Pharmaceuticals strategy basically focused on revolutionize drug development through the use of new technology during growth phase and making organizational changes during its maturing phase of by making strategic Improvements in the organizational structure, making alliances, outsourcing etc by having vertical integration and moving from upstream to downstream model. In phase 1, technology helped the firm leapfrog most other biotechnology firms In the early stage of drug target identification.
But this could not prolong as technology and lolls were diffused and competitors learned from Millenniums model. This prompted Millennium to shift its focus form early stage discovery alliances (upstream) to drug development and centralization. Levin expanded strategy to Include “personalized medicine,” which he envisioned would leverage Millenniums technology platform to customize medicines to the genetic profiles of each patient and Improve the effectiveness of drug treatment while Limiting side effects.
Levin began to realize how challenging It was to build expertise In a broad variety of therapeutic areas while expanding the value chain downstream towards Americanization. In phase Ill Levin realized that it would be more productive to focus on the particular field the company had competitive advantage in rather than concentrating on the broader arena which followed shift in its business model from R&D services organization to fully integrated on its own pipeline and narrowing their efforts to cardiovascular, inflammation and oncology.
Although the strategies adopted aim towards achieving vertical integration and continuous improvements, their strategy does not align parallel with goal; also mission and vision seem to hangs more frequently than it should be. 2) Millennium has pursued the strategy of vertical integration by moving from upstream to downstream centralization, forming alliances, restructuring their model by narrowing their development efforts. Amongst these one of the most critical factors that work towards achieving vertical integration is having strong coordination across different levels in the organization.
The relative small size of commercial team has lead to several potential problems that inhibits the ability of the value chain due to their inability to coordinate well due o size constraints. Focus on limited factors, which would give highest competitive returns, is the other critical factors that work towards achieving vertical integration. Since Millennium has a number of alliances, only proper coordination between these can Improve and help set strong goals and achieve harmony In a vertical Integrated business model as it prevents interruptions between upstream (suppliers) and downstream (consumers).
Having too many things under one umbrella might require too many resources and adhering to a stable villous In that case would be very emending and might not align with the villous and long run goal of the company. Proper resource allocation Is also another Important factor, which contributes towards achieving the goals of the organization, retaining senior management for longer duration of tenure Is beneficial for better alignment of vision and adhering to It would lad to achieve long term success.
Another factor would be their work culture, wanly Is stated to De an Motorman one Ana ten practice Ana presence AT Deterrent cultures in different areas of the company, which might be the reason of segregation and lack of coordination. Maintaining a similar work environment throughout the company would help in achieving a sense of oneness and remove any conflicts related to favoritism between upstream and downstream. ) As CEO the important organizational changes that I would suggest in order to align with the above mentioned strategy would be to stick to the goal and not changing it to more frequently than that is required. Minor changes can be made acceptable but changing the goals completely would result in a new company every time the changes are materialized. Another important factor that would require change would e the work culture, which is stated as informal and different across different segments.
There need to be a sense of uniformity in work environment which would ease out the problems related to coordination and would be similar across the industry in a wider scope that would make hiring the new attackers efficient. Resource allocation should be made more efficient and since the executive members keep changing it is difficult to be aligned with the vision, hence a strategy of minimum number of years of duration of service should be made mandatory along with setting mission for every employee.