The importance of a clear strategy for business turnaround

: the Omega Pharma case

Abstract

Business strategy is considered an essential aspect of companies' success and a driver to catch open opportunities in the market. The Literature review indicates that the critical elements of a grand strategy are a "good allocation of resources," "consistency," "integration”, and "simplicity." The new strategy implemented by Omega Pharma in a period characterized by market share loss and sales decline was a game-changer for the business turnaround in 2013. This study focuses on Omega Pharma's history and background to understand the strategy definition process. Besides, we take a closer look at the implementation process details and the financial outcomes of the new market approach. Mainly, it explains the importance of having a clear strategy that allowed the company to go from the 13th place of Consumer Healthcare companies in Portugal to the 4th place in 2016, just three years after its implementation. Thus, the main finding is the importance of a well-defined action plan to align all the company resources to that specific goal. The suggestion for companies in a downturn situation is to understand the industry in which they operate, create a new strategy that is easy to implement, align everyone from the company into this new vision and assure a "strategic fit" to achieve a business turnaround.

Date of Award	13 Oct 2020
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Gonçalo de Oliveira Vieira Dinis Saraiva (Supervisor)