Organisation Case Study – FutureMed
FutureMed is a large, listed Australian company that develops and markets
Radiopharmaceuticals are pharmaceutical drugs that are radioactive. They are
unique medicinal formulations containing radioisotopes which are used in major
clinical areas for diagnosis and therapy.
Radiopharmaceuticals are used in the field of nuclear medicine as radioactive
tracers in medical imaging and in therapy for many diseases.
The company is governed by a board of seven directors that oversee the senior
management team. The board of directors expect the senior management team to
be vigilant and quick to spot potential new innovations in nuclear medicine but
there is no systematic approach in place for the identification or creation of
potential disruptive technologies.
The senior management team is made up of the heads of each of the company’s
large departments including operations, finance, marketing, and research and
development. The team meets regularly to review and debate the merits of new
company projects which are assessed primarily on their potential to generate profit
for the company.
This has been a relatively successful approach so far and the company has been
able to consistently pay increasing dividends to its shareholders who have
developed an expectation of better than average returns as a result.
A recent employee survey indicated that FutureMed has a very conservative
corporate culture. The staff on average demonstrated a high resistance to change
in their survey responses.
One bold employee referred to the senior management team as the ‘senior citizens
club’ pointing out that the youngest senior manager was 55 years old.
FutureMed’s market research is conducted solely by the Research and
Development Department and comprises mostly of focus group activity directed
towards the centre of the company’s target market, doctors and physicians.
Despite their efforts, the Research and Development Department have only a
limited understanding of what doctors and physicians actually need.
To be lawfully supplied in Australia, new pharmaceuticals must be registered on
the Australian Register of Therapeutic Goods (ARTG) administered by the
Australian Department of Health. It is very difficult to successfully register
radiopharmaceuticals on the ARTG.
Neighbouring countries such as Indonesia and New Zealand have fewer
regulations for developing radiopharmaceuticals.
It is also difficult to raise capital to fund the development of new
radiopharmaceuticals in Australia because it is still a developing science that few
business financiers understand and feel comfortable with.