Year of Graduation
JSC Pharmstandart reorganizational strategy analysis
Faculty of Management
Conducting transactions on the reorganization is an integral part of large holdings. The purpose of any transaction of this nature is an additional increase in efficiency and business value. Companies who regularly participate in the procedures for the acquisition and divestitures performed better on the market than those that do not implement such processes.Despite the proven effectiveness divestitures, management is afraid to separate parts of their portfolio, due to the fear of losing revenue share. The result of the decision to delay divestiture is a low cost of non-core asset sales.For shareholders divestiture is also accompanied by the uncertainty that is primarily associated with the opacity of financial information and management solutions.In 2013 JSC "Pharmstandard" became the first Russian pharmaceutical company that conducted divestiture procedure of the OTC business.Set of these factors makes reorganizational strategy of Russian company relevant for analysis.Objective of this work is to analyze the OJSC "Pharmstandard" divestiture strategy and work out recommendations for the development of the new company and bridge the gaps between desired and actual results.At the first stage there are the analysis of the main theoretical sources, review of the Russian financial and pharmaceutical markets. There were also developed JSC “Pharmstandart” internal analysis. As a result of first stage author developed a list of criteria for assessing gaps in five areas: the implementation of the legal procedure, the shareholders’ evaluation of the reorganization, the JSC "OTCpharm" internal environment, business processes and prospects of the company.A comprehensive analysis of the spin-off was carried out at the second stage. It included defining objectives for the spin-off, reorganizational milestones, organizational structure and business model.Following the implementation of the first two phases GAP-analysis was conducted. All of that allowed identifying crucial gaps and working out recommendations for further development of JSC “OTCpharm”.Author used books on management theory (R. Grant, A. Tyubk, J. Miles, A. Ostarvalder etc.), articles of modern specialists, expert estimates and forecasts for the Russian pharmaceutical and financial market, legislation on the business regulation and internal company’s documents in a review research and methodology analysis.