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International Management Plan

Élan Corporation, Inc.

Melanie FinneganKari-Ann Greene

Grace KellyKatie Stein

Company OverviewNeuroscience-based biotechnology company Main focus: to change lives by finding product solutions for clientsHeadquarters: Dublin, Ireland

R&D in Ireland and the U.S.

First area of operations: biopharmaceuticalsPrimarily in neuroscience, autoimmune and sever chronic pain

Neurodegenerative DiseasesAlzheimer Parkinson’s

Autoimmune DiseasesMultiple sclerosisCrohn’s Disease

Second area of operations: Élan Drug Technology (EDT)Élan was privately incorporated in 1969 and became public in 1984

This year celebrates 40 years in business

World’s leading drug delivery businessMore than 30 products launched in 95 countries

Élan has developed breakthrough medicines altering the course of disease

Over 3 million patients benefit from Élan’s drugsLauren’s story and her fight against MS

Company Overview (continued)

Company Overview (continued)Annual revenue in December 2008 was 761.8 million1687 full-time employees (Ireland and US combined)Locations:

Treasury Building, Lower Grand Canal Street, Dublin 2, Ireland (HQ)Monksland, Athlone, County Westmeath, Ireland102 St. James Court, Flatts, Smith FL04, Bermuda1300 Gould Drive, Gainesville, GA, U.S.3000 Horizon Drive, King of Prussia, PA, U.S.800 Gateway Boulevard, South San Francisco, CA, U.S.

Company Overview (continued)Examples of products Élan has developed and are commercialized in 100+ countries include:

Ritalin: Treatment for Attention Deficit Disorder (ADD)Focalin XR: Treatment for Attention Deficit Hyperactivity Disorder (ADHD)Invega Sustenna: Improves compliance (schizophrenic patients)Naprelan: Offers pain relief for arthritis, tendonitis and other mild to moderate pain within 30 minutes of administering

Products available for licensing:Diltiazem: Treatment for high blood pressure and heart disorders such as arrhythmiaDocetaxel: Treatment for certain types of breast cancer and non-small cell lung cancer (NSCLC)

Company Organization Chart

PresidentCarlos Paya

CEOKelly Martin

Ireland Region(HQ)

Bermuda Region United States Region

FinanceShane Cooke

(CFO)

Strategic Human Resources

Kathleen Martorano (Executive Vice President)

Global R&D and Corporate Strategy

Larks Ekman

Global Services and OperationsPaul Breen

International Management Development

International Management StrategyInternational Management Strategy – theory and process

Corporate Structure, Management Process, Human Resources, Corporate Culture, Fairness of StrategyHuman Resource DevelopmentSteps

Élan’s strategy

International ManagementOrganizational Chart

Political

Economic

Leadership and Interpersonal Skills

Diversity

Functional

Teams

Managerial Organizational Chart: Ireland Region

Ireland RegionPresident

Finance Manager

(2)

Accounting Manager

(2)

SalesManager

(2)

GlobalMarketing Manager

(2)

Strategic Human Resources Manager

(2)

Global Services and Operations Manager

(2)

Corporate Strategy Manager

(2)

Production Manager

(2)

Biotechnology Research and Development Manager

(3)

Pharmaceutical Drug Research and Development Manager

(3)

International Managers:Job Descriptions and Compensation

Finance Managers: $115,000Accounting Managers: $115,000Sales Managers: $127,000Global Marketing Managers: $112,000Strategic Human Resources Managers: $100,000Global Services and Operations Managers: $100,000Corporate Strategy Managers: $100,000Production Managers: $115,000Biotechnology R&D Managers: $127,000Pharmaceutical Drug R&D Managers: $127,000

International Management IssuesMany management issues for ÉlanSlightly higher emphasis on meeting the requirements of the U.S.

Élan will still meet and exceed the EU’s requirements

Management issues include:Government RegulationProduct ApprovalCompetitionWorkforce Demographics

The U.S. and Ireland:Key Cultural Differences

Cultural Factor U.S. Ireland

Religion Protestant 51.3%Roman Catholic 23.9%

Roman Catholic 87.4%

Education 99% (literacy)16 years (school life expectancy)5.3 % GDP (edu. expenditures)

99% (literacy)18 years (school life expectancy)4.7 % GDP (edu. expenditures)

Economics Market-oriented economyGDP (PPP) $14.26 trillion

Trade-dependent economy GDP (PPP) $188.4 billion

Politics Constitution-based federal republic; strong democratic tradition

Republic; parliamentary democracy

Family Emphasis on immediate family2.05 children born/woman

Life in Ireland is still quite family oriented1.85 children born/woman

Class Structure 3 class system: rich, middle, poor 3 class system: upper, middle, working

Languages English (official) 82.1%Spanish 10.7%

English (official)Irish (Gaelic)

History Colonies broke away from British rule in 1776

Recognized as the United States of America in 1783

Withdrew from the British Commonwealth in 1949; joined the European Community in 1973.

Natural Resources & Geography

9th largest country (land)Natural resources include: coal,

timber, copper, iron, zinc

126th largest country (land)Natural resources include: natural gas, peat, copper, lead, zinc


20

50

40

10ManagersSales PersonnelNew HiresR&D Teams

Company Business Goals SetIncrease employees

Expand product linesGain market share

Increase profits

International Business Strategy and Plan

Further licensing arrangements with pharmaceutical

companies: New products

Behaviors, Knowledge and Skills Applied to Business

Innovation, teamwork, fairness;Thorough research;

Attention to corporate culture and international cultures

International Management Strategy

and PlanManagers understand

and accept international culture

Business Goals AchievedCreate a committee;

Develop numerous beneficial drugs and technologies;

Drugs and technologies are available to more people in

more places

International Management Process

Selection of top managers for the development process

Mentoring/CoachingMatch managers with mentors

and coaches to guide them Seminars

Managers attend seminars that will help begin the development

process;Seminars will focus on promoting innovation,

promoting diversity within work teams, motivating employees

and drug laws across countries

On-the-Job TrainingTrainees will acquire on the job

training;Managers will oversee small

teams in various departments;Videos, discussions and

meetings

Video ConferencesManagers will have video

conferences with other international managers;

Managers will learn how to foster workplace diversity Manager Development

Process

Measuring the Success of the International Management Activities

Élan strives for success, increased profitability and international growthSuccess will be based upon the data collected from Élan's financial reports and results from the following categories:

Overall Outcomes and Business ResultsCostsManagement RetentionEmployee capacityProduct Development

The End

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International Management Plan: Élan Corporation, plc

Melanie Finnegan, Kari-Ann Greene, Grace Kelly, Katie Stein

Professor Boyd

BA465-A: International Management

9 December 2009

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Executive Summary

There are many reasons for a company in today’s world to go global and increase operations overseas. They include: increased foreign competition, increased global customer bases, opportunities for increased profits due to economies of scale in production or marketing, etc.1 This international management plan for Élan Corporation, plc, will highlight the management process that we will utilize as we increase our international operations. The first section of the paper our company overview, which discusses our company highlights, purpose and strategic goals. In the first section, both our profit goals and our goals regarding employees are discussed. The next section of the paper displays our company’s organizational chart, which shows the different regions that our company operates in as well as our most important executives. The international management strategy goes on to talk about both the general process a company follows while forming its international strategy as well as our actual international management strategy here at Élan. Following this, one will find a chart depicting the international organization of the company, detailing the different Irish management positions and duties. The same section goes on to cover our international participant compensation plan, who is responsible for it and how it is measured. Subsequently, the various international management issues that Élan faces will be addressed. These include, but are not limited to, government regulation, product approval and our workforce demographics. Following the management issues, the key cultural differences between the American and Irish cultures will be analyzed. The following section of the plan discusses how we at Élan Corporation plan to develop its international management. It highlights both our training and new-hire process. Two flowcharts follow that depict both our international management process as well as our management development process. The final pages of this international management report cover our international management metrics and their success and how the upper management at our company will consider the overall plan to be successful.

Company Overview: Élan Corporation, plc.

Company Highlights

Élan Corporation, plc, is a neuroscience-based biotechnology company. Our company headquarters are situated in Dublin, Ireland. However, our principal research and development (R&D), production and marketing facilities can be found in two distinct locations: Ireland and the United States. The U.S. market is our most important market profit-wise, yet we place high emphasis on meeting the requirements for pharmaceuticals in both the United States and Ireland. Our company organizes its operations into two main categories. The first, biopharmaceuticals, “engages in research, development and commercial activities primarily in neuroscience,

1 Dean W. Engel and Michael J. Marquardt, Global Human Resource Development (Englewood Cliffs: Prentice-Hall, Inc., 1993), 87.

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autoimmune and severe chronic pain.”2 The second unit is called Élan Drug Technologies (EDT) and it “focuses on the specialty pharmaceutical industry, including specialized drug delivery and manufacturing.”3 Our annual revenue at 31 December 2008 was $761.8 million and at the same year’s end we had a staff of 1,687 full-time employees in Ireland and the United States combined.

Purpose of Business

Élan Corporation, plc, is, as mentioned above, a company interested in neuroscience-based biotechnology. We are world leaders in developing, manufacturing and delivering innovative treatments for many serious medical conditions, including Alzheimer’s disease, Parkinson’s disease and multiple sclerosis. “Through our rigorous and original research, we aim to develop breakthrough medicines that alter the course of disease—and of people’s lives.”4 Incorporated as a private limited corporation 40 years ago in 1969, we became a public limited corporation 15 years later at the start of 1984. Over these past 40 years, we have prided ourselves on our abilities to develop innovative and profitable new technologies and pharmaceutical products. “We are focused on profitably growing as a specialty drug delivery business, underpinned by our product development capabilities and drug delivery technologies.”5 Looking to the future, we realize that our drug delivery technologies are one of our most important keys to increasing and sustaining future business. For that reason, “today, we have more than 1,700 patent and patent applications around our key technology and product areas.”6

Strategic Plan and Goals

Through careful thought and planning, we at Élan Corporation, plc, have a very good idea of where we would like the company to be in two years’ time. The pharmaceutical industry is highly competitive and we have to compete with many other companies, both domestically and internationally. We hope to gain market share and earn substantial profits with our two highly-successful products, Tysabri, a drug approved to treat MS and Crohn’s disease, and bapineuzumab, a drug currently in Phase 3 clinical development for Alzheimer’s disease. Tysabri is “on track to reach blockbuster status of $1 billion in annual in-market net sales.”7 In two years’ time, we hope to earn $900 million in net sales and to employ 1,750 employees. This would be an increase of nearly $140 million in net sales and almost 75 new employees. “In addition, we seek to generate new pipeline opportunities by entering into further licensing

2 Élan Corporation, 2008 Annual Report, 2009, http://media.corporateir.net/media_files/irol/88/88326/reports /Financials/2008/Elan2008AnnualReport_tcm3-22299.pdf (accessed September 20, 2009), 21. 3 Ibid. 4 Élan Corporation, 2008 Annual Report, 1. 5 Élan Corporation, 2008 Annual Report, 40. 6 Ibid. 7 Élan Corporation, 2008 Annual Report, 8.

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arrangements with pharmaceutical companies as well as identifying and developing proprietary products as we evolve our specialty pharmaceutical business model.”8

Total Company Organization Chart

8 Élan Corporation, 2008 Annual Report, 40.

Company CEO

Kelly Martin

President

Carlos Paya

Ireland Region

(Headquarters)

United States Region Bermuda Region

Finance

Shane Cooke (CFO)

Strategic Human Resources

Kathleen Martorano (Executive Vice

President)

Global R&D and Corporate Strategy

Larks Ekman

Global Services and Operations

Paul Breen


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International Management Strategy

Theory Foundation

It is a known fact that operating a business and marketing a product or service in a foreign country is a very difficult and complex endeavor for any company to undertake. Likewise, “deciding how a company should pursue opportunities in foreign markets is a critical part of international strategic management.”9 A proper understanding of just what is an international management strategy is the cornerstone to any company’s plan for operating internationally with goals of profits and success. One way to define international management strategy is as a process of management planning intended to develop strategies to allow an organization to expand its operations abroad and compete on an international level. International management strategy is used to determine some basic questions about the goals of the company. The same strategy can also be used to help the company avoid potential problems and plan appropriately for likely challenges. Additionally, having a well-planned international management strategy broadens a company’s customer base as it is able to better market abroad to reach new customers from new cultures. Failure to come up with a proper international strategy can bring about many of the following issues: the inability to accurately predict the direction of foreign markets; poor use of resources abroad; failure to anticipate operational problems in foreign markets; etc.10

One critical item to consider is that it is important “to react more quickly to specific changes in an evolving international environment.”11 In order to do this, a company must have a solid international management plan. Plans that focus on the following features will be more successful than those that do not: corporate structure; management process; human resources; corporate culture; and fairness of strategy. It is also imperative that an international management strategy involves HRD because “without HRD, companies attempting to globalize will move too slowly and too ineffectively to retain their competitive advantages at the global level.”12 developing All of these key features need to function together to ensure smooth and profitable operations in a foreign market. Companies also need to consider who within the company is best qualified to develop and oversee the implementation of the international management strategy. For example, “if the goal of strategy development is to stay nimble and quickly take advantage of international opportunities, then involving people who understand the marketplace best should help this process.”13 Some practices employ a team approach whereas others are more individualistic, depending upon the particular company.

9 Dean McFarlin and Paul Sweeney, International Management: Strategic Opportunities and Cultural Challenges, 3rd ed. (Boston: Houghton Mifflin Company, 2006), 258. 10 Dean McFarlin and Paul Sweeney, International Management, 259. 11 Ibid. 12 Dean W. Engel and Michael J. Marquardt, Global Human Resource Development, 109. 13 Dean McFarlin and Paul Sweeney, International Management, 259.

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The process of developing an international strategy is composed of multiple steps of equally high importance. The process begins with the creation of a mission statement. This mission statement serves to clarify direction and summarize both the firm’s values and overall purpose. Next, the company should conduct a SWOT analysis to simultaneously identify external threats and opportunities and assess internal weaknesses and strengths. Depending upon the particular goals and markets in which the company operates, the SWOT analysis will be conducted at a general multinational level or at one that is more country-specific. Next in the process of forming an international management strategy is evaluating alternatives and setting strategic goals. “Ultimately, strategic goals should be set that exploit firm strengths and opportunities while neutralizing competitive threats and internal weaknesses.”14 Later, the company must design implementation tactics and plans by creating policies, programs and other procedures that will help it accomplish its previously-designated strategic goals. Lastly, the company should create a control/evaluation framework by developing “systems and procedures to monitor strategy implementation and take steps to keep [the] firm on track.”15

Every company forming an international management strategy is working towards completing goals that they have established concerning both their future operations and future profitability. These goals are determined during the fourth step of the international management strategy development process. “The bottom line is that […] strategies are used by multinationals to guide how their business-level strategies […] are executed across countries.”16 As mentioned previously, companies will address many questions regarding their future operations abroad during the plan development process. Some of the questions addressed within the strategy are: should we compete in specific countries or wherever opportunities exist?; should we offer all our products/services abroad or just a subset?; should we own our overseas operations or use other entry options? By answering these questions, naturally companies will begin to clarify and set specific goals for their foreign business operations. The goals that a firm develops may be involved in any of the following areas: profitability, finance, production, R&D, marketing, technology, expansion, etc. A company’s key goals will usually be related to profitability and production in foreign markets. Overall, it is a good idea for firms to set goals that are both “achievable and have a specific time frame for accomplishment.”17

International Management Strategy for Élan Corporation, plc.

“We are focused on translating our science from the laboratories, and on using our unique drug technologies, to develop and deliver new therapies to patients. Our marketed therapies – including Tysabri for the treatment of multiple sclerosis and Crohn’s disease, and Prialt for the treatment of severe chronic pain – provide important treatments for patients with unmet medical needs.Our employees are committed to moving our pipeline from laboratory to clinic to the 14 Dean McFarlin and Paul Sweeney, International Management, 278. 15 Dean McFarlin and Paul Sweeney, International Management, 273. 16 Dean McFarlin and Paul Sweeney, International Management, 265. 17 Dean McFarlin and Paul Sweeney, International Management, 278.

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market place. We collaborate with many of the world’s leading biotech and pharmaceutical companies to maximize the potential of our science and accelerate bringing new therapies to market.”18

The functional aspect of Élan’s international management strategy is a major part of the management’s focus because our company’s work is highly based on engineering, researching and manufacturing drugs and medicines. These three components make up the bulk of what we do at Élan and require a great deal of our functional knowledge and capacity. Next in importance is developing leadership and interpersonal skills because these are very necessary skills for a successful company. We want to develop management who know how to lead teams as well as communicate effectively with others. Management also has to focus a great deal on the political aspects of our business. As developers of drugs and medicines, it is particularly important that we be aware of and adhere to the various policies and laws of countries around the world. Economics are also a player in our strategy since our products require significant investment. Demanding a similar level of attention are our teams at Élan, as many of our products are developed by teams that utilize diversity to their advantage. While we are strong promoters of diversity at Élan, we decided to focus the least of our international management strategy on diversity because our products involve medicine and biotechnologies which are generally not culturally-specific.

18 Élan Corporation, Vision, 2009, http://www.elan.com/company/vision.asp (accessed October 1, 2009).

Political

Economic

Leadership and Interpersonal Skill

Diversity

Functional

Teams

8

Organizational Chart of the Ireland Region

International Management Manager Descriptions

Finance Managers: are experts on the financial aspects of pharmaceutical businesses and specialize in both Irish and American tax law

Accounting Managers: responsible for overseeing financial documents (income statements, balance sheets, taxes) and business transactions

Sales Managers: develop and control sales and service programs, monitor customer needs to determine focus of sales efforts, work with governments and health organizations to focus sales expenditures and oversee project sales and profitability

Global Marketing Managers: are responsible for the promotion of Élan’s products and making sure that customers are aware of products, develop marketing plan to meet target market goals, identify cost effective plans to generate awareness and promote products, develop key marketing strategies and understand competition

Strategic Human Resources Managers: oversee both the training program and hiring process for new employees at Élan

Global Services and Operations Managers: run the overall operations of the company on a global scale, oversee the regional managers, deal with the logistics of manufacturing and are especially concerned with both the time and efficiency of production

Ireland Region President

Finance Manager

(2)

Accounting Manager

(2)

Sales Manager

(2)

Global Marketing Manager

(2)

Strategic Human Resources Manager

(2)

Global Services and Operations Manager

(2)


(2)

Production Manager

(2)

Biotechnology Research and Development Manager

(3)

Pharmaceutical Drug Research and Development Manager

(3)

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Corporate Strategy Managers: are in charge of updating the company’s strategy and ensure that it is properly implemented

Production Managers: are responsible for overseeing the production and manufacturing of all the products, are in charge of coordination of labor, materials, and plant equipment and are in charge of making production more efficient and less costly

Biotechnology Research and Development Managers: manage the R&D of the biotechnology department, its products and other medical technology developments

Pharmaceutical Drug Research and Development Managers: oversee the R&D of the pharmaceutical department, its drug products and other medical developments

International Management Participant Compensation Plan

Title/Position Average Annual

Salary per Person

Total Annual Salary

Total Benefits Cost

Total Compensation

Finance Manager $90,000 $90,000 x 2 = $180,000

$25,000 x 2 = $50,000

$115,000 x 2 = $230,000

Accounting Manager

$90,000 $90,000 x 2 = $180,000

$25,000 x 2 = $50,000

$115,000 x 2 = $230,000

Sales Manager $100,000 $100,000 x 2 = $200,000

$27,000 x 2 = $54,000

$127,000 x 2 = $254,000

Global Marketing Manager

$88,000 $88,000 x 2 = $176,000

$24,000 x 2 = $48,000

$112,000 x 2 = $224,000

Strategic HR Manager

$80,000 $80,000 x 2 = $160,000

$20,000 x 2 = $40,000

$100,000 x 2 = $200,000

Global Services and Operations

Manager

$80,000 $80,000 x 2 = $160,000

$20,000 x 2 = $40,000

$100,000 x 2 = $200,000


$80,000 $80,000 x 2 = $160,000

$20,000 x 2 = $40,000

$100,000 x 2 = $200,000

Production Manager

$90,000 $90,000 x 2 = $180,000

$25,000 x 2 = $50,000

$115,000 x 2 = $230,000

Biotechnology R&D Manager

$100,000 $100,000 x 3 = $300,000

$27,000 x 3 = $81,000

$127,000 x 3 = $381,000

Pharmaceutical R&D Manager

$100,000 $100,000 x 3 = $300,000

$27,000 x 3 = $81,000

$127,000 x 3 = $381,000

At Élan Corporation, plc, the CEO, the Senior Vice Presidents, and the Board of Directors are responsible for this management department plan. It is measured in terms of overall costs and efficiency.

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Management Issues for Élan Corporation, plc.

There are many management issues that we must keep in mind as we implement our international management strategy at Élan Corporation. Many of these issues come in the form of laws and regulations put forth by both the United States government as well as that of the European Union (Ireland). As we work on developing biopharmaceuticals and other drugs approved for distribution and use in both of these locations, we will place a slightly higher “emphasis on [meeting] requirements in the United States [as] the U.S. market is our most important market.”19 That having been said, we at Élan will still meet and exceed the European Union’s requirements and regulations as well.

Governmental Regulation

To start, “the pharmaceutical industry is subject to significant regulation by international, national, state and local governmental regulatory agencies.”20 We at Élan Corporation must dedicate ourselves fully to ensuring that the safety, quality, efficiency and (sometimes) pricing of our new drugs and biopharmaceuticals meet and exceed strict governmental standards and legislation. As is common with nearly all medicines, a drug-product must undergo many extensive clinical trials before it can be approved for marketing and subsequent sale. Our management needs to be continually up-to-date with all governmental regulations applying to our products, especially concerning the European Union and United States. Not paying attention to meeting governmental regulations, especially those of the FDA, “can result in fines and other judicially imposed sanctions, including product seizures, import restrictions, injunctive actions and criminal prosecutions.”21 In addition to the FDA, other American agencies that regulate select specifications for drugs include the U.S. Centers of Disease Control, the Federal Trade Commission and the U.S. Department of Health and Human Services. In the European Union, we must ensure that our medical products are approved by the European Medicines Agency. More specifically, for our Irish market, our international managers will have to work with the Irish Medicines Board and continually update their knowledge on the standards that they set. “Under European and Irish legislation, all medicinal products must be authorised before being marketed. Medicinal products marketed in Ireland must be authorised by the Irish Medicines Board (IMB).”22

Product Approval

In order to receive approval on our medical products and technologies, they need to undergo rigorous preclinical and clinical testing. This will be one of the more challenging areas for our management team, as “the clinical trial process can take three to 10 years or more to

19 Élan Corporation, 2008 Annual Report, 47. 20 Ibid. 21 Ibid. 22 Irish Medicines Board, Medicines, 2009, http://www.imb.ie/EN/Medicines.aspx (accessed October 7, 2009).

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complete [and] the FDA may place clinical trials on hold at any point in this process.”23 Our international team will need to work effectively and diligently together on producing safer, more effective biopharmaceuticals. This is due to the fact that “there can be no marketing in the United States of any drug, biologic or device for which a marketing application is required until the application is approved by the FDA.”24 With the United States playing a critical role in our sales and profit goals, product approval is a very important issue for our international managers.

Competition

Like many other industries, the pharmaceutical industry is extremely competitive. Our international managers must understand that our competition comes from many different sources—from small research manufacturers to major international companies with larger workforces and greater financial resources. Some of our generic competitors “have challenged existing patent protection for some of the products from which we earn manufacturing or royalty revenue.”25 If our international managers do not address this important issue and overcome the competitors’ challenges, both our manufacturing and royalty revenue have the potential to be very negatively affected.

Workforce Demographics

Here at Élan Corporation, our management team and upper-level employees value diversity. At the year’s end in 2008, we had 1,687 employees worldwide working in R&D, manufacturing, supply, sales, marketing and other activities.26 In order to better manage our workforce and to capitalize on the positive breakthroughs and innovation brought about through teamwork and cultural diversity, our management will need to focus on improving its collective knowledge and experience with various cultures throughout the world, especially those of the United States and Ireland.

23 Élan Corporation, 2008 Annual Report, 48. 24 Ibid. 25 Élan Corporation, 2008 Annual Report, 50. 26 Ibid.

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Key Cultural Differences between the U.S. and Ireland

Cultural Factor U.S.27 Ireland28

Religion Protestant 51.3%


Unaffiliated 12.1%


None 4.2%

Church of Ireland 2.9%

Education 99% (literacy)

16 years (school life expectancy)

5.3 % GDP (edu. expenditures)

99% (literacy)

18 years (school life expectancy)

4.7 % GDP (edu. expenditures)

Economics Largest and most technologically powerful economy in the world

Market-oriented economy

GDP (PPP) $14.26 trillion

Small and modern economy

Trade-dependent economy

GDP (PPP) $188.4 billion

Politics Constitution-based federal republic; strong democratic tradition

Republic; parliamentary democracy

Family Emphasis on immediate family

2.05 children born/woman

Life in Ireland is still quite family oriented

1.85 children born/woman

Class Structure 3 class system: rich, middle, poor 3 class system: upper, middle, working

Languages English (official) 82.1%

Spanish 10.7%

English (official)

Irish (Gaelic)

History Colonies broke away from British rule in 1776

Recognized as the United States of America in 1783

Nation has grown dramatically throughout past 200 years

English invasions began in the 1100s; began more than seven centuries of

Anglo-Irish struggle

Withdrew from the British Commonwealth in 1949; joined the

European Community in 1973.

Natural Resources & Geography

9th largest country (land)

Coal, timber, copper, iron, zinc

126th largest country (land)

Natural gas, peat, copper, lead, zinc

27 Central Intelligence Agency, The World Factbook: United States, November 11, 2009, https://www.cia.gov/library/publications/the-world-factbook/geos/us.html (accessed November 12, 2009). 28 Central Intelligence Agency, The World Factbook: Ireland, November 11, 2009, https://www.cia.gov/library/publications/the-world-factbook/geos/ei.html (accessed November 12, 2009).

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The above pie chart depicts the four main areas in which we feel the most development is needed in order to ensure the success of our international management plan. With a relatively small workforce already at Élan Corporation, we feel that we only need to develop and re-train a small percentage of our managers and sales personnel.

Firstly, we plan on developing 20 of our managers from all of our departments, but especially those within the following: Biotechnology R&D, Production, Marketing, Pharmaceutical R&D and Corporate Strategy. In order to train these managers, we will use the following methods: on the job experience training and seminars; international video conferences (live broadcast) with other international managers at pharmaceutical companies and labs; mentoring and coaching. These three methods of development are the most hands-on and interactive methods for training an employee and at Élan Corporation, we strongly believe that this highly interactive and personal training will lead to outstanding results and better leadership across all our departments. Next, we want to spend considerable time and effort on training 50 of our top sales personnel. These employees need to be trained not only in finance and sales, but also in how best to go about promoting and selling our products. We will train our sales personnel through seminars on negotiations and intercultural communication in order to better talk with potential clients and on-the-job product training so that they will have experience in the sales field. As for the new hires, which will add 40 new members to our staff which will get us closer to our ideal number of employees, we will provide them with manuals and classroom courses so that they will be able to acclimate to our corporate culture and adhere to the political and legal ideals that our company deals with on a day to day basis. Lastly, we would very much like to strengthen and redevelop the teams that we currently have at Élan. Teams and “groups are important to the life of most firms—multinational or not.”29 In order to do this, we plan to re-train our teams on a monthly basis through interactive seminars and web activities that

29 Dean McFarlin and Paul Sweeney, International Management: Strategic Opportunities and Cultural Challenges, 3rd ed. (Boston: Houghton Mifflin Company, 2006), 442.

20

50

40

10ManagersSales PersonnelNew HiresR&D Teams

14

incorporate the necessary skills that teams in our company need. They will also be trained through video tapes and CDs that will show the teams how to resolve conflicts and how to utilize the individual strengths of all members of the team to foster new and innovative ideas.

At Élan, it is critical to adapt our training program to the local Irish culture to meet the needs of our various managers and employees. “It is extremely valuable to identify, develop, and utilize, when possible, the services of local HRD practitioners. [Therefore, we will] develop professional, collegial working relationships when possible so that progress and information on the training program can be shared and understood.”30

30 Dean W. Engel and Michael J. Marquardt, Global Human Resource Development, 52.

15

International Management Process

Company Business Goals Set

Increase employees Expand product lines

Gain market share (U.S.A., Ireland) Increase profits

International Business Strategy and Plan

Generate new pipeline

opportunities by entering into further licensing arrangements with

pharmaceutical companies

Develop and research new products

Behaviors, Knowledge and Skills Applied to Business

Innovation, teamwork,

fairness

Thorough research to gain knowledge of pharmaceuticals

and biotechnology

Attention to corporate culture, as well as the international cultures, so as to best serve

the company within the industry

International Management

Strategy and Plan

Train and develop managers to ensure that they completely

understand and accept international

culture

Business Goals Achieved

Create a committee focused on marketing and

sales

Thorough clinical studies have been able to develop numerous beneficial drugs

and technologies

Through innovation and teamwork, Élan has been able to find ways to make

drugs and technologies available to more people in

more places

16

Manager Development Process

Selection of the top, most promising managers for the

developmental process

Mentoring/Coaching

Match managers with highly bright and innovative

mentors and coaches to guide them throughout the

training process and to provide them with constant

support and, if needed, advice

Seminars

Managers attend seminars on appropriate and helpful topics

that will help begin the development process

Seminars will focus on promoting innovation and

creativity among employees, how to promote diversity

within work teams, how to motivate and reward

employees from different cultural backgrounds and the drug laws across countries

On-the-Job Training

Trainees will acquire on the job training to learn the most information possible from the

training process

Managers will oversee small teams in various departments

On-the-job training will also include videos, discussions

and meetings

Video Conferences

Managers will have video conferences with other

international managers and pharmaceutical employees, allowing them to share both

their ideas and success stories

Managers will also learn how to foster workplace

diversity

17

Measuring the Success of the International Management Activities We at Élan Corporation strive for success, increased profitability and international

growth as stated in the beginning of this international management plan. Of course, we will monitor our success based upon the data collected and analyzed from our financial reports—balance sheets, income statements and statements of cash flows—as the years pass. We will also measure our success based on the following categories:

Overall Outcomes and Business Results

The goal of any company is to achieve its goals and desired outcomes and Élan is no

different. This criterion is measured through the profitability and effectiveness of the company’s endeavors. We will consider ourselves successful in attaining our goals if we reach $900 million in net sales within the next two years time frame. We will also consider our international management plan to be successful if we increase both our international market share and increase our total number of employees in our company’s Irish region. Costs

“We are very aware that these are challenging economic times, and we have taken

aggressive actions to further reduce costs.”31 As with any company, reducing overall costs is a very important factor for Élan. We will be able to effectively reduce costs by making our supply chain more efficient and cutting back on any unnecessary, superfluous costs. This will be measured through looking to see whether the costs associated with producing a given product decrease and whether we are able to more efficiently allot money to the departments of R&D, Marketing, etc. Management Retention

In order to maintain our effectiveness and competence as an organization, we at Élan

must strive to preserve our current management, who are familiar with our company’s goals and are aware of our company’s corporate values and culture. This can be measured through our ability to maintain our current management personnel and not lose them to competing companies. Employee capacity

One of the goals we have set at Élan is to increase our number of employees in order to

grow the size of our corporation and compete more competitively abroad. In order to do this, we must increase not only training, but the number of our management positions in order to develop and extend our future abilities and opportunities. However, we must also be aware of our limitations in adding new employees to our rankings as adding too many too fast could lead to numerous problems. Thus, in order to measure our appropriate employee capacity, we at Élan

31 Élan Corporation, 2008 Annual Report, 8.

18

must generate interest in our company through advertising open positions, but at the same time be selective about who and the number of people that we hire. Product Development

As a pharmaceutical company, Élan must constantly conduct research in order to develop

and produce new drugs. In order to assess that we are developing new products at an appropriate rate, we must not only measure ourselves against our competition, but also look internally to ensure that we are operating efficiently and producing effective drugs at a suitable pace.

19

Bibliography

Central Intelligence Agency. The World Factbook: Ireland. November 11, 2009. https://www.cia .gov/library/publications/the-world-factbook/geos/ei.html (accessed November 12, 2009). Central Intelligence Agency. The World Factbook: United States. November 11, 2009.

https://www.cia.gov/library/publications/the-world-factbook/geos/us.html (accessed November 12, 2009).

Élan Corporation. Vision. 2009. http://www.elan.com/company/vision.asp (accessed October 1, 2009). Élan Corporation. 2008 Annual Report. 2009. http://media.corporate-ir.net/media_files/irol/ 88/88326/reports/Financials/2008/Elan2008AnnualReport_tcm3-22299.pdf (accessed September 20, 2009). Engel, Dean W. and Michael J. Marquardt. Global Human Resource Development. Englewood Cliffs: Prentice-Hall, Inc., 1993. Irish Medicines Board. Medicines. 2009. http://www.imb.ie/EN/Medicines.aspx (accessed October 7, 2009). McFarlin, Dean, and Paul Sweeney. International Management: Strategic Opportunities and Cultural Challenges. 3rd ed. Boston: Houghton Mifflin Company, 2006.

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