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Integrating ESG Criteria at the Moroccan Family Business Sothema: Enhancing Financial Resilience and Sustainability in the World of Pharmaceuticals

Author : Azzeddine Allioui 

Synopsis

In 1976, Sothema, a visionary family-owned pharmaceutical company in Morocco, embarked on a journey that would redefine the pharmaceutical landscape in the country. Founded by the Tazi family, the company initially started with a single production facility. Over the next several decades, Sothema expanded its network of facilities, demonstrating a commitment to providing accessible, high-quality pharmaceutical products across Morocco. By 2020, Sothema had already established itself as a significant player in the pharmaceutical sector with multiple production sites and a diverse product portfolio. However, the onset of the COVID-19 pandemic presented an unprecedented challenge. The crisis not only tested the resilience of Sothema’s infrastructure but also the strategic acumen of its leadership. By examining the company’s strategic decisions and performance, you will identify key factors contributing 2 to Sothema’s resilience and provide recommendations for future growth and stability in the ever-evolving pharmaceutical landscape.

Key Concepts / Keywords

strategic expansion, ESG integration, crisis management, leadership, sustainable leadership, corporate governance, Pharmaceutical industry.

Learning Objectives

  • Learn to conduct a SWOT analysis and apply strategic frameworks to evaluate the campany’s adaptive strategies and their impact on financial performance. This includes analyzing how diversification into cargo services and digital transformation initiatives contributed to revenue stabilization.
  • Learn about crisis management frameworks and the importance of rapid response, effective communication, and operational adjustments. They will assess how these actions influenced the campany’s financial performance, including cost management, securing financial support, and maintaining liquidity.
  • Examine leadership styles, decision-making processes, and governance practices that contributed to the campany’s ability to navigate the crisis. They will analyze the financial outcomes of leadership 5 decisions, including stakeholder communication, financial prudence, and strategic pivots.

Target Learning Groups

The case study is designed to cater to a diverse audience, ranging from master’s degree students specializing in financial management and corporate strategy to executives and managers in the pharmaceutical sector.

Prerequisites

    • Have basic knowledge of financial analysis and diagnosis.

      ▪ Master the tools of strategic diagnosis (SWOT, PORTER).

      ▪ Have basic knowledge of corporate strategy.

      ▪ Mastering strategic management.

      ▪ Mastering corporate finance.

Case Caracteristics

  • Number of pages of the case : 17 pages
  • Number of pages of appendices: 3 pages
  • Number of pages of the teaching note : 48 pages
  • Other documents: N/A

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