STRATEGY MANAGEMNT PLAN
1
STRATEGY MANAGEMNT PLAN
3
Asia Business Division Unit Strategy Management Plan Phase One
Chris Stengel
Institutional Affiliation
Asia Business Division Unit Strategy Management Plan Phase One
Introduction
The commitment of this piece is to avail an overall business unit strategy management plan for the biotech as well as the new cosmetic division which is set to be open in India. The future and current goals of the new division's business have been examined and endorsed via surveys into some of the issues faced by the business going forward into the new industry. Availed are also the advantages the company will have pertaining to the selected location which is India. There will be laid out five goals as well as objectives to be met by the firm and its new division based in India. Finally, there is the examination of the internal and external analysis of the biotech in relation to the cosmetics industry. The analyses will assist in establishing a competitive advantage for both the biotech and its newly established India division.
Goals and Objectives
The goals and objective of this business would include the following:
1. Expanding into the Indian market and establish a cosmetic division as well as a distribution industry within the following year.
a. To select a market cite within India which overall tend to work best for biotech. Generally, India is the best location thus far chosen.
b. To select the new executive director for the new division as well as a team which will ensure the division is running.
c. To hire the local employees for both local relations and distribution.
2. Developing to become a triple bottom line organization by the year 2022
a. To build homes for various communities in India.
b. To create a clean support group in India to assist in cleaning up the area around the newly established division.
c. To donate 6% of the cosmetic sales to the removal of plastic from the ocean.
3. Developing natural cosmetics, foundations, powders, main focus on the lipstick, eye cleaners and makeup, taking at least a single style of every product to the market place within the next a couple of years.
a. To research the color trends as well as the current styles.
b. To develop natural products which are safe by the utilization of economic friendly materials
c. To test the products with the working teams to help select the fragrances and palates before launching them.
4. Marketing the new cosmetics internationally to boost the demand for the products of biotech, boost the market share by 15% within the first twelve months of launching it.
a. To research trends in the global and local markets of cosmetics to discover what works best as the points of sale.
b. To launch a single product at a given time and collect the consumer's feedback before the launch of the second product.
c. To market the products to the United States and even to the domestic consumers within India before working into .
STRATEGY MANAGEMNT PLAN1STRATEGY MANAGEMNT PLAN .docx
1. STRATEGY MANAGEMNT PLAN
1
STRATEGY MANAGEMNT PLAN
3
Asia Business Division Unit Strategy Management Plan Phase
One
Chris Stengel
Institutional Affiliation
Asia Business Division Unit Strategy Management Plan Phase
One
Introduction
The commitment of this piece is to avail an overall business
unit strategy management plan for the biotech as well as the
new cosmetic division which is set to be open in India. The
future and current goals of the new division's business have
been examined and endorsed via surveys into some of the issues
faced by the business going forward into the new industry.
Availed are also the advantages the company will have
pertaining to the selected location which is India. There will be
laid out five goals as well as objectives to be met by the firm
and its new division based in India. Finally, there is the
examination of the internal and external analysis of the biotech
in relation to the cosmetics industry. The analyses will assist in
establishing a competitive advantage for both the biotech and its
newly established India division.
Goals and Objectives
2. The goals and objective of this business would include the
following:
1. Expanding into the Indian market and establish a cosmetic
division as well as a distribution industry within the following
year.
a. To select a market cite within India which overall tend to
work best for biotech. Generally, India is the best location thus
far chosen.
b. To select the new executive director for the new division as
well as a team which will ensure the division is running.
c. To hire the local employees for both local relations and
distribution.
2. Developing to become a triple bottom line organization by
the year 2022
a. To build homes for various communities in India.
b. To create a clean support group in India to assist in cleaning
up the area around the newly established division.
c. To donate 6% of the cosmetic sales to the removal of plastic
from the ocean.
3. Developing natural cosmetics, foundations, powders, main
focus on the lipstick, eye cleaners and makeup, taking at least a
single style of every product to the market place within the next
a couple of years.
a. To research the color trends as well as the current styles.
b. To develop natural products which are safe by the utilization
of economic friendly materials
c. To test the products with the working teams to help select the
fragrances and palates before launching them.
4. Marketing the new cosmetics internationally to boost the
demand for the products of biotech, boost the market share by
3. 15% within the first twelve months of launching it.
a. To research trends in the global and local markets of
cosmetics to discover what works best as the points of sale.
b. To launch a single product at a given time and collect the
consumer's feedback before the launch of the second product.
c. To market the products to the United States and even to the
domestic consumers within India before working into the other
areas abroad.
5. Creating a culture which is customer-centric and focuses on
offering the customers with the most outstanding experience
with the business as well as its products.
a. To carry out surveys and collect the feedback on the products
which are most liked and disliked by customers by dealing with
the biotech so far and how it can be adjusted to make it better.
b. To create a guarantee of money back on the products.
c. To have dedicated branches to handle the services of the
customers and make the team's main focus to be the deal of the
customers.
Competitive Analysis
The SWOT analysis:
Strengths:
· A family runs the business
· Dedicated to creating economic friendly as well as natural
products
· Business track and a strong brand in natural goods.
· Encouraging new ideas and innovation.
· Beliefs in the utilization of the rapidly growing current
technology to assist in growing and shaping the business
4. · There is the production of natural pharmaceutical goods in
India where the new industry division will be located
Weaknesses:
· New to the industry of cosmetics
· New to India, the new market location
· Has a new director
· Leaving the business which is run by family members
· Lacking marketing personnel in the cosmetics industry
· The present lack of competitive advantage
Opportunities:
· The firm is new to the industry of cosmetics
· The emerging Indian markets
· Cheaper costs of distribution in India
· Naturally made and safe products have become increasingly
more attractive to the customers
· There is a lack of quality, sustainable as well as safe products
in the cosmetic sector
Threats:
· The trends in the market in the cosmetic industry
· The trends of the market in the commodities traded on by the
company, natural and economic friendly goods.
· Setbacks in the finishing of the newly created division in India
which is the new location because of the external influences
impacting on the distribution and production costs.
5. · The changes in government policy which affects the sales and
or distribution of business in India.
In the SWOT analysis of the biotech, it is evident that the firm's
strengths tend to lie on the fact that the biotech is a strong
business which is run by a family which has the aspect of the
family in mind. The company is also seen to be dedicated to its
vision and mission to achieve its desired goals and objectives of
profit maximization (Aguire et al., 2014). The firm enjoys a
strong customer base in the product brands which are present in
the market. Similarly, the business has the same opportunity to
bring with it the large and robust customer base to the newly
established cosmetic division. As it will tend to be a new
investment for both the new director and the company at large,
the emerging market risks and lack of qualified marketing
expertise in the new location as well as the Indian emerging
market trends seems to back the organization's chances to
launch its new products successfully. This, however, will take
place as long as there exist no drawbacks or even the external
threats of the control of the biotech.
The PESTLE Analysis
The PESTLE analysis which is presented in this case has been
carried out about the location in India that has been chosen for
the new division of the cosmetic industry. Concerning politics,
India is seen to be a nation which has a stable political position
since it possesses one of the largest modern democracies in the
world (Greer, 2018). The India government operates in the
general means, and it is impacted by the procedures and policies
which are formulated by the national government. It, therefore,
means that there are a lot of political parties which function and
are capable of influencing the process of decision making. It
thus implies that India as a nation is politically controlled, and
the politics can impact the cosmetic industry especially if the
government fails to support the populous beatification. There is
also in India a system of taxation which will take almost 35% of
6. the business sales. The government encourages a lot of
privatization, but there is still evidence of corruption within the
nation.
In terms of economy, India has recently evolved to become an
emerging open market which possesses a rate of growth of
almost 7.5% and a GDP of 9trilion. The rate of unemployment
in India stands at 5% which is seen to be able to offer a great
opportunity for the biotech to provide potential jobs for the
citizens in India (Greer, 2018). The country's economy has
always been very stable and seems to continue being stable for
the foreseeable future.
India socially has a vast population with 70percent made up of
youths from the age of 11 to 45 years. It, therefore, means that
India consists of divergent attitudes, trends as well as
educational backgrounds amongst her citizens (Greer, 2018).
Surveys and recorded data have revealed that there exists a
growing desire by the consumers in India, especially the
younger generation in the dermatology care products and
cosmetics use. The growth rate in the utilization of such product
stands currently at 20% as reported by the CGI magazine.
Regarding technology, India constitutes one of the nations
which are leading in the adoption of modern technology and its
utilization. The country has one of the most significant
presences in the industry information technology and the
enhanced software and devices development. Presently, India
has the capabilities and ambitions of the 4G concerning their
satellites in the space.
India has gone through a lot of alterations legally for the benefit
of the nation environmentally and even economically. The
country has created ways of mitigating pollution as well as the
waste patterns. The state has been full of pollution as well as
poor quality of air for a long time as a result of industrial
7. pollutants which fills the air and tends to contaminate it (Ehsah,
Karlsson & Dada, 2016). The industrial practices such as
manufacturing and greenhouse emissions tend to pollute the
environment in India. Following these polluting practices and
pollution in general, the nation has experienced a more
significant increase in health issues amongst its populace.
Most of the ill-health problems brought about by the pollution
in the country are cholera, and other waterborne infections as
well as respiratory tract infections. A lot of groups have been
seen to emerge to assist in lessening the issue of pollution in
India with the sole objective of creating a greener footmark in
the nation by the formulation of relevant policies as well as
initiatives (Ehsah et al., 2016). It is in this sector that biotech
can undoubtedly chip in to assist in making a difference. It can
do this correctly by leading the effort to go green which has
been beginning by most of the governmental and non-
governmental organizations alike.
The Potter's Five Forces Analysis
As the biotech takes a step ahead by entering the cosmetic
sector, it is essential to analyze its five forces of competition
and operation in the marketplace. The five forces of competition
in potter's perspective include the power of supply and buyer,
the competitive rivalry, the threat of the substitute goods and
products as well as the threat which is brought about by the new
entrants into the market (Rothaermel, 2015). With the five
forces analyzed and taken into account by any organization,
there is an assurance of a competitive ability development as a
result of proper operations taking place within the firm.
In the context of the biotech constructing a cosmetic industry in
India, the rivals in the investment are firstly the large organic
and natural organizations which include the 100perentpure, the
juice beauty and the Alima pure. The other threats include the
mainstream cosmetics in the country which include the
Maybelline, L'Oreal and even the Clinique (Rothaermel, 2015).
8. In this case, therefore, the biotech company should, therefore,
look for ways which can help them gain ultimately the market
share from the other organizations which tend to be leading
currently in the natural products. They should also seek a
market base for their most popular goods and manage to achieve
a competitive advantage over the already established companies
in the same sector.
The industry seems to be dominated with the firms operating on
the same field and product range. As a result, the biotech should
find a way of producing unique products from the other ones
which are provided by the other firms to help create fresh
demands for the newly introduced goods, thereby forming a vast
market for their division in India (Gupta & Batra, 2016). In this
manner, biotech will develop a product which will rival its
competitors both in quality and in price. The products should
also be economic friendly to help reduce the instances of
pollution which has been witnessed to affect a lot of Indian
citizens. The products will, therefore, lead and create recycling
and reuse importance for the customers, thus attracting more
their attention leading to more purchases.
Today, the power of suppliers and buyers tend to be similar.
However, the power of supplier tends to be stronger since it is
possible for the company to establish the future market prices of
the product basing the analysis in the existing market situation
as well as the cost of production (Greer, 2018). Nevertheless,
the power of the buyer also seems stable as well because the
biotech company lacks an established customer base yet unlike
the competitors and it might take it time to achieve the increase
of customers to like its motto and even its products and
services.
As there exist other firms in the cosmetics industry in India,
and that make the natural as well as economic-friendly
products, biotech is placed in apposition where it needs to set
new and advanced standards of what is expected of a sustainable
and safe cosmetics firm. It can achieve this by making an
9. evaluation and examination of the market trends as well as
engaging in specific buyer surveys even through benchmarking
with other established firms within the same industry (Greer,
2018). Again, a chance has also presented itself for the biotech's
loyal consumers for other company's divisions should and can
show their interests towards the firm's newly developed
products, since they had made a taste of the organization's other
safe and natural goods.
Regarding the threat of new entrants as well as that of the
substitute goods, biotech, in this case, stands to be the new
entrant in the cosmetics industry market and therefore possesses
the advantage at his hands of altering the existing state of the
market in India concerning the industry. The company's ideas in
addition to the products including how the products are
distributed to the customers by the firm can help in setting a
new standard for the safe and high-end natural cosmetics (Gupta
& Batra, 2016). The chances are that the other firms may also
engage in the same strategy to realize the competitive advantage
of the new entrant which in this case is the biotech company.
However, biotech can try to mitigate the threats by acquiring
and sustaining its market share as well as by providing
additional importance to their customers to make them remain
loyal to the organization and support its vision and mission.
Biotech can achieve this in the Indian market for the new
division through such initiatives as givebacks, offering
discounts, the green benefits, sponsoring mentorship programs
as well as applying other marketing methods which are
customer friendly.
References
Aguire, A., Aylor, B., Blunt, K., Elias, T., Jules, T., &
Kennedy, J. (2014). Marketing Strategy & Finances: Smart
ForTwo into India.
10. Ehsan Ullah, E., Karlsson, B., & Dada Olanrewaju, D. (2016).
Foreign Market Entry Srategies.: A Case study of IKEA
entering Indian Market.
Greer, G. (2018). Win in India: An Analysis of Market Entry
Strategy Into India’s Cosmetics Industry.
Gupta, V. K., & Batra, S. (2016). Entrepreneurial orientation
and firm performance in Indian SMEs: Universal and
contingency perspectives. International Small Business
Journal, 34(5), 660-682.
Rothaermel, F. T. (2015). Strategic management. McGraw-Hill
Education.
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Assignments Project 3 Asia Division Business Unit Strategy -
Phase 3
Project 3 Asia Division Business Unit Strategy - Phase 3
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Instruc�ons
BMGT 364 7987 Management and Organiza�on Theor…
BMGT 364 Project 3 (Week 7) Asia Division Business Unit
11. Strategy Management Plan – Phase 3
NOTE: All submi�ed work is to be your original work. You
may not use any work from another student, the
Internet or an online clearinghouse. You are expected to
understand the Academic Dishonesty and
Plagiarism Policy, and know that it is your responsibility to
learn about instructor and general academic
expecta�ons with regard to proper cita�on of sources as
specified in the APA Publica�on Manual, 6th Ed.
(Students are held accountable for in-text cita�ons and an
associated reference list only).
Purpose
In this project, you will complete Phase 3 of the Asia Division
Business Unit Strategy Management Plan.
Drawing from the course material, you will
In this project, you will use the course material through week 7
and your research to complete Phase 3 of the
Asia Division Business Unit Strategy Management Plan. In this
project you will learn and apply concepts
concerning human resources. You will also write an Execu�ve
Summary.
In answering the requirements, you will support the reasoning
and conclusions made, which means you will
explain ‘why and how’ rather than relying on making
statements.
Skill Building:
You are also comple�ng this project to help develop cri�cal
thinking and develop part of a management plan.
12. You will be required to research the cosme�c industry as a
con�nua�on of Project 1. Do not take the
research lightly as you are required to do significant research to
answer the requirements of the project.
Skills: Research, Cri�cal Thinking, Write a Management Plan
Outcome Met by Comple�ng This Assignment
employ effec�ve planning processes to develop strategies,
goals, and objec�ves in order to enhance
performance and sustainability
organize human, physical, and financial resources for the
effec�ve and efficient a�ainment of
organiza�onal goals
demonstrate leadership skills by communica�ng a shared
vision, mo�va�ng and empowering others,
and crea�ng a culture of ethical decision-making and
innova�on
develop measures and assess outcomes against plans and
standards to improve organiza�onal
effec�veness
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The new Execu�ve Director for the new Asia Division, has
been asked by Max Barney to put together, and
present to him, a business unit strategy that will be a guide for
the next year as the new division moves
forward. The Execu�ve Director will be working with the
consul�ng group over the next 5 weeks and they
will assist with pu�ng together this plan to be laid out as
follows and developed in three phases.
You have successfully complete Phase I and it is now �me to
complete Phase II. the second phase, Sec�on I
and Sec�on VII will be completed.
Sec�on I – Execu�ve Summary
Sec�on II – Goals and Objec�ves
Sec�on III – Compe��ve Analysis
Sec�on IV – Descrip�on of Organiza�onal Structure and
Culture
Sec�on V – Breakdown of Product and Services
Sec�on VI – Communica�ons Plan
Sec�on VII – Human Resources Plan
A Business Unit Strategy will provide the organiza�on an
opportunity to explain the goals and objec�ves of
the new division and help with the development of the strategy
to achieve them. The plan will allow the
company to gain insight into the current status of the industry it
is venturing into using internal and external
14. analysis tools, and then use this analysis to design its division’s
business environment. In addi�on, the plan
will be used to form the team that will bring the vision for this
division to reality.
Instruc�ons for comple�ng Phase III of the Business Unit
Strategy
These two sec�ons will finalize the Business Unit Strategy the
group from GoTo has been assis�ng the
Execu�ve Director with, and should now be �ed as a single
document.
Incorporate all three phases into a single paper for deliver. You
will need the Biotech Company Profile to
complete the analysis.
Step 1: Human Resource Plan
A human resource plan will allow the director of the new Asia
division to iden�fy the future human resource
needs for the organiza�on. The director has asked the GoTo
Consul�ng group to evaluate the product line
iden�fied and conduct market analysis to determine possible
man power needs for the product
manufacturing and overhead needs (to include all levels of
management). The management levels should
have been iden�fied in the Descrip�on of Organiza�onal
Structure and Culture sec�on of this strategy, but
the resource needs in manufacturing will need to be considered.
Remember the only person currently hired
for the new facility is the Director so there will need to be
Assistant Division Directors (ADD) for the other
areas iden�fied in the Structure such as Marke�ng, R&D,
Sales, etc. Each of the ADD’s will need to have
staff as well; you will need to iden�fy how each ADD will be
15. provided staff. Will they iden�fy and interview
themselves or will HR be a part of the hiring process. The
Organiza�onal Chart is also a part of the HR plan
so ensure it is also placed in this sec�on for reference.
Training is a key to reten�on in business today; employees like
to feel they are important to the organiza�on
and investment in their competencies shows commitment to
them. So, consider what the new division will
need to do to ensure they are keeping the best talent they find.
Evalua�ons is another way organiza�ons can show its
commitment to employees. How will the new division
conduct employee evalua�ons based on what is common in the
area that the GoTo group iden�fied? This will
require a level of research in common HR prac�ces in that
region.
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The group needs to remember that this is a brand new division
that will be selling products that Biotech
currently is not involved in so all aspects of business will need
16. to be considered such as marke�ng, etc.
Remember there is no perfect HR Plan, just plans that work and
plans that do not. Good plans consider the
employee and the culture around them just as important as the
organiza�on itself.
Step 2: Phase I and Phase II
Tie all sec�ons from Phase I – Phase III into a single document
using the feedback from Phase 1 and
Phase 2 to make updates. What this means is that you will:
Physically combine the three documents;
Integrate feedback given and updates you believe are necessary
(you may not have feedback
from Project at this point but you will have feedback for Project
1;
Remove the introduc�ons used for Project 1 and Project 2;
Ensure there are smooth transi�ons from one sec�on to
another;
Add any addi�onal informa�on or research that you have come
across since wri�ng Project 1.
Step 3: Execu�ve Summary
The Execu�ve Summary will be the first sec�on of the paper
but should be wri�en last since it will highlight
what is intended for discussion in the rest of the strategy. A
good execu�ve summary is compelling. It
reveals the company’s mission statement, along with a short
descrip�on of the products Biotech will provide
at the launch of the new division. It is also necessary to briefly
explain why Biotech is star�ng the new
division and include details about Biotech’s experience related
to the industry the company is entering.
17. Step 4: Review the Paper
Read the paper to ensure all required elements are present. Use
the grading rubric to ensure that you gain
the most points possible for this assignment.
Proofread the paper for spelling and gramma�cal issues, and
third person wri�ng.
Read the paper aloud as a first measure;
Use the spell and grammar check in Word as a second measure;
Have someone who has excellent English skills to proof the
paper;
Consider submi�ng the memo to the Effec�ve Wri�ng Center
(EWC). The EWC will provide 4-6 areas
that may need improvement.
Step 5: Submit the paper in the Assignment Folder (The
assignment submi�ed to the Assignment Folder will
be considered the student's final product and therefore ready for
grading by the instructor. It is incumbent
upon the student to verify the assignment is the correct
submission. No excep�ons will be considered by the
instructor).
How to Set Up the Paper
Create a Word or Rich Text Format (RTF) document that is
single-spaced, with double spaces between
paragraphs. Use 12-point font. The final product will be 6-8
pages in length excluding the �tle page and
reference page. Write clearly and concisely.
Comple�ng the Project
18. In order to complete this project, you will want to first read the
module, Learn How to Support What You
Write, as this assignment requires you to use the course
readings and research to support what you write.
Also,
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Due Date
Dec 9, 2018 11:59 PM
Hide Rubrics
Rubric Name: Project #3 Asia Business Unit -Phase 3 17%
Criteria
Execu�ve Summary
Above Average Sufficient Developing Needs Improvemen
Failure / 3.74
Read the grading rubric for the project. Use the grading rubric
while comple�ng the project to ensure
all requirements are met that will lead to the highest possible
grade.
19. Third person wri�ng is required. Third person means that there
are no words such as “I, me, my, we,
or us” (first person wri�ng), nor is there use of “you or your”
(second person wri�ng). If uncertain how
to write in the third person, view this
link:
h�p://www.quickanddirty�ps.com/educa�on/grammar/first-
second-and-third-person.
Contrac�ons are not used in business wri�ng, so do not use
them.
Paraphrase and do not use direct quota�on marks. Paraphrase
means you do not use more than four
consecu�ve words from a source document, but puts a passage
from a source document into your
own words and a�ribute the passage to the source document.
Not using direct quota�on marks
means that there should be no passages with quota�on marks
and instead the source material is
paraphrased as stated above. Note that a reference within a
reference list cannot exist without an
associated in-text cita�on and vice versa.
Provide the page or paragraph number (required) when using in-
text cita�ons. If using the eBook, use
Lumen Candela followed by the Sec�on �tle and paragraph
number.
You are expected to use the case scenario, Biotech Company
Profile, and weekly courses readings to
develop the analysis and support the reasoning. The
expecta�on is that you provide a robust use of
the course readings and demonstrate thorough research of the
cosme�c industry. The only external
20. source material used is in rela�on to the research on the
cosme�c industry. Material used from a
source document must be cited and referenced. A reference
within a reference list cannot exist
without an associated in-text cita�on and vice versa.
Use a wide array of the course reading as well as sources from
your research. The research should
focus on informa�on related to the cosme�c industry.
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Above Average - 3.74 points
Contains a very detailed Problem Sec�on, History/Background
Sec�on, Effects of the Problem, Recommenda�on,
and Conclusion. The execu�ve summary should be extensive
and should clearly iden�fy the problem and the
solu�on.
(3.366 - 3.74)
21. Human Resources Plan
Above Average Sufficient Developing Needs Improvemen
Failure / 3.74
Above Average - 3.74 points
Thoroughly and correctly describes and discusses all of the
elements for the human resources plan using the
research, case scenario facts and course material to support
reasoning and conclusions.
(3.366 - 3.74)
Phase I and Phase II
Above Average Sufficient Developing Needs Improvemen
Failure / 3.74
Above Average - 3.74 points
Thoroughly and correctly �es all sec�ons from Phase I – Phase
III into a single document using the feedback from
Phase 1 and Phase 2 to make updates that addresses the required
update per instruc�ons provided.
(3.366 - 3.74)
A�en�on to Instruc�ons
Above Average Sufficient Developing Needs Improvemen
Failure / 2.55
Above Average - 2.55 points
22. The paper contains completion of all major assignment tasks
including writing the report.
The paper also includes completion of all minor aspects of the
assignment such as third
person writing, required use of course readings, outside sources
if needed, and
assignment format.
(2.295 - 2.55)
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Strictly adheres to standard usage rules of written English using
paragraphs and sentences
rather than bullets, including but not limited to capitalization,
punctuation, run-on
sentences, missing or extra words, stylistic errors, spelling and
grammatical errors. No
contractions or jargon used. 0 to 2 errors noted.
23. (2.142 - 2.38)
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Above Average Sufficient Developing Needs Improvemen
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Above Average - 0.85 points
1 - 2 APA style or usage errors; Proper citation of source
material is used throughout
paper; Reference titles follow APA with only the first word, the
first word after a colon and
proper nouns capitalized.
(0.765 - 0.85)
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Sufficient
13.6 points minimum
Developing
11.9 points minimum
Needs Improvement
24. 10.2 points minimum
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Biotech Health and Life Products Company Profile
Welcome to Biotech!
The assessment projects for this class will examine different
facets of the leadership of Biotech Health and Life Products,
Inc. You will be exploring leadership within Biotech with the
driving question of “what skills does a Biotech leader need to
lead the company now and in the future?”History
Wilford Barney was a young apprentice working for Peter Ulan,
owner of a small apothecary shop in Yonkers, New York.
During his apprenticeship, Barney created a general energy
elixir that was based on a home remedy of his mother’s back in
Ireland. The elixir was produced specifically for many of Ulan’s
special customers. Made of all natural ingredients the elixir
provided B12 and other vitamins to promote a healthy immune
system. The energy boost was noticeable after only a week’s
use. The reputation of the elixir grew.
In 1922, Barney took over Ulan’s apothecary shop renaming the
business, Barney’s Apothecary. At that time, Barney decided to
bottle his elixir and sell the formula to everyone rather than
selected customers. Barney also gave bottles of the elixir to
local peddlers who sold the product along with their wares
receiving a commission on each bottle they sold. By 1929, the
product was well known in Yonkers. Encouraged by the success
26. in Yonkers Barney decided to branch out to New York City.
In 1932, Barney built a small manufacturing plant near the store
where he mixed and bottled the elixir for sale. By 1934, Barney
expanded sales by putting the elixir in a quarter of the
apothecary shops in New York City. Sales were booming and
customers inquired about other products that Barney’s had.
In 1936, Barney started a new product called Night Relief,
another of his mother’s recipes. This product offered relief from
night sweats and anxiety caused by menopausal symptoms or
nerves. When this product proved a “secret success” with the
ladies, Barney decided to bring his mother, Irene, from Ireland,
and put her to work making new natural products. With his
mother’s help, Barney grew the business into a small but
successful manufacturer of natural “life products”. Barney
coined “life products” because the products tracked natural life
events in the human body and attempted to improve the
customer’s discomfort in dealing with them.
The name of the company was changed to Barney’s Elixir and
Life Products. The business continued to grow and with his
mother’s death in 1938 the company had a gross revenue of
$178,000 a year. The depression took a toll on company profits
but people
still needed the boosts to their health and were able to afford
Barney’s products as opposed to the medicine offered by
doctors and hospitals. During World War II the company
supplied the troops with a natural caffeine (Stay Clear) product
that would keep soldiers awake for long periods of time and
heighten their mental alertness. Government contracts derived
from Stay Clear boosted the revenue of the company
considerably and ushered in a new wave of interest of natural
products.
27. By 1950 Barney turned over the reins of the daily operations of
the business to his children but remained on the Board of his
family owned company. By this time, the company had
expanded its manufacturing plants and sales nationally to
include Detroit, Michigan, Los Lunas, New Mexico, Chicago,
Illinois and Atlanta, Georgia. The revenue of the company was
now close to 2.5 million dollars.
In the 1960’s the social climate in America had changed and
pharmaceutical companies took on greater importance in the
treatment of people’s health. The discovery of new drugs and
better health care shifted the confidence in the American
perspective away from natural products to traditional western
medicine. Although the counter culture of America still
supported natural supplements, popularity for Barney’s products
waned.
In 1965, Wilford’s granddaughter, Geraldine, took over the
Research and Development Department (R&D) after receiving a
degree in chemistry from Harvard. She had been trained as a
child by her grandmother, Wilford’s mother, and knew how the
recipes should look. However, she had new ideas and with the
approach of the 1970’s, was ready to join the “Anjolie perfume
commercial” lifestyle depiction of a 70’s women that “they
could bring home the bacon and fry it up too.”
Due to the downturn in sales by 1970, the company turned to
other countries for its sales base. Starting in Germany and other
European countries where natural products are highly credible,
Barney began to license the sale of the company’s products to
local manufacturers. The name recognition grew and by the
1980’s the company was grossing over 4 million dollars in gross
sales. The company moved to overseas operations and
manufactured in Germany. Wilford Barney died in 1981 shortly
after seeing his first grandchild, Maximillian Barney, take over
the President’s positon of the company.
28. Studying the trends in the 1990’s about the resurgence of
natural health products “Max” as he liked to be called, decided
it was time for Barney’s to focus on the new interest in
homeopathic and natural products especially at home in
America where sales were static. In 1996, Max, wanting to get a
sleeker and more modern feel to the company’s products
changed the company name and logo. No longer was Barney’s a
mom and pop operation but now were part of the Biotech
nutraceutical market. Barney’s Elixir and Life Products was
now Biotech Health and Life Products. While the products
would continue to show the old Barney logo, for name
recognition the new logo would take prominence on the
packaging.
By 2000 the company was grossing about 1.1 billion in sales
with an increase in market share. By 2012, Biotech had a 20%
market share of the supplement business with
approximately $20 billion in sales. The growing interest in the
bio-nutraceutical marketplace was catching the attention of the
big pharmaceutical companies. Glaxo, Merke and Dupont began
a massive shift to the new biotech business products.
Currently sales for the company are at $35 billion. Maximillian
Barney is still President and CEO. The stock is still held by the
family and all senior management positions are held by family
members.
Current Company Vision: To help provide everyone with the
healthiest life possible in the most natural of ways.
Current Mission: To develop products that are safe, effective,
affordable and natural with the customer’s health always their
primary goal.
29. Current Fact Sheet
Headquarters
Yonkers, New York
Worldwide web address
www.biotechlife.com
President
Maximillian Barney
2016 Gross Sales
US$ 35 billion
Employees
35,000 in 6 countries worldwide
Manufacturer Operations
United States
Detroit, Michigan, Baltimore, Los Lunas, New Mexico,
Chicago, Illinois and Atlanta, Georgia
Europe
Wittllch, Germany, Ireland
Asia
Pending Decision
South and Central America and Caribbean
Sao Paulo, Brazil
Canada Product Lines
Major Competitors
Alberta, Canada
Protein and Fitness; Personal Care, Nutraceuticals, Vitamins
and Food Supplements, Cosmetics (Pending)
Protein and Fitness-GNC,
Personal Care- Nestle Skin Care- Galderma, SA; Glaxo, Merke,
General Mills.
Vitamins and Food Supplements- GNC, Natures Plus, Natrol,
30. Nature’s Way, Nature’s Bounty, Hain Celestial Group, Inc,
Schiff Nutrition International, Nestle
Cosmetics- Pending
Current Business Philosophy
Biotech has determined its long-term goal planning pattern
should be no longer than 3 years. Three years seems more
flexible than the seven year planning pattern previously used as
change in the business climate is making it imperative to be
more flexible. The need for innovation and competitive
advantage ideas are the main focus for the next two years along
with the company’s commitment to becoming a triple bottom
line company. Sustainability both for profit and planet is
foremost in the minds of the leadership. The development of a
triple bottom line company is in the best interest of the
company because of the need to keep a strong natural product
image link to the community and the desire for the company to
be socially responsible. Protection of the suppliers and control
over product quality is critical to the development of a sound
“life product.”
Current Growth Plans
Business and Sales
Biotech is looking to expand to the growing Asian market and is
exploring the opening of a new manufacturing, sales, and
distribution facility in the next year. Currently products are sold
through the European division but there is a great demand for
the product in Asia so it was decided by senior leadership that a
strong manufacturing and sales presence within the continent
would bring in yet another increase in sales, and would fall
under the control of a new Executive Director for the Asian
Division. The company wants to bring a greener footprint to
their new Asian facility than what many competitors have and
31. view this as an opportunity to gain market share; as well as the
introduction of new products not yet available in North America
and Europe. This would provide a good test case for new
products and many Asian nations are considered leaders in
innovative technology.
Product Development
Biotech is looking to develop its cosmetic and food lines. The
company currently has lip balms but seeks to make a line of
lipsticks, foundation, powder, eye makeup and cleaners made
from natural ingredients. Development of products using
natural ingredients is under consideration.
Current Eco Sustainability Commitments
Currently, Biotech has commitments to build housing for
several communities in Brazil and India where natural
pharmaceutical ingredients are produced. The program reflects
the company’s strong commitment to making the company a
triple bottom line company by the year 2021.
Innovation and Adaptability
Development of organizational structure and culture changes are
being made to introduce more collaborative decision making as
well as bringing the divisions closer together in the area of
shared resources and communication. The emphasis is to
encourage the exchange of ideas, create an environment that
fosters new ideas and makes change easier in implementation of
initiatives. Biotech is concerned that the stateside organization
is driving the other overseas divisions and that new ideas are
being encouraged because of the cultural differences in staff.
Customer innovation workshops run by the various divisions
have highlighted that R&D in Europe and Australia see
differences in consumer preferences from US consumer
preferences, and Biotech would like to incorporate this
knowledge in the new Asian facility. It is believed that US
32. controlled resources are ignoring these product preferences and
are thus impeding overseas sales. Corporate leaders are trying
to examine how to answer this cultural gap.
Current Corporate Culture
Being a family owned business, Barney’s new image has made
the family a little less cohesive since it seeks to be a sleeker
less clan like organization. Still the family leaders are
committed to keeping the family history as a symbol for the
company. It is believed that the family cultural connection
gives support to collaborative decision making something the
Company has been successful in promoting throughout the
organization. It is also seen by the owners that their family and
employees makes up the company’s customers. The family
wants to encourage a customer centric culture, one that allows
employees to see everything through the perspective of the
customer and to make decisions with the customer’s view
always paramount. Furthermore, there would be a companywide
accountability to the customer in all departments. The owner
wants a workforce that gives an extraordinary customer
experience in every product it makes.Current Organizational
Structure
This company has a geographical division structure. However,
within each division is a functional structure with production
and sales at the hub. R&D, HR, IT and Finance have small staff
in each division whose primary job is to liaison with
headquarters to implement the decisions made by them.Above
all the Divisions is the President and CEO Maximillian Barney
Housed in headquarters is the R&D, HR, IT, and Finance
Divisions
Executive Director North American Division
33. Executive Director European Division
Executive Director Asia Division
(Pending)
Executive Director South America Division
PROJECT 2 ASIA BUSINESS UNIT STRATEGY-PHASE 2 1
PROJECT 2 ASIA BUSINESSUNIT PLAN-PHASE 2 2
PROJECT 2 ASIA BUSINESS STRATEGY OF PHASE 2
Chris Stengel
Project 2 Asia business unit strategy- phase 2
For an organization to function well, it must have a well-
established and functional management plan. A good
management plan entails all features and factors that affect the
normal running of the company (Ware, 2017). An organizational
plan is a detailed plan that spells out the organization’s
structure, culture, communication channels, the cultural
34. differences and lastly the type of products and services.
Biotech’s mission is to provide customers with the safest, most
affordable and naturally manufactured medical products. This
will be done through various ways and technological
advancement will not only help the company achieve its targets
and objectives but also compete favorably on the medical,
cosmetic and foods market. This work will discuss the
organizational structure, the communication structure, the
culture of Biotech Company and lastly product service
development.
The organizational structure and culture
Organizational structure is the outline that spells out the
hierarchy of a company. The best organizational structure
should be easy, understandable and in line with the type and
size of the company. Biotech in its expansion plan will adopt a
functional organizational structure. This is a type of structure
where the company is divided into departments which have a
similar job description. The divisions may be in departments of
communication, finance, human resource, and technology
depart. In relation to the Biotech’s operational method, this
structure is most preferred. This is because the
departmentalization of the Asian based company will help
reduce centralization of decision which slows down the rate of
decision making. From the overview in phase one, the Asian
based company will have a finance department with a few staffs
to implement and oversee the financial decisions made by the
mother company. Then the IT group will be available to
maintain the computers and another technology machine on the
ground. They will also be in-charge of incorporating new
technology which will enable the better working of the company
based in Asia. The human resource on the ground will be
responsible for employee discipline, compensation, and
motivation. They will also be tasked with the need to find ways
through which they can improve employee performance. The
R&D department will be tasked with the roles of tasting the
35. locally produced products. This will provide efficiency and
avoid delay of produced products to the market. Also, local
testing gives more faith to the local market since they will
believe in locally tested products that internationally tested
ones. Finally, the production and sales department which will be
in charge of cosmetic production and also pharmaceutical
products production. Together with the sales department, they
will research the market for new products and whether the
market for the existing products can be more than the supply.
The sales team will look for the local market in the Asian
continent and come up with more advanced ways to improve
their sale volume.
PRESIDENT&CEO: MAXIMILLIAN BARNEY
EXECUTIVE DIRECTOR ASIA
DIRECTOR IT
DIRECTOR HR
DIRECTOR R&D
DIRECTOR SALES ANDPRODUCTION
DIRECTOR FINANCE
From the chart above, the CEO, Maximillian is the overall of
all directors of the company. He is located in the headquarters
of the company in New York. Other executive directors are the
next in line. However, my chart only indicates the director of
Asia because the business strategy is for Asia. After he is the
respective directors who are followed by function heads of
every department.
Organizational culture
Organizational culture is the means through which people
work and behave at the workplace. The best organizational
culture helps the company to excel (O'Neill, Beauvais & Scholl,
2016). Adoption of below strategies will be beneficial to this
company:
Promotion of innovation; the biotech company will embrace
36. innovation and invention of new technologies in the new Asian
company. From the start, the company is built on innovation
from the invention of elixir to the current cosmetic products.
The adoption of new ways has enabled the company to stand out
and compete on the market favorably. With the promotion of
innovation, the company will be able to compete on their new
market.
Best leaders; Biotech management take all their employees as
family. The employees are free to air their views. Customer
relations is a very vital part of Biotech’s organizational culture.
Employees are required to prioritize the customer’s
requirement. This culture portrays good leadership. The new
company should use the same strategy in order to expand and
maintain a wider market.
Legal sensitivity and ethical development; for any company to
thrive in another country, it should adhere to the country’s laws.
This is not only the country’s laws but also the company’s rules
and regulations. Biotech’s employees have will be required to
have a high moral responsibility to the safety rules, company
rules, customer relation rules, and the Asian countries laws.
This will help the company to keep up their image as well as
maintain good company relation.
Cultural differences
These are changes that arise from different values and
beliefs that are found in people of different countries. The
biotech company is committed to keeping its family name. to
incorporate the new cultural differences, the Biotech company
will encourage and taking new ideas. There are cultural
differences seen in Australia and in Europe through customer
innovation. This was as a result of new customer demand.
Biotech will use workshops and seminars to equip their
employees with this new idea in the Asian company.
Communication development
Communication is very vital in any business. For Biotech
to work effectively it has to establish an effective and efficient
37. means and channels of communication. The Asian company will
have their own email different from the mother company’s
email and a separate website through which customers from
Asia can communicate with the company (Kernbach, Eppler &
Bresciani, 2015). The official company’s email will also assist
in communications with the parent company back in New York.
The company will also have to set up another means apart from
the official email through which they can send and receive
confident and high secrete information between the two
companies.
Communication channels will be set out in such a way that
very departmental head will report directly to the executive
director of Asia. However, technical information and
clarification will be done directly to and from the headquarters
departmental head in charge. This will enable proper
management and swift working in the technical issues.
Sharing of ideas will be encouraged. This will be facilitated
through the creation of common groups for both departmental
members and general groups for all company employees
worldwide. This is meant to encourage and allow free flow and
sharing of ideas among the company employees. These
communication channels will be made with the help of the IT
department and monitored by specific departmental heads. This
is mainly to ensure the groups are not misused by the
employees.
Product and service
This is the core reason for the opening of the Asian based
company. The company’s mission is to provide the customers
with quality effective safe and most affordable natural products.
Therefore the company will be keen on making sure that they
meet their company goals and objectives. The products that will
be produced and sold on the Asian market will be cosmetics
alongside food lines.
Sales
The main goal for the Asian market will be to expand the
market of Biotech’s products. The company plans to
38. manufacture, sale and distribute their new products on the Asian
market. Establishment of a strong manufacturing and sale base
will be essential for this process. Therefore Biotech will venture
in the production and sale of cosmetics and foods. This will
position the company better in competition with other
companies.
Product development
The company will start with manufacturing of cosmetics
for the beginning. Later on, the company would venture in the
production of more cosmetic like foundation cleaners, eye
makeups together with foundation and lipstick these products
will be purely made from natural ingredients. These type of
procedure is meant to uniquely identify the products on the
market and allow the Biotech’s products to compete effectively
on the market.
Conclusion
Biotech Company is a well-established company. Through
the adoption of best organizational structures and culture, the
new Asian branch will not only compete favorably but bring
more profits to the company. Communication on the other hand
will boost share of ideas across the board. Cosmetic and food
production is the best choice for the Asian based company. This
will bring new ideas to the table and challenges from
competitors will challenge the management to improve even
more on their products.
REFERENCES
39. Kernbach, S., Eppler, M. J., & Bresciani, S. (2015). The use of
visualization in the communication of business strategies: An
experimental evaluation. International Journal of Business
Communication, 52(2), 164-187.
O'Neill, J. W., Beauvais, L. L., & Scholl, R. W. (2016). The use
of organizational culture and structure to guide strategic
behavior: An information processing perspective. Journal of
Behavioral and Applied Management, 2(2), 816.
Ware, D. M. (2017). Fishery Management Plan Coordinator
Atlantic States Marine Fisheries Commission 1050 N. Highland
Street, Suite 200 A‐N Arlington, VA 22201.