Business Finance
BMGT364 UMUC Biotech Company Infant Formula Analysis

Management and Organization Theory

University of Maryland University College

Question Description

Please read the instructions in its entirety. Please only use the resources attached for citing references. Thank you.

Instructions

In this project, you will complete an external and internal analysis for Biotech and the industry in which it operates. You will research the infant formula industry and use the Company Profile as one resource to complete the project.

Skill Building:

You are also completing this project to help develop critical thinking and assessing the external and internal business environment.

Skills: Research, Critical Thinking, Writing

Outcome Met by Completing This Assignment:

  • Employ effective planning processes to develop strategies, goals, and objectives in order to enhance performance and sustainability

Instructions:

The Executive Director for the new Asia Division, has been asked by Max Barney to put together, and present in a report to him, a business strategy that will be a guide for the next year as the new division moves forward. The Executive Director will be working with a consulting group over the next 5 weeks and they will assist with putting together this plan. The final plan will be laid out as outlined below and developed in three phases. In the first phase (this project), Section II and Section III will be completed.

Section II – Goals and Objectives

Section III – Competitive Analysis

The business strategy will provide the organization an opportunity to explain the goals and objectives of the new division and help with the development of the strategy to achieve them. The plan will allow the company to gain insight into the current status of the industry it is venturing into using internal and external analysis tools, and then use this analysis to design its division’s business environment. In addition, the plan will be used to form the team that will bring the vision for this division to reality.

Phase I

This week, the group from Expert Foods Consultants has been tasked with conducting internal and external analysis of the infant food industry, assessing Biotech’s future in the industry and developing the business strategy for Biotech as they move forward. You will need the Biotech Company Profile (attached) to complete the analysis.

You have been tasked with conducting a SWOT Analysis of Biotech and the infant formula industry; a PESTLE analysis using the location identified during Week 2 (see attached Exercise 1) for the new offices; and a Porter Five Forces analysis for the industry. The group lead has requested that the analysis tools be accompanied with explanations that will breakdown the results of each analytical tool’s discoveries. With the results of this analysis, Biotech leadership should be able to make critical decisions on the types of products (and their corresponding ingredients) the company will use during its initial product line launch.

In addition to the internal and external analysis, you have been tasked with identifying five (5) major business goals that Biotech should initially be focused on as they venture into the infant formula industry. These goals should focus on defining the entry strategy that the organization should follow as it tackles moving into an industry new to the organization. These goals should be robust but also attainable. Having clear attainable goals is great, but the goals also need to have clearly defined and explained objectives that will measure the progress to achieve these goals. Meeting these objectives should result in the future success of their corresponding goals. When writing these objectives, ensure they can clearly be related to the four goals established as critical during entry into the infant formula industry.

Instructions for Completing Phase I

Step 1: Write an Introduction paragraph

The Introduction paragraph is the first paragraph of the paper and will be used to describe to the reader the intent of the paper. This intent should be understood prior to reading the remainder of the paper so the reader knows exactly what is being covered in the paper.

Step 2: PESTEL Analysis

You will develop a PESTEL analysis by completing the following tasks:

  • Discuss Biotech's general environment and develop a PESTEL analysis of the infant formula industry that has an impact on Biotech;
  • Provide explanations for the results of each element of the PESTEL using research and the course material. The analysis will provided specific details that include explanation of why and how – generalizations are unacceptable.
  • Note: You may not use a PESTEL analysis that is already completed and available on the Internet. A zero will result if used as the analysis has to be the result of your research and your own development.

Step 3: SWOT Analysis

You will develop a SWOT analysis by completing the following tasks:

  • Create a SWOT Table setting it up as follows. Make sure to cite each item in the table. Insert the table into the paper. Note that the table template can be found under the Syllabus module;

SWOT

Strengths

Weaknesses

Opportunities

Threats

  • Analyze Biotech and the infant formula industry. The weaknesses and threats should draw from the PESTEL analysis;
  • Provide explanations for the results of each of the elements of the SWOT using research and the course material. The analysis will provided specific details that include explanation of why and how – generalizations are unacceptable.
  • Note: You may not use a SWOT analysis that is already completed and available on the Internet. A zero will result if used as the analysis has to be the result of your research and your own development.

Step 4: Porter’s Five Forces Analysis

You will develop a Porter’s Five Forces Analysis by completing the following tasks:

  • Develop the Porter’s Five Forces Analysis providing explanations for the results of each of the Five Forces using research and the course material. The analysis will provided specific details that include explanation of why and how – generalizations are unacceptable.
  • Note: You may not use a Porter's Five Forces analysis that has been completed and available on the Internet. A zero will result if such an analysis is used as the analysis has to be a result of your research.

Step 5: Goals and Objectives

Using the results of the PESTEL, SWOT, Five Forces and Competitive Analysis:

  • Identify 4 major goals the Business Strategy should look to attain, with explanations as to the importance of each goal and why the goals are relevant to the strategy;
  • Identify a minimum of 3 objectives (per goal) necessary to accomplish each goal. Explain why the objective fits the goal. Note: Three is the minimum so to earn additional points, more objectives are needed.
  • Make sure the goals and objectives are not general in nature. They need to be specific to Biotech entering the infant formula industry.

Step 6: Competitive Analysis

You will perform a competitive analysis by completing the following tasks:

  • Identify the Biotech’s three major competitors;
  • Using Biotech's three competitors and analyze the competition's products and services explaining features, value, targets, etc. What are the competition's strengths and weaknesses and what is the market outlook for the competition?

Step 7: Review the Paper

Read the paper to ensure all required elements are present. Use the grading rubric to ensure that you gain the most points possible for this assignment.

Proofread the paper for spelling and grammatical issues, and third person writing.

  • Read the paper aloud as a first measure;
  • Use the spell and grammar check in Word as a second measure;
  • Have someone who has excellent English skills proof the paper;
  • Consider submitting the memo to the Effective Writing Center (EWC). The EWC will provide 4-6 areas that may need improvement.

Step 8: Submit the paper in the Assignment Folder (The assignment submitted to the Assignment Folder will be considered the student's final product and therefore ready for grading by the instructor. It is incumbent upon the student to verify the assignment is the correct submission. No exceptions will be considered by the instructor).

How to Set Up the Analysis

Create a Word or Rich Text Format (RTF) document that is single-spaced, with double spaces between paragraphs. Use 12-point font, double spaced. The final product will be 7-9 pages in length excluding the title page and reference page. Write clearly and concisely. Do not exceed 9 pages.

Completing the Analysis

In order to complete this Business Analysis, you will want to first read the module, Learn How to Support What You Write, as this assignment requires you to use the course readings and research to support what you write. Also,

  • Read and use the grading rubric while completing the exercise to ensure all requirements are met that will lead to the highest possible grade.
  • Contractions are not used in business writing, so do not use them.
  • Paraphrase and do not use direct quotation marks. Paraphrase means you do not use more than four consecutive words from a source document. Instead put a passage from a source document into your own words and attribute the passage to the source document. Not using direct quotation marks means that there should be no passages with quotation marks and instead the source material is paraphrased as stated above. Note that a reference within a reference list cannot exist without an associated in-text citation and vice versa. You may not use more than four consecutive words from a source document, as doing so would require direct quotation marks. Changing words from a passage does not exclude the passage from having quotation marks. If more than four consecutive words are used from source documents, this material will not be included in the grade and could lead to allegations of academic dishonesty.
  • You are expected to use the case scenarios and weekly course material to develop the analysis and support the reasoning. There should be a robust use of the course material along with thorough analysis of potential location information. Material used from a source document must be cited and referenced. A reference within a reference list cannot exist without an associated in-text citation and vice versa. Changing words from a passage does not exclude the passage from having quotation marks. If more than four consecutive words are used from source documents, this material will not be included in the grade and could lead to allegations of academic dishonesty.
  • Use in-text citations and provide a reference list that contains the reference associated with each in-text citation.
  • You may not use books in completing this exercise unless part of the course material. Also, do not use a dictionary or Wikipedia.
  • Provide the page or paragraph number in every in-text citation presented. If the eBook does not have pages, provide the chapter title and topic heading. If using a video, provide the minutes and second of the cited material.

Unformatted Attachment Preview

Biotech Health and Life Products Company Profile Welcome to Biotech! The assessment projects for this class will examine different facets of the leadership of Biotech Health and Life Products, Inc. You will be exploring leadership within Biotech with the driving question of “what skills does a Biotech leader need to lead the company now and in the future?” History Wilford Barney was a young apprentice working for Peter Ulan, owner of a small apothecary shop in Yonkers, New York. During his apprenticeship, Barney created a general energy elixir that was based on a home remedy of his mother’s back in Ireland. The elixir was produced specifically for many of Ulan’s special customers. Made of all natural ingredients the elixir provided B12 and other vitamins to promote a healthy immune system. The energy boost was noticeable after only a week’s use. The reputation of the elixir grew. In 1922, Barney took over Ulan’s apothecary shop renaming the business, Barney’s Apothecary. At that time, Barney decided to bottle his elixir and sell the formula to everyone rather than selected customers. Barney also gave bottles of the elixir to local peddlers who sold the product along with their wares receiving a commission on each bottle they sold. By 1929, the product was well known in Yonkers. Encouraged by the success in Yonkers Barney decided to branch out to New York City. In 1932, Barney built a small manufacturing plant near the store where he mixed and bottled the elixir for sale. By 1934, Barney expanded sales by putting the elixir in a quarter of the apothecary shops in New York City. Sales were booming and customers inquired about other products that Barney’s had. In 1936, Barney started a new product called Night Relief, another of his mother’s recipes. This product offered relief from night sweats and anxiety caused by menopausal symptoms or nerves. When this product proved a “secret success” with the ladies, Barney decided to bring his mother, Irene, from Ireland, and put her to work making new natural products. With his mother’s help, Barney grew the business into a small but successful manufacturer of natural “life products”. Barney coined “life products” because the products tracked natural life events in the human body and attempted to improve the customer’s discomfort in dealing with them. The name of the company was changed to Barney’s Elixir and Life Products. The business continued to grow and with his mother’s death in 1938 the company had a gross revenue of $178,000 a year. The depression took a toll on company profits but people still needed the boosts to their health and were able to afford Barney’s products as opposed to the medicine offered by doctors and hospitals. During World War II the company supplied the troops with a natural caffeine (Stay Clear) product that would keep soldiers awake for long periods of time and heighten their mental alertness. Government contracts derived from Stay Clear boosted the revenue of the company considerably and ushered in a new wave of interest of natural products. By 1950 Barney turned over the reins of the daily operations of the business to his children but remained on the Board of his family owned company. By this time, the company had expanded its manufacturing plants and sales nationally to include Detroit, Michigan, Los Lunas, New Mexico, Chicago, Illinois and Atlanta, Georgia. The revenue of the company was now close to 2.5 million dollars. In the 1960’s the social climate in America had changed and pharmaceutical companies took on greater importance in the treatment of people’s health. The discovery of new drugs and better health care shifted the confidence in the American perspective away from natural products to traditional western medicine. Although the counter culture of America still supported natural supplements, popularity for Barney’s products waned. In 1965, Wilford’s granddaughter, Geraldine, took over the Research and Development Department (R&D) after receiving a degree in chemistry from Harvard. She had been trained as a child by her grandmother, Wilford’s mother, and knew how the recipes should look. However, she had new ideas and with the approach of the 1970’s, was ready to join the “Anjolie perfume commercial” lifestyle depiction of a 70’s women that “they could bring home the bacon and fry it up too.” Due to the downturn in sales by 1970, the company turned to other countries for its sales base. Starting in Germany and other European countries where natural products are highly credible, Barney began to license the sale of the company’s products to local manufacturers. The name recognition grew and by the 1980’s the company was grossing over 4 million dollars in gross sales. The company moved to overseas operations and manufactured in Germany. Wilford Barney died in 1981 shortly after seeing his first grandchild, Maximillian Barney, take over the President’s positon of the company. Studying the trends in the 1990’s about the resurgence of natural health products “Max” as he liked to be called, decided it was time for Barney’s to focus on the new interest in homeopathic and natural products especially at home in America where sales were static. In 1996, Max, wanting to get a sleeker and more modern feel to the company’s products changed the company name and logo. No longer was Barney’s a mom and pop operation but is an international business. Barney’s Elixir and Life Products was now Biotech Health and Life Products. While the products would continue to show the old Barney logo, for name recognition the new logo would take prominence on the packaging. By 2000 the company was grossing about 1.1 billion in sales with an increase in market share. By 2012, Biotech had a 20% market share of the supplement business with Approximately $25 billion in sales. The company is interested in expanding into infant formula. . Currently sales for the company are at $45 billion. Maximillian Barney is still President and CEO. The stock is still held by the family and all senior management positions are held by family members. Current Company Vision: To help provide everyone with the healthiest life possible in the most natural of ways. Current Mission: To develop products that are safe, effective, affordable and natural with the customer’s health always their primary goal. Current Fact Sheet Headquarters Worldwide web address President 2016 Gross Sales Employees Yonkers, New York www.biotechlife.com Maximillian Barney US$ 45 billion 38,000 in 6 countries worldwide Manufacturer Operations United States Battle Creek, Michigan, Albuquerque, New Mexico, Elkton, Maryland, Peoria, Illinois and Atlanta, Georgia Europe Asia South and Central America and Caribbean Canada Product England, France, Netherlands Sapporo, Japan Salvador, Brazil Calgary, Canada Lines Protein and Fitness; Personal Care, Vitamins and Food Supplements, Infant Formula (Pending) Major Competitors Protein and Fitness-GNC, Personal Care- Nestle Skin Care- Galderma, SA; Glaxo, Merke, General Mills. Vitamins and Food Supplements- GNC, Natures Plus, Natrol, Nature’s Way, Nature’s Bounty, Hain Celestial Group, Inc, Schiff Nutrition International, Nestle Current Business Philosophy Biotech has determined its long-term goal planning pattern should be no longer than three years. Three years seems more flexible than the seven year planning pattern previously used as change in the business climate is making it imperative to be more flexible. The need for innovation and competitive advantage ideas are the main focus for the next two years along with the company’s commitment to becoming a triple bottom line company. Sustainability both for profit and planet is foremost in the minds of the leadership. The development of a triple bottom line company is in the best interest of the company because of the need to keep a strong natural product image link to the community and the desire for the company to be socially responsible. Protection of the suppliers and control over product quality is critical to the development of a sound “life product.” Current Growth Plans Business and Sales Biotech is looking to expand and is exploring the opening of a new manufacturing, sales, and distribution facility in the next year. Currently, products are sold through t h e U S a n d i t s European division but there is a great demand for its current product in Malaysia and China as well as in the United States. It was decided by senior leadership to explore a potential manufacturing and sales presence in these three areas, which would potentially increase sales and would fall under the control of a new Executive Director. As in keeping with the all-natural products, the company wants to bring a greener footprint to its new facility going beyond what many competitors have in place. This as an opportunity to gain market share; and introduce a new product line. This effort would provide a good test case for new products that would position Biotech as a leaders in innovative technology. Product Development Biotech is looking to develop an infant food line. The company has recently expanded and is now interested in pursuing infant formula. Current Eco Sustainability Commitments Currently, Biotech has current commitments to build housing for several communities in Brazil and India where natural pharmaceutical ingredients are produced. The program reflects the company’s strong commitment to making the company a triple bottom line company by the year 2021. Innovation and Adaptability Development of organizational structure and culture changes are being made to introduce more collaborative decision making as well as bringing the divisions closer together in the area of shared resources and communication. The emphasis is to encourage the exchange of ideas, create an environment that fosters new ideas and makes change easier in implementation of initiatives. Biotech is concerned that the stateside organization is driving the other overseas divisions and that new ideas are being encouraged because of the cultural differences in staff. Customer innovation workshops run by the various divisions have highlighted that R&D in Europe and Australia see differences in consumer preferences from US consumer preferences, and Biotech would like to incorporate this knowledge in its future facility. It is believed that US controlled resources are ignoring these product preferences and are thus impeding overseas sales. Corporate leaders are trying to examine how to answer this cultural gap. Current Corporate Culture Being a family owned business, Barney’s new image has made the family a little less cohesive since it seeks to be a sleeker less clan like organization. Still the family leaders are committed to keeping the family history as a symbol for the company. It is believed that the family cultural connection gives support to collaborative decision making something the Company has been successful in promoting throughout the organization. It is also seen by the owners that their family and employees makes up the company’s customers. The family wants to encourage a customer centric culture, one that allows employees to see everything through the perspective of the customer and to make decisions with the customer’s view always paramount. Furthermore, there would be a companywide accountability to the customer in all departments. The owner wants a workforce that gives an extraordinary customer experience in every product it makes. Current Organizational Structure This company has a geographical division structure. However, within each division is a functional structure with production and sales at the hub. R&D, HR, IT and Finance have small staff in each division whose primary job is to liaison with headquarters to implement the decisions made by them. Above all the Divisions is the President and CEO Maximillian Barney Housed in headquarters is the R&D, HR, IT, and Finance Divisions Executive Director South America Division Executive Director North American Division Executive Director European Division Executive Director New Division (Infant Formula) Biotech Business Proposal Introduction In order to develop an efficient Infant Formula as an addition to Biotech’s already existing products, a good location and good management need to be in place. Research has been done to provide the best location possible, considering the three options that Melanie prefers. The Infant Formula will be produced in a green environment, affordable to manufacture and stay relevant to Biotech’s mission. Best Location Melanie narrowed her preferences down to three locations: Malaysia, Ohio United States and China. Based on the 2019 Index of Economic Freedom, United States is the best option for manufacturing the Infant Formula. United States’ overall score is 76.8 and it is higher than China at 58.4 and Malaysia at 74. China ranked the lowest out of the three countries. It stands at the 100th freest country in 2019. There is an increase in tension between U.S. and China and that economic turmoil makes it difficult for China to be a top option for Biotech’s location. Malaysia was ranked in the middle of China and the United States. Malaysia has an open trading system and there is no minimum wage, meaning employees could be paid any amount. The United States is the 12th freest country in the 2019 index. The tax and government issues have improved from previous years. There is great trade freedom with almost the rest of the countries. These topics are attractive for building a Biotech plant. The problem with Malaysia is the environment. Malaysia’s current situation is that there is much pollution and agricultural losses due to decades of mining in the country. For this reason, the United States makes a better location. Ohio is considered to be the leading state in the green economy. Ohio is situated in the east coast and a lot of the transportation corridors that run from the east coast to the west coast go through Ohio. This would make the state a great option, transportation wise. The distribution of the product would be easily done in Ohio. The state was ranked number 2 in the country for best business climate and ranked top ten for best business-friendly tax system. Out of the three options Melanie chose, Ohio is the best location. Ohio stays true to the company’s mission. Best Candidate Sloan Jessie, Maddie Cooper and Bentley Hughes have been interviewed and considered for the position. Melanie has specific skills and attributes she is looking for. After reviewing the three candidates, it has been determined that Bentley Hughes is the best candidate. Sloan Jessie has a lot of experience in the organic and green department. She was a manager and was considered a fair manager by her former subordinates. Sloan Jessie possesses the skills of being a good manager, however she does not have any marketing experience. Maddie Cooper was the second person to be considered. She has much experience with Asia and in the infant formula field. She does have a strict management style and that is not what disqualified her. She recommended in her interview for Biotech to loosen focus on the green initiative, which goes against the company’s mission. Bentley Hughes is a leader. He is the owner of a successful company that focuses on organic infant products. Bentley falls under the definition of a leader. He has a long-term view for his current company and makes things happen. (Leadership vs. Management, paragraph 3). References United States. (2019). Retrieved January 24, 2019, from https://www.heritage.org/index/country/unitedstates Malaysia. (2019). Retrieved January 24, 2019, from https://www.heritage.org/index/country/Malaysia China. (2019). Retrieved January 24, 2019, from https://www.heritage.org/index/country/china Leadership vs. Management., paragraph 3 https://learn.umuc.edu/d2l/le/content/347188/viewContent/14273019/View COURSE RESOURCES ***PLEASE ONLY USE THE FOLLOWING FOR CITATIONS. NO OTHER BOOKS OR WEBSITES ARE ALLOWED.*** WEEK 1 What Is Organizational Behavior? As a field of study, organizational behavior is concerned with the impact individuals, groups, and structures have on human behavior within organizations. It is an interdisciplinary field that includes sociology, psychology, communication, and management. Organizational behavior complements organizational theory, which focuses on organizational and intra-organizational topics, and human-resource studies, which is more focused on everyday business practices. Edgar Schein’s Organizational Culture Model There are three central components of an organization’s culture: artifacts (visual symbols such as an office dress code), values (company goals and standards), and assumptions (implicit, unacknowledged standards or biases). Types of Organizational Behavior Organizational studies examine organizations from multiple perspectives, using various methods and levels of analysis. Micro organizational behavior refers to individual and group dynamics in organizations. Macro organizational theory studies whole organizations and industries, especially how they adapt; and the strategies, structures, and contingencies that guide them. Some scholars also include the categories of meso-scale structures involving power, culture, and the networks of individuals in organizations. Field-level analysis studies how entire populations of organizations interact. Many factors come into play whenever people interact in organizations. Modern organizational studies attempt to understand and model these factors. Organizational studies seek to control, predict, and explain. Organizational behavior can play a major role in organizational development, enhancing not only the entire organization’s performance, but also individual and group performance, satisfaction, and commitment. Topics in Organizational Behavior Organizational behavior study is particularly relevant in the field of management because it encompasses many of the daily issues managers face. These include leadership, decision making, team building, motivation, and job satisfaction. Understanding not only how to delegate tasks and organize resources but also how to analyze behavior and motivate productivity is critical for success in management. Organizational behavior study also concentrates on culture. Although difficult to define, corporate culture is extremely relevant to how organizations behave. A Wall Street stock-trading company, for example, will have a dramatically different work culture from an academic department at a university. Understanding and defining these work cultures and their behavioral implications is also a central topic within the organizational behavior field. Why Study Organizational Theory? Organizational theory studies organizations to identify how they solve problems and how they maximize efficiency and productivity. Key Points • • • Correctly applying organizational theory can have several benefits for an organization and society at large. Developments in organizations help boost economic potential and help generate the tools needed to fuel a capitalistic system. Once an organization sees a window for expansion, it begins to grow, altering the economic equilibrium by catapulting itself forward. This expansion induces changes in the organization’s infrastructure, in competing organizations, and in the economy as a whole. One example of how development in organizational theory improves efficiency is in factory production. Henry Ford created the assembly line, a system of organization that enabled efficiency and drove both Ford and the US economy forward. Key Terms • • efficiency—the extent to which a resource, such as electricity, is used for the intended purpose; the ratio of useful work ...
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Final Answer

Hey, here is your paper. I encountered a challenge where your resource lacks various information, but I could write. So, try your best to find the course sources as you said. Incase of any edits, I am readily available.😀

Running Head: THE INFANT FORMULA INDUSTRY AND BIOTECH COMPANY

The Infant Formula Industry and Biotech Company
Name
Institution
Date

1

THE INFANT FORMULA INDUSTRY AND BIOTECH COMPANY

2

Introduction
The business internal and external environment will impact biotech expansion to the
infant formula industry. The organization wishes to expand its product line into infant formula. It
intends to open a range of infant formula products, conduct marketing, differentiate its new
product and improve the technology to expand into the new industry successfully. The political,
economic, social, environmental and legal factors of the infant formula industry can influence
the success of anticipated establishment of Biotech in the sector. Therefore, the company will
need to consider all the elements when strategizing. The company has strengths and
opportunities that promote its plan to expand to the infant formula sector. It also has weaknesses
and threats that impact its intention to increase its product line. The organization has three major
competitors, Nestle, GNC holding and Hain Celestial Group in the new industry. They have
strong brands and financial capability. Nevertheless, these firms also have weaknesses. This
paper examines Biotech and the infant formula industry.
PESTEL Analysis
Biotech General Environment
The CEO, Maximillian Barney heads Biotech. He is in charge of the whole organization,
and all the other managers’ report to him. The organization is divided geographically where
various each region operates independently. Nevertheless, each geographical division has a
functional structure with an executive director, IT manager, R&D, HR, and Sale manager.
Biotech has enough employees who operate in its various branches across the globe. Biotech
Company Profile (p, 3) asserts that it has 38, 000 employees in 6 states. In addition to workforce
capability, the organization has adequate fund and cash inflow. Therefore, it is capable of
meeting operation and unexpected expenses. It records huge sales, particularly in 2016 the sales
were $ 45 billion
The organization has multiple suppliers who provide the company with relevant
materials and machinery need to manufacture its products. Some of the suppliers are global
leaders in their field that partners with an organization in research and development of its
products. Examples of the suppliers are Thermo Scientific Pierce Antibodies, BNR, Whatman
and Randox Life Sciences. The organization has good relationships with its supplier which it has
fostered long-term contract with.
Biotech Company has strong competitors in its market. Its prominent competitor is
Amgen which specializes in producing two drugs and compete on price. Biotech Company
Profile (p. 3) indicate that Nestle, Hain Celestial Group, GNC and Idec are the other competitors
who have strong capabilities in research and development and cost control. There are also other
multiple small competitors who are making an effort to increase their customer base.
Pharmaceutical companies, Laboratory, and individual people are target clients of Biotech.
Therefore, the organization has a broad line of customers. As for the company demographics for
its target market, it constitutes of both female and male. It similarly represents young children
and infants of various age groups
PESTEL Analysis of the infant formula industry
Multiple environmental and market factors of the infant formula industry have an impact
on the Biotech company. The first element is the political factor. The infant formula sector is a
vast market that constitutes different countries with diverse political characteristics; political
stability, trade regulation, and food standard guidelines. Some states have favorable political
factors while other have unfriendly laws. These distinct political factors influence the decision of

THE INFANT FORMULA INDUSTRY AND BIOTECH COMPANY

3

the organization concerning the international market it will operate in and its sustainability. This
element has an impact because countries with political stability, unchanging regulation regarding
food standards, and standardized practices will support the operation of Biotech Company. The
organization will have certainty on the kind of law to adhere to and will have little risks.
Nevertheless, if the nations have political instability, changing food and global regulations, then
the organization will find it challenging to start and expand the new infant formula product. This
is the case because it will be hard and expensive to start a business legally. Additionally, the
risks will be huge.
The second element that can influence the organization is economic. As earlier
discussed, the industry constitutes a range of countries across the world. Therefore, different
countries have dissimilar economic level which influence the operation of any business in the
industry. Developing countries have economic instability with low GDP, slow economic growth
and high inflation. They don't encourage business growth. Contrary, the developed nation have
high GDP, economic growth and slow ...

Timesaver (17788)
Purdue University

Anonymous
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Anonymous
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