Q1: What is the problematic ?

For this question, you may wish to contextualize and summarize the decision problem.

Q2: What is the potential short-term impact on PGP of the different scenarios that could be considered regarding the future of the pharmaceutical package insert market?

For this question, you may wish to evaluate the different scenarios in terms of risk and draw conclusions that are useful for decision making.

Q 3: What are the different options with regard to the partnership offer with Amazane?

For this question, you may list and detail different options (including organizational ambidexterity) with regard to the criteria you consider most relevant

Q 4: Finally, what are your recommendations for the roadmap?

For this question, you can justify your recommendations by taking into account the frame of reference of the main key stakeholders and, if necessary, detail the change dimension. Obviously an explicit answer / Amazon partnership proposal is expected but the roadmap can (and should?) address other parameters...

At the beginning of 1990 , the situation became very tense. The market becomes more CASE Study "Papterie des Grands Pins : Which roadmap ? and more difficult with a French competition always stronger and especially the arrival of new competitors coming from the south of Europe, Eastern Europe or the Asian continent. The results became very worrying and PGP recorded its first losses but still had good "reserves". At the beginning of 2000, while the situation continued to I Papeterie des Grands Pins (PGP), from yesterday till today : deteriorate, Jacques Peroll, then director of production, proposed a real strategic shift A path strewn with some pitfalls towards fine and technical papers, in particular pharmaceutical notices. The general 1.1 A sometimes turbulent history manager was not convinced and a barely latent conflict between the two men broke out. The shareholders choose to trust Jacques Peroll, appoint him to the management The Papeterie des Grands Pins (PGP) was created in 1954 in the Landes region. The of the company and release part of the financing requested for the implementation of sole shareholder was a wealthy family of landowners who wanted to diversify their the new production and marketing of the change of products "pharmaceutical notices". investments and enrich their assets by investing in industries that were then taking full From 2002, this change began to produce the expected results. The accounts are now advantage of what would later be called the boom of the 30 glorious years. The first balanced, but Jaques Peroll knows how precarious this balance can be if additional director of the company was poached from competitors. With a strong expertise in the resources do not support the company's development. To ensure the company's field of pulp manufacturing (see figure 1), he quickly set up the industrial production sustainability and enable it to reach a critical size, more resources are needed. He conditions that ensured PGP's success. The business approach is centered on the questioned the shareholders, who refused: they felt that there were no longer enough production of writing papers with a particular know-how in the selection of wood, the reserves and that they would be hindered by the bankers in obtaining additional mixing of its fibers and water. The performance is there. The first indicators of evolution financing. After many discussions, the decision was made to sell the company. Mr. of the turnover and profitability fully satisfy the shareholder. The management Peroll knows that this choice is fraught with consequences and will cause undeniable succeeded one another, but the roadmap underwent very few changes during the stress among the employees. 1970 s and 1980s, and the results, although steadily declining (with a few particularly difficult years during the two oil crises), were still considered acceptable by the owner In 2005, a very diversified US conglomerate (including more than fifty companies in family. the world for a turnover exceeding one billion euros) and without any real expertise in the world of stationery showed interest... and bought PGP on the condition that Jacques Peroll remained the salaried manager and continued the roadmap / specialization in technical paper. They release the necessary and expected financial Figure 1: Schma simplifi de la fabrication de la pte papier resources. This conglomerate expects short-term results: to improve profitability and to consolidate the situation quickly. This legitimate pressure does not disturb the manager in any way, even if he knows that he has no right to make mistakes! Since then, the manager has successfully developed and implemented roadmaps and consolidated PGP's position in the paper industry, a market that will generate 5.9 billion euros in sales in France by 2021. But this market is turbulent (see Appendix 1 on the fundamentals of the paper industry: process and market). This turbulence is due in particular to ecological pressure to reduce paper and packaging consumption and to a less polluting production process. CASE STUDY PAPETERIE DES GRANDS PINS : which roadmap ? CASE STUDY PAPETERIE DES GRANDS PINS : which roadmap ? 1.2 Papeterie des Grands Pins today: a European leader in a niche market This niche market is not immune to the more general turbulence experienced by the paper industry. Ecological pressures for cleaner production or pressures to limit consumption are leading to a reflection on the very usefulness of the paper leaflet, with Since the beginning of the year 2000, PGP has been on a very specific strategic alternative solutions seemingly possible. positioning associated with a market that can be qualified as "niche", namely fine and technical papers for the realization of pharmaceutical leaflets. This type of paper requires very specific machines and know-how that PGP has been able to acquire and strengthen throughout the last two decades. (See Annex 2 on the specificities of the Recently, an association "Dfense de la fort landaise" organized a demonstration in manufacture of paper for leaflets). Bordeaux to denounce the impact of PGP's activity on its ecosystem. Followed by a collective of nature conservationists, a number of articles have appeared in the regional press and are calling more broadly on the authorities concerned: Relations with customers are also specific. The specifications are very precise and - A responsible management of the forests, they are generally not approached. They are the ones who, most often, via calls for - The protection of birds whose habitat is being reduced, tender, address the producers. In 2020, more than three billion boxes of medicines - The reintroduction of fish in the rivers contaminated by the company and the cleaning were distributed in France, with each inhabitant having an average of nearly fifty boxes of chemical waste. per year! The pharmaceutical leaflet market is doing well so far, in volume and value, driven by the drug market which has grown between 2003 and 2018 from 21.8 to 27 Following these events, the community of communes, under pressure from the prefect, billion euros. must reflect on its fiscal policy in terms of waste recycling and verify the operating methods of the water treatment used by the PGP company. 1.3 Jacques Peroll, a charismatic leader With its experience and solid reputation, PGP has become one of the European Jacques Peroll is a self-taught man who has spent his entire career in the paper leaders in this niche market where margins are rather comfortable compared to other products offered by this industrial sector. industry and has been with PGP for many years. Passionate about technology, he was En 2021, les chiffres cls de PGP able to find solutions to improve production processes and accept to work on products that were complex to manufacture but had a high added value. This is how he went from team leader to production manager and now CEO. Having spearheaded the successful shift to the niche market of pharmaceutical inserts, he has since been regarded as a savior. He is colloquially known as "JP"! He is able to lead, influence and direct his teams and his personality proves his authority, value and legitimacy to get the support of his subordinates. Successive shareholders have and still do trust him because thanks to his inspiring vision, he leads to a better empowerment of the teams stimulating productivity. Jacques Peroll has recently recruited for a position as deputy director. His investment in the company remains very strong but he prefers to anticipate and prepare his succession. He called on a recruitment agency with the following instructions: to look for a young person from a business school, with experience in start-ups and innovative companies, as the core of the position remains the mastery of innovation issues. Muriel B has been recruited. For Jacques Peroll, this new profile within the management committee will bring new blood and will relieve him in the short term, in the hope that one day she will be able to take over the general management. If Muriel B. has been able to find her place with J. Perrol, she has some difficulties to "exist" with the employees, as the CEO's hold is so strong. Her competence is recognized but her analyses and reflections are confusing and sometimes seem too conceptual. II An uncertain future: a roadmap to be revisited? SPI's initial findings highlight a growing concern: "We are seeing a collective awareness of environmental issues, particularly the impact of raw material consumption, the impact of production tools and paper recycling. Companies and individuals have been thinking about their printing needs for a long 2.1 Growing shareholder concerns time. Digital printing appears to be an alternative to printing, but the ecological Like every year, the shareholders have an informal meeting with the CEO before the advantage of this is not a given, as the impact of data centers and the Internet is ordinary general meeting. This time, Jacques Peroll feels that the tone is somewhat revealed day after day. If dematerialization is imposed in all fields: economic, cultural, different. Even if the conviviality is still there, the shareholders are asking for a 5 -year leisure, social ... medical information is not left behind and is now interested in solutions projection and not just for the coming year. They clearly expressed their doubts about for digitizing pharmaceutical records. However, the standards in force and the digital the future of the company, without questioning the work and mission of the CEO. They ask very seriously to analyze different scenarios, taking into account the fears they divide are still too wide to ensure sufficient service for all potential users". have about the European standards which are likely to become more and more At the end of this initial work, Jacques Perrol received a summary from the firm restrictive, as well as the ecological lobbying in relation to the use of paper impacting identifying four possible development scenarios for PGP. To develop these scenarios, the future of forests. SPI used the PESTEL analysis. This analysis will now help management build a corporate strategy and facilitate rapid and informed decision-making. The construction If Jacques Peroll was well aware of these potential threats, he did not expect this of these scenarios was based on the following structural questions: pressure, or even the injunction to re-visit PGP's roadmap for the next 5 years. Without - What are the determining environments in the study of the paper industry? having imagined any diversification of the business, he is already trying to reassure - What are the different influencing factors corresponding to the components of the shareholders through the first work of his CSR advisor, who recently arrived in the the selected environments? company. He mentions, in particular, the first proposed actions such as - What are the current and future structural trends? How are they assessed in - implementation of steps to obtain ISO 50001 certification and through this terms of their degree of importance and how, ultimately, can they impact PGP? process work to optimize energy consumption and limit carbon impact - increasing the percentage of recycled fiber in the paper used... Two pivotal variables have been selected to explain the different scenarios proposed by SPI: But more fundamentally, he is well aware that the biggest concern is certainly the very - Environmental issues uncertain future of the paper pharmaceutical insert... Questions are already flying - Technological evolution vs. digitalization around in his head, will he have to - Set up an innovation process, a technological watch within the company in order to propose new products? - Structure and give means to innovation to imagine a possibility of diversification? - Consider a partnership 2.2 The future of the pharmaceutical leaflet: a delicate prospective exercise The company has focused on its core competence: the manufacture of fine, foldresistant and ink-resistant paper for printers, whose end customers are pharmaceutical companies. In this industry, it should be noted that the world of pharmaceutical leaflets is regulated by French and European laws. This legal regulatory framework is difficult to change. However, the current situation may point to some changes in the drug market. This is why Jacques Peroll called on the SPI "Stratgie et Prospective Internationale" firm to provide him with food for thought before hearing his close collaborators on the choice of strategic orientations. 2.3 The possibility of a partnership with Amazane, a proposal that cannot be Above all, he expects this seminar to be a forum for frank and frank discussions, to refused? feed his own analysis and to draw up this famous roadmap for the shareholder. The The global turmoil in the industry is not just of concern to PGP. The distribution giant participants were not slow to respond and the exchanges were numerous and lively Amazane appears particularly worried, notably because of the shortage of packaging (see figure 2). Sensing that the discussion could drag on, Jacques Peroll attempted a and the growing pressure for more virtuous regulations of our modes of consumption synthesis (figure 3) but his rather enigmatic tone surprised the assembly ... it was the and production with regard to the SD/CSR issues. The giant wishes to further secure first time in a long time that we felt Jacques Peroll had doubts... even if he obviously its supply chains and is launching a large-scale operation to establish "sustainable" tried to hide it. partnerships with paper mills around the world. In an official communication, strongly relayed by the media, the group does not go into all the details but the outlines of the specifications are quite obvious: - It would be above all an offer of partnership and not an entry into the capital of the companies, Figure 2: Executive seminar: the lively exchanges (selected pieces) - The proposed deal: help paper mills to finance innovations for the production of more eco-responsible packaging. In return, the companies would have to reserve this new production exclusively for the giant, according to financial terms to be defined on a case-by-case basis. No figure is given but Amazane insists on the win-win character and suggests that there will not be room for all paper mills... - The timing is tight: o The giant has given the pre-selected paper mills only 3 months to decide whether or not they want to enter into negotiations, o The interested paper mills will have to provide a great deal of information within this period and open their doors to Amazane's internal auditors, o Depending on the results of the initial analysis, Amazane will decide whether or not to continue the partnership process. Then, if necessary, real negotiations for the first partnership contract will be started in connection with a precise set of specifications. For France, ten paper mills have been pre-targeted by Amazane... including PGP, presumably because of its interesting geographical location (not far from a future warehouse of the distribution giant). This partnership proposal is now fuelling all the discussions in the corridors of PGP's offices and production lines. Rumors are starting to swell. The uncertain future of the pharmaceutical leaflet and more globally of the paper industry, the increasing pressure from shareholders to establish a roadmap... and now this proposal from the giant Amazane all this is starting to do a lot for Jacques Peroll who, on the other hand, is thinking more and more about his own future and sometimes even explicitly mentions his desire to retire. The director then decided to organize a seminar with his "close guard", his extended management committee. He communicated all the information in his possession and specified that he had not yet received any reaction from the shareholder concerning the offer from the giant Amazane. CASE STUDY PAPETERIE DES GRANDS PINS : which roadmap ? " CASE STUDY PAPETERIE DES GRANDS PINS : which roadmap ? Figure 3: The management seminar: J. Peroll's (attempted) synthesis Your MISSION Realize diagnosis and recommendations, in order to enrich the decision making relative to this famous roadmap. "Thank you for all these exchanges and proposals ... the least we can say is that it was not a cardboard session! More seriously, I feel that there are several options expressed with sometimes radically different implications. The logics of change are not at all the same. As you It is then appropriate to address the four questions below: a way to find an intermediate way....ambidextrous you say... what is this jargon? Let's not forget... We existed before Amazane, we will exist after, I believe it ! So this partnership proposal is just one element of the roadmap... On the basis of all our work and exchanges, I will ask the opinion of consultants, who will certainly have a little more distance and objectivity, and then I will take some time before making a decision and presenting it to you... " QUESTIONS Q1: What is the problematic ? (5 points) For this question, you may wish to contextualize and summarize the decision problem. Q2: What is the potential short-term impact on PGP of the different scenarios that could be considered regarding the future of the pharmaceutical package insert market? (5 points) For this question, you may wish to evaluate the different scenarios in terms of risk and draw conclusions that are useful for decision making. Q 3: What are the different options with regard to the partnership offer with Amazane? (5 points) For this question, you may list and detail different options (including organizational ambidexterity) with regard to the criteria you consider most relevant Q 4: Finally, what are your recommendations for the roadmap? (5 points) For this question, you can justify your recommendations by taking into account the frame of reference of the main key stakeholders and, if necessary, detail the change dimension. Obviously an explicit answer / Amazon partnership proposal is expected but the roadmap can (and should?) address other parameters... LIST OF ANNEXES : APPENDIX 1: Paper industry fundamentals: process and market APPENDIX 2: Specificities of paper for pharmaceutical leaflets The spirit of more sustainable development Many European and French directives: THE PAPER MARKET IN THE WORLD - Reduction of the production of greenhouse gases The major paper exporting countries are China, Germany and the USA. France ranks - Limiting the consumption of electricity, gas and water 8th, despite a long industrial tradition in this sector, particularly in the Vosges region. - Limiting the use of chemical products (source: www.statista.com) - Treat and recycle waste On the other hand, in terms of imports, France ranks 3rd, far from the USA which is the leading importer of paper and behind Germany. (source : www.statista.com) THE MARKET Some key figures (source: www.statista.com): Distribution of paper exports worldwide in 2019, by country* In 2017: - Global production is 420 million tons of paper and cardboard. - The main producers are China, the USA and Japan. - France is the 13th producer (8 million tons). Half of the production is dedicated to packaging. A quarter is for graphic papers. - In 2021, the production in France is 7.4 million tons for 5.9 billion turnover, an increase of 25% in one year. A turbulent market - Pulp prices have risen sharply in recent years (between 10 and 20% price increase). Demand from the Chinese market is driving up prices - North American manufacturers have tripled their delivery times - The price of paper for recycling has increased sixfold - Demand for paper is declining sharply. For example, newspapers are publishing less and less. The sale of stationery products has been in free fall for 20 years - Derivative products are in high demand - Kraft bags in supermarkets, cups, tissues... - Various packaging in industry - Cardboard for transport Distribution of paper imports worldwide in 2019 by country* THE PAPER MARKET IN EUROPE - Paper industry revenues in Europe are volatile, although they have increased over the last 20 years (+13%). - Over the last 30 years, the number of paper producing companies has been concentrated ( 40%). - Fragility of the players in this activity with low margins and the need to reach a critical size to achieve sufficient volumes. THE OUTLOOK - Paper demand is on a low growth trend. - Demand for printing and writing paper will continue to decline steadily. - Digitization, on the other hand, is becoming a growth factor for other ranges, particularly for packaging. Excerpts from Caracter, March 2017, \#739, pp 70-75) Increasingly large notices The pharmaceutical leaflet Fabrice Meillier specifies that "this test concerns firstly the comprehension of the text, Framed by national and European regulations, this familiar printed matter requires a which must be sufficiently accessible for the general public, and secondly the legibility high level of technical printing and finishing. of the information: the paper must be thick enough so that the printing on both sides does not overlap, the font must be sufficiently legible, and the practicality of the folding The package insert is an everyday printed matter. Located in every box of medicine, it must allow the leaflet to be consulted and stored. These different regulations and the is the primary source of information for patients. In fact, the 4th Observatoire socital ever-increasing amount of information to be included have a direct impact on the format du mdicament, carried out by Ipsos for LEEM, the professional organization for of the leaflet, which is becoming ever larger. The leaflet is thus becoming an pharmaceutical companies, shows that 87% of French people trust the package insert increasingly complex product to produce. It requires a high level of technical folding to inform them, with 76% of them saying they always read it when they buy a and the use of increasingly thin paper (mostly 40g, but more and more often 35or prescription drug for the first time. And we are sure to find this essential document in even 32g ). Jrgen Eschbach, head of the pharmaceutical leaflet market for Papeteries the box, since its presence is mandatory for all drugs subject to a marketing des Vosges (PDV), confirms this trend: "The average weight of the paper used has authorization (AMM). been falling in recent years, which makes pharmaceutical leaflets more complex to produce. The requirement is no longer only qualitative, but also quantitative: the A regulated document product must allow the operators of our customers' printing and converting lines to ensure high production rates." Sylvie Paulmier-Bigot, Director of Advertising, Medical Information and Proper Use for the LEEM, emphasizes the importance of this sometimes-banalized form: "This document is essential for consumer information. It must be systematically read before The thickness of the leaflet is indeed a major issue for drug manufacturing and taking any medication. The regulations impose a certain number of constraints on the packaging sites. It has to fit perfectly into the boxes, which do not change format, pharmaceutical industry for the creation of package inserts, even making them an without blocking or slowing down the packaging lines and without missing anything: it integral part of the marketing authorization. The draft text of the package insert is is essential that each box contains its leaflet! Therefore, printers must redouble their submitted by the manufacturer at the time of the marketing authorization application to imagination to adapt to the needs of the customers and propose increased printing the European Medicines Agency or the National Medicines Safety Agency," confirms surfaces thanks to complex folding, which keeps the finished product perfectly Sylvie Paulmier-Bigot. The package insert is an integral part of obtaining marketing machinable on the packaging lines. Everything leads us to believe that the regulations authorization. on information and traceability of medicines will become even more stringent. In the United States, manufacturers are already obliged to provide more details and specifications on their leaflets, particularly concerning the components used. Also on In fact, the leaflet is a highly regulated document, both in terms of content and form. the other side of the Atlantic, the delivery of single-dose medicines, currently being While the French Public Health Code details in detail the elements that must be tested in France, has consequences for patient information and therefore for the included in the leaflet (therapeutic indications, dosage, contraindications, etc.), package insert. The full-scale trials conducted in some pharmacies consist of the European legislation also requires that they be presented in a very specific order, according to a mandatory layout common to all leaflets. Fabrice Meillier, head of pharmacist unpacking a case to provide the patient with the exact number of tablets or regulatory affairs for LEEM, explains that "all leaflets have the same layout, the same capsules required for his or her treatment. There are no longer as many leaflets as sequence of information. This means that patients can easily find information on there are boxes! This is why the laboratories are making available to the pharmacists dosage or contraindications in the same place on the leaflet, whatever the medicine. concerned by this test a stock of additional leaflets as well as a printable PDF file. As for the form, here again, the recommendations of the European Medicines Agency Une solution provisoire que l'on a bien du mal imaginer se dployer l'chelle and the French National Agency for the Safety of Medicines are extremely precise and nationale, encore moins dans toute l'Union europenne. Fabrice Meillier prcise qu'il constrain laboratories. Everything is specified, including the body of the text, in terms s'agit pour l'heure d'une phase de test et donc d'une solution provisoire. En cas de of marking, blank space management and reading levels. European regulations gnralisation de la dlivrance des mdicaments l'unit, le point le plus bloquant recommend the use of a font at least equivalent to Times New Roman 9 points, serait les informations prsentes sur la notice . obviously to ensure optimum readability of the leaflet. A test of the finalized version of What about the leaflet of tomorrow? the leaflet with a panel of potential patients is carried out by the laboratories at the time of application for marketing authorization. The sample reacts on the terminology used, the layout, the quality of the paper, the printing, etc. The other solution envisaged and still under study at European level would be the dematerialization of the package insert. In the context of single-dose dispensing, the patient would be able to access the leaflet by scanning a QR code on the packaging