MGT8002 Ameer Riyasath Case Study 2
1.0 Gap Analysis I
1.1 Capability Gap Analysis
The following Table 1 depicts the capability gap analysis of HP compared against its competitors namely Pharmaniaga, Kotra Pharma, Hovid and CCM Duopharma. The capabilities of competitors have been identified based on their recent annual reports and content posted in their respective websites.
Table 1: Capability Gap Analysis
Functional Area
1
Capability
2
Home Pharma
Description of Home’s capability
3
Average the Capabilities of Closest two (2) Competitors
Describe capabilities
4
Corporate Functions
Financial control & management
HP has the ability to raise funds internally and has had a recent capital injection.
Competitors are able to raise and generate funds similar to HP however at higher cost of capital
Comprehensive MIS network
HP has a centralised accounting & IT system to help in management reporting
Competitors have state of the art information systems
Multi divisional coordination
HP has good coordination between the divisions due to the flat structure and managerial capabilities
Competitors due their large size and numerous SBU are not as efficient as HP in multidivisional coordination
International management
HP lacks global management experience in international markets
Competitors have stronger international presence
Strategic Management of Multiple businesses
HP is strong in managing its businesses due to the leadership of Mr Osman and managerial capabilities supported by a flat structure
Competitors manage multiple businesses through advanced information systems, although, lacking the personally close knit culture of HP
Research & Development
Research capability
HP has a strong research oriented culture and a well- known name for research and managerial capabilities and organisation routines to support
State of the art research facility focusing on healthcare solutions however lacks long history of research culture and dedicated and loyal employees
Innovative new product development
1.1 Capability Gap Analysis
The following Table 1 depicts the capability gap analysis of HP compared against its competitors namely Pharmaniaga, Kotra Pharma, Hovid and CCM Duopharma. The capabilities of competitors have been identified based on their recent annual reports and content posted in their respective websites.
Table 1: Capability Gap Analysis
Functional Area
1
Capability
2
Home Pharma
Description of Home’s capability
3
Average the Capabilities of Closest two (2) Competitors
Describe capabilities
4
Corporate Functions
Financial control & management
HP has the ability to raise funds internally and has had a recent capital injection.
Competitors are able to raise and generate funds similar to HP however at higher cost of capital
Comprehensive MIS network
HP has a centralised accounting & IT system to help in management reporting
Competitors have state of the art information systems
Multi divisional coordination
HP has good coordination between the divisions due to the flat structure and managerial capabilities
Competitors due their large size and numerous SBU are not as efficient as HP in multidivisional coordination
International management
HP lacks global management experience in international markets
Competitors have stronger international presence
Strategic Management of Multiple businesses
HP is strong in managing its businesses due to the leadership of Mr Osman and managerial capabilities supported by a flat structure
Competitors manage multiple businesses through advanced information systems, although, lacking the personally close knit culture of HP
Research & Development
Research capability
HP has a strong research oriented culture and a well- known name for research and managerial capabilities and organisation routines to support
State of the art research facility focusing on healthcare solutions however lacks long history of research culture and dedicated and loyal employees
Innovative new product development
Bibliography: Barney, JB. 1991. Firm resources and Sustained competitive advantage. Journal of Management, 17: 1, 99-120.10.