Essays on Shefaa Company Business Strategy Case Study

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The paper "Shefa’ a Company Business Strategy" is a great example of a business case study. Shefa’ a Company has come up with Herball, a drug that has been investigated and found to cure liver cancer and lab rats. This has been realized through an invention that was made by the company, and a lot of money and efforts have already been spent in the process. The company has had to enter into debts for the sake of the commitments that it has given to the development of Herbal. This report analyses the strategy that will be used to deal with this issue by the company. Summary Herball has not yet been tested for human use, and if it passes that test, the company will benefit a lot.

The strategy that has been chosen by the corporation is the combination of beginning human testing which must be preceded by equity investment to fund the process. However, there are some concerns by the stakeholders of the company who are the employees and the board members who have been loyal to Shefa'a throughout the ten years. Also, some potential risks and disadvantages are likely to come along with this initiative (Casadesus-Masanell & Ricart, 2010). Strategy Analysis The plan selected for bailing out the company from is a combination of two strategies.

These two are the option by the corporation to begin human testing and equity investment which involves signing up with investors. This is the ultimate combination that will see the company out of financial problems as it is now facing a burden due to the many financial obligations that it has to fulfill (Casadesus-Masanell & Ricart, 2010). The invention of Herbal cannot be just allowed to disappear by whichever means because the firm has already invested enough resources in it and also time.

The most amazing thing is that it can heal liver cancer and Lab rats. This is no doubt a solution that has been lacking in the market for many years and will, therefore, be most need due to the urgent requirement in many areas of the economy, especially in the medical field. First, Herball cannot just be given out freely as part of philanthropy.

Although the organization had already made promises that it shall be giving free medicine regardless of the economic conditions of those who are in need of it, this is outrightly impossible considering the present financial position. It is no doubt that was Shefa’ a able to make this offer available; it would have done so through the policies and strategies that were laid down regarding this. It would have cost Shefa'a close to $1 billion to carry out this operation in a favorable manner, but now it cannot be implemented because of the bankruptcy that everyone can see the organization is facing. Also, there is the option of cashing out which cannot be applied because the company has already spent a lot and also invested a sum of money that cannot be underestimated.

It is due to this that the firm has to make sure that it gets the real value for money that this project is worth. It is a significant invention that cannot be sold out to pharmaceutical companies as it will weaken the business only because these enterprises cannot buy out the idea and its progress at the required market value that it ought to be sold (Chesbrough, 2010).

This would, therefore, be wastage of resources of the company by selling out what can be used to boost it financially and give it a permanent stronger financial position that would leave every employee satisfied of the progress. Therefore, cashing out is not an important choice to make.

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