Nova Nordisk: Managing Sustainability at Home and Abroad

Answer#1 There are many issues which must be considered by the management of Novo Nordisk before taking any action in the China. The company is already recognized on the global level in sustainability policies, so it would not be difficult for management to implement its sustainability policies in China. The company is using the sustainability approach with the intention to fulfill its corporate social responsibility in the China. This factor would also positively impact on the future growth of the company. Novo Nordisk is a Denmark based company which always commits with the social solidarity, environment, human rights and healthy lifestyle. The government of Denmark also believes that to have a strong welfare state is a key strength for every government. Novo Nordisk is the largest company of the Denmark therefore the government of Denmark expects from the management to uphold their values regarding the corporate social responsibility in the China. The case analysis shows that the corporate governance of the firm is very much stronger and influencing. Therefore, it would help company to implement the sustainability policies in China with full potential. The studies show that the structure of the management contains strong influence in the implementation of the sustainable policies. So, the company would develop and implement the sustainability approach in the China to help the people. In addition, it is also explored that there is a huge cultural difference between the China and Denmark. This aspect can bring difficulties in the management of Novo Nordisk in order to implement the sustainability policies in China. The company should take initiative by educating the doctors regarding the treatment and prevention of diabetes. The reason for spreading the disease is that those doctors could not identify it in the patients within short time. The company should provide free diabetes testing services to the people of China and educated them regarding the threats of this disease. Moreover, it should develop a special training program for the doctors in order to understand the new dimension of the diabetes. This factor would help doctors to see the effects of the disease. The government of China must play its role with the aim to implement the sustainable policies in China for the sake of better health of the public. It is analyzed that poor working condition of Chinese factories, lack of environmental practices and product safety concerns became primary reasons for spreading this disease. Novo Nordisk should take some solid actions with the help of the Chinese government in order to maintain the working conditions of the Chinese factories. Furthermore, it must work with the Chinese factories with the intention to carry out the best environmental practices in the organizations. Management should also work with government with the purpose to improve the working conditions of the factories. China is an industrial country and there are a lot of factories producing variety of goods for exports therefore it should be the first priority of the government of China to maintain the internal environment of these factors in order to prevent from the

diabetes. This factor would play an imperative role to get rid of the diabetes in China and will help to Novo Nordisk in order to implement the sustainable policies in this country. Answer#2 The sustainability can be used to strengthen the Novo Nordisks market position in China. The reason is that the sustainability mindset would help company in order to achieve the competitive edge over its competitors. In addition, sustainability is considered as a core component of an integrated strategy in the China. The Chinese market is full of savvy customers so for that reason, it is not a sufficient approach of the companies to be recognized only as a good company to enter into the market. This factor will not differentiate the company from its competitors and other good companies will also sustain on the same position. The recognition of being a good company will give a tough competition to Nova Nordisk in the Chinese market. The implementation of sustainability policies in the market would help company to differentiate itself from the competitors. This factor would also help firm to capture more market share within a less period of time. The primary purpose of the implementation of sustainability policies is to attract the doctors, consumers and public health officials towards the company in order to prevent from the disease. In addition, doctors and final consumers are the most significant group for the Nova Nordisk so their focus must be to attract these groups with the intention to increase the awareness on the subject of the diabetes. These groups would be directly affected with the sustainability policies of the company so it is essential responsibility of the management to communicate them with the purpose to persuade them regarding the products of Nova Nordisk and provide them information regarding the diabetes. The sustainability policy of the Nova Nordisk is feasible in China due to the regulatory changes in the health-care sector of China. This is the primary reason that other Chinese pharmaceutical companies are also following the steps of Nova Nordisk in this concern. This factor would also make a standout among the doctor, patients and regulatory authorities of China. The sustainability of the Nova Nordisk won the heart of these groups with their innovative idea. The idea of sustainability policy spread quickly among the western based firms in the world. The concept of the implementation of the sustainability is also considered as the strategic sustainability by many other pharmaceutical firms and helped to share the values among the pharmaceutical companies. Even though, it is difficult for other organizations to copy the entire strategy in order to enhance their sales, but some aspects of the strategy can be copied by the competitors. However, the company would sustain a competitive advantage over the competitors for a long time in the market. In addition, it is a key challenge for the management of the Nova Nordisk to manage the sustainability globally and locally. So, the first priority of the management must be to maintain the sustainability program of the company in China.

Answer#3 There is a strong need of an action plan for further development of the sustainability program in Novo Nordisks China operations. Plans have huge significance to execute the operations in the accurate way, therefore, every action without the proper planning would be considered as wasted. The need of time to propos a well-built plan to the china with the aim to decrease the effects of diabetes in the China. Therefore, some significant areas of consideration are described in details in the following paragraphs: 1. Engagement of Stakeholders The engagement of the stakeholders is essential for management in order to execute the developed strategies in the accurate way. The stakeholders would help company to understand and analyze the Chinese market. The primary stakeholders in this scenario are patients, doctors, health managers, NGOs, government officials and diabetes organizations. Furthermore, World Health Organization, Chinese competitors and global competitors would also play their roles as the stakeholders in the case. All the stakeholders do not have the same level of significance for the management of Nova Nordisk. The reason is that some stakeholders are directly affected by the disease, on the other hand, some stakeholders are indirectly affected by the disease. The company would address the risks and threats of the disease to all the stakeholders while using the different modes of communication. The company would carry out awareness programs in all the hospitals on the subject of the negative effects of the diabetes and solution for preventing from the disease. The company will provide a free testing facility and product sample for the patients of the diabetes. Many other pharmaceutical companies are also working on the same project, therefore, Nova Nordisk would help them in the time of need in order to make sure every step right. It is examined from the case that the company would execute its strategies in an accurate way and will help the people to get rid of the diabetes. The management of the company has experience of the strong influence on the disease, therefore, it would not be a difficult task for the management. 2. Content of Sustainability Nova Nordisk would focus on the different programs in the sustainability policy of China. The implemented program would carry out many kinds of trainings, social awareness program and health care advices for the public. In addition, the sustainability program will be included with the new approaches of distribution the samples of tablets in order to avert the disease. The primary purpose of these programs would be to carry out the perception of disease, its causes and treatments for the patients. The treatment of the diabetes patients would be different on the different stages according to the critical condition of the patients. The informational material regarding the habits of the life would be distributed in the public to prevent from this dangerous disease. The doctor would also play significant to promote the

content of sustainability program of the Nova Nordisk. Company would obtain competitive advantage through providing unique services for patients and other public of China. In addition, it will get success to build up long term reliance on the products of Nova Nordisk by the public. 3. Differentiation The company would utilize the sustainability policies to obtain the competitive advantage in the Chinese market. The initiatives of the sustainability program would play a significant role in the company to achieve the competitive advantage in the market. Company can obtain the competitive advantage through getting doctors and health officials to endorse Nova Nordisk proposed treatment for the patients of diabetes. This can be achieved through having a monthly contract with doctors and health officials of the world health organization. They would also play an imperative role in executing the strategies of the firm. Moreover, politics and political relations have huge significance for the carrying out the activities. The reason is that most of the time politics get involved in these cases and stop companies for carrying out these activities. There are many personal interests behind these political involvements. If the company gets endorsement from the doctors and national ministry of health for its products then it has potential dominance in the market. There is a chance that regional government will also be involved after the endorsement therefore it would be the responsibility of the managers to satisfy them. Chinese competitor companies have a strong influence so there are a lot of chances that they would try to imitate the sustainability program of the Nova Nordisk. If they copy, then they will have more advantages because they are national companies. But, Nova Nordisk has right to take some legal actions against these companies and sue them in the court in this case. 4. Global Versus Local Nova Nordisk worked hard in developing the strategies in China regarding the diabetes awareness in the public. Company also had huge experience in developing these kinds of strategies in the global market therefore it is not a difficult task for the company to build the same things in the new Chinese market. The analysis of the case explored that the operations of Nova Nordisk in China are not entirely different for the company. Nova Nordisk would work hard with its stakeholders, public and directly involvement in national diabetes strategies. This factor shows the dedication of the company for the China on the global level. All the capabilities of the company would be used to execute the propose strategies in the market. Moreover, when the management would explore the customers of the Chinese market, then it would utilize its skills set in order to develop the market potential in China. Therefore, there will be a high level authority for the Chinese employees to get involved and implement the sustainable policies of Nova Nordisk in the country. The management of Nova Nordisk has strongly believed that its not just imposing its ideas on the people of China, but it is helping them to prevent from the dangerous disease while fulfilling its corporate social responsibility in the China.