Global Topicalcare Pharmaceutical Company
TopicalCare Company is a Japanese-American Multinational Pharmaceutical Company, it is present in 109 countries and its main business focus is in the topical application drugs (TopicalCare, 2007). TopicalCare is a pharmaceutical and consumer products company, which has products for purely human segment, and has worldwide operations (Datamonitor, 2006). The company’s worldwide sales exceeded $ 2 billion in the year 2006 (TopicalCare, 2007). The company is listed both on the NYSE and London Stock exchange.
TopicalCare holds about 20% of the dermal drugs market the world over, and is considered to be a leader in the field. TopicalCare’s current market value is $15,890 million (TopicalCare, 2007) and has a share price of $6. 81p (at time of writing), (TopicalCare, 2007). The company has two subsidiaries involved in pharmaceuticals and consumer healthcare. These subsidiaries conduct their business under the TopicalCare and Rhoto names. TopicalCare produces drugs for dermal applications such as drugs for stress and pains management, Inhaler for the treatment of colds among others.
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TopicalCare is considered to be one of the benchmark company’s in the dynamic present day healthcare environment due to its strong skills as well as resources. The competition in this market is fierce, and companies like TopicalCare have to differentiate their products in order to compete with major rivals such as Pfizer, Bristol-Myers, etc. The company’s mission is to “improve the quality of human life by enabling people to do more, feel better and live longer” (TopicalCare, 2002).
This mission is based on TopicalCare having a positive impact on the world, facilitating them to have a highly reliable status, which is imperative for a company to survive among its tough compeditors. . Internal objectives of TopicalCare mission include “…we ensure that all employees work towards achieving excellence and success. ” (TopicalCare, 2002) This is an important aspect of their mission as employee cooperation entails the success of the mission. While external aims of the mission include the final consumers and society as a whole.
By adopting views like “fundamentally committed to make a significant contribution to society” and “committed in enhancing its position as a responsible corporate citizen and building community partnership” (TopicalCare, 2006). Together with the production of the ethical and social responsibility reports, shows positive impacts on external stakeholders, which integrates and enhances their mission. The company develops separate marketing plans for each of its brands and always starts new market expansion with middle class segment, opening TopicalCare International outlets (TopicalCare, 2002).
Such approach allows the company to avoid possible cannibalization between brands. In case of other entry approaches the company’s various brands expose each other to mutual cannibalization, switching each others consumers. The company as at end of 2006 employs 9,000 employees many of whom have a long experience of working in pharmaceutical industry (TopicalCare, 2007). The experience of running operations in South Africa, Kenya and Egypt might be of great use, since Nigeria is also an African member. According to TopicalCare International website, the company’s brands have 100% brand awareness in South Africa.
Erhum et al (2001) stated that one of the key advantages of Multinational concept is its continuous improvement focused on the improvement of various aspects of the company’s business concept. These improvements cover such issues as redesign of manufacturing processes and pharmaceutical outlets, innovative service marketing ideas being implemented in its sales department. These efforts act as a powerful retention and customer – switching strategy. TopicalCare Company is committed to work according to the highest ethical standards and within the norms of the legal requirements, in any country it operates.
The industry in which the company operates i. e. healthcare is a complex industry which has to operate under strict regulations in every area from research and discovery to marketing in domestic and international markets. The company hence aims to adhere to high quality and rigid standards in its everyday processes and the various policies set up by the company in this regards underline this idea. In addition to this regular training of employees to achieve these standards and regular monitoring are critical to the successful operations of the company (TopicalCare, 2002).
However as the structure of TopicalCare dictates, communication across its internal divisions can be a lengthy process, in which communication can then be ineffective, which can lead to devastating affects. TopicalCare operates a top-heavy structure all over the world as shown in Figure 4. 1 and it reacts differently to different situations. Business culture is often dictated from the top of the hierarchy downwards. However all TopicalCare operations have the belief that innovation and trading should be ethical and moral (TopicalCare, 2005).
In terms of financial performance, the company’s current revenue growth is 4. 40% with gross margin of 33. 16% and operating margin 8. 43% (TopicalCare, 2007: 26). The industry’s corresponding ratios are: revenue growth – 4. 6%, gross margin – 34. 8% and 3. 8% – operating margin. Despite steady recovering from financial crisis, the company’s revenue growth is still lower than industry’s average (TopicalCare, 2007: p26). The high operating margin is provided by unique sourcing system and inventory management.