Strategic Objectives Of ASPEN Pharmacare: Analysis Of Organizational Health And Performance
Company Background
Explain the strategic objectives of the company ASPEN Pharmacare.
Generally, there are mainly four types of information that one company carve up with the other companies. These are external drivers, resources and relationships, strategy and performance (Northington 2011). In addition to this, each type of information is composed of various specific elements that help the management to analyze the organizational health and organizational performance. Here, each of the seventeen elements has been analyzed in terms of comprehensiveness and accessibility in order to find the organizational health and organizational performance of the company ASPEN Pharmacare of South Africa.
ASPEN Pharmacare Holdings Limited is a multinational holding company of South Africa that deals with the holdings concerned to the pharmaceutical. It has been noted that ASPEN Pharmacare is considered as the largest drug company in the particular country. ASPEN Pharmacare was founded in the year 1850 that was made public in the year 1997. The company is headquartered in Durban in South Africa. Stephen Saad is the Group Chief Executive and employs over 10,000 people globally in the organization (Aspenpharma.com 2016). The company has extended its business across the world by reaching over 150 countries. This particular company supplies over 650 branded medicines that are specialized in generics and for the treatment of tuberculosis and AIDS/ HIV.
Comprehensiveness:
The strategic objectives of the company ASPEN Pharmacare include – firstly, to deliver the sustainable growth in form of earnings from a diversified portfolio that is composed of geographies and products. Secondly, the aim is to supply the patients and the customers of the company with medicines having high quality at competitive prices. The other aims include – to increase the promotion of the products of ASPEN across the world directly, to achieve higher returns on investment for the shareholders of the firm for long run, to improve and increase the offering of the company to the patients and healthcare professionals continuously by a prolific product pipeline (Wild, Shaw and Chiappetta 2011). The goals are – to achieve strategic advantages by the capabilities of production of the company, to practice good corporate citizenship, to serve a challenging, safe and rewarding environment to its employees and also to enhance the value of stakeholders of the firm.
Accessibility:
The strategic objectives of the firm ASPEN Pharmacare have been easily accessed from the Integrated Report of the company for the year 2015. The objectives are provided in a form of list and along with each of the objective, the risks and the challenges the company has to face for achieving each objective has also been provided. Therefore, in order words it can be said that the strategic objectives of the firm can easily be accessed in order to analyze the organizational health. Thus, it can be said that the quality of organizational health information for the element strategic objectives in the Value Framework is good as it was easily found in the integrated report, well formatted and easy for understanding.
Comprehensiveness for 17 Elements – The PWC Value Framework
Comprehensiveness:
The business model of the company ASPEN Pharmacare mainly focuses on its strength that lays for understanding the dynamic markets where the particular company operates it business and identifies and pursues various opportunities that line up with the strategy and vision of the organization. The business model of the firm creates value for its stakeholders by implementing high levels of advanced processes and expertise under the framework of the firm’s values to optimize the returns on its intangible, tangible, unique assets and human (Wild, Shaw and Chiappetta 2011). The business model of the firm is as follows:
Figure 1: Business Model of ASPEN Pharmacare
Accessibility:
The business model of the firm ASPEN Pharmacare has been easily accessed from the annual report of the company. The business model of the firm is provided in the annual report along with a figure of the model. Thus, it helps to understand the business model easily. It can be said that the information regarding the business model of the firm is easily accessible from the annual report of the firm, it is well formatted and thus it is easy for understanding. Therefore, it can be concluded that the quality of the organization health for the element business model in the Value Framework is good.
Comprehensiveness:
Corporate governance is an environment where the regulatory pressure increases, the Board is mindful of the requirement that is required to maintain an accurate balance between the governance expectations of the government, regulators, investors and other stakeholders (Wild and Shaw 2012). It also includes the market demands that are provided by the firm ASPEN Pharmacare about competitive financial returns to the shareholders. In case of the company ASPEN Pharmacare, the governance extends beyond the regulatory compliance and legislative and the management of the firm strives to establish a good enterprise-wide culture of governance with the aim to ensure that all the decisions regarding the business should be taken in a transparent and fair manner and also within an ethical framework. This promotes the stakeholders’ responsible consideration and the holding decision-makers are also accurately accountable (Whitecotton, Libby and Phillips 2011). In this organization, the evolving discipline of corporate governance, governance processes, practices and structures are actively revised and monitored at regular interval of time in order to reflect the best practice. The corporate governance structure of ASPEN Pharmacare can be better understood from the following chart:
Figure 2: Corporate Governance Structure of ASPEN Pharmacare
Business Model
Accessibility:
The corporate governance of the firm ASPEN Pharmacare can be easily accessed from the annual report of the firm. As the information can be easily find out from the annual report and it is well formatted, it can be said that it is easy to understand. The information about the element governance has been provided is a summarized way and also under various sub-headings. So it is well represented in the report. Thus, it can be concluded that the quality of the organization health for the element governance in the Value Framework is good.
Comprehensiveness:
The risk management is an embedded element of the corporate culture of the organization ASPEN Pharmacare and it is inherent regarding all its decisions about the business. The risk management is also inherent in the business transactions and business activities. Therefore, within the particular organization, the risk management is considered as a pre-requisite to the sustainability of the ASPEN Pharmacare Group. The integrated approach to the risk management is applied and implemented in order to consider all the social, environmental and economic indicators that generally have impact on both the organization and on its stakeholders (Thompson, 2012). The threats and the opportunities that have been identified as risk are counted here in order to ensure a balanced outcome in between the reward and the risk for the sustainability of the company ASPEN Pharmacare Group. The objective of the risk management of the organization ASPEN Pharmacare is to sustainably maintain the effective detection of the strategy of the whole Group (Warren et al. 2012). The risk management model of the firm is as follows:
Figure 3: Risk Management Model
The risk management of the firm ASPEN Pharmacare can be easily accessed from the annual report of the company for the year 2015. The risk management has been explained in details and in a summarized way. Therefore, it helps to understand the risk management structure of the company. As the information about the risk management model can easily be accessed from the annual report of the firm of the year 2015 and can be understood easily, it can be concluded that the quality of the organization health for the element risk in the Value Framework is good.
Comprehensiveness:
The Remuneration and the Nomination Committee and a subcommittee of the Board assists the Board to get ensure that the Board has the appropriate composition to execute the duties effectively. In this organization, the directors are appointed by a formal methodology, the ongoing training and development and formal induction of the directors take place, annual evaluation of the Board’s performance, the Chairman, the Board Committees, the Group Chief Executive, Finance Director, the Company Secretary and Group Governance Officer is conducted (Shiller 2012). As per the rule of the organization, the formal succession plans are approved and reviewed. Even the remuneration levels and remuneration policy are appropriately set across the organization. Within the firm ASPEN Pharmacare, the disclosure of the directors and the remuneration is transparent, complete and accurate. Within the particular organization, executive and management remuneration principles are rightly incorporated; there is a particular base salary, annual incentive, medium-term incentive, legacy share schemes and benefits (Shim and Siegel 2012). The differences between the remuneration policies of both the executive and non-executive directors can be better understood from the following table:
Accessibility:
The data and the information of the remuneration report can be accessed easily from the annual report of the company ASPEN Pharmacare of the year 2015. The remuneration policy, the rules and regulations and the benefits of both the executive and non-executive directors have been represented clearly in the annual report of the firm. The accessibility of the information is easy to find out from the annual report of the firm. The well formatting of the information helps to understand the information easily. Therefore, it can be concluded that the quality of the organization health for the element remuneration in the Value Framework is good.
Conclusion
Therefore, it can be concluded that the annual report and the integrated report of an organization plays an important role in understanding the company. Here, the detailed analysis of the firm ASPEN Pharmacare helps to understand the financial condition of the company based on the PWC model. This model also helped to understand the organizational health and organizational performance of ASPEN Pharmacare. By analyzing in details, it can be said that both the health and performance of the firm is in better position.
References
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