Strategy - Buyer Selection
Novo Nordisk: Managing Sustainability at Home and Abroad
Q 1. What should Novo Nordisk’s sustainable strategy be in the Chinese market? Please justify your recommendation by analyzing both the potential value created as well as risks offered by possible alternatives.
Ans 1 – Nova Nordisk should choose the sustainable strategy based upon three very important criteria – Firstly, it should go well with the firm’s business as well as the local requirements. NOVA NORDISK has a very meticulously planned centralized CSR policy and the same should be used to form the base for its sustainable strategy in China. However, as the firm has done in the past, it should adapt to the local Chinese environment which is highly controlled by the country’s government. Thus, the strategy should align well with the government rules and regulations.
Secondly, it should involve maximum possible stakeholders such as diabetic patients, other Chinese public, Chinese government, investors, employees, global bodies etc.
Thirdly, the strategy should be long term so that it can reap results as well as measurable, so that the incremental impact of the results can be estimated. The Triple Bottom Line approach of the firm is a step in the right direction and has showed results till now. It should continue to be a part of the firm’s sustainability strategy.
NOVA NORDISK has already included three important sustainability efforts –
Training of 220000 physicians, training of 280000 people with diabetes and producing locally to reduce environmental impact.
Also, there is a threat of competitors copying NOVA NORDISK’s sustainability efforts. Thus, based upon above mentioned points, NOVA NORDISK should adopt the following policy to step ahead of the competition as well as develop a long lasting and highly effective sustainable strategy:
Spread Awareness among the Chinese People – The Diabetes is spreading like an epidemic in China and the prime reason is the lack of awareness among the
Q 1. What should Novo Nordisk’s sustainable strategy be in the Chinese market? Please justify your recommendation by analyzing both the potential value created as well as risks offered by possible alternatives.
Ans 1 – Nova Nordisk should choose the sustainable strategy based upon three very important criteria – Firstly, it should go well with the firm’s business as well as the local requirements. NOVA NORDISK has a very meticulously planned centralized CSR policy and the same should be used to form the base for its sustainable strategy in China. However, as the firm has done in the past, it should adapt to the local Chinese environment which is highly controlled by the country’s government. Thus, the strategy should align well with the government rules and regulations.
Secondly, it should involve maximum possible stakeholders such as diabetic patients, other Chinese public, Chinese government, investors, employees, global bodies etc.
Thirdly, the strategy should be long term so that it can reap results as well as measurable, so that the incremental impact of the results can be estimated. The Triple Bottom Line approach of the firm is a step in the right direction and has showed results till now. It should continue to be a part of the firm’s sustainability strategy.
NOVA NORDISK has already included three important sustainability efforts –
Training of 220000 physicians, training of 280000 people with diabetes and producing locally to reduce environmental impact.
Also, there is a threat of competitors copying NOVA NORDISK’s sustainability efforts. Thus, based upon above mentioned points, NOVA NORDISK should adopt the following policy to step ahead of the competition as well as develop a long lasting and highly effective sustainable strategy:
Spread Awareness among the Chinese People – The Diabetes is spreading like an epidemic in China and the prime reason is the lack of awareness among the