Case Study One (1) Savior Box Limited (SBL), a private limited liability company, was established in 1974 by James Mensah, a Chemist who had spotted the opportunity to distribute Over Counter (OTC) drugs in his local area. James had no ambition to extend the business, seeing it as a means of making enough money to enjoy life with his family. When James retired, his son Edwin Mensah who has been associated with the business since childhood, took over. Edwin has known most of the staff, suppliers and local customers for much of his life. In the last ten years Edwin took over, the business has grown into a pharmaceutical empire with manufacturing, retailing & wholesale distribution and export. It still focuses on pharmaceutical products but supplies companies across West Africa and beyond. In recent years, he has appointed six directors, including his father, to help him run the increasingly complex organisation after retirement as a non-executive director. Edwin is aware that the business world is changing rapidly around him, and he needs to update the culture, structure and technology used in the business. His decision to appoint the directors two years ago resulted in a different approach to business and a change in the business culture. But, unfortunately, it did not improve the bottom line and profit. As a result, Edwin and the directors agreed at an earlier board meeting that some strategic review was needed. In 2020, the pharmaceutical industry in Ghana was valued at GH¢1.15 billion. It is expected to witness a compound annual growth rate (CAGR) of 21.4% and generate a revenue of GH¢2.06 billion by the end of 2023. SBL accounted for 5.65% of the entire Ghanaian pharmaceutical industry’s revenue in 2020 because of its large size, while others accounted for the remaining 94.35%. The pharmaceutical industry in Ghana is fragmented. In 2020, the generic pharmaceutical segment represented the highest revenue share of 51%, while the branded pharmaceutical segment represented the least. The over-the-counter (OTC) pharmaceutical segment is considerably large in Ghana, constituting 59.34% of the entire pharmaceutical industry, attributable to many local manufacturers, particularly in the anti-infectives, analgesics, and multivitamins product segments. In 2020, the anti-infectives therapeutic segment accounted for the highest revenue share of 30.02% of Ghana’s pharmaceutical industry. It is expected to witness a high CAGR from 2021 to 2024 and remain the most significant therapeutic segment during the forecast period. Although the oncology therapeutic segment accounted for the smallest revenue share in 2020, it is expected to be the fastest-growing segment during the forecast period, given the increasing awareness about cancer in Ghana. In addition, the recent achievement of 84% National Health Insurance Scheme (NHIS) coverage in Ghana in 2020 is expected to result in high growth of the pharmaceutical industry, particularly the prescription pharmaceutical (generic and branded) segment, because of the easy accessibility and affordability of medicines. Furthermore, the reasonable efforts of the Food and Drugs Authority (FDA) in Ghana to control parallel trading and imports of counterfeit drugs are expected to contribute to the growth of Ghana’s legitimate pharmaceutical industry. Furthermore, the government is also encouraging the local production of essential medicines to improve capacity utilisation and reduce imports. Question one (1) (i) What key areas did Edwin focus on to conduct internal analysis for Savior Box Limited? (ii) How can Edwin integrate strategy with the internal analysis he focused on? (ii) What growth strategy would you recommend to Savior Box Limited and why?