Strategic and Operational Planning Abbott

¶ … Strategic and Operational Planning

Abbott Laboratories

Project Submission Form

Summary of Problems, Opportunities, Solutions

(Fill out as many cells as needed in the matrix below and add rows, if needed).

Team Name:

Team members:

Problem/Opportunity

Identified

Opportunity identified.

Presenting problems or opportunities will be identified in Part 2]

Solution Identified

[Where more than identified, list them in order of priority]

Resource Needs

or Constraints

Related to the Problem or Opportunity

Metrics of Success

[How success or improvement will be measured based on set targets]

Impact of proposed changes from FDA on drug trials involving disease for which predisposition testing is targeting treatments tailored to genetic makeup.

Abbot must expand its research into genetically-tailored products

1.Need for pools of available candidates with genetically suitable profiles for drug trials; additional financial resources

1. Generation of new, exclusive patents for genetically-specific drugs

2. Through exclusive sourcing agreements Abbott attempts to control the introduction of unsafe product in the U.S. Abbott's lack of control of overseas manufacturing facilities production offers opportunities for illegal distribution.

2.

Tighter control over outsourced facilities with regular inspections (which should be written into the company contract) and mandate that violations will result in terminations of contracts

2. Need for new, negotiated agreements, consultation with Abbott's legal division

2. Measured reductions in recalls

3. Abbott fails to create competitive advantage across product lines. Fully integrating their nutritional product line into their diabetic solutions product stream.

3.

Generation of integrated marketing campaign targeted at diabetics

3. New advertising contract with medical advertising agency

3. Measured increase in demand for product; increase in individual diabetic customer's use of both types of Abbott products

4. Abbott fails to promote its educational institute. Institute provides continuing education to medical professionals on products, testing and treatment advances.

4. New advertising campaign with a redesigned website designed to showcase initiatives with an educational component to draw traffic; new PR staff to create new connections with medical professions to promote institute

4. Redesigned website to showcase initiatives

4. Increased website traffic; increased use of institute by target demographic

5.

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Part 2: Additional Input: Team Note

(You may add your additional input as a team here, if they don't fit in the columns listed above.)

Proposed solutions: Abbott Laboratories

Abbot Laboratories has been offered a great opportunity in the form of the proposed changes by the FDA relaxing regulations on drug trials for genetically-influenced disorders (FDA proposes targeted drug testing guidelines, 2011, CNBC). The 21st century seems likely to become a decade where medicine becomes tailored to the specific needs of targeted populations. Certain genes can indicate a predilection for being disposed to specific types of diseases, and also the ability to benefit from specific types of treatments. Given the long-standing emphasis of Abbott upon innovation, Abbot would be well-advised to begin to expand its research into drugs that exploit such genetic specificity. Abbott must embark upon preliminary research and make the necessary financial outlays to do so. It must also begin to develop a test population of genetically suitable subjects.

However, Abbott also faces a potential weakness within the organization in terms of its distribution of medications. Through exclusive sourcing agreements Abbott has attempted to control the introduction of unsafe product in the U.S. But Abbott's lack of control of overseas manufacturing facilities production has allowed far too many opportunities for illegal distribution, causing the brand to be tainted. Abbott must expend greater financial resources in overseeing such overseas operations. In the future, it must also strive to negotiate clearer contracts with outsourcing firms, to ensure that quality control and oversight is stringently observed. Abbott may also need to renegotiate some of its existing contracts.

One potential strength Abbott has failed to exploit is in some of its less-publicized product lines, such as its pharmaceuticals and nutritional products for diabetics. At present, Abbott is failing to create a competitive advantage. Fully integrating the promotion of Abbott's nutritional product line into its diabetic solutions pharmaceuticals division is demanded. Abbot should embark upon an Integrated Marketing Campaign (IMC) to do so, perhaps by hiring an outside advertising agency to create a seamlessly integrated marketing campaign for diabetic-related pharmaceuticals and products,. This would bring and new face to the company and encourage this particular, growing base of clients to see Abbott as a company with unique sensitivity to their needs. The numbers of diabetics in America has been growing, as have the numbers of diabetics around the world, due to the obesity crisis.

Finally, Abbott has fails to promote its educational institute. The Abbott Nutrition Health Institute provides continuing education to medical professionals on products, testing and treatment advances. Abbott must expand its website to more extensively report upon the benefits of interacting with the Institute for medical professionals and also create more contacts within the medical profession to promote and encourage use of the Institute (Abbott Official Website, 2011, Abbott). Hiring a PR firm to promote the Institute with specific knowledge of medical public relations would thus also be advised.