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SOHO Group
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SOHO Group

By June 14, 2021June 23rd, 2021No Comments

Strategic Transformation

SOHO Group

One of the oldest pharmaceutical corporations in Indonesia was set up in 1947. The Group consists of two manufacturing companies: PT. SOHO Industri Pharmasi & PT. ETHICA Industri Farmasi, and a distribution company: PT. PARIT PADANG.

External Challenges:

  • Government mandated price-cuts for branded generic since 2005 that could impact companies’ revenue
  • Government regulation that obliged drug producers to label each product with the highest retail price set as new regulation by the minister in 2006
  • ASEAN harmonization requires pharmaceutical companies to meet current Good Manufacturing Practices starting in 2008.
  • Government regulation that obliged company to comply to PIC/S by 2010

Internal Challenges:

  • The company grew year by year generally focusing only on the bottom line and sales, without clear strategic direction.
  • The three companies were run individually and not integrated.
  •  There was no systematic coordination, every division or department works in a silo manner.
  • There was also no structured growth and development for personnel, no structured career path, and succession plan in the organization.
  1. Implementation of Business Transformation framework to Develop, Optimize and Execute strategy in 2005.
  2. Introduced comprehensive Strategic programs to each Company, SBU and individual:
    – Corporate priorities for the companies defined
    – Identified value thru cost drivers & intangible enablers
    – Cascaded into all BU & SU
    – Development of Personal Scorecards
    – Understanding the readiness of intangible assets and converting them into tangible outcomes
  3. Set-up of OSM (Office of Strategy Management)
  4.  Introduced organization wide communication program
  5.  Linked reward system
  6.  The Balanced Scorecard became the “performance language” across the organization
  7. Utilized web based reporting, accessible to all
  • SOHO Group currently is one of the leading pharmaceutical corporations in Indonesia with a revenue growth of 25% year on year since 2004.
  • The percentage of satisfied doctors (customers) has doubled from 40% (2004) to 80% (2007) for product efficacy, safety, price, delivery, stability, and packaging.
  • Today, consumer satisfaction for SOHO Group’s product has increased substantially. This is shown by the awards and recognition to SOHO Group for various brands e.g.:
  • SOHO Group is recognized as Best Employer of Choice 2007 in Manufacturing Industries and top 3 for Non Manufacturing Industries (by Hay Group & SWA).
  • Being Mindful of the growth and current challenges in the industry and globalization, the leadership teams have driven forward to develop the VISION 2015. It’s a vision which looks at sustaining the core business and innovating in the new area of focus. In achieving the vision a “New Horizon Strategy” was developed.

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