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NOVO NORDISK: MAINTAINING SUSTAINABILITY
Transcript of NOVO NORDISK: MAINTAINING SUSTAINABILITY
Kristina Napoli, Patrick Flynn, Max Moog, Wale Soniregun
"Sustainable business that implies being profitable to secure future growth an contribute to social and economic development."
Triple Bottom Line Principle to balance finance, social and environmental considerations in a responsible way.
Social and environmental performance, managed with the same scrutiny as accounting, finance, and marketing mediums.
Core competencies= Producing Insulin + implementing TBL or sustainability values
Leading Player in the Diabetes Market in 2010 amongst Sanofi and Eli Lilly
Three Strategies: Long Term Growth
Training of 220,000 Physicians :
By investing in these physicians, Novo can inform doctors and other healthcare workers about diabetes research
Training of 280,000 People with Diabetes :
Patient Education by Novo had saved the Chinese society billions of dollars by reducing complications.
Helps Novo's bottom line as they are able to capitalize on increased insulin sales
Producing Locally to Reduce Environmental Impact :
Reduced emissions with their state of the art production facility in Tianjin, China.
Facility would use localized suppliers to reduce carbon dioxide emissions
Novo Nordisk set up programs with the Chinese government to focus on preventative measures, also created thousands of job with R & D
Triple Bottom Line Strategy in China
Novo Nordisk Background
SWOT Analysis - China
Recommendations Going Forward
Diabetic Pharmaceutical company est. in 1923
Founded in Denmark
Insulin production, industrial enzymes, treatment of hemophilia, and growth disorders
Production Facilities in 7 countries,
Affiliate offices in 75 countries,
Marketing in 190 countries
Financially controlled by the Novo Nordisk Foundation
Hold Majority voting rights though holding company-Novo A/S
Dual class ownership
"The Novo Nordisk Way"
Senior MGMT team audit "The Novo Nordisk Way"
Feedback proved it was too complex
CEO, Lars Sørensen led effort to revise it to focus solely on "essentials"
Provide training for Chinese doctors/patients
Strives for best quality
One of the first companies to help treat China
Large population in diabetics
9 different pharmaceutical companies in China
Novo began competing on a global level with new competitors outside of China like Merck, Eli Lilly, Sanofi, Bayer, and Aventis, locally with Tonghua Dongbao Pharmaceuticals LTD in China.
Chinese minister of health lowered the price for insulin to help finance universal healthcare
Doesn't favor influences from the West
Competitors in China can hinder growth
Is the new TBL the right strategy for China?
Race-to-the-bottom Vs. Triple Bottom Line
We believe that this is the right strategy, although careful consideration has to be given for the Chinese market.
Need to focus on brand awareness before raising quality and focusing on current Chinese culture.
Maintain being the market leader
TBL strategy to be considered in the future; once established.
Diabetes expected to increase
More need for universal health care
92M with diabetes at time of article
Novo willing to compromise on pricing with
Chinese HDI is increasing
More jobs for Chinese created by Novo
Where are they now?