Explain the link between strategy and operations (1)

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• Operations Management
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• Operations Management
•  
• Case Studies
• case study (20 Marks)
• In 2011, , the chairman of Dr. Reddys
  Laboratories (DRL) had just had his morning
  coffee, when he received the news that US Food
  and Drug Administration (USFDA) had imposed an
  import ban on products manufactured at DRLs
  Mexico plant for violation of good manufacturing
  practice norms. DRLs Mexican arm, which the
  company bought from Swiss pharmaceutical major
  Roche in 2005, produced intermediates and Active
  Pharmaceutical Ingredients (APIs). After going
  through the letter twice, Prasad was convinced
  that he had to take immediate corrective actions.

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• Though the company had taken some
  corrective actions following the warning letter
  and also replied back to the USFDA, it faced this
  ban. As Prasad looked back at the fond memories
  following the acquisition in 2005, he wondered
  what went wrong at the Mexico plant and how could
  he address them without upsetting the current
  stakeholders of DRL. The case focuses on the
  problems faced by Dr. Reddys Laboratories (DRL),
  a leading Indian pharmaceutical company, with
  respect to its Mexico plant in 2011. The company
  had acquired the plant, which supplied these bulk
  drugs to other pharmaceutical companies in the
  West, from Roche. DRL received a warning letter
  from the US drug regulator, USFDA, for violating
  current good manufacturing practices.

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• USFDA inspected the plant and found it
  non-compliant with the manufacturing practice
  norms for APIs. The FDA sought an answer from DRL
  within 15 days of the letter. Though the company
  managed to submit a report to the USFDA within
  the stipulated time, a ban was imposed on the
  import of products from the Mexico plant as USFDA
  was not satisfied with the companys response.
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• Answer the following question.
•  
• Q1. Explain the link between strategy and
  operations.
•  
• Q2. Discuss the issues and challenges in quality
  management.
•  
• Q3. Discuss the issues and challenges for a
  company from an emerging market competing in the
  global markets, particularly markets in the West.
•  
• Q4. Explain the importance of operational
  effectiveness in sustaining a low cost strategy.
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