CASE STUDY Novartis-Managing the sales force.

Summary : Novartis was formed in 1996 as a result of the merger of two Swiss chemical/pharmaceutical companies -- Ciba Geigy and Sandoz Ltd. This merger made Novartis, with its headquarters in Switzerland, one of the biggest pharmaceutical companies in the world. The company's product line consisted of branded pharmaceuticals, generics, animal health products as well as consumer health products, eye-care and baby care. Novartis was spread in around 140 countries with 73,000 employers. Novartis provided periodic training and incentives in form of monetary packages and in other forms. The training provided to the sales representatives helped to develop their selling skills.There was also reviews collected for each sales person and thus leading to performance appraisal. Owing to all these HR policies Novartis was awarded and in a survey conducted it was one of the leading companies for the employees to work.

Q.1] Novartis used simulation techniques as part of its training program for frontline managers. What was the need for this program and what were the benefits derived from it?

Answer: According to the case study ,The simulation techniques used in the company helped the frontline managers to improve their marketing and sales skills. As frontline sales managers were responsible for handling the sales representatives and take important decisions like targeting customers, time management, allocation of resources. These simulation packages proved to be successful in terms of improving the marketing skills and selling skills of the sales managers and thus helped the sales managers to provide the same training to the sales representatives for developing their selling skills. The training also proved to be beneficial as the Sales targets were achieved.

The sales representatives got motivated and started performing achieved the targets

2) Novartis conducted regular performance appraisals to measure the performance of its sales representatives. How did these appraisals help the organization? What are the hurdles in the way of a good performance appraisal?
Answer:

Novartis followed a review system where a performance review of salespersons was conducted throughout the year on both formal and informal basis. Performance appraisal

provide performance feedback to the employee.employee can come to know about their job related strengths and weakness.such feedback enables the employee to correct their weakness and improve .Formal review was conducted on yearly basis and
informal review was conducted periodically. This review helped the sales managers to monitor the sales representatives performances. The sales reports , requisition orders and customer information were the tools that aided the sales manager in measuring the performance of the sales representatives.

Dilkap Research Center and Institute of Management Studies CASE STUDY: Novartis-Managing the sales force. Submitted by: Saran . I

Novartis SWOT Analysis : Strengths:

Excellent reputation in developing first class pharmaceuticals products.

Wide product range. Well developed and rapidly expanding research and development centers in Shanghai and Boston (Ross, 2010). Diversified business model comprising core Rx pharmaceuticals units supported by generic drugs, vaccines, consumer health care and ophthalmology offerings (Mark, 2010). Second largest maker of generic drugs in the world Second largest biotech company in the world Market leader in terms of sales Good return providing company to the investors.

Weaknesses:

Brand name harmed due to the legal case against the Indian government

FDA charged the company with unethical advertising practices Charged and fined by US district court for practicing sexual discrimination against twelve female sales representatives which ruined the image of the company (Mattes, 2008). No special drug formulation for children.

Opportunities:
High market growth rate due to increasing rate of diseases because of pollution and other environmental factors. Low threat of new entrants/high competition because of huge investments required to setup a major pharmaceutical firm.