Strategy, Leadership And Culture Of Innovation Assignment Sample

INTRODUCTION

The present business world is becoming competitive and complex day by day. In the current business world, the businesses operating in all the different industries need to focus on developing effective strategies which can help them in being effective in this competitive world. For developing effective strategies and leading the firm in an effective manner it is important for businesses to have an effective leader. Leadership plays a major role in the organization and it can be said that leadership is an important success factor for businesses so the firms should have an effective leader with better skills. With the changing world, innovation had also gained a lot of importance for businesses because of the ongoing technological advancement and modernization (Wipulanusat, et. al., 2018).

Businesses need to have an effective culture for innovation that can help them in developing effective products and services for the customers. In this report, the researcher is focusing on explaining the importance of strategies, leadership, and culture of the organization for the businesses (Weintraub, 2017). For explaining the research topics in detail the report will focus on three different case studies which would help them in explaining the concepts in an effective manner.

THE NATURE OF STRATEGY

Strategizing

Strategizing:

Dilemma

 

The major reason behind categorizing strategizing as a dilemma is that the case company is having a choice to develop the strategies for bringing innovation and working as per the external business environment otherwise the company has to die.

Business strategies are having an important role to play in the businesses as they help the company in moving towards their aims and objectives. The case company Merck is an organization that is operating in the pharmaceutical industry and the company focuses on developing better strategies for the company. From page number nine of the second case study, it can be evidenced that the case company Merck is focusing on developing a worldwide business strategy team (WBST) as the company is operating in the international market so they focus on having the strategy which can help them in managing the business operations in an effective manner. WBST is being divided into four different phases and in all the phases the company needs to work in an effective manner. Gilmartin had developed this strategy as he believed that this strategy would help them in making better decisions and managing the firm in an effective manner (Bhatnagar, et. al., 2018).

Figure 1: Logo of Merck (Glceurope, 2020)

The leader of the company had developed this strategy as the thought that each of the team would help the identifying the high priority investment opportunity and these teams would also help the businesses in better planning. On page number one of case study three, it is being mentioned that the company is having an effective strategy for growth and making effective changes in the external business environment. Along with this, the case company is having different effective strategies which are helping them in managing all the challenges in an effective manner and also helps the businesses in gaining a competitive advantage over others and leading the firm towards success and development.

Missioning and Visioning

Visioning and Missioning:

Dilemma

 

The mission and vision are always the dilemmas for the businesses because there are different alternative options available for the company but among all the options the company decides the one and develop them as the mission and vision of the company.

The mission and vision of the company need to be clear then only it can help the businesses in working in an effective manner and developing better strategies for leading the firm towards success and development. The case company is having a clear vision of making their business practices highly innovated so that they can deliver high-quality healthcare products and services to their patients and can improve the lives of the people (Greenway, and Butterton, 2018). On page number nine of the case study first it is being mentioned the mission of the case company Merck. In the highly competitive business environment and with the increasing impact on the regulatory environment and political business environment the case company is having an only option to focus on innovation and then the company had developed a mission to make the company more innovated so that they can survive in the competitive business environment.

For leading the company towards its mission and vision the Merck had decided to develop better strategies that can help them in leading the firm towards success and development. The company had started focusing on open innovation which can help them in dealing with all the different challenges which are being faced by them the case company in the pharmaceutical industry. The company had focused on developing better ideas and focuses in investing in the R&D department so that they can develop better strategies and lead the company towards its mission and vision.

STRATEGY CONTENT

Business Level

Business level:

Trade-Off

             

At the business level, the business strategies are considered to be the trade-off and the major reason behind this is that there are different situation faced by the businesses in which they have to make some of the situational decisions which involve winning of one of the aspects in return to it the company needs to lose one of the aspects (Jayatilleke, and Lai, 2018). For instance, if we say that the company needs to be highly innovated then for this it is important for the company to invest in the development of the culture of innovation in the company and should have effective leadership as well.

If we consider this in the context of the case company Merck then in case study 1 Merck & Co. Inc. page number 1 it is being found that the business model of the company focuses on investing in the R&D department and as a result of it the company is having a position of being an R&D powerhouse in the pharmaceutical industry (Yun, et. al., 2020). Merck was having a closed innovation as the business model in the company but with the increasing technological advancement this was no longer effective for the company and the firm started facing the issues in being competitive as their business model is not much effective with the changing external business environment. For working effectively in the changing business environment the case company had focused on making changes in the business model of the company. The company had introduced the open innovation and had focused on opening their business model in which the company focuses on combining the internal and the external ideas for bringing innovation in the company and leading the firm towards success and development. When the company had focused on introducing the changes in the business model then the company had to invest higher cost in using the latest technologies but some of the company had continued to use their patented technologies because of high cost. From this, it can be said that if the company wants to get benefitted from the open innovation then the investment is required.

Corporate Level

Corporate level:

Trade-Off

 

            At the corporate level the business strategies, innovation, and leadership are a trade-off this is because the corporate level executives, managers, or leaders are having different options and they need to make the correct decision for the company (Ozerov, et. al., 2017).

            In the case study 1 Merck & Co., Inc. it is being described that the CEO of the case company Kenneth Frazier had mentioned that as a part of the corporate management they have developed several strategies and had made effective decisions for the company which had helped the company in solving the issues and challenges. Along with this, they have also mentioned that after the Schering-plough merger with Merck Mr. Frazier is being promoted to be the CEO of the company. Mr. Frazier also mentioned the words of the former CEO of Merck that the leader of the company is having an important role to convince the peoples for bringing change in the organization before bringing any change in the company. From this instance, it can be said that corporate management needs to be effective for leading the company towards success and achieving better benefits. In the case study, it is also being mentioned that the corporate culture of the case company is conservation due to which restricts the company from adopting the changes in the firm (Wang, 2020). The case study mentions that Mr. Frazier had recommended to the board that for the success of the Idenix acquisition the company needs to develop the culture which can support this acquisition and the company can receive better benefits from this acquisition. On the basis of these instances mentioned in the case study of Merck, it can be said that corporate management and the corporate configuration of the firm are very important for the success of the company.

STRATEGY PROCESS                                                   

Strategy Formation

Strategy Formation:

Dilemma

 

            Strategy formation is always a dilemma for the management of the company as they need to decide the best course of action for the company and need to develop an effective strategy for the firm (Hettich, and Kreutzer, 2021). Merk is focusing on developing better strategies that can help them in being competitive in the changing business environment. Case study 1 mentions that the former chief strategy officer Dr. Mervyn Turner had focused on developing effective strategies for the company and he had focused on bringing change in the company. The former strategy officer of the company had suggested that the company needs to focus on reaching the research institutes, companies across the world, and the universities for bringing the best and latest technologies to Merck.

            Case study 2 Merck & Co., Inc: Corporate strategy, organization and culture (B) had described that the case company had implemented the changes in the business strategy according to the ongoing changes in the external environment but this had created new challenges for the organization. For dealing with these changes in an effective manner the company had focused on developing new strategies for improving the organizational capabilities of Merck. For making changes in the business strategy the company is focusing on the activities such as bringing changes in the way in which work is being done in the company so that they can bring more responsiveness to the company and make the employees feel more responsible towards their roles and responsibilities towards the firm. In the case of study third, it is being mentioned that the case company had developed a new management committee (MC) for better strategy formation. And the MC had taken a strategic decision for making improvements in the business processes instead of making the dramatic changes in the management of the company (Griesar, et. al., 2018).

Strategic Change

Strategic change:

Trade-Off

 

Bringing change in the firm is never easy and it is always a trade-off for the businesses as they have to face several challenges as a result of the change but when the change is implemented in the company in an effective manner then it offers several benefits to the company. In the first case study, it is mentioned that the company needs to focus on bringing effective change in the company.

The case company is enjoying the benefits of having effective research, marketing, and manufacturing departments but the company needs to focus on improving its organizational capability. Merck had decided to bring an effective change in the way the work is being done in the company and it is expected that this change would help the company in a number of ways. This change would help the company in aligning well with the worldwide businesses operating in the same industry and this would help them in focusing on their growth strategy. The change in the working pattern would be implemented by the management of the company and in this change, the company focuses on expanding the WBSTs so that they can having better management and can help the company in maintaining its strengths and gaining advantages at the global level.

Another important change that is being implemented by the case company is the shifting from closed innovation to open innovation. This change had been proved to be the most effective change for the company as it had helped the firm is adapting to the new industry norms (Kratzer, et. al., 2017). While implementing this change the company had focused on keeping the pace high and had focused on implementing this change in an effective manner so that it can help them in receiving higher benefits from this change.

STRATEGY CONTEXT

Industry context

Industry context:

Puzzle

 

The industry is a puzzle for the businesses operating in it because the businesses need to understand the complexities and different situations taking place in the entire industry and on the basis of it the company needs to make effective decisions (Ciulla, 2020). Businesses need to solve the different puzzles while operating in an industry then only they can operate in an effective manner in the industry.

The case company is focusing on being effective in the industry and for this, the company is making a strategic decision and making effective changes in the company for maintaining their position in the pharmaceutical industry and for leading the firm towards success. With the increasing regulatory rules and regulations and with the generic competition in the pharmaceutical industry the case company had started focusing on making changes in their business strategy and they have introduced open innovation in the company. The major reason for bringing change in the company is to keep the company technologically advanced which is required for operating in the industry in an effective manner (Rosenbaum, et. al., 2018).

In the third case study, it is being mentioned that the competition in the pharmaceutical industry had increased to a greater extent and as a result of it all the businesses operating in this industry need to focus on bringing changes in their working pattern. Merck had created the management committee for making their business processes more effective for gaining a competitive advantage in the industry. The management team had also worked on different factors such as clarifying the worldwide business strategies, reviewing the business strategy of Merck, and many more. On the basis of these instances, it can be said that the company is adapting to the trends and changes occurring in the industry which is helping them in being effective in the industry.

Organizational context

Organizational context:

Trade-Off

 

In the context of the organizations the business strategies, leadership and the organizational culture of innovation is always the trade-off because the leaders need to focus on making different decisions and need to invest in something for receiving the required outcomes.

The leaders of the company are playing a major role in the company as they are required to influence the employees in an effective manner then only they will be able to lead the firm in an effective manner. Ray Gilmartin the CEO of Merck is an effective leader who had focused on taking effective initiative for the organization in an effective manner. Mr. Gilmartin is also part of the management committee and he along with the entire team focused on making effective changes in the company. Mr. Gilmartin as an effective leader had taken several initiatives for making improvements in Merck’s organizational effectiveness and he was an effective influencer as he had convinced the entire team to review Merck’s strategy for helping the company in gaining a competitive advantage in the industry. The leader had also focused on analyzing the issues which are being faced by the case company.

Mr. Kenneth Frazier is also the CEO of the company who had successfully lead the Schering-Plough (SP) merger in 2009 (Kumar, 2019). He was also an effective leader for the company and he had focused on the words of the former CEO Mr. Vagelos that the leader needs to have a higher influence on others the only they can become a successful leader. It can be said that the case company is having several leaders who are working effectively for developing their skills and knowledge which can help them in meeting the shifting needs of the organization and help them in leading the firm in an effective manner in the marketplace (Kosfeld, 2020). Along with this leader of Merck also focus on communicating effectively with the employees and support the employees to work effectively in the firm.

CONCLUSION                                               

Assessment

The above-mentioned report had described that how the case company Merck is working effectively in the business environment and how they are managing the business's operations in an effective manner for leading the firm towards success and development. On the basis of the three case studies, it can be said that the company is focusing on developing better strategies and bringing significant changes in the company which can help them in managing the firm in an effective manner in the complex and highly competitive business environment.

The case company is facing several strategic tension while operating in the pharmaceutical industry. In the era of technological advancement the company had started facing different issues related to their closed innovation model and as a result of it dealing with these issues the company had started focusing on using the open innovation model in the company. Along with this for developing better functioning in the company at the global level the company had started focusing on creating the worldwide business strategy teams. The case company had also introduced the PACE process and other strategies for making improvements in the business processes of the company. It can be said that the leaders and the entire management of the company are making effective decisions and developing better strategies for solving the strategic tensions of the company. Effective leadership in the company is also helping the firm in making their employees motivated in working effectively with the changing business environment. And for adopting better innovation in the company the firm had created a culture of innovation which had helped them in bringing innovation in the firm in an effective manner. It can be concluded that the firm is having effective leaders and employees who are helping the firm in managing the strategic tensions in an effective manner and leading the firm towards success.

Recommendations

From the above-mentioned report, it can be recommended that the business world is becoming competitive and complex day by day so the businesses should focus on adapting to the changes and working as per the trends of the industry in which they are operating. The firm needs to make effective strategies for implementing the change in an effective manner so that they can bring positive change in the firm and can get better results from the implemented changes. The case company should focus on bringing effective changes in their working pattern and should focus on using the latest technologies in all the different departments which can help them in being effective in the industry and gaining a competitive advantage over others.  It can be said that if the firm focuses on having better strategies and effective leaders then they can lead the firm towards success.

References

Bhatnagar, N., Ramachandran, K., Calabro, A. and Ray, S., 2018. Merck, Darmstadt: Sustaining Legacy Beyond 350 Years.

Ciulla, J.B., 2020. The importance of leadership in shaping business values. In The search for ethics in leadership, business, and beyond (pp. 153-163). Springer, Cham.

Glceurope, 2020. Merck [Online]. Available through: < https://glceurope.com/in-house-trainings/merck-logo/>. [Accessed on 9^th April 2021].

Greenway, A. and Butterton, J., 2018. New frontiers in antimicrobial leadership: an interview with Joan Butterton. Future microbiology, 13(15), pp.1633-1635.

Griesar, K., Bessant, J. and Bernschneider?Reif, S., 2018. The Recipe for Corporate Longevity: From the Perspective of “Managing Innovation”. Angewandte Chemie International Edition, 57(16), pp.4130-4142.

Hettich, E. and Kreutzer, M., 2021. Strategy formation across organizational boundaries: an interorganizational process model. British Journal of Management, 32(1), pp.147-199.

Jayatilleke, S. and Lai, R., 2018. A systematic review of requirements change management. Information and Software Technology, 93, pp.163-185.

Kosfeld, M., 2020. The role of leaders in inducing and maintaining cooperation: The CC strategy. The Leadership Quarterly, 31(3), p.101292.

Kratzer, J., Meissner, D. and Roud, V., 2017. Open innovation and company culture: Internal openness makes the difference. Technological Forecasting and Social Change, 119, pp.128-138.

Kumar, B.R., 2019. Merck–Schering-Plough Corp Merger. In Wealth Creation in the World’s Largest Mergers and Acquisitions (pp. 301-307). Springer, Cham.

Ozerov, E.S., Pupentsova, S.V., Leventsov, V.A. and Dyachkov, M.S., 2017, September. Selecting the best use option for assets in a corporate management system. In 2017 6th International Conference on Reliability, Infocom Technologies and Optimization (Trends and Future Directions)(ICRITO) (pp. 162-170). IEEE.

Rosenbaum, D., More, E. and Steane, P., 2018. Planned organisational change management: Forward to the past? An exploratory literature review. Journal of Organizational Change Management.

Wang, P., 2020. Analysis of the Innovation Benefits of Different Open Level Innovation Models. Statistics & Quantitative Economics, 2(1), pp.1-4.

Weintraub, P., 2017. 38 Leadership of health innovation: building an innovative health organisation.

Wipulanusat, W., Panuwatwanich, K. and Stewart, R.A., 2018. Pathways to workplace innovation and career satisfaction in the public service: The role of leadership and culture. International journal of organizational analysis.

Yun, J.J., Zhao, X., Jung, K. and Yigitcanlar, T., 2020. The culture for open innovation dynamics.