Discussion and Background of Novo Nordisk

1. Case 14:
Novo Nordisk
Leadership & Organizational
Behavior
Leadership & Organizational Behaiviour
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2. Group 5
Dennis
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Ariawan Herwiandito 1340001950
Samuel Budi Setiawan 1340002045
Alexander Zulkarnain 1340002070
Herbert Ng
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3. Novo Nordisk
Novo Nordisk manufactures and markets pharmaceutical products and services and
was created in 1989 through a merger of two Danish companies dating back to the
1920s. It produces, in particular, diabetes care equipment and medications. Novo
Nordisk is also involved with haemostasis management, growth hormone therapy and
hormone replacement therapy
Novo Nordisk is one of the world’s leading producers of insulin.
Novo Nordisk Notable Brands
– Levemir
– NovoRapids
– Flexpen
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4. Novo Nordisk
Novo Nordisk, headquartered in Denmark, is a company whose concerns run beyond
the financial bottom line. Novo Nordisk not only manufactures and markets
pharmaceutical products and services. They also realizes that responsible business is a
good business.
Leadership & Organizational Behaiviour
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5. Novo Nordisk’s Triple Bottom Line
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6. Triple Bottom Line
• A triple bottom line measures
• the company's economic value,
• "people account" – which measures the company's degree
of social responsibility and
• the company's "planet account" – which measures the
company's environmental responsibility.
companies should prepare three bottom lines – the triple
bottom line – instead of focusing solely on its
finances, thereby giving consideration to the company's
social, economic and environmental impact.
Also called "TBL," "3BL," "People, Planet, Profit" and "The
Three Pillars."
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7. • It aims to achieve a 10% reduction in the
company’s CO2 emissions by 2014.
• In 2009, the company announced that it had
already reduced CO2 emissions by 9% and
water consumption buy 17%, even as
production and sales increased.
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8. Novo Nordisk also considers the people who rely
on the company’s products and its
employees, as well as the impact of their
business on company.
Corporate sustainability is an ethos clearly
practiced by Novo Nordisk, and the company
believes that it drives their success in business.
Leadership & Organizational Behaiviour
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9. Balanced Scorecard
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10. • The balanced scorecard is a strategic planning and
management system that is used extensively in
business and industry, government, and nonprofit
organizations worldwide to align business activities
to the vision and strategy of the organization,
improve internal and external communications, and
monitor organization performance against strategic
goals.
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11. Novo Nordisk and Balanced Scorecard
Novo Nordisk also adopted the Balanced Scorecard as the company wide management
tool for measuring its progress. As part of their payment package, individuals are
rewarded for performance that meets or exceeds the financial and non-financial
targets in the Balanced Scorecard.
Leadership & Organizational Behaiviour
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12. • Financial performance is guided by a set of
four long term targets focusing on
• growth,
• profitability,
• financial return and
• Cash generation
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13. • Non financial performance targets include
– Job creation
– Ability to manage environmental impact
– Optimize resource efficiency
– Social impacts related to employees, patients, and
communities
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14. Question & Answer
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