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Analysis Imran will explain why this vaccine is effective<br>
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What competitive positioning do you need to emphasize? Diversified Offerings
(Existing and future) Revenue growth & profitbaility Leadership & Resources Global Brand Association Customers Connections<br>
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Alternatives you need to evaluate Stay focused and capitalize on your existing competitive advantage to expand! Business Strategy Leadership & Resources Product Offerings Spinning off No Spinning off Step down Retain & decentralize (Resource planning & redistribution) Continue Existing products New product offerings<br>
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Spinning off consumer healthcare is not a good idea Spinning off No spinning off No spinning off Through our recommendations
You can still achieve the benefits of Spinning off without Spinning Business Strategy<br>
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Alternatives assessment from business and growth perspectives Strategic Fit (Values) Maintain revenue & profitability Increase share price Transparency around leadership Shareholder Focused No Spinning off Spinning off<br>
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Why do you need to recommend leadership success strategy? Retain as a CEO of GSK and decentralize through providing autonomy to divisions and inducting referral from Elliott Leadership & Resources Stepping down Retain & Decentralize Why Retain: Immense and global experiences of leading organization and your vision Decentralization: Allow you to receive support in R&D, science, marketing and lead efficiently Transparency around leadership and growth plans.<br>
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Why do you need to offer new products? Expand Medical skincare, focus more on respiratory drugs & vaccines Product Offerings Respiratory products: Concerns are growing after covid and Covid impacts are projected to increase. Medical skincare: Leverage existing expertise, new emerging skincare market segment & trends more on skincare<br>
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Our recommendation to you Stay focused and capitalize on your existing competitive advantage to expand! Business Strategy Leadership & Resources Product Offerings Spinning off No Spinning off Step down Retain as CEO (Resource planning & redistribution) Continue Existing products Expand product offerings<br>
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Financials Sylvia will take your payment<br>
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Projected Market Size Respiratory Market and Medical Skincare Market are your go-to-markets. For respiratory concerns For medical skincare<br>
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Projected Revenue Assumptions:
GAGR for Res = 50%
CAGR for Emma =200% for three years Respiratory Drugs and Vaccine will be your new standpoint to leverage revenue. $ ↑Status quo<br>
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Projected Expense Assumptions:
Cost of Sales = 24%
SG&A = 28%
R&D Expense = 15%
Operating Profit= 23% You will be able to maintain your operating profit margin.<br>
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Projected Free Cash Flow Assumptions:
Discount Rate = 8% Your EV will increase to $376B with our strategy. NPV= $376B $<br>
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Projected Share Buyback Retain Earnings = $7B
Share outstanding = 250M
Total equity = $27B
Share price now= $83
Maximum share buyback 84M
Maximum share price increase to $160<br>
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Implementation Nishtha will administer the vaccine<br>
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How to convince Elliott and stakeholders?<br>
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Organization Hierarchy (GSK) Decentralization and autonomy is going to keep you relevant Vaccine
Headed by HAL Pharma
Headed by HAL Consumer Healthcare
Hire- (Recommendation of Elliott) Emma Walmsley
(CEO) Hire:
Sales Lead
2 R&D Leads
Marketing Lead
Operations Lead Hire:
Sales Lead
2 R&D Leads
Marketing Lead
Operations Lead Hire:
Sales Lead
R&D Lead
2 Marketing Leads
Operations Lead Core strategic Team 1 Core strategic Team 1 Core strategic Team 2<br>
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Decentralization How to promote a decentralization organization structure in a large organization like GSK?
Needs to come from the top
Walmsley must champion decision making at the Core Strategic Team level and give full authority to these teams
Need to ensure decision making is not feared or punished
People may be used to asking for approval
Ensure that decision making framework is robust so teams are comfortable that they have considered relevant factors and can take action
Ensure that data-backed, sound decisions that do not result in success are not punished
Instead, also ensure a robust process to learn from mistakes and move forward in a positive way<br>
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Recommendation Focus on not spinning off<br>
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Implementation plan Phase 1 is critical but with a strong plan Elliott will be on board and you will have more resources Phase 1 Phase 2 Phase 3 Hire 2 core strategic teams
Clinical trial of 5 skincare routine products
Communicate to Elliott the Success strategy Launch skincare products (3rd year)
Core strategic team will be monitoring healthcare trends Introduce more medical skincare products
Keep investing in R&D of vaccine and pharma drugs<br>
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Short term (0-1 year) Success strategy Hire Core strategic teams Hire HOD Focus on drug and medical cosmetics Walmsley Walmsley and HR Walmsley Hal and Walmsley More Investments Faster decision making Faster decisions on clinical trials Increased revenue from the respiratory drug<br>
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How to convince Elliott Management Corp ? XXXX Text Decentralization Referral for Consumer Healthcare Communication Plan Financial aspect Communicate the brief to Elliott regarding the referral, resources and financial aspect Elliott may bring the referral for the HOD position
The less-risk averse nature of Elliott would bring more investments
Walmsley can recruit the recommended person being an expert in the field More medical skincare products open sources of revenue
Will bring the investors faith given the share prices will be up
R&D on respiratory drug will reap you the benefits Providing referral will give the sense of proprietary to Elliott
More resources will put lesser stress on the vaccine and pharma division’s resources
During hiring of core strategic teams, making the hiring process transparent will inculcate the trust<br>
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Medium term (1-3 year) Working on clinical trial Soft launch Text
Monitoring healthcare trends Work on manufacturing drugs for underserved countries R&D, and Hal CMO and COO Department R&D leads Walmsley and COO More revenue Better outreach of products Better sale of products Economies of Scale<br>
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Long term (3-5 year) Expansion of skincare products Core strategic team regular supervision Global expansion Head appointed by Walmsley Department R&D leads Walmsley More number of products introduced Better sale of products Economies of scale and more profits<br>
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Risks and Mitigation Risks New organization structure may be less effective Elliott is not convinced Core strategic team will handle the changes Introducing a new line based on her referral Maximization of the success of new organization structure Changes in healthcare trends 1 2 3 1 Mitigation 2 3 Impact Likelihood<br>
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Conclusion Yanna will review aftercare<br>
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How to Measure Success<br>
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You Asked, We Answered Do you think spinning off consumer healthcare is a good idea?
What would you advise her?
Draw a plan for Walmsley to help GSK regain its position in the pharma industry. What should she do to make GSK innovative, nimble and efficient?
How should she convince Elliott about her plans?<br>
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Executive Summary Problem: help GSK regain its position in the pharma industry, including advising on spinning off and communicating to investors<br>
