Savior Box Limited (SBL), a leading pharmaceutical company in Ghana, faces a series of strategic challenges after expanding into West Africa. Initially founded as a family business, the company grew under the leadership of Edwin Mensah. SBL operates in three divisions—manufacturing, retailing and wholesale distribution, and export—but struggles with an obsolete manufacturing plant and increased competition from international rivals.
To navigate these challenges, SBL appointed a consulting firm to drive transformational change, focused on refining organizational structure, optimizing operations, and leveraging market opportunities. A key consultant, Bismark Guy, carried out an internal review to identify the company’s operational inefficiencies, particularly in manufacturing, where the plant operates at sub-optimal levels. Additionally, external reviews highlighted the fragmented nature of the Ghanaian pharmaceutical market, where SBL faces stiff competition.
The case study explores models such as Rosabeth Moss Kanter’s theory of managerial skills for change and the Gemini 4Rs model for transformational change, essential for restructuring SBL’s operations. Strategic tools like the “Strategic Clock” help assess competitors and refine pricing strategies. The balanced scorecard is also recommended to evaluate SBL’s performance across financial, customer, internal, and innovation perspectives.
Risk management, particularly in light of SBL’s investment in a new plant, is crucial, as highlighted by the concerns of the Chief Financial Officer. The case also delves into governance issues, transfer pricing conflicts between divisions, and how SBL can align its strategic objectives with operational autonomy while ensuring goal congruence.
The overarching challenge is to sustain profitability while ensuring long-term growth in a competitive, low-margin industry with complex regulatory and market dynamics across the region.
