Introduction:
NPIL is an International pharmaceutical manufacturing firm based in India whose growth was majorly defined by its 8 acquisitions since 1988 to 2004 and its first major international acquisition of Avecia in 2005. Multiple acquisitions resulted in diverse senior leadership. The firm majorly has two divisions which are PDS and PMS and is currently facing a conflict in the business development function.
The main reason for the conflict between the three senior managers involved is the difference of opinions on the integration plans which originally has a global approach but the acquired oprations wanting more local control. Furthermore, the issues with authority and Grundy and Veronica who are major players in the company not willing to work for a common organizational goal but putting their personal interests and growth prospects first (eg. Grundy requesting Fernandes, the executve director for a new branch of his own division). Ananth, who is the director of global business being dissatisfied with the executives not reporting to him are few reasons for the conflict.
SWOT Analysis of NPIL:
Michael Fernandes organized a meeting with the three employess involved in the conflict but three of them might have different perspectives of their own. Currently Grundy has a very off-handish approach towards the operations in the firm partly due the cultural differences and mostly due to the step-down that has occurred in his position in the process of acquisition. So he might want to press on his idea of an independent business to Fernanades as his thoughts are occupied by that. Whereas Veronica being the most knowledgeable about the molecule development and the other part of the process and having worked hard for the growth and development of Torcan she might want to discuss the prospect of giving her timely and accurate information to Fernandes and give her more power to delegate. While Ananth being dissatisfied with the fact that both the executives are being indifferent to his ideas. He might want to discuss the growth prospects of NPIL and might want a new team or executives to work with without hierarchical issues
Right now if the upcoming meeting heads in a wrong direction, company faces with the risk of fall out of the business development function as one of the nine plants is located in Canada and UK and if the customer chooses the drug to be manufactured in either of the Avicia’s plants and the company will not be able to deliver effectively due to the on going conflicts. Avicia cannot afford to lose another customer as it did in 2004. It could also lose one of its key employees who have strong ties with clients in Europe and America (Grundy and Varonica) and lose its largest share of revenues ( around 50%) coming in from North America and Europe if there is a lack of someone who understands those markets perfectly. Moreover, since Avicia is its first major international acquisition, if it manages it poorly and does not get it out of its previous 6 million losses per year it could put an end to further international acquisitions. Since Veronica, one of the key players involved in the conflict is the director of PDS unit, her dissatisfaction could result in damaging the operations of PDS which constitutes the beginning stage of drug development of its custom manufacturing strategy which is the corner stone for the company’s future and a main part of its ‘value proposition’ which is being a ‘one stop shop’ for its clients along with the cost-advantage.
It can be said from the organizational structure as well his behavior that Michael Fernandes is a bit partial towards Ananth given his respect for Ananth’s vast experience, important contributions towards the early success of NPIL and strong personality and views.
If I were Fernanades, I would try to address the meeting in an unbiased manner taking more responsibility and
