AMERISOURCEBERGEN 1
AmerisourceBergen (ABC) Corporation
Student’s Name
Institutional Affiliation
Date
AMERISOURCEBERGEN 2
Introduction
ABC Corp is a million-dollar organization that deals with data collection and analysis
processes. The company has been growing significantly within the last few years owing to its
focus on the demands in modern society and application of the modern trends in technology.
However, the effects of the prevailing Covid-19 pandemic have affected its business activities
through restrictive market operations and reduced social interactions. These effects reduced the
businesses' ability to participate in their daily business activities because of resultant reductions
in production services and a fall in market demand levels. The company continues to thrive in its
trading activities because of its strategic approaches to management and market operations
(Hunkar, 2013). This paper aims to carry out an in-depth analysis of ABC Corp by the use of the
strategic management process.
Existing mission, objectives, and strategies
The mission statement in any company helps in describing or constructing the company's
vision regarding a given industry or market. In most cases, it includes the unchanging values that
should guide the company's workers' behaviour at the personal and corporate levels. It also
defines the specific purpose that keeps a certain entity or organization in a certain line of
operation within its industry or market. Addressing such values and purpose gives an
organization the basis to lay its goals and focus on specific objectives during its short-term and
long-term operations. In the long run, an entity wins a chance of accessing the advantages
associated with future opportunities.
The existing mission statement for ABC Corporation is to offer employment and services
at the company and facilitate job offers to all society members. The company's primary vision
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towards the realization of this mission is the need to innovate and trust the company, promote its
employees’ livelihoods, and represent the perspective of skills to society members. The company
also has specific objectives and strategies that keep on focus on its goals, vision, and mission.
Some of its specific objectives are included in the list below.
1. To maximize the people’s skills within the company
2. To hold effective recruitment processes regarding both new and trained people
3. To maximize its workers’ skills
4. To maximize the workers' contribution to the company at the individual levels.
Also, the list below shows some of the specific strategies that the corporation employs to
chase the objectives outlined in the above list.
1. Training its workers through the corporation’s efforts
2. Rewarding the people following their performance at the organization
3. Employing the appraisals and other performance management criteria
4. Sharing incentives with employees through certain criteria
5. Promoting people over time and according to their performance
A new mission statement
The ABC Corporation serves in various lines of business that include services associated
with pharmaceutical, auto, mass merchandiser, and home movie industries. This characteristic in
its operations shows that the company faces competition from various types of industries. The
resultant situation may cause the company to have challenges regarding the management of the
responses it should give to all the competitors in different industries where its services are
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involved. The challenge also keeps rising with time because of the situations in the modern
markets where competition levels rise every day.
As a result of the situation discussed in part above, the mission statement for the ABC
Corporation should be developed in such a manner that it allows the company to become a
significant global dealer in one of its present business lines. The best decision would go for the
line of operations that is more significant to the organization and in the market than the lines
regarding the other industries. For this reason, the new mission statement for this company
should focus on its pharmaceutical operations. The pharmaceutical industry is the most
significant sector among all the other business sectors associated with ABC’s activities.
Therefore, the new mission statement should be to make the ABC Corporation a global
leader in the pharmaceutical industry by maximizing the industry's benefits to consumers and
using modern technological applications to maximize the security, reliability, delivery
effectiveness, consumer satisfaction, and profit while minimizing the expenses, cost, and
production time associated with the goods and services in the industry. This status is achievable
if the company focus on solving the challenges associated with the modern gaps in the industry
while maintaining the existing achievements made in the industry. One of the primary ways to
address these gaps is to put significant efforts into research and development practices
(Bhaishaikh, 2017). Such an approach can help the company develop various medicinal
products, management considerations, and treatment processes that can be used to treat various
health conditions challenging the existing players in the industry.
Customers and products
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As highlighted in the above parts, the primary services offered by the ABC Corporation
include various industries – pharmaceutical, auto, mass merchandiser, and home movie
industries. For this reason, the company serves the customers associated with all of the listed
business sectors. Also, it deals with goods and services associated with the pharmaceutical, auto,
mass merchandiser, and home movie industries (Pereiro, 2014). However, this paper mainly
focuses on the factors regarding its pharmaceutical engagements because it is its most significant
sector in business. The ABC Corporation is a global company. As a result, its operations target
customers from different parts of the globe.
Markets
ABC Corporation serves various market segments both at local and global levels.
Although its main services are associated with the pharmaceutical industry, it can hardly deliver
the same or identical products and services to people in different market segments. Research
shows that demands expressed by individuals and markets differ significantly following various
economic, ideological, social, seasonal, locational, and cultural factors. Therefore, the company
serves the various market segments with different products and services. Such segments are
drawn on the basis of their age, location, and gender.
Technology
The ABC Corporation facilitates its business activities by the application of modern
technologies in such processes like supply chain management, organizational management, and
marketing. For instance, technology has facilitated the emergence of modern trends in marketing
through the development of smartphones, the internet, and social media platforms. Organizations
market their services and products to the global society in the modern era through social media.
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Various corporations worldwide have effectively used this approach because most society
members in modern society own smartphones and personal social media account with platforms
like Facebook, Instagram, and Twitter. Also, studies show that the internet penetration rate at the
global level has increased significantly within the last decade (Waghmare, 2017). Hence, people
can access the marketing activities carried out by businesses through their mobile devices.
Philosophy and concern for survival, growth, and profitability
ABC Corporation believes that the global society can enjoy healthy market environments
when the main market players, especially the suppliers, focus on such values as integrity,
innovation, collegiality, and respect. It has been relying on this belief and philosophical approach
to chase its concerns for survival, growth, and profitability. For instance, this ideology
encourages the company to train its workers, reward their performance, assess their participation
in the assigned duties, and promote them over time and through performance. All of the listed
factors encourage an improvement in the workers’ skills. As a result of the improved skills, the
workers also get at more significant positions of increasing their output per unit at their
respective workstations. The company gets at higher levels regarding survival, growth, and
profitability in the competitive environment in the long run.
Self-concept
Some of the primary factors that have been facilitating the company’s competitiveness in
the market include a strong distribution network, reliability of its suppliers, and its returns on
capital expenditure. Distributors create a very necessary link between producers and buyers.
Their ineffectiveness may break the connection between the two players in the production cycle
and eventually leading to an imbalance in the market. However, the ABC Corporation has been
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addressing the competition in the modern markets by maximizing its advantages from the
reliability of the companies it uses to distribute its products to various markets both at local and
global levels. Research shows that that distribution channels used in supply chains today are
often subject to such challenges as high charges, fraud, delays, and felony. However, this
company avoids such challenges by relying on the effectiveness of its existing distributors and
suppliers. As a result, they also increase their chances to earn high profits from their returns on
capital expenditure.
Concern for public image
The company’s intentions to earn and maintain a good public image are significantly
reflected in its mission statement, values, vision, objectives, and strategies. For instance, some
of its objectives include: To maximize the people’s skills within the company; to hold effective
recruitment processes regarding both new and trained people; to maximize its workers’ skills;
and to maximize the workers’ contribution to the company at the individual levels. All these
objectives reveal the company’s concern to empower society members at personal levels or serve
society at large by providing reliable and quality services. Thus, ABC is concerned about the
public image because its goals are focused on winning profits and serving society with
effectiveness.
Concern for employees
ABC Corporation considers its human resources at valuable assets to the company. The
firm’s concern for its workers is significantly addressed under its strategies in part above. These
strategies include: Training its workers through the corporation's efforts; rewarding the people
following their performance at the organization; employing the appraisals and other performance
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management criteria; sharing incentives with employees through certain criteria; and promoting
people over time and according to their performance. These strategies show that employees are a
primary focus of the company's operations and strategies. Most of the strategies listed above are
about promoting the workers on their performance basis and enhancing their technical skills.
Analysis of the firm’s existing business model
The ABC Corporation has structured its business model to give its clients the best
experience through the provision of quality services and products. This model contains two
primary subjects. Firstly, the company’s focuses on pharmaceutical distribution and strategic
sourcing at global levels. This approach addresses the distribution of health care service to the
retail chain and other pharmaceutical dealers at lower levels in the industry. Such dealers include
health systems, alternate care sites, independent pharmacies, and physician practices. This
approach will also address the company's characteristics regarding repackaging, sourcing, and
speciality. The practices associated with this approach will improve the quality of goods and
services reaching the buyers from the company. As a result, the company will win more
effectiveness and stability in the market as a result of ensuring a more appealing experience to its
clients.
The second approach of the company’s business model addresses the effects associated
with global commercialization services and animal health. This approach focuses on the specific
solutions that the company should provide to the market to ensure maximum commercialization
of its products as well as maximizing the patients’ access to such products at international levels.
This approach also addresses the issues related to animal health. According to the report given by
its corporate management team, this approach is the primary factor in its business model that has
facilitated the achievements made so far in the pharmaceutical industry (AmerisourceBergen,
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2017). It management also reported that the company will continue employing business models
that align its operations more significantly to the dynamic trends associated with the customers'
demands in the health and pharmaceutical industry.
SWOT Matrix and Analysis
Strengths
As highlighted in the parts above, some of the primary factors that have been facilitating
the company’s competitiveness in the market include a strong distribution network, reliability of
its suppliers, and its returns on capital expenditure. Distributors create a very necessary link
between producers and buyers. Their ineffectiveness may break the connection between the two
players in the production cycle and eventually leading to an imbalance in the market. Some of
the other strengths leading to the firm’s stability in the market include high customer satisfaction
levels, a strong dealer community, a strong brand portfolio, and persistence in developing new
products.
Weaknesses
Firstly, the company’s performance falls below average regarding its net contributions
percentage and the profitability ratio. Secondly, its organizational structure limits the expansion
of the company to the other segments in the market because it is only compatible with the
present production model. Some of the other weaknesses associated with the ABC Corporation
include insufficient marketing for its products, poor forecasting on product demand, low rate of
investment in research and development, and improper financial planning.
Opportunities
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Unlike the weaknesses and strengths, opportunities are among the external strategic
factors associated with the ABC Corporation. One of the primary opportunities for this company
is the government’s project about the green drive. This project provides a new opportunity for
the company through the procurement of ABC’s products both by the federal and state
governments. Secondly, it can open new markets in the industry following its agreements with
the government. Some of the other opportunities available for this company include winning new
customers from the online channel, new environmental policies, an increase in customer after the
economic growth, and a decrease in the distribution expenses.
Threats
Threats are also part of the external strategic factors associated with the ABC
Corporation. One of the main threats in the market regarding the company is the growing trends
that show the likelihood of isolationism in the U.S economy. In case the trend spreads to other
countries across the globe, the company is likely to experience a significant decline in the
company's sales in the global markets. Secondly, the company and the larger pharmaceutical
industry suffers unreliability regarding the supply of innovative products. Some of the other
threats facing this firm include intense competition, lawsuits, changing consumer behaviours,
seasonal demands, insufficiency of skilled workforce, and prevalence of counterfeit goods.
TOWS/Bivariate Strategy Matrix
TOWS matrix is usually derived from the SWOT analysis. The latter identifies the
internal and external features associated with a given entity in the market. However, it does not
give the strategic actions that the entity should take to mitigate the prevailing challenges and
maximize the possible benefits. The TOWS matrix usually addresses this need. The TOWS
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matrix gives rise to the four situations discussed below. The situations include WT situation, ST
situation, WO situation, and SO situation.
According to the literature reviewed for the SWOT analysis carried out in part above, the
primary advantages for the ABC Corporation include a strong distribution network, reliability of
its suppliers, high returns on capital expenditure, high customer satisfaction levels, strong dealer
community, strong brand portfolio, and persistence in developing new products. The weaknesses
include the company's performance, organizational structure limits, insufficient marketing for its
products, poor forecasting on product demand, low rate of investment in research and
development, and improper financial planning. Its opportunities include the government’s project
about the green drive, new markets in the industry, winning new customers from the online
channel, new environmental policies, an increase in customer after the economic growth, and a
decrease in the distribution expenses. Also, it paces such threats as isolationism, unreliability
regarding the supply of innovative products, intense competition, lawsuits, changing consumer
behaviours, seasonal demands, insufficiency of skilled workforce, and prevalence of counterfeit
goods.
The four situations are illustrated under the TOWS matrix in the appendix section of this
paper. In the first situation, the company should focus on minimizing its weaknesses and avoid
all the possible threats. In the second situation, ABC Corporation should focus on strategies that
maximize its strengths and minimize or avoid the threats. The third situation addresses the
weaknesses and opportunities associated with the company. Its focus on minimizing its
weaknesses’ effects and maximizing the strategies focused on the opportunities. Finally, the last
situation addresses the firm’s strengths and opportunities. Hence, it should develop strategies that
will help to maximize the benefits accessible from both the strengths and opportunities. The
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necessary strategies regarding each of the four situations are outlined in the TOWS matrix in the
appendix section.
Group Map
The group map included in this analysis addresses the industry map of the pharmaceutical
industry. As highlighted in the introductory parts above, ABC Corporation is involved in the
production of pharmaceutical products. Hence, the map shows that it is exposed to minimal
benefits and the rest of the advantages enjoyed by the other players in the industry. Additionally,
the map shows that its business activities' success is significantly dependent on the distributors
linking it with the buyers. The map is provided as figure three in the document’s appendix.
PESTLE analysis
Political: ABC Corporation serves various market segments both at local and global
levels. Hence, it can be subject to political influence from different regions across the globe. In
the United States, it may be subject to political forces related to Medicaid, Medicare, and other
healthcare-related legislation.
Economic: The demands expressed by individuals and markets differ significantly
following various economic, ideological, social, seasonal, locational, and cultural factors. Hence,
the company's economic challenges associated with various global regions may cause it to incur
a reduction in the total sales.
Social: Social factors are usually associated with the market’s culture, believes, and
perspectives. The demands expressed by individuals and markets differ significantly following
various ideological, social, seasonal, locational, and cultural factors. Variations in these factors
AMERISOURCEBERGEN 13
may cause the company to miss predictions made earlier regarding the demand levels in the
market.
Technological: The ABC Corporation facilitates its business activities by the application
of modern technologies in such processes like supply chain management, organizational
management, and marketing. For instance, technology has facilitated the emergence of modern
trends in marketing through the development of smartphones, the internet, and social media
platforms. Also, studies show that the internet penetration rate at the global level has increased
significantly within the last decade. Hence, people can access the marketing activities carried out
by businesses through their mobile devices.
Environmental: The Company’s business model addresses the effects associated with
global commercialization services and animal health. This approach focuses on the specific
solutions that the company should provide to the market to ensure maximum commercialization
of its products as well as maximizing the patients’ access to such products at international levels.
This approach also addresses the issues related to animal health. Hence, the company is
significantly vulnerable to the environmental conditions that may affect this focus.
Legal: ABC's operations in the market must follow the specific legal formalities
associated with every region where its services or products are involved. Such legalities may
include data protection, discrimination law, employment law, and anti-trust law.
Porter’s Five Forces
Threats of New Entrants
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The company can avoid this threat in various ways. One of such ways is to innovate new
goods. Such goods can help to attract new customers and maintain the existing ones. Some of the
other ways to avoid these threats include building economies of scale and building capacities.
Bargaining Power of Suppliers
ABC can effectively mitigate the possible challenges regarding this force by maximizing
its strengths. Research shows that one of the primary factors that have been facilitating the
company's competitiveness in the market is a strong distribution network.
Bargaining Power of Buyers
ABC can also mitigate the possible challenges regarding this force by maximizing its
strengths. Studies also show that some of the primary factors that have been facilitating the
company's competitiveness in the market are the reliability of its customer base and brand image.
Threats of Substitute Products
The company should address the challenges related to this force by focusing on the
customers. It should serve the various market segments with different products and services
depending on the nature of their demand.
Rivalry among the Existing Competitors
The literature reviewed in the parts above shows that competition is one of the primary
weaknesses facing ABC Corporation. It should address this issue by focusing on innovativeness.
It should consider maximizing the industry's benefits to consumers and using modern
technological applications to maximize security, reliability, delivery effectiveness, consumer
satisfaction, and profit while minimizing the expenses, cost, and production time associated with
AMERISOURCEBERGEN 15
the goods and services in the industry. This status is achievable if the company focus on solving
the challenges associated with the modern gaps in the industry while maintaining the existing
achievements made in the industry.
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References
AmerisourceBergen. (2017). AmerisourceBergen structures operating model and executive
leadership team to offer a more cohesive and unified customer experience, enhance
growth and drive long-term value. AmerisourceBergen | United is our responsibility
to create healthier futures. https://www.amerisourcebergen.com/newsroom/press-
releases/amerisourcebergen-structures-operating-model
Bhaishaikh, I. M. (2017). Process validation: An essential process in the pharmaceutical
industry. World Journal of Pharmacy and Pharmaceutical Sciences, 217-234.
https://doi.org/10.20959/wjpps20178-9617
Hunkar,ED. (2013, May 28). The U.S. pharmaceutical industry map | TopForeignStocks.com.
Waiting for the redirection... https://topforeignstocks.com/2013/05/28/the-u-s-
pharmaceutical-industry-map/
Macroaxis. (2021). Amerisourcebergen historical income statement analysis | ABC.
https://www.macroaxis.com/market/ABC/Amerisourcebergen-Corp/income-
statement
Pereiro,EL.EE. (2014). AmerisourceBergen: The Brazilian acquisition. SSRN Electronic
Journal. https://doi.org/10.2139/ssrn.2492344
SEC.gov. (2018). Document.
https://www.sec.gov/Archives/edgar/data/1140859/000114085918000053/a10-
kx9302018.htm#sEBB19EAF8BE82F373865811ACE02A532
AMERISOURCEBERGEN 17
Waghmare, Y. S. (2017). The important role of technology transfer in the pharmaceutical
industry-a review. World Journal of Pharmaceutical Research, 310-329.
https://doi.org/10.20959/wjpr20179-9271
AMERISOURCEBERGEN 18
Appendix
SWOT analysis
Strengths
Strong distribution network
Reliability of its suppliers
High returns on capital expenditure
High customer satisfaction levels
Strong dealer community
Strong brand portfolio
Persistence in developing new
products
Weaknesses
Company’s performance
Organizational structure limits
Insufficient marketing for its products
Poor forecasting on product demand
Low rate of investment in research
and development
Improper financial planning
Opportunities
Government’s project about the green
drive
New markets in the industry
Winning new customers from the
online channel
New environmental policies
Increase in customer after the
economic growth
Decrease in the distribution expenses.
Threats
Isolationism
Unreliability regarding the supply of
innovative products
Intense competition
Lawsuits
Changing consumer behaviours
Seasonal demands
Insufficiency of skilled workforce
Prevalence of counterfeit goods.
AMERISOURCEBERGEN 19
TOWS analysis
Weaknesses
Company’s
performance
Organizational
structure limits
Insufficient marketing
for its products
Poor forecasting on
product demand
Low rate of
investment in research
and development
Improper financial
planning
Strengths
Strong distribution
network
Reliability of its
suppliers
High returns on
capital expenditure
High customer
satisfaction levels
Strong dealer
community
Strong brand portfolio
Persistence in
developing new
products
Threats
Isolationism
Unreliability
regarding the supply
of innovative products
Intense competition
The company should address
the challenges related to this
force by focusing on the
customers. It should serve the
various market segments with
different products and
services depending on the
The company can avoid these
threats in various ways. One
of such ways is to innovate
new goods. Such goods can
help to attract new customers
and maintain the existing
ones. Some of the other ways
AMERISOURCEBERGEN 20
Lawsuits
Changing consumer
behaviours
Seasonal demands
Insufficiency of
skilled workforce
Prevalence of
counterfeit goods.
nature of their demand. to avoid these threats include
building economies of scale
and building capacities.
Opportunities
Government’s project
about the green drive
New markets in the
industry
Winning new
customers from the
online channel
New environmental
policies
Increase in customer
after the economic
growth
Decrease in the
ABC can effectively mitigate
the possible challenges
regarding this force by
maximizing its strengths.
Research shows that one of
the primary factors that have
been facilitating the
company's competitiveness in
the market is a strong
distribution network.
ABC can also mitigate the
possible challenges regarding
this force by maximizing its
strengths. Studies also show
that some of the primary
factors that have been
facilitating the company's
competitiveness in the market
are the reliability of its
customer base and brand
image.
AMERISOURCEBERGEN 21
distribution expenses.
Group map
PESTLE analysis
PESTLE
elements
Factors
Political Political instability
Favoured trading partners
Taxation
Economic Unemployment rate
Economic growth rate
Interest rates
AMERISOURCEBERGEN 22
Inflation rate
Social Demographics
Attitudes
Culture
Technological Technological diffusion rate
Technology's impact on product
offering
Recent technological developments
Environmental Climate change
Endangered species
Waste management
Legal Data Protection
Employment law
Discrimination law
Anti-trust law
Porter’s Five Forces
Porter’s Five Forces Recommendations
Threats of New Entrants The company can avoid this threat in various ways. One of
such ways is to innovate new goods. Such goods can help to
attract new customers and maintain the existing ones. Some of
the other ways to avoid these threats include building
AMERISOURCEBERGEN 23
economies of scale and building capacities.
Bargaining Power of
Suppliers
ABC can effectively mitigate the possible challenges regarding
this force by maximizing its strengths. Research shows that
one of the primary factors that have been facilitating the
company's competitiveness in the market is a strong
distribution network.
Bargaining Power of Buyers ABC can also mitigate the possible challenges regarding this
force by maximizing its strengths. Studies also show that some
of the primary factors that have been facilitating the company's
competitiveness in the market are the reliability of its customer
base and brand image.
Threats of Substitute
Products
The company should address the challenges related to this
force by focusing on the customers. It should serve the various
market segments with different products and services
depending on the nature of their demand.
Rivalry among the Existing
Competitors
The literature reviewed in the parts above shows that
competition is one of the primary weaknesses facing ABC
Corporation. It should address this issue by focusing on
innovativeness. It should consider maximizing the industry’s
benefits to consumers and using modern technological
applications to maximize security, reliability, delivery
effectiveness, consumer satisfaction, and profit while
minimizing the expenses, cost, and production time associated
AMERISOURCEBERGEN 24
with the goods and services in the industry.
Financial analysis
