NOVO NORDISK: Moving Biopharm out of Denmark
Hedan Mindy Zhang (MBA), Janeen Greene (MBA), Jiayi Zhao (MSIB),
Jennifer Pond (MBA), Siddharth Patel (MBA)

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Subject Area:                        International Business

Region:                                   United States, Switzerland and Denmark.

Industry:                                 Biopharmaceuticals

Company:                                NOVO NORDISK

Decision Maker:                   Henrik Wulf (Head of Product & Supply)

Dilemma:                                The case involves a Danish pharma company, NOVO NORDISK, which faces an oncoming capacity issue for the production of their hemophilia products in 2013: Novo 8 and N8-GP. They saw an opportunity to expand their biopharm production out of Denmark and into other markets such as Switzerland or the United States so that NOVO can hire employees with technical background from the strong biotech talent pools that are available in these countries. It was important for NOVO to overcome this capacity constraint in order to make sure that this inability would not stunt their economic growth of capturing new markets and increase market share.

 

NOVO NORDISK Expansion Decision” as a BE-EDGE Stepping Stone:

 

Investment to Personal Capital:              

Five Master’s students selected this Dilemma as the BE-EDGE Consulting Case. Each of them related to the case as a stepping stone in their careers:

  • Janeen Greene’s Core as a Pro: Consultant for financial research of Global Strategy
  • Siddharth Patel’s Core as a Pro: Consultant for the business side implementation of Global Strategy
  • Jennifer Pond’s Core as a Pro: Consultant for technology implementation of Global Strategy
  • Mindy Zhang’s Core as a Pro: Consultant and Novo Nordisk liaison for Research and Development
  • Jiayi Zhao’s Core as a Pro: Consultant for economic and social research for Global Strategy

 

Investments to Social Capital:

Our team received first-hand information of the expansion project from our team member Mindy, an employee at NOVO and a Liaison for our project. Additionally, we performed extensive secondary research about several markets for the Biopharma industry. The findings were analyzed by our team through the lens of the various frameworks taught in class. The team utilized information about NOVO’s organizational structure and its value chain in order to better analyze the situation and implement the global structure. We highly used the PESTEL framework to vet each of the markets in order to reach our final decision.

 

Investment to Professional Capital:

After conducting extensive research along with the knowledge gained from the class, we were clearly able to make matches of the strengths of the company to their possible opportunities in each of the two locations. We then decided that the United States was a more suitable location as 1) US market is closer to their potential pool of customers, 2) the US provides a larger resource pool of technical experts, and 3) strict regulations with which the company was already familiar with. After deciding on the location, we further formulated a few other implementations such as Global Structure, Mode of Entry, Staffing options and their feasibility backed by numbers.

 

Capital’s Utilization:

This project has given our team first-hand experience in Global Strategy Consultation. Having learned about the various frameworks and strategies all along with the project, the team has attained a great deal of insight on how to narrow down on a country for future expansion. On a general note, the structure of this project has helped us to break down big problems into smaller ones and allowed the team to funnel solutions with systematic approaches. Such an experience would be very vital for everyone in the team for their future endeavors.


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