Laguna State Polytechnic University

Los Baños Campus

College of Business Management and Accountancy

Case No. 1: Botox: Almost Trouble-Free New Faces

Submitted by:

Bachelor of Science in Accountancy 3A

Group 5

Besana, Rommel

Delgado, Diane A.

Panesa, Mia Joyce R.

Submitted to:

Mr. Romnick E. Pascual

Subject Teacher

Strategic Management

October 29, 2020

I. Point of View (P.O.V.)

In this particular case, the analysts chose the point of view of Mr. David Pyott, the CEO of Allergan
Pharmaceutical firm to examine the organization’s demands regarding the Botox and its impact to the lives
of the users.

Mr. David Pyott, as the current CEO of Allergan Pharmaceutical firm, he is the one responsible for
sustaining the operations and the company’s growth.

II. Synopsis/Overview of the Case

Allergan started initially as a small specialty pharmaceutical firm who sells unpopular eye and skin
dugs and over the counter contact lens cleaners, wherein, Botox was introduced as Allergan’s another
specialty product specifically for treatment of crossed-eyes. The doctors found out that Botox can eliminate
frown lines and can be used for cosmetic purposes since it was eventually approved by the FDA that lead
its sales to increase despite of the side effects it may bring. Botox was not directly sold to the patient but it
was the doctor who buys Botox and performs the procedure. The CEO of Allergan, Mr. David Pyott
implemented new strategies of refocusing the company’s target industries to achieve their growth by
investing in Research and Development as well as employing more people to expand the sales force which
gave them the opportunity to established relationship among the doctors and pharmacists. Allergan’s major
growth opportunity is the ophthalmologic market (for the eyes) and the dermatology where Botox gives the
major advantage. To avoid the competition of developing their own Botox, the formula in making such
product was closely held as secret. It is a good news that the sales of Botox was unless the consumers as
well as the movie stars face up to their age.

III. Statement of the Problem

The analysis aims to know how Allergan Pharmaceutical firm maintain their success in new
industry where some competitors arise.

Specifically, the study will answer the following questions:

a. What kind of strategy will Allergan Pharmaceutical firm use to maintain their organizational success?

b. How will Allergan Pharmaceutical firm implement strategies that will make them advantageous to other
competitors?

c. How would Allergan Pharmaceutical firm enhance Botox to lessen its side effects?
IV. Areas of Consideration (S.W.O.T. Analysis)

Table No. 1: The S.W.O.T. Analysis of the Case Study about Botox: Almost Trouble-Free New Faces

Strengths Weaknesses Opportunities Threats

1. The pharmaceutical 1. Botox comes with 1. They can now reach 1. It somewhat bring
firm succeeded in lots of side effects. a variety of confusion to the
making their own And may be customer groups economy. Others
name in the harmful since it since Botox can think that Botox is a
industry. contains bacteria. treat or solve many harmful costly
dermatology and treatment.
ophthalmologic Consumers may not
disorders. have the capacity to
afford the
procedure.
2. They also achieved 2. The product was not 2. Opportunity to 2. People may
making Botox well- directly sold to the create different idea suddenly change
known around the patients but the on making anti- their taste. Just like,
world as well as doctors buys the aging sessions aging could be seen
increasing their Botox for the which is a lot safer. as beautiful and
sales. procedure. natural.
3. The treatment 3. There are rivaling
should be repeated companies
as the effect wears (competitors)
off. Which makes it
very costly for just a
15 min. procedure.
Table 1 shows the areas to consider in this case study analysis. This table contains the strengths, weaknesses,
opportunities, and threats that Allergan Pharmaceuticals are facing.
V. Problem Flow Diagram

Figure 1 shows the Problem Flow Diagram of the case study entitled, “Botox: Almost Trouble-
Free New Faces. It represents how the problem was identified.
VI. Presentation of Alternative Solutions

Alternative Solutions:

1. The Allergan Pharmaceutical firm should critically and crucially invest to R&D again.

2. The Allergan Pharmaceutical firm should invent or develop again a product that is more friendly, still
maintaining its best quality but is a lot more safer to the patients.

3. The Allergan Pharmaceutical firm should use information and data that would came from the R&D as a
guide on how they will strategize against their competitors.

VII. Evaluation of Alternative Solutions

Table No. 2: Alternative Solution 1: The Allergan Pharmaceutical firm should critically and crucially
invest to R&D again.

Advantages Disadvantages
(Pros) (Cons)
A lot more users will patronize their product The Allergan Pharmaceutical firm would have
as it will be more developed and enhanced more expenses because of the R&D. They will
compared before. incur a lot more costs.

They will gain more information and data that They may have a possible losses in developing
will help them in the future. the product.

They will maintain their advantage as they still

do their best to maintain and level up the
quality of their product, making them ahead to
their competitors
Table 2 shows the advantages and disadvantages of the alternative solution no. 1, The Allergan
Pharmaceutical firm should critically and crucially invest to R&D again, to know what should they do to
develop their product.
Table No. 3: Alternative Solution 2: The Allergan Pharmaceutical firm should invent or develop again a
product that is more friendly, still maintaining its best quality but is a lot more safer to the patients.

Advantages Disadvantages
(Pros) (Cons)
They will provide a better product, enhanced The consumers may show doubts and may not
and developed, that would make the quickly buy the new product as they still don't
consumers trust the Allergan Pharmaceutical know the effectivity and quality.
firm more.
The Allergan Pharmaceutical firm may They will go back to the start where they will
increase their sales a lot more higher since strategize reasonably so that the consumers
their product is new and enhanced. will patronize the new product

Table 3 shows the advantages and disadvantages of the alternative solution no. 2, The Allergan
Pharmaceutical firm should invent or develop again a product that is more friendly, still maintaining its best
quality but is a lot more safer to the patients.

Table No. 4: Alternative Solution 3: The Allergan Pharmaceutical firm should use information and data
that would came from the R&D as a guide on how they will strategize against their competitors.

Advantages Disadvantages
(Pros) (Cons)
The Pharmaceutical firm’s skills and The time they will take in strategizing may
knowledge will be enhanced as they will gain affect the production as it will delay the
a lot more data and information. producing time of the product.

The Pharmaceutical firm will know ways on It may also slow down their sessions and
how to strategize well against their profit.
competitors as well as increasing their
marketing strategy.
Table 4 shows the advantages and disadvantages of the alternative solution no. 3, The Allergan
Pharmaceutical firm should use information and data that would came from the R&D as a guide on how
they will strategize against their competitors.
VIII. Decision

The case analysts chose the Alternative solution no. 1, “The Allergan should critically and crucially invest
to R&D again” as the best alternative solution to know what should they do to develop their product. This
alternative solution also involves more advantages than the others, making it more reliable to use or to
implement.
IX. Implementation

Figure 2 shows the flow chart of the implementation of the case study entitled, “Botox: Almost
Trouble-Free New Faces. It represents how chosen best alternative solution will be implemented.
Table No. 5: Gantt Chart of the Implementation of the chosen best alternative solution in the Case
study analysis about Botox: Almost Trouble-Free New Faces

November December

Week Week Week Week Week Week Week Week

Action Item
1 2 3 4 1 2 3 4

Budgeting the costs and expenses that

that will be incurred in investing in
R&D.
Day 1

Invest in Research and Development

in the time that will less affect the
operation of the business. Hire
researchers different to the original
employees of the lab to avoid
conflicts in allocation of duties. Day 1

Day 7 Day 1
Start gathering the data and
information the researchers collected
in R&D.

Process the information and data

given. Start summarizing and taking
only what is significant and material
in developing the product
Day 2
Analyze the data summarized.
Critically think and use the
information given.
Day 4

Weigh all of the possible and Day 1

probable outcomes, consequences
and effects of developing the product
using the information and conclusions
given and acquired.

Start strategizing on how to develop Day 2

the product using the data gathered.
List all of the strategies and decisions
made that will make a difference and
impact to the competitors and
consumers.

Practice or test the strategies Day 3

concluded for the preparation and

start of implementation of the
developed product.

If ever the critical and crucial investment in Research and Development did not worked, the firm must
proceed to the Contingency Plan

Plan the amendments that the current

product needs.
Day 2
 Budgeting the costs and expenses that
that will be incurred in making the
new safer product.
Day 1

Preparation of the materials and

production of the new products. Day
1

Marketing and selling of the products. Day

4

END OF IMPLEMENTATION

Table 5 shows the schedule of implementation of the chosen best alternative decision, as well as the
chosen contingency plan if ever that the best alternative decision failed to worked as planned.
X. Contingency Plan
In case that the best alternative solution does not work, the analysts decided to use the alternative
solution number 2, which is the Allergan Pharmaceutical firm should invent or develop again a product that
is more friendly, still maintaining its best quality but is a lot more safer to the users/patients, as the analysts
think it would be the second best solution to be implemented as a contingency plan since this will also
increase the probability of sustaining the success of the firm.
XI. Management / Strategic Management Concepts Manifested in the Case

These are the different concepts manifested in the case:

• Decision-making – Mr. David, for sure undergone through many planning and analysis in order to
come up with his strategic decisions regarding the closing of plants, slashing the jobs, and cutting the
overhead.
• Strategy – since Botox was originally created to treat crossed-eyes, Allergan Pharmaceutical created
strategies which are useful for them now that Botox was discovered to be helpful for many other
illnesses.
• Unethical Practices – those doctors who perform Botox procedure for cosmetic purposes (during the
times Botox was not yet approved by the FDA) showed unethical behavior since the procedure was not
safe and tested.
• Staffing – staffing took place when CEO David Pyott employed more sales force.
• Customer safety – customer’s safety was put at stake for those times that some doctors who performed
the Botox procedure for cosmetics purposes continued doing it despite of the uncertainty of being
successful of the treatment.