Prof. Moses only
Bistort2002
novo_nordisk_swot_analysis_11.pptxHealth Financial Management Frank Wenglinsky Strayer University Dr. Mcleod
Novo Nordisk SWOT Analysis
SWOT Diagram
SWOT analysis involve assessing a company’s strengths, weaknesses, opportunities and threats (Gregory, 2017). Novo Nordisk strengths include having over 90 years of leadership in diabetes, having about 42,000 employees and has a wide global presence that spreads to over 165 countries. Apart from having a diverse senior management teams, the healthcare company also has ever been rated as the most sustainable company in the world.
Its weaknesses include the negative brand image the company suffered when it failed to provide information regarding side effects of Victoza. It has also suffered negative publicity due to past legal actions. In its opportunities, diabetes has become more prevalent due to changes in lifestyles hence creating potential growth for the company. Biosimiler market has been experiencing strong growth opportunities. People are also realizing the importance of living healthy lifestyles hence increase in demand for the company’s services. Among its weaknesses include; increasing public debt especially in European countries, healthcare reforms and regulations that have poses a threat to its expansion (Novo Nordisk SWOT Analysis, n.d.).
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Novo Nordisk
Strengths
1. Deep experience in diabetes treatment
2. Large workforce
3. Wide global presence
Very sustainable
Diversity in senior management
Weaknesses
1. Negative brand image
2. Legal suits
Opportunities
1. Increasing prevalence of diabetes
2. Increasing health consciousness
Threats
1. Public debt
2. Stringent health care regulations
3. Healthcare reforms in major markets
Internal environment
Novo Nordisk’s internal environment include:
Good diversity of workforce
Enough human resources
Strong innovation culture
Diversity of its workforce has been instrumental to its growth. Diversity is evident in the R&D department that has employees from allover the world. Also, the company has enough human resources especially with such a large number of employees; about 42,000. strong innovation culture is evident especially being the first to introduce biotechnology to the market in 1988.
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External environment
External environment include;
Competitors
Political system
Cultural system
The company faces competition from its main competitors such as Ell Lilly, AstraZ eneca and Biocon. The fact that Novo Nordisk operates in many countries, different political structures affect its operations. Also, cultural differences in these countries makes the company to have to adapt to the cultural diversity especially by customizing its products and services.
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Top environmental concerns
Top concerns include;
Diversity
Innovation
Competitors
Diversity in the workforce is very crucial since it enables a company operating in various countries to adapt easily since it has employees who come from the countries and thus familiar with its culture. Innovation is very important since competition in the market keeps on growing and you have to be different from your competitor, aided by innovation, to remain relevant. A company should always be aware how its competitors are doing so that it can ‘steal’ its best strategies and take advantage of their weaknesses.
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SWOT recommendations
To enhance strengths;
Train the workforce and management
Expand international presence further
To minimize weaknesses;
Launch a brand marketing campaign
Seek legal advise frequently
Training the workforce and management shall ensure that the large workforce is well equipped with necessary skills and be up to date with current trends in the industry. Expanding to countries with growth potential shall also increase its market share and diversify risks.
The company should launch a marketing campaign of its brand so that the negative image can be erased from people’s minds and to attract more clients. The company should also consider to always seek legal advise before implementing major changes such as review of salaries and launch of new products to make sure it is compliant with rules and regulations hence reducing legal suits.
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SWOT recommendations (cont.…)
To maximize the opportunities;
Further equip R&D department
Avoid stock outs
To overcome the threats;
Increase internal funding
Be up to date with changing regulations and policies
Increase prevalence of diabetes calls for more research to ensure better cures for the disease are invented to cure the increasingly ailing population. Also, it is important to avoid stock outs since people are becoming more aware of their health and need for healthy living hence demand for drugs shall continue to increase.
Increasing funding its operations from within, for instance with retained earnings, shall ensure the public debt does not increase hence reduce the risky of solvency. Also, the company should be up to date with health regulations and policies in its countries operations to ensure the company remains compliant.
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Stakeholders recommendations
SWOT Analysis summary:
Strengths; Treatment experience and wide global presence.
Weaknesses; Negative public image.
Opportunities; Increased growth opportunities.
Threats; Public debt and changing health environment in various countries.
The company enjoys the advantage of being an experienced player in diabetes treatment; an attribute that makes it a preferred center for many patients. Also, its wide global presence puts the company at an advantage of enjoying large market share as well as diversifying operational risks.
However, there is the treat of having a negative public image that has been created by the many legal suits and failure to disclose some information; an event that happened a while ago.
Despite the challenges, the future looks bright due to the opportunities of growth as a result of the increasing number of diabetes patients and the increased health awareness in most people today.
The company should, however, be wary of the available treats that threaten the company’s existence such as the increasing public debt in European countries as well as the changing laws and policies guiding healthcare in various countries.
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Stakeholders recommendations (cont.…)
Recommendations
Investors to invest more
To redeem public image
Keep current with regulations and policies
Investors should feel welcome to invest in the company since there is huge potential of growth. The company’s wide global presence makes it less risky to invest in due to diversification.
The management should, however, work hard to redeem the public image dented by past events. Doing so shall further increase growth potential of the healthcare organization.
Each country has its own laws, policies, rules and regulations that guide its healthcare industry. It is therefore important for the company to ensure it is conversant with the current laws, policies, rules and regulations in every country it operates in for compliance reasons.
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References
Gregory, A. (2017). How to conduct a SWOT analysis for your small business. Retrieved from https://www.thebalance.com/swot-analysis-for-small-business-2951706
Novo Nordisk SWOT analysis, USP & competitors. (n.d.). Retrieved from http://www.mbaskool.com/brandguide/pharmaceuticals-and-healthcare/2725-novo-nordisk.html
