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This document discusses key people and organizational considerations for life science companies expanding globally into emerging markets. It notes that effective management of global human capital has become an important competitive factor. Three questions are raised: how to ensure emerging market strategies are sustainable; how to ensure supply chain integrity and ethical practices; and how to develop local leadership. The document argues that to continue global expansion, companies must consider human capital issues across their value chains. It provides examples of life science companies establishing operations in emerging markets like China and India to access talent pools and commercial opportunities while reducing costs. Overall people and organizational capabilities are critical for companies to capitalize on business opportunities in emerging markets.
This document discusses key people and organizational considerations for life science companies expanding globally into emerging markets. It notes that effective management of global human capital has become an important competitive factor. Three questions are raised: how to ensure emerging market strategies are sustainable; how to ensure supply chain integrity and ethical practices; and how to develop local leadership. The document argues that to continue global expansion, companies must consider human capital issues across their value chains. It provides examples of life science companies establishing operations in emerging markets like China and India to access talent pools and commercial opportunities while reducing costs. Overall people and organizational capabilities are critical for companies to capitalize on business opportunities in emerging markets.
This document discusses key people and organizational considerations for life science companies expanding globally into emerging markets. It notes that effective management of global human capital has become an important competitive factor. Three questions are raised: how to ensure emerging market strategies are sustainable; how to ensure supply chain integrity and ethical practices; and how to develop local leadership. The document argues that to continue global expansion, companies must consider human capital issues across their value chains. It provides examples of life science companies establishing operations in emerging markets like China and India to access talent pools and commercial opportunities while reducing costs. Overall people and organizational capabilities are critical for companies to capitalize on business opportunities in emerging markets.
Process, People, and Conflict Management In Organizations
Prepared by Name : Topam Yordano Gautama Putra NIM : 29113391 Class : ENTRE 6
Master of Business Administration Institute of Technology Bandung Jakarta 2014 Globalizing Work In The Life Science Industry : Key People And Organization Considerations There are so many science companies have made their strategy choice to expand their footprint into emerging markets.so the impact is their ability to effectively address global human capital consideration is becoming a differentiating competitive factor. So if they build a global business to achieve growth, innovation, and cost saving systematically considered the people and organizational issues that will be critical to reaching our goals. In this era, in light of wide ranging challenge including shocks to the global financial order, and discovery product across industries and the need to build local talent capability to enable sustainable performance. So there are three big question to make this assumption become make sense, there are : How the company can be sure that emerging market strategies are sustainable ? How the company can trust the integrity of their supply chain and determine that they foster working practices that address issues of risk in an ethical way ? Is that the company developing local leadership to help maximize business performance in a manner that is aligned to the values of the company ? In order to continue the organization strategy to expand their global operations, human capital must be considered in these emerging market. This time companies are shifting from initial consideration of low cost labor avaibility to those of source knowledge work and creating R&D and commercial capabilities more closely aligned to the needs of the specific market and geography in which they are operating. So in the life science of organization the global human capital is important to note that the consideration across value chain in the order to effectively address the global human capital consideration. As we can see in other industry like manufacturing and consumer products, emerging markets hold an attraction for life science as a source of low cost loabor supply. Moreover there are two areas differentiate life science company from other consumer goods companies, that is high stake investment in R&D (Research and Development) and proprietary product patents. As example that we can see in this journal, pharmaceutical and medical service companies have already recognized the lure of the China Price as much as companies in any other industry. So the life science company differentiate the global aspiration is their desire to gain access to large talent pool of knowledge workers within R&D and sles and marketing, as well as to exploited commercial oppurtunities and reduce operating costs. In other Asian country like China and India, their life science company made their step into phase III global registration trilas and have established full-fledged sales and marketing operation to launch all of their product in emerging markets concurrent with their launch in Western Market. In these healthcare markets increasing exponentially, healthcare and life science organization spending and setting up their sales operations in emerging markets to tap this newe revenue stream. In this case historically life science companies have already entered emerging markets by selling off-patent generic product, but this markets is mature, and it crate that the company who joined these market would be more active selling patented products. For the example, the Janssen Pharmaceutical is become the first foreign drug company to established operation in China after the cultural Revolution, and entered the market by selling anti-fungal product that were off patent in the West. And Right now Xian-Janssen made a joint venture between Janssen and other four Chinese state Organization in the largest Pharmaceutical Joint venture in China and sells several patented drug Products. So the action of life Science companies to expand their markets into emerging markets, they have already more active to recruit local talent that can understand the requirements of selling to a specific geography. And the requires is their ability to navigate local business culture, talent and rewards consideration, and talent with knowledge of the regulatory, tax and business policies of the markets. So the company can take the advantage for the local recruitment such as quick identifying and translating oppurtunities into appropriate business responses requires the companies to be organizationally nimble. So the life science companies have already made a consideration to introduce a new level of sophistication in organization, decision rights and governance design as many life science companies seek to quickly scale their operation in emerging markets. This journal make an illustrative example for us to more understanding these thing. The example is Bayer Schering Pharma (BSP) illustrated the increasing maturity in life Science Companies global people and organization capabilities. In just 5 years BSP has grown to become the number one foreign owned Pharmaceutical company in China, as ranked by overall sales. In order responding to these trends and oppurtunities, life science companies have ventured into a range of geographies that span the globe beyond the borders of BRIC (Brazil, Rusia, India, and China) countries. Estimated in 2016, at least 84% of life science organization will conduct more activities in emerging markets. For the example : Merck & Co. which developed a global strategy to its strengthen its position within emerging markets and established an Asia Pasific headquarters. Also Johnson & Johnson which has indetified development of new growth oppurtunities in emerging markets as a top strategic priority and many other foreign company. As we see the track record of these life science companies in global activity have not always fully considered the people and organization factors critical to operating successfully. This is the impact of inability of the Human resource (HR) function to act as true strategic partner and participate an and ensure the people and organizational consideration factor on corporate strategy development and execution. So the challenge of globalization for HR is how they can create a system in terms of differentiation rather than standardization. The past decade has seen R&D budget increase by an average 7% annualy. But if you see in the productivity sector, it is decrease 3% each year. So in this case, the avaibility of a large-pool of lower-cost R&D knowledge workers in emerging market could help life science organizations enhance R&D productivity. In this journal they show us some example for this case. In India Local companies have taken an advantage of the lower-cost R&D knowledge workers to expand their operations globally. In India Ranbaxy Laboratories limited, one of the giant multinational companies and the largets pharmaceutical distributor of medicine. In 2007, Ranbaxy Laboratories Limited formed a multi-year R&D agreement with GSK to conduct research on a wide range of therapeutic areas including anti-infective, metabolic, respiratory and oncology. With that strategies to develop and manufacturing in India, and serving International Markets. In case to increased R&D productivity, global R&D operations also offer unique oppurtunities for drug development. As more clinical trials get shifted overseas, a more diverse workforce and patient population can be helpful in patient recruitment and management and an increase understanding of how disease affect various ethnic groups and subpopulation. With the rising of the competition for knowledge worker in emerging markets, so the company needs to carefully evaluate future talent avaibility and reward trends when selecting geographics to operate within, it will bring the competition in global market of emerging market become more thight. Because the competition its not only with the local companies, but it will be also take the competitions with another multinational company from around the world in this industry. So if the companies want to expand their business into a global market, the companies have to explore the capabilities and skill of their employee and not just only that, the company have to build a strong relations with their employee. So this is why we have to have a unique people and organization capabilities required to capitalize on the rapidly evolving an increasingly favorable business environments in emerging markets. There is another thing that we have to considering carefully, and in this journal we can see that government regulatory policies is one of that thing that can give the benefit or risk to the company. In this journal we can see that the Government Regulatory policies gives the benefits for the Pharmateucal business, for the example in Brazilrecent government investment in R&D and biotech sectors motivated companies like Genzyme, Shire and Biogen to expand their local operations.so on this case we can learn from there is an oppurtunities in emerging market that requires life science companies to grow recognize that there are limits for the player to choose with which strategies and policies designed for the main company to expand their business into global market. So the company must have some kind of key people that can explore their self and give to the company. In this journals tell us a thing that we have to considering some point how to successful in sustaining performance in emerging markets, in this case in life science business, the company should address a holistic set of people and organization issues as part of their global strategy. There is 4 essential element for that, which is : Talent Management : Recruiting, developing, motivating and retaining the right people for the right jobs Rewards : Determining that compensation and incentives are aligned to the performance managements requirements of the organization model. Organization : Determining that operation model, organizational designe and governance model support a global organization. Culture : Developing and instilling corporate philosophy, working norms and values including consideration of corporate social responsibility. In these four factors is a big issues influence the people in organization and organizations itself that have a significant impact for the organization to implemented and developing a global business strategy. If the company make carefull consideration of these four factors can help the companies make a big move, informed strategies decision and execute accordingly. For the example when the company defining a market entry strategy life science companies should consider the avaibility of critical workforce (talent), the effect of country specific and regional reward trend on costs and perational sustainability, the opportunity to create or build for local operation, and the last is how your parent company can influence and accepted your locally business accepted the behavior of the parent companies. The talent consideration is the closest consideration that associated with knowledge workers (R&D) vary from those of manufacturing and sales & marketing. This is why the knowledge and skill of the employee is affected to the business, and the experience of the employee in his background into a specific channels play ke role in defining the talent a company needs. Key factors in attracting and retaining talent also vary by geography. In India, there is a competition for talent frequently result for the employee to more explore theirself. In China, employee tend to work long hours, they consider team bonding and pleasant workplaces as key components of their quality life. In South America, key factor to attracting top talent is providing oppurtunities for International Assignment. So in these two example we can see how the geography have their own strategy to attract their employee talent and how they motivating not only the employee but the whole management itself to build balance global talent strategies with local realities. But in some cases, the issues is that the top talent consideration for globalizing work is consideration of the role of expatriates against that of local talent. For this case it takes two thing that confusing the management which is they want to promote local talent, but at the same time, as the importance of these markets grows, they also want tighter control. In the Pharmateucal Business, the company is rely on local talent to navigate the rapidly evolving markets, proactively address the unique needs of local customers and to develop relationship with the local government, the trademark of these industry is they always use ex-employee to develop high-level strategy by their knowledge and experience, conduct quality assurance programs and ensure compliance. In the rewards points, compensations level for knowledge workers are rising significantly across all life science sector and segments including R&D, manufacturing and supply Chain and Commercial in most emerging markets. Increasingly however there is a need for a more holistic approach to rewards that goes beyond compensation considerations. Future plansof the companies is addressing the issues of Globalizing work are beginning to think I terms of programs that embrace compensation, learning and development including overseas assignment and other mechanism to reward critical workforce segment and high potential talent. For the Organizational, In pharmateucal companies ae developing operating models based on partnership or other formal relationship with local companies to facilitate activities in their R&D organization and also in sales and distribution channels. However, wether to build, partnership or buy R&D capability is a key considerations as life science companies enter emerging markets, balancing considerations of speed to market with operational efficiency and effectiveness as well as compliance requirements. The last thing is Cultural, the relations between cultural and organization is very close, the cultural things is aligment is a top consideration for many expanding life science companies as it can enhance the effectiveness of global collaboration towards global standard. The factors such as historic experience, political and legal framework as well as geographic proximity to the North American or Western European parent company will all influence local business culture. Most of cultural gaps thay we cann see easily in organization wich is operate in overseas is the communication and work styles.