Discuss about the Business Strategy for CSL Corporation.
This report focuses on the global business operations of a company along with the strategies adopted by the company to achieve growth and success. The report provides an overview of the organizational structure of the company and bits business operations in the Australian and international business environment. For the discussion, the famous Australian biomedical company CSL Group is selected. Company has its operations at global level. It basically engaged with the researches, manufactures and develops medicines which are helpful for the people to secure themselves from the serious disease. The company is providing quality medicines to the customers in the global market that are suitable for them to recover from serious types of disease. In the product range of CSL, there are vaccines, cell culture reagents, blood plasma derivation, and antivenom. These all are major products of company by which company has gained specialization. In case of history of CSL, company is operating in the Australian market since 1916 and headquarter of the company is in Victoria. For getting competitive advantage, company has diversified its products in all over the world. Along with this, the company is earning the optimum revenue in last few years i.e. USD $6.923 billion (CSL, 2017). This report basically provides the overview of the strategies adopted by the company in terms of human resources, planning and value chain. These strategies are important for getting valuable position in the operating market (Freeman, 2010).
There are various environmental factors which are affecting the business operations of CSL in Australia and other countries at the global level. Company has to deal with the environmental factors that impact positively or negatively on the business activities by CSL. Environmental factors in the Australia and international market are described below:
Political and legal
The political and legal factors of the environment includes regulatory framework which must be operated by the companies. Australia has fairly stable political system and neither CSL nor other company in the industry is affected by the p0litucal factors. There are Australian trade agreements for doing business with other countries. The Australia-New Zealand Closer Economic Relations Trade Agreement allows CSL to have lower taxes and more security while trading the business outside the Australia. Further, there is China-Australia Free Trade Agreement (CHAFTA) is highly valuable trade to have deeper engagement with China. For CSL, deregulations and lower taxes would bring favorable changes.
Economic
Products of CSL are known as desirable products in the market. So, when the economy of the country slows down, the profits of the company reduce. Overall 81.23% profit comes from within Australia, 19.57% profit from Asian market and 1.54% comes from New Zealand. In these countries, the demands of the medicated products are increasing continuously. So, CSL can get effective profit for the expansion in the international markets.
Socio-cultural
CSL is focused on the safety of the patients and potential customers from the serious disease. So, company has established Work health & Safety committees in various cities which minimize the risk of occupational hazards. Along with this, company is focused on hiring women employees for providing them equal opportunity. Company participates in the charities for helping society. Employees of the company take initiatives in various events for the cleanliness of the cities (Thomas, Fugate, Robinson and Tasçioglu, 2016).
Technological
Being a biotechnological company, company has to maintain its supply chain distribution networks. CSL is a customer-centric company, the company has provided effective customer support service for the delivery of the products on time. CSL is highly dependent on the technology to stay competitive in the market so company is taking advantage of the modern technology. Company has built official site which allows the target market to gain important information about all the products.
Planning and strategy
For the effective growth and success of the company, strategic planning has crucial role in organizing and implementing business activities at the global level. There are various strategies adopted by CSL for achieving competitive advantage in the operating market. CSL is the biomedical company and the role of the company is to follow code of conduct and strict values for the benefits of the business. By adopting code of conducts, company is able to provide benefits to the community also. There are some values and ethics adopted by the company and those are as follows:
In terms of activities related to sustainability, the company is engaged in providing the products made by the natural resources. By these practices, company is able to incorporate sustainable practices in the internal business operations. Further, company has another strategy i.e. using eco-friendly packaging in the production process to meet the requirements of the society and environment. Further, in terms of the approach company is using holistic planning approach for the future growth and success. Company produced innovative products for attaining maximum benefit and meeting requirements of the community and society. For this manner, company is focused on providing medication to the customers that is helpful in improving the health of the people in the society (Neugebauer, 2015). By this process, company is able to focus on the value of the patients and fulfill their needs. Sustainability of the company includes the standards and business actions set by the company. As stated above, it is well known that CSL is implementing values and code of conduct to meet the requirements of the society. So, business strategies adopted by the company have aim to achieve sustainable growth in the operating market. Along with this, objective of the company is to achieve competitive advantage in the market by its innovative actions (Hitt et al, 2009).
Human resource management is the important aspect of the company which is helpful to achieve effective growth and success in the competitive market. It is well known that CSL is biotechnological company and company needs an effective teak to develop and produce innovative products for the patients. For this manner, company is focused on hiring and recruiting people for the various job roles. Company has done partnership with various contractors who provide human resource to the company. After the process of selection and recruitment process, the HR manager focuses on providing adequate training and development sessions for the effective growth of the employees. Training is provided in such manner so that the employees can be able to achieve goals and objectives of the company because of being a part of the business process. CSL basically believes that right people are created by the company for the suitable job role (Taleghani et al, 2011).
Further, company is also focused on providing positive and effective work environment for the high level of job satisfaction of the employees. In CSL, employees of the company have equal rights in terms of salaries and pay. Based on their work, they get enough pay. This policy of the company is helpful in motivating the employees to achieve the organizational goals. Along with this, there is reward and compensation system to satisfy the employees in their job roles and create a good working environment for the employees in the company. CSL has implemented good communication process to maintain proper workflow in the business operations. The top level management of the company communicates effectively with the lower level management of the company without any kind of mediator. By implementing these activities, company is able to retain the employees for the effective business process (Schaltegger and Burritt, 2014).
To manage sustainable business practices adopted by the CSL, there is the need of effective leadership practices. Due to the strong competition and changing demands of the people in the market, it is very important for the company to manage day to day activities with the leadership practices. Leaders provide effective strategic directions to CSL for the sustainable growth at the global level. Leaders in the company are focused on recruiting the talented people for the technological innovation. For this manner, company has adopted democratic leadership style for the management. Democratic leadership can be described as the style of leading the organization in which employees seek for the advice for taking significant decision in the business. This process includes stakeholders and their active participation and employees who are faithful towards the company (Bainbridge, 2011). In terms of sustainability of the biomedical company leaders encourage the employees to achieve the organizational goals and objectives in the efficient manner. To implement sustainable business activities in the internal and external business environment, democratic leadership is the essential part in the company. By the good leadership style along with the power and authority, leader can improve the effectiveness of the company in the operating market. In CSL, leadership is helpful in managing the responsibilities and motivating the employees for the success of the company. It is observed that company also has implemented transformational leadership for the effective use of resources. This type of leadership is helpful in managing the business with market fluctuations. So, the sustainability of the company can be improved by the optimum use of resources and quality services to the customers and employees. Leaders are important for the business activities and sustainability of the company (Peck, Christopher, Clark & Payne, 2013).
For the significant business growth, it is crucial for the company to have value chain process in the business activities. CSL is the biotechnology company and core objective of the company is to provide the products and services on time. If company does not supply the products on time then there can be problems for the patients. Along with this, for achieving competitive advantage in the operating market, there is need to update value chain for improving quality of the services (Keller, Parameswaran & Jacob, 2011). In the biotechnology company, technology plays an important role in the process of value chain. CSL is using latest technology for grasping opportunities in the target market. In such manner, company has produced a therapeutic product as an innovated product to meet the requirements of the patients. For the proper supply of these kinds of products and services to the patients and at the global level, company has various suppliers and outlets in every part of the country so that innovative products can be provided at the time (Schilling, 2010).
Based on the market opportunities, brand image and increased differentiation of the products is the big competitive advantage for the company. For the future growth and success, there is the need to adopt some new strategies. For this manner, there are some recommended strategies for the future perspective.
Differentiation strategy-
Company CSL should have differentiation strategy to empower the company along with the better sustainability performance. For differentiating the products, company should invest more in the R&D and production process. Uniqueness of the services will also provide competitive advantage in the market. Consumers are demanding reputable and quality products and by the differentiation strategy, company would be able to provide high level of quality and efficiency standards (Ghobadian, 2008).
Cost leadership strategy-
In case of competitors, CSL has to face high level of competition in the operating market. Having high prices than the market average can be risky for the company. So, company should focus on increasing the quality along affordable prices on the same level. Although by the R&D, technology and people, the cost is expected to be high in the market. So, the CSL needs to focus on the price premium strategy to gain high market share (Fifield, 2012).
Product strategy-
It is well known that company CSL is providing various medicated products to the patients who are helpful in saving people from the serious disease. Core objective of the company is to supply all these products to improve health and lives of people. The product range of the company includes Plasma Therapies, Vaccines, Antivenoms and other diagnostics products. So company should basically focus on the packaging and labeling of the products. CSL can also try for the eco-friendly packaging for the products (Manuwa, 2014).
From the above analysis, it is well known that CSL has effective strategies for the business growth and success. Company has adopted a proper business strategy in the Australian market by identifying the needs of the patients and expanded the market effectively. The strong moves of CSL are expanding in global market, identifying and capturing emerging market, and enhancing competitiveness in the market by merger and acquisition with the other companies at the global level. Core objective of the company is to enhance the growth, identify the opportunities for innovations and increase partnership for the welfare of the community. To achieve the leading position in the global market, there are some recommendations for Company CSL. Those recommendations are as follows:
Conclusion
This report discusses about the strategies adopted by famous biotech company CSL which is operating in Australia. From the overall discussion, it is observed that company has to deal with the environmental factors while operating the business in various markets. CSL is highly engaged in meeting the requirements of patients and put the efforts to satisfy them. Company is seeking for long-term relationships with the potential customers by understanding their needs. It is observed that CSL has to deal with the various market factors but company has got success in the Australian market by its effective and innovative strategies. It can be clearly said that CSL has adopted innovative strategies in the production of various medicines and the result is that it is a leading and powerful biotech company. Aim of the strategies by CSL is improve growth, partnership and identify various opportunities in the market.
References
Bainbridge, W., (2011), Leadership in science and technology: A reference handbook, US: SAGE Publications.
CSL, (2017), Board & Management, accessed on 15th October 2017 from https://www.csl.com.au/about/board-management.htm
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