HR Plan for a Pharma Company

1. HR Plan for a Pharma
Company
Human Capital & Leadership
BSP - EMBA E#9
Eduardo Martins
José Outeiro
Micael Costa
Marcelo Rigoni

2. Strategic think: Porter / Ulrich
Current Future
Environment Environment
Business What is our current
Given Environmental
Trends what would be
Environment/ Business Environment
the Lively
& Strategy?
Strategy Business Strategy?
Gap 1 Gap 2
Organizational Given our future
What are our
Capabilities Strategy what
Organizational
(Culture, Capabilities are going
Capabilities?
to be required?
Competencies)
Gap 3 Gap 4
Given our future
Organizational / Strategy and its
What are our
HR Management Current HR practices?
Required Capabilities,
Practices what would be the
Ideal HR practices?
Gap 5

3. Current Future
Issue
Environment Environment
Generics (2.004)  Market Share = 15%  Market Share = 35%
Growth Trends (R$) CAGR 1999 to 2003 CAGR 2005 to 2008
# MULTINATIONAL = 5,18% = 4%
# NATIONALS = 13,36 = 9%
# GENERICS = 99,6% = 50%
Economic Growth 2004: 4,5% 2005 to 2008 = 3,5%

4. Current Future
Issue
Environment Environment
 Government Price Control Under Pressure:
 Competition through price
Price had been increased since
 Government Price Control
generic law  Launch Price will be limited
 Industries will raise their own
Wholesalers &  Wholesalers = 70% of Sales Force to Pharmacies,
Pharmacies market reducing the role of the
Wholesalers
Low Quality &  Had been selling carried by  Will reduce their Share due
the Generic Trend (probably to the new bio equivalence law
Informal Products 30% to 45% of the Official leading to an increase of 20% to
(copy products) Market) 25% in the official market

5. Porter’s 5 Forces Model
Generics: International
AGENTS Companies will be
Increase Government
control:
attracted
• Price Ceiling
•Anvisa
• National • Chains will raise
competition their Power
will increase • Wholesalers
• Increasing must change their
competition • Competition with role
for new Generics will
products increase
PBM’s could influence
• Alternative
prescription habits
treatments are not
a real threat

6. What is our current Business
Environment & Strategy ?
Business Environment Strategy
CURRENT STRATEGY
Specific Business Units:
1. OTC Products
2. Prescription Products
3. Industrial
Enhance Sales of Main Products
Reduce Idle Capacity
Launch New Products
GAP 1

7. What is our current Business
Environment & Strategy ?
Given Environmental Trends what
would be the Lively Business Strategy?
* Get the opportunity to increase sales: the total market will expand due
to the reduction of informal market
* Launch New Products
* Increase Business Development
* Put Ourselves in close proximity to the Pharmacies, Physicians and
Customers
* Reduce COGS
GAP 2

8. What is our current Business
Environment & Strategy ?
What are our Organizational
Capabilities?
* Pharmaceutical Marketing skills
* Production Expertise
* Skilled Sales Force
GAP 3

9. What is our current Business
Environment & Strategy ?
Given our future Strategy what
Capabilities are going to be required?
* Specific Market Knowledge
* Ability To be close to the customers
* Production and Supply Chain Skills
* Business Sensibility to develop and launch new products
* Integration and Team work (remove boundaries)
* Change Management
GAP 4

10. What is our current Business
Environment & Strategy ?
What are our
Current HR practices?
* Competitive Compensation Policy
* Starting Competences
* Starting Focus on talent People
* Team Working
GAP 5

11. What is our current Business
Environment & Strategy ?
Given our future Strategy and its Required
Capabilities, what would be Ideal HR practices?
* Team Building Process
* Integration Process
* Communication Program
* Increase our Competences
* Increase our Competitiveness to attract and retain talent people
* Leadership Development & Succession Plan
GAP 5

12. “He that will not apply new remedies must expect
new evils, for time is the greatest innovator.”
(Sir Francis Bancon)