2015 is the start year for multiple Chinese pharmaceutical enterprises to make the future 5-year development strategy.
Therefore, there will be major strategic layout and strategic restructuring of many pharmaceutical enterprises, especially large ones in 2015. We can see clearly the development planning of a pharmaceutical enterprise if we can analyze its future development skeleton, strategic layout and strategic thinking in its behaviors in 2015.
The most eye-catching in the development strategic planning of multiple pharmaceutical enterprises are the two large ones proposing 100 billion target in succession: one is Taiji Group, and the other is Guangzhou Pharmaceutical Holdings.
100 billion target is a planning target hard to achieve for Chinese pharmaceutical enterprises at present. With the gradual reduction in the development speed of Chinese pharmaceutical industry, it is difficult for pharmaceutical enterprises mainly engaging in pharmaceutical operation to form a large operation scale, causing great trouble to the development of pharmaceutical enterprises.
In particular, the present management theories of a great many strategic plannings do not suit the specific development of pharmaceutical enterprises any longer; simply relying on the strategic planning model, pharmaceutical enterprises have difficulty in forming the effective strategic planning system.
Such as Taiji Group
In 2013 , Taiji Group proposed the operation target of achieving 100 billion by 2012, but so far, even adding Tong Jun Ge, Southwest Pharmaceutical and the assets and operation data together, whether listed or unlisted, the sum is far less than half of 100 billion; however, Taiji Group is still ambitious, completely failing to see clearly the profound changes and industry transformation of the pharmaceutical industry.
Analysis from the strategic planning of Taiji Group:
The strategic target of Taiji Group: according to the "100 billion Taiji" planning target of the whole group, to build "100 billion Taiji" in a decade, to turn Taiji Group into the herbal medicine manufacturing enterprise with the largest output in the globe and the pharmaceutical commercial enterprise with the most retail pharmacies in the world, make "TAIJI" brand become the number one brand in the world's herbal medicines and the famous brand in the world's pharmaceutical industry and rank top 5 in Chinese pharmaceutical industry by 2021.
Several key points are determined in the strategic planning of Taiji Group: pharmaceutical industry-herbal medicine, pharmaceutical commerce-retail chain, medical elderly care-health preservation, scientific and technological innovation-TCM and Western medicine.
Regarding herbal medicine and retail chain, it will be kidding for Taiji Group to achieve 100 billion target by only relying on the herbal medicine and retail chain: it has been inconceivable that the retail chain scale, under the system of Tong Jun Ge, would reach 20 billion by 2021; the present herbal medicines of the entire Taiji Group add up to less than 10 billion, let alone reach 80 billion after 6 years. Furthermore, Taiji Group has a relatively high asset-liability ratio and a financial cost of over 0.3 billion every year.
We can see that the development strategy of Taiji Group is so ambiguous that its development idea is unclear; in fact, there is no strategic planning at all.
I, Shi Lichen, think that if there is even no development target and direction of Taiji Group, how could they be certain about the correctness of the current operation strategy? Or, the 100 billion target is just a target.
Analysis from Guangzhou Pharmaceutical Holdings
The 100 billion target of Guangzhou Pharmaceutical Holdings: becoming an '100 billion grade' leading enterprise in 3 years; achieving sales revenue of over 150 billion yuan by 2020, becoming a world-class pharmaceutical health industry complex integrating pharmaceuticals, medical treatment, health products, health services and commercial logistics.
It depends on 4 aspects and 3 new formats: big south medicine, big health, big commerce and big medical treatment for "4WD" development; focusing on 3 new formats, that is, cultivating e-commerce, capital finance and medical equipment.
The strategic planning layout of Guangzhou Pharmaceutical Holdings is relatively clear compared to that of Taiji Group.
But there are many unthoughtful aspects in the big health system of Guangzhou Pharmaceutical Holdings taking Wanglaoji Pharmaceutical as the carrier: the dispute, between Wanglaoji Pharmaceutical together with Wanglaoji series products and Golden Force Pharmacy, should have been clearly considered when originally determining the development planning. Now with the dispute, there will be deviation of the big health system taking Wanglaoji Pharmaceutical as the carrier.
Meanwhile, it seems unclear how to effectively build the big medical system.
We can see that, through analysis of Taiji Group and Guangzhou Pharmaceutical Holdings, the strategic planning of the large pharmaceutical enterprises is diversified; for pharmaceutical enterprises, such diversification is not merely a kind of operation pressure, but more of innovation of the management thinking. Both Taiji Group and Guangzhou Pharmaceutical Holdings only made grand strategic planning when making the strategic planning layout, and did not make the strategic layout for the business units at all, causing business unit strategies to be unimplementable and inoperable. If the business unit strategies are unclear, the grand strategy will be nothing but a target.
Providing that the 100 billion target is broken down layer by layer for the business unit strategies to form the business unit strategy matrix, and under each business unit strategy matrix, they are again broken down to the strategic implementation plans with implementation effectiveness; the strategic implementation plans after breakdown are implemented to the specific and effective sub-layer company level to form the strategic implementation planning of sub-layer companies, the 100 billon target can be effectively implemented in such a way.
Therefore, it is not scary to have 100 billion target, but scary to have only the target or only grand strategy without business unit strategy matrix, business unit strategic implementation planning and effective implementation plan.
Shi Lichen: MBA, founder of Beijing Dingchen Pharmaceutical Management Consulting Center, expert in medicine and health care strategic planning and in marketing, member of expert panel of the U.S. Gerson Lehrman Group, and is currently a consultant for the development of many large pharmaceutical enterprises. He was engaged in over a decade of front-line pharmaceutical marketing, 8 years of medicine management consulting, providing management consulting services to dozens of pharmaceutical enterprises and health care product enterprises; receiving over 1000 times of newspaper and TV media interview including from Phoenix Satellite Television, and offering over 100 times of professional medicine management and investment training to pharmaceutical enterprises and investment institutions.
