Strategic Decision Making Case Study Biocon

Like every company during its life span, Biocon India came to a time that it should make an important strategic choice. They have many strategic choice ranging from not taking the step and not starting any new business ending with starting the new business (Clinigene). They can also make the strategic decision to expand their business in other ways rather than Clinigene. In Biocon, there are many key groups involved in the strategic decision making process. These groups help define the possible alternatives and select from these alternatives. Biocon, Clinigene, Synege and all other scientists and key employees are key groups that affect the decision.

Biocon India is the mother company, Syngene is a subsidiary of Biocon India just like Clingene

Labor cost is very low in India compared to Europe and USA and the skilled labor is available for these low salaries. Hundreds of scientists in different filed are ready to work for $15,000 annually only. The legislations in India also help pharmaceutical companies to manufacture, perform medical trials and do research in India. Intellectual Property laws aren’t so restricted like in USA and Europe and so many companies would do their business in this easy market. Biocon knew these opportunities and understood the figures that showed very high growth rates and wanted to exploit them. On the other hand, Biocon India was afraid of risks that may cause failure of cost money. Not only failure of the new business was the risk that would cost money, but also the case of success included big risk as the size of the new subsidiary may exceed the size of the main (mother) company and it may sweep its culture. The culture of the mother Biocon India Company was a very important advantage that they built over time. The risk of losing this culture exceeded the risk of losing money because it meant losing all the

The start-up would be slow enough to make the new organization assimilate the old organization’s culture and be a carbon-copy of it. Teams from the old organization (Biocon) would be responsible for the structuring and designing of the new organization. Prioritizing the culture of the organization over the profits from it was the key strategy used and in the same time using new technologies and following the code of conduct followed by Biocon to save and secure its ethical background was considered in the new organization.

The new organization (subsidiary) faced the ethical risk which may affect the fame and reputation of Biocon India and so there were clear rules of following restricted code of conduct and following Indian low in Clinical Trials. If the start-up was to be successful and the new subsidiary was to achieve its goals and avoid its risk, Biocon India should control the start-up process in every step and all