Chiến lược kinh doanh của Công ty Dược phẩm Quốc gia số 2 (Codupha) trong giai đoạn 2012 - 2016

MỤC LỤC

Business strategy of the organization 1. Concepts of Business Strategy

- There are many definitions of business strategy by academics at home and abroad, one of which is “business strategy of the enterprise is in terms of market economy, based on objective and subjective conditions, on the resources that business can have to identify the policy, path and measures to ensure the survival and development of stable, long-term development purposes for which the enterprise has set” [1, p.16]. The capacity of the organization: Enterprises must know to create sustainable value for customers and shareholders through the identification of the organization's capacity and apply the balanced approach to business systems.

The process of formulation of business strategy

To be able to build business strategy of the organization, we should clearly assess the internal factors of the enterprise, particularly the capacity, personnel, finance, accounting, marketing, management, operation production, trading, research and development, information systems. During the implementation of business strategies, need to control, assess effectiveness, find out the difference between chosen business strategy and the implementation of business strategy, and find out the reasons of differences for improving business strategy to implement the ultimate targets of the strategy.

Tools for analyzing and choosing the business strategy of the organization

The strengths/opportunities often have higher levels of classification than weaknesses/challenges; however, weaknesses/challenges can also receive high levels of classification if they have high severe or threatening characteristics. In IFE matrix only internal factors are evaluated and in EFE matrix external factors are evaluated but CPM include both internal and external factors to evaluate overall position of the organization with respective to their major competitors.

Strengths List out the most

• SO Strategies: To use strengths inside of the enterprise to exploit the opportunities of the external environment. • ST Strategies: To use strengths of the enterprise to avoid or reduce the threats from the external environment.

Weaknesses List out the most

• WT Strategies: This is the defensive strategies aimed to reduce internal weaknesses and external threats.

Threats Strategies S-T Strategies W-T

Brief about the National Pharmaceutical Company No 2 (Codupha) 1. The process of establishment and development

Legal representative: Chemist Le Van Son - Chairman and Director The National Pharmaceutical Company No 2 was established right after the liberation of South Vietnam under the name “General Pharmaceutical Depot”, distributing pharmaceutical formulations, active pharmaceutical ingredients, chemicals, medical equipments for South Vietnam (from Danang downwards). The supervisor has the right to check the legality, honesty and prudence of the company’s president, director and other managers in the implementation of the rights of owners in the management and administration of Codupha; evaluating financial statements, production and business reports, management report and other reports before submission to the company’s owners or relevant state agencies.

Analyzing the external environment of the organization 1. Analysis of macro environment

In addition, in the future, the Government and Ministry of Health will support the domestic pharmaceutical enterprises through policies and mechanisms to create the best conditions for group of businessmen - scientists – farmers to develop effective and sustainable medicine as well as their responsibilities in formulating closed circle of products distribution chains with quality, directly serve the health care of population. BMI forecasts the total value of used drugs will reach nearly 3.4 billion USD in 2015 with an average growth rate of 14.5% / year in period from 2011 to 2015 (excluding the impact of exchange rates), although more slowly than in the period 2006-2010 but remained high and far exceeds 3-6% / year - the global average growth forecasted by IMS Health and above average growth of group 3 emerging pharmaceutical markets (10-13%/year) (emerging markets except China, Brazil, India and Russia). According to the Vietnam Drug Administration, in July 2009, there were 171 drug-manufacturers, in which, 93 produce modern pharmaceuticals, or 54.4% of total, and 78 enterprises producing herbal medicaments; also there are 6 enterprises producing vaccines, medical biologicals.

These companies have the advantage of capital and the facilities previously received from the state and existing distribution system previously established due to state authorization on drug import, distribution of drugs under special control or national drug programs. At present time, the pressure on pharmaceutical industry of the finished product suppliers, raw materials still very high: according to the Vietnam Drug Administration, nearly 90% of raw materials for drug manufacture are imported from abroad, the dependence on raw materials of domestic drug manufacturing companies is huge and they will face difficulties when the suppliers increase prices. Entry barriers are high due to that the pharmaceutical industry is strongly affected by the State management and other world institutions: According to the Decision No 27/2007/QD-BYT of the Ministry of Health and requirements of WHO, the companies want to produce the pharmaceuticals must conform standards such as GMP as recommended by the WHO (GMP - WHO); storage system standard GSP; good laboratory practice vaccines and biological products (GLP), good practice in drug distribution (GDP), good pharmacy practice (GPP).

As one of the leading enterprises of the pharmaceutical industry after Vietnam Liberation Day (30th April 1975), spent years developing CODUPHA has achieved significant business results, contributing into development of the pharmaceutical industry in particular and the country's economy in general. In terms of product structure, in this period sales revenue of finished drugs is confirmed as a staple of the company, it takes 83.85% of total value, following are medical instruments (medical equipment and materials - consumable materials) - 9.28%, raw materials take 6.14% and other services (for store lease, cosmetics) -0.73%. The table 2.14 shows that CODUPHA has the best competitive advantage, with key strengths are the state protection on drug distribution, more than 30-year experience and importation capacity, good warehouses and national-wide branches system and exclusive rights on distribution of drugs under special control and participating the national drug programs, good financial capability thanks to state guarantees for loans.

The long-term development of Codupha

- Develop and improve the network of branches, storages, professional distribution network throughout all the provinces of the country. - Cooperate with major partners in production and supply to meet demands of special medicaments for treatment and health systems and pharmacies, pharmaceutical companies in all provinces across the country. - Create all necessary conditions for staffs to develop their best characteristics and talents, to bring the highest satisfaction to customers.

- Mobilize long-term investment capitals from other firms, investment funds for production development, a bank loan, increase business capacity of the enterprise. Exploit the commercial advantages of the plot of land at 334 To Hien Thanh Street, Ward 14, District 10 Ho Chi Minh City in accordance with the land use planning of Ho Chi Minh City, increase annual profits of the Company. - Implement the policy of the Ministry of Health, Vietnam Pharmaceutical Corporation on the establishment of the pharmaceutical distribution center in Ho Chi Minh City to attract and focus enterprises on production, import, export, maintain and develop the drugs distribution network, contributing to enhance the quality medicines management, stabilize prices and create more 500-600 jobs.

Choice of business strategy for CODUPHA in period 2012-2016

√ In comparison with domestic competitors, CODUPHA has the advantage of long-term brand and reputation in the pharmaceutical industry, while in comparison with foreign competitors, the CODUPHA has advantages on available distribution system, covering across the country and the preferential policies of the State. √ Integration and globalization create conditions for foreign firms entering the local market, forcing local companies to compete with rivals having higher financial capability, technological level, and the management level. √ As an organization developing drug distribution so human resource management is very important, staff management and control system has not developed yet and large areas therefore could not control well staff working time.

COMBINATION W/O W1+W2+O1+O2+O3 Building reputation in drug distribution activities to improve profit margins by attracting new distribution partners, concentrated growth with advantages of existing distribution and warehouse system. The advantages of formerly exclusive distributor of certain special pharmaceutical products and limited number of companies licensed to distribute drugs were no longer exist, that’s why pushing up marketing work, using existing distribution networks to accelerate the turnover of inventory, increasing business revenue is very important.  Building confidence in drug distribution activities to improve profit margins by attracting new distribution partners, concentrated growth with advantages of existing distribution and warehouse system.

The advantage of those strategies is that they promote the fullest use of facilities and coverage, the qualified management staff, meeting the highest requirements on revenue, increase market share, increase profits and improve living standards for staffs.

Strategy implementation solutions 1. Market Development Strategy

Reasonably nominate and organize staff, ensure right people right positions, efficient use of human resources, while enhancing process management, supervision and monitoring, promoting self-awareness, flexibility performance of individuals. Since then, retraining some available staffs, focus on training and retraining issues related to new technologies (ISO, GDP, GSP, GPP, GLP ..), new knowledge and the implementation issues are drawn from actual training of human resources in order to have sufficient quantity and quality of staffs for business requirements. Classification and younger officers through the assessment process so in a short time to have a sufficient number of managers, technical staff, team members and the pharmaceutical skilled workers to meet the immediate requirements and long term.

Since then can rearrange or transfer personnel to the appropriate positions, enable staff to promote the creative spirit and take responsibility for their decisions, through what can be evaluated the capacity of staff and arrange works accordingly. Mobilize and encourage staff to participate and propose innovative ideas to improve labor productivity, thrift practice and improve business productivity performance, timely rewards to excellent individuals and labor collectives. With the advantage of wide coverage and network of branches and warehouses in the major locations national-wide, the company to thrive signing the distribution contracts with multi-national companies, to take advantages from state macro-policy in pharmaceutical industry.

With joining WTO and the commitment of the Government of Vietnam to open the pharmaceutical market, foreign companies will be allowed to join the retail market and supply to final consumers, so the company has to seek strategic partners for further development of its strengths.

CONCLUSION

Viện Nghiên cứu và Đào tạo về Quản lý (2006), Xây dựng và triển khai Chiến lược Kinh doanh con đường đến thành công, Nhà xuất bản Lao động xã hội, Hà Nội.