Strategic definitions for complex contexts

The local subsidiary of a leading pharmaceutical company, with presence in over 70 countries in the five continents, was experiencing a decline in profitability that led to very poor results for the year end. Thus, the parent company requested them to submit a plan to assess the viability of the business in the country.

Challenge

The executives at the local company had to quickly develop a strategic plan involving critical decisions on how to reverse the downward trend of the business. The market context was highly complex, mainly due to governmental restrictions in drug prices and a fast-paced cost increase resulting from the rising inflation levels. We had to create a solid plan in a very short time, to build confidence and significantly improve the company’s rentability.

Project

Tandem worked together with the client facilitating a strategy integral process aimed at helping company’s executives to analyze the situation and reach agreements, in order to develop an action plan in a timely manner. We analyzed the causes that led the company to that situation and worked in the alignment of the directors’ objectives. Alternative solutions were presented, analyzing all possible action measures and we conducted a risk-analysis using best practice decision-making support methodologies. Finally, we carried out a selection of the strategic alternatives with a greater impact, and developed a solid plan that took into consideration both short-term decisions and long-term opportunities.

Business impact

The client was able to gain a clear understanding of its situation and the surrounding context, which allowed the company’s executives to design a strategy focused on the decisions that create more value. This approach allowed them to reverse the situation of the company, improving its results.  The implementation of these measures contributed to the company’s improvement and the business became sustainable.