UniPhar Group plc

Delivery Team: Lisa Grassick; Cui Li; Matthew Maloney; Ping Shao; Theresa Xie

19th April 2010

Finance issues

Instability, Restructuring & Downsizing

Re-location

Government Regulation

Parallel Importing

Core Issues to be Addressed

“To be the leading, innovative, and cost effective provider of wellness to our employees and customers in all the markets we operate in”

Proposed Mission Statement

Become No.1 provider in the Irish

Market

Remain market leader in the area of

customer service in the face of

industrial decline and changing market

structure

Increased investment in human capital

Objectives

Internal Analysis - VIROResource Valuable Costly to Imitate Rare Organization

Exclusive rights to contracts Yes No Yes Yes

Human Capital Yes No No No

* Infrastructure Yes Yes Yes Yes

*Exclusive IT-Klug Yes Yes Yes Yes

*Customer service Yes Yes Yes Yes

Supply Chain Network Yes No Yes Yes

*Brand Yes Yes Yes Yes

Portfolio Yes Yes Yes No

UK subsidiaries Yes Yes No Yes

Banking relationship Yes Yes No Yes

Pharmacist Relationships Yes Yes Yes No

VIRO framework show competitive advantages in:

1. Customer Service2. Exclusive IT systems capabilites3. Infrastructure & Supply Chain Network4. UniPhar Brand

Internal Analysis Conclusion

Political◦ Highly regulated

industry ◦ HSE Imposing reforms

Economic◦ World Economic Climate◦ Low return on

investment◦ Devaluation in value of

property

External Analysis

SocialHealth Conscious/

Lifestyle of Public

TechnologyE-Purchasing

IncreasingCommunication

Technology Increasing

Logistical Technology

StrengthsExcellent reputation for customer service

and support.(staff training, sales teamClose ties with stakeholders

Broadly successful previous strategic directions

Wide network of customersEstablishment of UK division

Supply Chain (high standards & logistics delivery)

Underlying business model is profitableCentralised procurement/IT ordering and

management system

OpportunitiesAdvanced technology upgrades to seek

efficiencies and advanced customer solutions

Expansion of high margin medical products market

WeaknessesFinancial difficulty (liquidity)

Survivor’s syndrome (employees unrest due to redundancy)

Industrial relation issues, restructureCulture damaged

Common vision – communication issues (both vertical and horizontal)

Waste of resources.(sunk costs, relocation, ERP implementation)

Reaction Speed to changes has been too slow, organisation is not 'organic' enough to its environment

ThreatsIncreased competition from

existing competitors ( United drug, CMR) & potential competitors

(parallel imports).Changing market structure. (Merger and Acquisitions,

proposed United Drug takeover)Downturn in the economy.

Tougher regulation and policy in pharmacy sector (HSE)

SWOT Analysis

1. Integration and maximisation of

economies of scale and scope

2. Expansion of High Margin Product

Categories

3. Change management programme

4. Tackle Parallel Imports

Strategic Choice/ Action Plan

Strategic Implementation

Resources Required

Risk ManagementRisk

mitigation

Risk Identificatio

n

Risk Planning

Mapping out

Risk planning

Risk analysis

Q&A

Thank You!