Moderate top-line growth assumptions are feasible for all traditional companies in the field of consumer healthcare.
Most of the multinational CHC companies are exhibiting low to medium single digit organic growth rates. Apparently shareholders can expect more. SME´s are performing superior growth despite limited resources. I am observing this phenomenon for many years with increasing interest.
I think the simple reason for that superior growth is the proximity to the customers.
Headquarter-managers of multinational companies tend to focus on internal initiatives such as programs for upgrading the products, international brand building initiatives and improved commercial efficiencies. The local management is many times over-burdened with numerous inward initiatives serving HQs instead of focussing on the customers.
The big problem is that cost management and striving for best operational practice in supporting functions has never created a high-performing company.
Making sure to offer desirable products and services which are safe, efficient and of top quality is the fundamental mission of any manager in the CHC-industry. Aiming high in performance would require the entire company focusing all resources on maximizing shareholder-value by having a clear and unconditional value proposition on LOCAL consumers, trade-partners, healthcare professionals and the other healthcare stakeholders.
The remarkable number of top-tier companies struggling with product-quality and severe production -issues is testament to me that some players in the market skate on thin ice of respect towards their customers. In skating over thin ice the safety is in speed. It is high time for some companies to come back to customer centric thinking and doing - rapidly.