Maximizing Shareholder Value
Senior executives of a major fine chemicals company questioned the future of a business that manufactured pharmaceutical intermediates because of its erratic performance over the previous decade. The executives sought a sustainable path to dramatically grow the size and profitability of the business.
SDG conducted an exhaustive analysis of the current business processes. The project led to dozens of specific improvements in each functional area, which increased the quality and number of new product opportunities and dramatically improved the services rendered throughout the organization. The company implemented actions to improve customer relationships and technical capabilities, and boost responsiveness to customers’ needs. Improved understanding of market dynamics and cost reductions allowed the company to price its products more competitively. By redirecting available resources, the company could fill capability gaps with minimal investment.
Together, these process improvements repositioned the business as a provider of more value-added advanced pharmaceutical intermediates and active ingredients. As a result, about 30% more value was created for the company compared with the alternative of abandoning the pharmaceutical intermediates business.
