Sheikhs on a roller coaster: the case of Matcon Pharmaceutical

Learning outcomes Understand the business environment and competitive forces that affect the business of Matcon Pharmaceutical in the context of a pharmaceutical market and industry. Explain the characteristics and mindset of the family business entrepreneurs in nexus with applications of causation and effectuation theories and models of entrepreneurship. Analyze the marketing strategy of the company to evaluate how it affected the employer branding strategy. Design strategic solutions by revisiting employer branding and marketing strategies for optimum performance. Case overview/synopsis In May 2023, Matcon Pharmaceutical, Karachi, Pakistan, a family-owned and profitable pharmaceutical company, faced a seismic shift when two significant events shook its foundations, and Noman Sheikh, the chief executive officer, faced unprecedented crises. First, the director of marketing received a tempting offer from a new market entrant, prompting him to resign abruptly. What added to the blow was his decision to take the entire sales team and the drug manufacturing team, along with office staff from various departments, to the new company. This mass exodus led to a drastic decline in sales, pushing them to near rock-bottom levels. Shortly after this upheaval, the export manager also resigned from Matcon Pharmaceutical, not only joining another company but also redirecting the export business and clients to this new employer. The protagonist Noman Sheikh found himself grappling with the strategic issues and solutions to the sudden crises, such as rehiring old team members by holding their clearance accounts and negotiating new packages and terms and conditions or hiring a new team and devising a new marketing strategy. He was compelled to think of developing a franchise network rather than having the company’s own sales force, or selling the company at a good price, but the harsh economic conditions made the exit strategy a nightmare. He had to urgently decide among the available strategic solutions. The case sheds light on the complex dynamics at play in a pharmaceutical company facing the aftermath of a significant talent drain and the subsequent need for strategic adjustments in employer branding and marketing. Complexity academic level This case study is suitable to be taught to the students of recruitment and selection, human resource management, strategic marketing, strategic management, entrepreneurship and family business. The study level is for graduates in management/business, commerce and administrative sciences, including MBA and EMBA students, and for executive education. It is suitable for teaching anywhere but ideally near the middle or end of the above courses. Supplementary material Teaching notes are available for educators only. Subject code CSS 11: Strategy.