Managing a severe crisis: Pharmacorp in Ukraine

The global pharmaceutical company PharmaCorp faces difficulties in managing its operations in crisis-ridden Ukraine. This teaching case focuses on the internal and external challenges faced by Federica Santos, the newly appointed country head of PharmaCorp’s local operating unit in Ukraine. Since November 2013, the country has gone through massive disruptions. Riots and escalations in Kiev, the annexation of Crimea by Russia, and a war in the easternmost region put Ukraine in economic and political turbulences. PharmaCorp’s operating unit has suffered considerably: sales have plummeted, daily workload has increased, human resources issues have amplified, market share has decreased, and so forth. Furthermore, the multinational corporation’s (MNC) internal routines have become less effective in the context of the crisis. Although the Regional Headquarters (RHQ) in Lausanne offers guidance and resources, inefficiencies in responding to local issues have emerged during the crisis. Federica is in charge of developing a comprehensive strategy to turn PharmaCorp Ukraine around. She develops and assesses different options: Should PharmaCorp consider exiting the market? Alternatively, should she recommend the RHQ management team to stay in Ukraine and reconsider the local marketing strategy, e.g. offering more innovative products in Ukraine? Or maybe there are ways to save costs? Should she propose changing the business model of the unit to gain more autonomy for the operations in Ukraine? Soon Federica will meet a team from the RHQ, and she will need to present her ideas to improve the local situation.