The antibiotic Panalba has been in the market for a good length of time and many doctors have recommended it. In simple terms it has been very successful and it has earned Upjohn Corporation substantive profits within and outside the United States. There has been also a very stiff competition which has been healthy but every so often companies manufacturing drugs that serve the same purpose have gone overboard to ensure Panalba is banned.
However, the verdict by scientists may be partly justified because in the other side of the coin doctors are comfortable using the drug in some cases. Due to this verdict by the National Research Council panel from the National Academy of Science to unanimously ban the sale of Panalba, the special board of Upjohn Corporation has met and suggested some solutions. Nevertheless, I as the strategy consultant has recommended and approved the first two solutions to take effect immediately as the other remaining three will be given consideration if the first two will not work.
The first two solutions to immediately take effect are; stop Panalba production immediately, and allow what has been made to be sold and stop all advertising and promotion of Panalba, but provide it for those doctors who request it. These two solutions are very important for the reputation of the company to be maintained. Because the company has not been unexpectedly stopped from selling the remaining stocks, it will continue expediently selling these stocks both in the United States and outside.
The expedient selling will curb big losses because the manufacturing costs must be accounted for. It is very necessary to stop advertising so that one; to stop wasting money as the drug is going out of the market and two; to stop unnecessary censorship by the authorities if they realize there is still an aggressive selling of the drug that has been banned. The money that will be saved by not advertising and promoting Panalba will be directed to the manufacturing of a substitute drug.
The company will reduce the quantity production so that the little that will be produced will serve the doctors who require it. An abrupt stoppage to production will force the company to dismiss many qualified employees whom we may need because it will be very necessary to immediately consider manufacturing a substitute drug to Panalba. The company will not take a legal action to oppose the authorities on the ban for the reason that it will attract unnecessary attention from the media and other competitors to negatively damage the reputation of the company.
The above remedies will also allow this company to gradually change its brand of the drug outside the United States of America. If there will be no change of the drug outside the US, the company will be tainted with bad publicity that it is selling prohibited drugs which eventually may cause other drugs of Upjohn Corporation to be disposed of hence the company will not maintain its reputation and profits. Reference: Daft, R. & Sharfman, M. Organization Theory. New York: West Publishing Co, 1990. (Daft & Sharfman)