EFQM:
EFQM stands for European Foundation for Quality Management. It is an organization which uses data to
produce valuable insights for the organization and provide them with a framework to assess its
performance based on various matrices and performance measures. EFQM strives to help the
companies improve through its Excellence Model, a complete management framework used by
thousands of European companies
2. Strategy
One of the core elements EFQM Excellence Model is the formation of strategy and how it affects the
performance of the organization in achieving excellence:
Successful organizations formulate the vision and mission statements by keeping in mind their key
stakeholders. Various plans, objectives and processes are deployed to make the strategy effective.
The strategy of the organization needs to cater all the stakeholders: external environment, internal
performance and capabilities. Strategies and mechanism that helps in executing these flawlessly are
developed, implemented and monitored.
Catering to the expectations of all the stakeholders from the initiation to the execution of strategy and
its supporting mechanisms, also keeping track of the changing market trends. Alongside that,
Identifying, analyzing and understanding external factors such as the latest trends in the local and global
markets. Prediction of long and short-term impacts of the strategy related to political, economic, social,
technological, ecological and legal factors. Use this mechanism and the framework provided by the
EFQM to conduct scenario planning to reduce future uncertainties.
Understanding the current and potential capabilities and capacities by analyzing the operational
performance trends of the company. This also helps in identifying the areas of development in order to
achieve the strategic goals. A company can add value to the company by analyzing data and information
about their existing and potential partners’ core competencies and capabilities in order to know how
they match or complement the company’s capabilities. New technologies and business models can
affect the performance of the business immensely, therefore, determining their potential impact is of
importance. If a company wishes to know its relative strengths and areas for improvement, relevant
benchmarks are necessary to compare the performance with.
Companies can achieve their goals by inculcating the factors of sustained advantage in their core
strategy, process designs and value chain. Calibrating the right key performance indicators to evaluate
the performance of the company towards their strategic goals. Furthermore, developing such
competences that would benefit the society as a whole is very important for the company as well.
Consequently, strategies are then translated into aligned processes, project structures, making sure all
components are aligned with the purpose of the value chain. Comparison of the company their past
performances. Also ensure that physical and technological resources are available to support execute
formulated strategies.
Novartis Strategy Globally
Novartis aims to become the leading specialized medicine company backed by data science as they
continue to create value for company, shareholders and society. Novartis believes In empowering its
people as the organizational culture ensures that employee fully apply their talent and energy.
Furthermore, Novartis’ strategy has evolved with growth of technology over time as they have achieved
transformative innovation in the pursuit of transformative treatments. They believe in challenging
medical paradigms and never cease to exhaust possibilities to cure disease. Their approach is to
diagnose and treat chronic illnesses at earlier stages, and find better and new ways to drastically
improve quality of life.
Novartis perfects executional excellence, by building agile teams with better productivity in the
company to free resources which can be invested else. Using big data and digitalization to drive the
digital revolution at Novartis, using advanced medical tools to drive innovation, artificial intelligence is
used to improve efficiency.
A great strength of Novartis which helps them in executing their strategy is the human capital , who
have exuberant energy and creativity. They believe in unleashing the true potential of their employees
by ensuring that people are at their best. To accomplish that goal the HR attracts, develops and retains
highly talented individuals who would embrace this culture.
Novartis Locally
From the secondary research it can be seen that the international strategy and the local strategy is
aligned for Novartis. But the setback is the discrepancy that Novartis faces because of the lack of
alignment between the international goals and the local environment. Since worldwide all the major
pharmaceuticals are shifting to innovative drugs from generic medicine. Novartis globally focuses on
innovation and big data backed decisions meanwhile on the other hand it is opposite if considered
locally. Pakistani market has still not evolved as much as international markets because the demand for
generic drugs is still rising, Local generic versions of the original brands are coming in Pakistan which are
cheaper versions hence the original brands are losing their market share. Over the past 20 years, the
MNCs market share has decreased significantly also affecting Novartis as well, because they are mainly
innovative, and the market share of the local companies have increased. Despite observing these trend
in the Pakistani market, Novartis strategies have been nothing but bold since they sold their OTC
portfolio to GSK, leaving only Sandoz for producing generic drugs and focusing its resources to research
brands only. These strategies of Novartis in Pakistan does resonate with international goals of being an
innovative pharmaceutical brand which only focuses treating chronic illness but market share and brand
awareness of Novartis has taken a major hit in Pakistan.
