phase 3
najanamisabal91
StrategicPlanphase22.docxRunning Head: STRATEGIC PLAN 2
STRATEGIC PLAN 1
Strategic Plan
Florida International University
Dayana Lewandowski
HSA 6149
March 3, 2020
Objectives Abbott Laboratories
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Short term objectives |
Objectives |
Accomplishment |
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Improve quality through on-time delivery |
The plan is to produce and deliver quality products and services to the customer on time. It focuses on removing wasteful processes that hinder on-time delivery (Johnson & Debono, 2016). It includes both internal processes such as employees of the plant and food and drug administration and external processes such as suppliers and retailers. |
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Attract, developing and retaining human capital |
Developing a flexible working schedule to attract highly talented employees. Creating a formal leadership program for the one-year, formal mentorship program, and integrating diversity in the workplace. |
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Long term Objectives |
Improved innovation through technology |
Keeping track of the leading technological changes in the health care’s industry. Integrate the latest technology into developing a new product in the fast-growing emerging market such as the need for quality nutrition (Page, 2014). Being more responsive to consumer need through investment in research and development, manufacturing, and supply chain. |
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Diversification of product worldwide |
Develop customer-focused products to offer a solution to people. Aligning product offerings to specific customer segments and particular regions through new delivery methods, packaging, and new formulation to become a market leader in geographic segments. |
Market Served and Source of Income
Abbott Laboratories operates a diversified market to increase customers and gain competitive advantages. The primary markets are classified according to the product segment of the company. They include pharmaceutical preparation manufacturing markets that involve branded and generic pharmaceuticals, diagnostic market, nutritional, and medical devices (Nasdaq, 2019). Its primary product is classified into nutritional, medical, and pharmaceuticals for the basis of the Abbott Laboratories market.
Abbott Laboratories' goal and mission focus on market diversity to reach most of the consumers. It develops a market portfolio based on the market structure hence able to reaches its diversified consumer (Nasdaq, 2019). Abbott Laboratories market can be classified as a global market due to its diversification in significant countries worldwide to reach its consumers and patient with its key stakeholders, including hospitals, pharmacies, and physicians.
Abbott Laboratories generates its largest income from sales revenues, with approximately fifty percent of the total revenues coming from direct sales to patients and consumers (Abbott, 2020). It has led the health care organization to be regarded as a consumer-facing company in the world due to its approaches toward centralized customers as a source of income. More than seventy percent of its revenues come from the global market outside its domestic market.
The medical device segment is the largest in terms of revenue generation making around twelve billion U.S dollars in revenues in 2019 (Mikulic, 2020). The segment includes the business of selling medical devices such as carotid artery disease, heart diseases, vascular conditions, and stroke that are significant sources of revenue. It is followed by diagnostic segments that produce around eight billion U.S dollars every year (Mikulic, 2020). The nutritional segment generates around seven billion U.S dollars that include food function, dietary supplement, and clinical and medical foods. Pharmaceuticals business generates around four billion U.S dollar a year.
Competition
Abbott Laboratories apply diversifications and differentiation strategies in the market that reduce competition. Despite its approaches, its products and services face competition in technological innovation, product performance, price, on-time supply, and conveniences of use (CIS Market, 2020). Despite Abbott Laboratories' advantages in technological advancements, it faces high competition from competitors introducing new products and services. Currently, technology has become a foundation to base a competitive edge in the market through the innovation of new product matching specific consumer needs increasing competition in the global market.
Abbott Laboratories face competition from differentiation and diversifications of the nutrition products. Health care manufacture tends to diversify their product and service according to consumer behaviors that increase competition based on price, packaging, consumers advertising, availability, scientific innovation, and formulation (CIS Market, 2020). The aspect of international competition is based on multiple players in the market that increase the power of buyers toward the substitution of products, new medical practices and procedures, and technological innovation.
Abbott Laboratories face serving competition from other major rivalries in the global market that reduce its market shares. They are involved in a major market segment as those of Abbott Laboratories hence increasing competition in technological innovation and launch of new products. They may include Johnson & Johnson company, Novartis company, Merck, Medtronic, Pfizer, and Philips.
References
Abbott. (2020, March). Overview | Investors. Retrieved from https://www.abbott.com/investors/overview.html
CIS Market. (2020, March). Abbott Laboratories (ABT) Business Description. Retrieved from https://csimarket.com/stocks/ABT-Business-Description.html
Johnson, J. K., & Debono, D. (2016). Process Mapping to Improve Quality in Behavioural Health Service Delivery. Quality Improvement in Behavioral Health, 109-118. doi:10.1007/978-3-319-26209-3_8
Mikulic M. (2020, February 27). Abbott Laboratories segment revenues 2017-2019. Retrieved from https://www.statista.com/statistics/266578/abbotts-revenue-by-segment/
Nasdaq. (2019, March 26). What Are Abbott Laboratories' Key Sources of Revenue? Retrieved from https://www.nasdaq.com/articles/what-are-abbott-laboratories-key-sources-revenue-2019-03-26-0
Page, T. (2014). Notions of innovation in healthcare services and products. International Journal of Innovation and Sustainable Development, 8(3), 217. doi:10.1504/ijisd.2014.066609
