I want to prepare for a Scope Statement for a case study (the case is illustrated below)
I need to do:
a. Write a Scope Statement.
b. Prepare a SWOT analysis
c. Develop a prioritized list of the three most important business issues to be addressed
d. Develop 3 SMART goals for the highest priorities in this case.
Prescription for a Problem:
The Situation:
You are Michelle Gilliam and you have just been hired as the new CEO of Eliot Pharmaceutical, a small family owned private label drug company located in Baltimore Maryland. When you were hired, Cass Eliot the company’s Chair told you to “do whatever it takes to get the company back on its fee”
Company Background
Although small by industry standards, Eliot Pharmaceutical has been historically profitable and competitive in local markets. Eliot has long-standing contracts with regional drug chains and supermarkets to supply them with generic over-the –counter drugs like aspirin, decongestants and cough syrup. Since it was founded by S.T. Eliot, (Cass’father) the company had enjoyed a reputatioin for quality produts, competitive prices and on time delivery to their customers.
The company produces all products in a single factory in Baltimore that employs about 500 workers on two five-day a week shifts.
Before his death two years ago, S. T. Eliot handled virtually every aspect of the business himself. Since his passing however the company has been on a slow but steady downward spiral. Although determined to follow in her father’s successful footsteps, thus far Cass has been unable to do so.
Current Situation
Although still financially sound, over the past year the following problems have arisen:
1. Excessive overtime, higher raw materials costs and other production-related inefficiencies have driven company costs up and lowered Eliot’s profitability by 15%.
2. Factory production schedules are constantly missed resulting in late deliveries to customers. Several large customers have threatened to move their business if things do not improve.
3. Eliot’s market share (once 25% of the regional drug market) has slipped to below 20%.
4. Their product line has become outdated since the company has failed to expand its product line into drugs recently decontrolled by the FDA
In recent conversation with the Dennis Doroghty and John Philips (two influential members of Eliot’s Board of Directors) you were told in now uncertain terms that company needed to be turned around quickly. “Eliot has the potential to be a much bigger player in the drug industry” you were told, “but if things don’t change fast the competition will put the company away in two years.”