A Strategic analysis and reorganizational approach due to the changing market conditions for biotek medikal

Abstract

ÖZET DEĞİŞEN PAZAR ŞARTLARINA GÖRE BİOTEK MEDİKAL İÇİN STRATEJİK ANALİZ VE RE-ORGANİZASYONEL YAKLAŞIM MERTAYGEN M.B.A Tezi Tez Yöneticisi: Dr. Fred Woolley Biotek Medikal 1986 yılından beri medikal sarf malzeme satışı ve servis sektöründe çalışmaktadır. Şirket Kardiyoloji ve Kalp-Damar cerrahisinde önemli satış hacimlerine ulaşmıştır. İthalatçı bir firma olan Biotek Medikal, alanında satışta lider şirketlerden biri olmuştur. Biotek'in hayatının incelenmesi sırasında bazı önemli aşamalar mevcuttur. Bunlardan biri 1989 yılında İstanbul ve İzmir şubelerinin açılmasıdır. Daha sonra ortaya çıkan `körfez Page 5 of 48krizi` ise bütün Türkiye'yi olduğu gibi medikal sektörü de önemli ölçüde olumsuz etkilemiştir. Otramdaki en son değişiklik ise Nisan 1994 deki Cumhuriyet tarihinin en büyük devalüasyonu ile olmuştur. Bu devalüasyon, tüm sosyal güvenlik organizasyonlarının ve devlet hastanelerinin, finansal problemlerine çözüm bulabilmek amacıyla yeniden yapılanmalarını gerektirmiştir. Biotek şimdi hızlı gelişmiş yapısını sektördeki değişikliklere adapte edebilme ikilemi ile karşı karşıyadır. Buna ek olarak, Biotek sağlık harcamaları ve ödemeler konusundaki yeni hükümet kanunları ve politikaları ile de mücadele etmek zorundadır Bu tez, Biotek'in dğişen bu pazar ortamı koşullan karşısında stratejik olarak nasıl bir politika izlemesi konusunda alternatifler getirerek öneriler sunmaktatır. Page 6 of 48

ABSTRACT A STRATEGIC ANALYSIS AND REORGANIZATIONAL APPROACH DUE TO THE CHANGING MARKET CONDITIONS FOR BIOTEK MEDIKAL MERT AYGEN M.B.A. THESIS SUPERVISOR: FREDWOOLLEY Biotek Medikal is operating in the service industry since 1986. It became a leading firm in importing and selling bio-medical instruments and disposables (single use); particularly for cardiovascular surgery (CVS) and cardiology.(CRD) In 1989, due to sales expansion, need for assistance in sales activities forced the company to expand the existing sales force. Branch offices in Istanbul and Izmir were opened in that period. Until then, service to other parts of Turkey has been handled from the Ankara office.In 1990, a drop was recorded in sales. Unplanned expansion, lack of coordination in sales, the general manager's concentration on administrative issues rather than sales were the major causes of the drop in sales that year. The Gulf Crisis made the situation even worse by delays in shipments from suppliers and changing policies in payment schedules by reimbursement agencies. When the crisis started, the Health Budget funds were transferred to probable emergency cases in the Southeast. For the first time, Biotek experienced serious payment problems with its suppliers due to late collection of its receivables. The biggest devaluation in the republic's history in April 1994 led to a further crisis in the medical sector due to import dominant structure. Shortly after this devaluation all health care reimbursement entities ran into financing problems which had an impact on local distributors and suppliers as well. This was a fast growing market and most of the other competing firms were also enjoying the market conditions before the reshaping of the relations of hospitals with reimbursement agencies. Biotek is now facing the challenge of organizing its structure to adapt to the rapid growth of the firm and the changes in the industry. In addition, Biotek has to struggle with the government regulations dictating the policy change in payments of the state owned enterprises. Page 2 of 48In terms of the basic elements of the strategic management process, the thesis focuses only on environmental scanning and strategy formulation. Reference 1 In the environmental scanning, the thesis analyses the opportunities and threats that Biotek Medikal faces in the medikal market. Here the task environment of Biotek Medikal is clarified by reference to the bargaining power of buyers and suppliers and the competition among the competitors. The environmental scanning analysis also addresses the internal environment of Biotek Medikal in which the strengths and weaknesses of the company and its competitors are examined through technical capacities, human resources, market relations etc. Reference 2 Based on the findings of the earlier chapters, the final chapter tries to formulate strategies for Biotek Medikal designed to improve the competitive position of the company's products within the medical disposable market. Here particularly the following points are questioned; Should Biotek compete on the basis of low cost or should it differentiate its products on some basis other than cost such as focusing on the most profitable product lines or, if present, finding market niches. Reference 3 Page 3 of 48In conclusion different alternative strategy formulations are evaluated in terms of Porter's competitive strategy i.e., cost focus, cost leadership. Reference 4 Page 4 of 48