Genzyme Corporation
Environmental Analysis
By Dinithi Fernando
S00177109
Executive Summary
This report presents a decisive analysis of internal and external environments of Genzyme Corporation prior to its acquisition by Sanofi Plc. The analysis of environments is measured with the help of SWOT analysis, PESTEL analysis and Poter’s five force analysis. Moreover, this report also hit upon some problems that the company had to encounter while running the business in changing environment and recommendation as how Genzyme could sustain their independency through improving their production strategies.
Contents
TABLE OF FIGURES 4
INTRODUCTION 5
OBJECTIVES AND RESEARCH METHODOLOGY 5
IDENTIFICATION OF MAIN ISSUES 5 …show more content…
This creates more challenges to Genzyme. During 2009 and 2010 Genzyme had to confront for many obstacles. Genzyme had a series of manufacturing problems which led to decline in sales of their main two products, Cerezyme and Fabrazyme. In the mean time, they caught the attention of FDA in 2009 for a problem of plant contamination. Genzyme had to halt its production of their main two drugs after FDA discovered a contamination in production equipments at its plant. FDA identifies three faults in production process, less control on production and process, improper maintenance of equipments and un-updated computer systems (U.S. Food and Drug Administration). Due to the shutdown of production of their best-selling products, Genzyme tumble its share prices. Due to these situations company became more susceptible and sought for a takeover. As a result, Sanofi, pharmaceutical company acquired Genzyme for a total consideration of $20.1 billion in February …show more content…
U.S. FDA write off product inventories which worth almost millions of dollars (Feuerstein, 2009). Their share price gone down by 40% during August 2009 right after the entire market was collapsed (Feuerstein, 2009). These factors not only affect the share prices, but also negatively affect the reputation and the trustworthiness of the company.
SWOT ANALYSIS
A SWOT assessment concentrates on the key problems encounter from the business environment and the tactical ability of an association to mitigate those environmental issues. Business environment divided in to internal environment and external environment. Thus, strength/weaknesses and opportunities/treats are considered as internal and external environments respectively.
Strengths
Experienced business units
Genzyme is one of the world’s leading bio pharmaceutical companies, which was establishes in 1981. This confirms Genzyme is equipped with experienced business units. SBU have their own separate ability to craft industry specific strategy as it relates to their functions. This allows SBU to perform competitive analysis of on their market position and develop goods and services that meet the needs of the target audience (Verbeeten, 2010,
Environmental Analysis
By Dinithi Fernando
S00177109
Executive Summary
This report presents a decisive analysis of internal and external environments of Genzyme Corporation prior to its acquisition by Sanofi Plc. The analysis of environments is measured with the help of SWOT analysis, PESTEL analysis and Poter’s five force analysis. Moreover, this report also hit upon some problems that the company had to encounter while running the business in changing environment and recommendation as how Genzyme could sustain their independency through improving their production strategies.
Contents
TABLE OF FIGURES 4
INTRODUCTION 5
OBJECTIVES AND RESEARCH METHODOLOGY 5
IDENTIFICATION OF MAIN ISSUES 5 …show more content…
This creates more challenges to Genzyme. During 2009 and 2010 Genzyme had to confront for many obstacles. Genzyme had a series of manufacturing problems which led to decline in sales of their main two products, Cerezyme and Fabrazyme. In the mean time, they caught the attention of FDA in 2009 for a problem of plant contamination. Genzyme had to halt its production of their main two drugs after FDA discovered a contamination in production equipments at its plant. FDA identifies three faults in production process, less control on production and process, improper maintenance of equipments and un-updated computer systems (U.S. Food and Drug Administration). Due to the shutdown of production of their best-selling products, Genzyme tumble its share prices. Due to these situations company became more susceptible and sought for a takeover. As a result, Sanofi, pharmaceutical company acquired Genzyme for a total consideration of $20.1 billion in February …show more content…
U.S. FDA write off product inventories which worth almost millions of dollars (Feuerstein, 2009). Their share price gone down by 40% during August 2009 right after the entire market was collapsed (Feuerstein, 2009). These factors not only affect the share prices, but also negatively affect the reputation and the trustworthiness of the company.
SWOT ANALYSIS
A SWOT assessment concentrates on the key problems encounter from the business environment and the tactical ability of an association to mitigate those environmental issues. Business environment divided in to internal environment and external environment. Thus, strength/weaknesses and opportunities/treats are considered as internal and external environments respectively.
Strengths
Experienced business units
Genzyme is one of the world’s leading bio pharmaceutical companies, which was establishes in 1981. This confirms Genzyme is equipped with experienced business units. SBU have their own separate ability to craft industry specific strategy as it relates to their functions. This allows SBU to perform competitive analysis of on their market position and develop goods and services that meet the needs of the target audience (Verbeeten, 2010,