize its strategic goals to cover all critical areas. Using the appropriate model (s), Prepare a presentation to the Management of VilNET identifying the strategic areas that you think their goals should cover. Using these strategic areas, develop four (4) strategic goals and (2) two accompanying strategic objectives for each goal as part of the presentation to Management.

Answer 1

In the given case study of VilNET Limited, whose strategic goals are always skewed towards financial measures wants to reorganize its strategic goals to cover all critical areas. For the same the strategic areas that should be critically covered by the goals are to be identified and using the same 4 strategic goals and 2 accompanying strategic objectives of each goals are to be presented.

· Strategic areas identified for setting strategic goals:

These are different variables that are to be considered by any business entity before they are setting goals that are to be achieved in future. When a company is developing and implementing any strategy goals that they want to accomplish in the future and which depicts the business outcome that they expect from the business, it is vital that these strategic goals acknowledge different areas within the business so as to ensure that it have not left any vital part that may cause a negative impact or hinder the accomplishment of the goals.

Such areas include the following along with finance as one such area;

i. Products and Services

ii. Customers

iii. Markets

iv. People

v. Technology

vi. Production Capability

              Being a pharmaceutical company, VilNET limited should have their focus on all these strategic areas and should not be skewed to the financial measures.

Development of the products through R&D is one of the most important challenges that are put before a pharmaceutical company. For this they should have accommodated efficient researchers who possess the adequate knowledge about the requirements that has been found by the sales executives or other employees who are constantly studying the market for development of new viruses or finding the medicine for existing diseases or chronic illness or improving the existing ones.

The company can also provide the customers with the best deal by selling at a price which is lower than the average. For this it should understand the production capability it holds and utilize economies of scale for the production.

The company should also set their focus on the market so as to identify the opportunities or threats if any being thrown towards them.

So developing strategic goals after considering and making the possible inputs for all these strategic areas will ensure the development and accomplishment of the strategic goals that will ultimately lead the company to achieve their desired outcome.

· 4 Strategic Goals based on the above Strategic Areas and 2 accompanying strategic objectives for each goal:

Strategic goals are those goals which are created with intend to accomplish the business strategy. By creating or developing strategic goals the company identify what should be achieved by them by putting in the efforts. This helps the entity to move forward towards what is set by them and achieve the same. Following are some of strategic goals to be developed by VilNET Limited:

i. Customers

Customers are the key to any business’s success. Customer focused business helps the company to develop products which are in line with the trend in the market and hence ensuring their existence in the market along with the rivals.

Here VilNET Limited can set the strategic goal to increase the customers by 20-30% of the current customer base.

Customer loyalty programs are new ideas in market which will help the company get promoted through word of mouth of its customers there by winning more.

                     Two strategic objectives to be set by the company with respect to the area Customers are:

a)Best value for the cost paid by them. Here the company should focus to provide the customers with the products at a cost or price lower than the average and receive the products without any compromise in the quality.

b) Reliable Products/Services should be provided and for this the company should try to target the customers who value the reliability of the products. Pharmaceuticals are a sensitive business line and if they earn the trust of the customers about their product being reliable, the customers will not deviate from the same at any cost.

ii. Market

        Without a market for their product, any company existence will be meaningless. SO development and maintenance of market for their product is an aspect that the company should work on sustainably.

The strategic goal that can be set by VilNET Limited is to increase the market share by holding more than 50-60% of the total market region wise or internationally. This can be done by tracking the company’s rate of new customer acquisition.

Two strategic objectives to be set by the company in case of market are as follows:

a)Increase engagement with customers by delivering the market with their products with quickness and diligence. This would portray the company as one which is always present in the market and is acknowledging /meeting the customer’s possible requirements and a valuable contributor to the community or market.

b) Staying ahead of the rivals by capturing the online market also. For this they should develop such a platform that would be region specific and arranges instant delivery of vitals.

iii. People

These are the competitive advantage held by every entity as people or human resource of one entity cannot be adopted by others.

Thus VilNET Limited should try hiring more efficient and effective people in to their panel especially in this R&D (Research and Development) and the sales executives. The Sales executives will help the company with others to identify the new opportunities or threats coming up and which can be made use of.

While the R&D Personnel would help the company in developing the products acknowledging the opportunities identified by sales personnel.

Thus, this hiring of the correct person is the strategic goals which will help the company achieve its outcome of the new products according to the market requirement.

Now the 2 objectives would be as follows:

a) Define an organizational structure which derives productivity. Once the right person is hired, the company should possess a good organizational structure which will squeeze out the skills of the hired employee and maximize the return on investment in human resource capital.

b) Developing effective communication and coordination within the organization as a community or teamwork provides the best results than any man or person in isolation.

iv. Products

Products are the base of any company’s existence. It is this which brings the company and helps it exist and grow there.

So any financial goal or objective should be subsequent to this.

The goal of any company should be to develop and come out with a product which is either trending in the market or is the new necessity.

The 2 objectives associated are:

a) Positioning the product developed by us is equally important as the development of the same understanding the necessity of the market. When the product is positioned in the most convenient manner as suitable or reliable for any requirement, it becomes the best in the market.

b) Promotion is another objective to be set in case of the product as it helps to reach the right customer targeting whom the same was developed by us.

Thus, VilNET Limited should keep the above mentioned in their priority list along with the financial measures while developing any strategy as these all holds equal importance.