Strategic Audit of a Corporation
ImmuCell Corporation
Submitted by:
Date: 14th October 2021.
1. Current Situation
A. Current Performance
ImmuCell has raised a total of $14.2M in funding over 3 rounds. Their latest funding was raised on Apr
14, 2021, from a Post-IPO Equity round. ImmuCell is registered under the ticker NASDAQ: ICCC.
ImmuCell is funded by TD Bank. From a profitability point of view, the company is not doing well. It has a
profit margin of -2.9%. It is one of the leading organizations in the industry with a unique competing
space and has a good proportion of the market share. The Earning Per Share for the stock is -0.06$ and
the Market Cap is $73.16M, Public Float is 5.54M (Reuters, 2021.)
B. Strategic Posture
They objectives are not clearly stated and are based upon performance. ImmuCell Corporation is a
growing animal health company that develops, manufactures and markets scientifically proven products
that improve health and productivity in the dairy and beef industries. ImmuCell holds a unique position,
they are the only animal health company with the ability to concentrate, purify, and quantify specific
colostrum antibodies (E. coli, coronavirus, and rotavirus) on a commercial scale. This reduces the
amount of antibiotics in the human food chain, and it maximizes the productive capabilities of dairy and
beef producers future operating assets – their newborn calves.
The functional business objective of ImmuCell provides cost-effective solutions to dairy and beef
producers to maximize the health and welfare of their respective productive assets – their dairy and
beef calves and their milk producing cows. The company follows cost-effective strategy business model
which makes a social impact where they sell cost-effective products which improves help of the
customers who consume them. Their policies, to build effective solutions for key problems for the
industry follows their business model perfectly. The current mission and objectives does reflect
corporation’s internal operations – it reflects that the company is sustainable and high-quality products
are sold here.
2. Corporate Governance
A. Board of Directors
There are 6 Board of Directors. The board of directors only hold 14% of the shares. The stock is publicly
traded on the NASDAQ. There are different kinds of stockholders such as common stockholders, options
holders, and common equity holders.
Board individuals are the trustees who steer the relationship towards a pragmatic future by tolerating
sound, moral, and lawful association and monetary association plans. In affiliations, most directorate do
have by and large experience which awards them to settle on choices on a general level. Burden up
individuals should be worried about climate feasibility, as it is an essential concern all through the planet
today and over the long haul the affiliation's picture falls upon the choices of the directorate.
The oldest serving Board Member has been on the position for 10 years, since 2011. The rest of the
board members vary in their experiences on the position, from 2016-2020. They are not actively
involved in strategic management and are present to guide the organizational towards a strategic
objective. The strategic management falls upon the CEO and other organizational hierarchy of the firm.
B. Top Management
The top management consists of:
1. Michael F. Brigham: President, Chief Executive Officer, Treasurer, Secretary, Director.
2. Joseph H. Crabb: Chief Scientific Officer, Vice President.
3. Bobbi Jo Brockmann: Vice President - Sales and Marketing, Director.
4. Elizabeth Luttrell Williams: Vice President - Manufacturing Operations.
Each top management person has had more than decades of experience in their relevant fields. For
example, the marketing officer has a background of 20 years in the marketing field spanning across
different companies in the industry. It has been involved in the corporation's performance over the past
years, 4 managers have been in their current position for less than three years and were hired internally.
Top management makes the strategy and has the responsibility to check everything with the board of
directors, and make sure that communication reaches to the lower-level managers. Strategic decisions
are made ethically in a socially responsible manner, and as an environmentally friendly company, all
strategic decisions are made ethically in a sustainable manner. Some executives do own significant
amounts of stock in the corporation, but it does not exceed the 14% mark mentioned. The top
management is indeed sufficiently skilled to cope with future challenges.
3. External Environment: Opportunities & Threats
Opportunities
The opportunities are:
High potential for product development, especially with the advanced technology available in
the market today.
Huge potential profits once an innovative, market breaking product is launched.
Not many competitors in the market, can freely innovate and introduce products to gain more
market share whilst there are early innovators in the market.
Threats
The following are the threats that ImmuCell Corporation can face:
Societal Environment
• Political tirelessness and which means of Biotechnology locale in the nation's economy. These
forces have effects in other regions as well.
• Level of contamination - particularly levels of rule in clinical thought area. These forces have
effects in other regions as well.
• Bureaucracy and impedance in Biotechnology industry by government. These forces have effects
in other regions as well.
• Legal structure for contract essential. These forces have effects in other regions as well.
• Intellectual property affirmation. These forces have effects in other regions as well.
• Trade rules and requests identified with clinical thought. These forces have effects in other
regions as well.
• Favored exchanging adornments. These forces have effects in other regions as well.
• Anti-trust laws identified with Biotechnology. These forces have effects in other regions as well.
• Pricing rules – Are there any regarding legitimate instrument for clinical advantages. These
forces have effects in other regions as well.
• Taxation - charge rates and motivations. These forces have effects in other regions as well.
• Wage foundation - the most insignificant pay permitted by law and extra time. These forces
have effects in other regions as well.
• Work week rules in Biotechnology. These forces have effects in other regions as well.
• Mandatory expert advantages. These forces have effects in other regions as well.
• Industrial security rules in the Healthcare locale. These forces have effects in other regions as
well.
• Product stepping and different fundamentals in Biotechnology. These forces have effects in
other regions as well.
Natural Physical Environment: Sustainability Issues
• Weather. These forces have effects in other regions as well around the globe.
• Climate change. These forces have effects in other regions as well.
• Laws organizing climate pollution. These forces have effects in other regions as well.
• Air and water contamination rules in Biotechnology industry. These forces have effects in other
regions as well.
• Recycling. These forces have effects in other regions as well.
• Waste the board in clinical thought locale (Ezez, 2021.) These forces have effects in other
regions as well.
• Attitudes toward "green" or regular things. These forces have effects in other regions as well.
• Use of endangered species. These forces have effects in other regions as well.
• Attitudes toward and support for down to earth power. These forces have effects in other
regions as well.
External Factors
Opportunity High potential for product development.
Not many competitors in the market, can freely innovate and introduce products to
gain more market share whilst there are early innovators in the market.
Huge potential profits once an innovative, market breaking product is launched.
Advanced technology available in the market today.
Threats Unstable legal conditions.
Environmental factors such as climate change, environment pollution, wastage.
New competitors copying innovations to enter the market.
Taxation – high costs for the company.
4. Internal Environment: Strengths and Weaknesses
Corporate Structure
The corporate structure is as follows: board of directors, top management, department heads, line
managers, and other employees. The decision-making authority is decentralized at every level of the
hierarchy. It is based upon functions such as finance, marketing, R&D, IT, etc. The structure is clearly
understood by everyone in the corporation, and is consistent with current corporate objectives,
strategies, policies, programs, as well as with the firm's international operations. The structure is much
like those of similar corporation, as every private and public limited company is based upon functional
unites and different levels of hierarchy.
Corporate Culture
There is not a well-defined culture, but based upon secondary research, the beliefs and values of the
organization are simplistic and pure. As a biotechnology company, it aims to be sustainable, have high
reputation amongst its customers, and have highly motivated employees who get along with each other.
It is consistent with its current objectives, strategies, policies, and programs. It believes in high
productivity, high quality of performance, being adaptable to changing conditions, be 100%
environmentally sustainable. There are no current plans for internationalization.
Corporate Resources
Marketing
There is a conspicuous degree of customer satisfaction – the relationship with its genuine client
relationship the upper management office has arranged to accomplish a basic degree of customer
commitment among present clients and uncommon brand regard among the legitimate clients. They are
altogether useful at go to include methodology for its things.
Finance
The Profit margin and Net Contribution % of ImmuCell Limited are under the business common.
Considering the last assessment of the affiliation, it has done far in abundance of the years with a
predictable augmentation in pay, which was 4.64 million of each 2008 and made to 10.44M in 2017. In
any case, the outright compensation is a space of pressure as it has been negativing all around the years
(Ezez, 2021.)
Research & Development
Incredible history of melding free IT firms through associations and getting. It has reasonably arranged
number of advancement relationship in the beyond a couple of years to smooth out its activities and to
assemble a solid stock association.
Interest in Research and Development is under the speediest making players in the business. Regardless
of how ImmuCell Limited is spending over the business common on Research and Development, it has
not had the decision to fight with the guideline players in the business to the degree movement. It has
radiated an impression of being a gotten firm expecting bringing out things done expose to offered parts
a chance the post (Ezez, 2021.)
Operations and Logistics
Solid seller neighborhood It has made a culture among broker and vendors where the dealers advance
affiliation's things similarly as set resources into setting up the work get-together to uncover to the
client how he/she can wipe out the best advantages out of the things.
Solid dissipating affiliation – Over the years ImmuCell Limited has fostered a dependable dispersal
network that can appear at greater piece of its ordinary market (Ezez, 2021.)
Computerization of exercises passed on consistency of huge worth to ImmuCell Limited things and has
empowered the relationship to addition and scale back dependent upon the interest conditions looking
out.
HRM
Unbelievably proficient labor force through convincing arranging and learning programs. ImmuCell
Limited is putting goliath assets in arranging and progress of its representatives accomplishing a labor
force that isn't just essentially gifted now in addition affected to accomplish more.
IT
The IT department in the company has a useful database, has automating routine clerical operations
which are need in a biotechnology company to develop formulas, and is essential to product
development in the company. The trend emerging from this is that IT is a crucial department for
ImmuCell Corporation. There is a huge contribution to the company's core competencies from the IT
Department, and this analysis supports the strategic decision of developing innovative product solutions
for its customers to solve problems. The IT department contributes to the company's competitive
advantage of innovating and bringing new products into the market.
Summary
Strong Brand Portfolio – Over the years, ImmuCell Limited has invested in building a strong brand
portfolio. The HRM, Marketing, IT Department have strong strategies which match the organization’s
mission and objectives. However, the finance department does well in terms of revenue growth but
terribly in profitability. The company must cut down costs.
Internal Factors
Opportunities Strong R&D and IT Department which could contribute towards making
innovative products.
Effective and efficient marketing department which has strong relationships with
customers through high customer satisfaction. New online channels should be
made to connect with customers.
Opportunity to expand the business through large and effective operations and
distributions network.
Threats Profitability is dangerously negative and has had the same trend since the past
years. A plan to increase profitability must be made and turned effective.
Legal patents must be acquired before new entrants in the market copy them to
sell them to the same market.
High cost of sales and operational expenses which could reduce financial growth
in the long run.
Analysis of Strategic Factors
Strengths: Strong marketing department, strong IT & R&D which could be used to develop more
products.
Weaknesses: Seasonal demand for highly profitable products which causes not enough generation of
profits over the years, as the profit margins have been increasingly negative.
Opportunities: Finding new channels to sell products and connect with customers.
Threats: Threat of new entrants into the industry, building similar products and decreasing the margin
for profitability.
I do not believe the current mission and objectives are appropriate considering the key strategic factors
and problems as the current objectives focus on customer satisfaction and sustainability, whilst
profitability is a serious issue for the company. The mission and objectives should not be changed, but
an addition must be made on how important financial growth and profitability is for the company. If it is
changed, the employees and stakeholders of the company will be aware and will work harder to achieve
this objective.
Strategic Alternatives and Recommended Strategy
The following are the strategic alternatives and recommended strategies for ImmuCell Corporation:
New clients from online channel – Over the beyond a couple of years the affiliation has put huge
proportion of cash into the electronic stage. This hypothesis has opened new courses of action channel
for ImmuCell Limited. In the going with generally couple of years the affiliation can use this chance by
knowing its client better and serving their requirements utilizing titanic information assessment.
• The new advancement permits a chance to ImmuCell Limited to rehearses segregated regarding
strategy in the new market. It will empower the firm to remain mindful of its steady clients with
inconceivable help and catch new clients through other worth organized thoughts.
• Decreasing cost of transportation considering lower passing on costs can in like way cut down
the expense of ImmuCell Limited's things thus permitting a chance to the affiliation - either to help its
convenience or give the advantages to the clients to obtain cut of the pie.
• The market improvement will incite crippling of contender's benefit and connect with ImmuCell
Limited to develop its power stood apart from different contenders.
• Organization's center capacities can be an achievement in close to another things field. An
overall model could be - GE clinical thought research helped it in growing better Oil entering machines.
• Opening of new business regions considering government understanding – the social occasion of
new headway standard and government worldwide plot has permitted ImmuCell Limited a chance to
enter another making business region.
• New plans in the purchaser direct can open new market for the ImmuCell Limited. It permits an
extraordinary chance to the relationship to accumulate new income sources and overhaul into new
thing orders as well.
• New environmental plans – The additional opportunities will make a level achievement for each
of the players in the business. It address an uncommon open door for ImmuCell Limited to commute
home its benefit in new turn of events and gain piece of the overall business in the new thing class.
Implementation
The marketing department will work on opening new channels for distribution of customers and to
connect and build a relationship with customers to increase sales and hence profitability for the
company. The marketing department should also be used for market development will lead to dilution
of competitor’s advantage and enable ImmuCell Limited to increase its competitiveness compared to
the other competitors. New trends in consumer behaviour should also be taken care of.
The R&D and IT departments should work together to work on the new technology which provides an
opportunity to ImmuCell Limited to practices differentiated pricing strategy in the new market. It will
enable the firm to maintain its loyal customers with great service and lure new customers through other
value-oriented propositions.
The implementation of above strategies will be done by their respective Head of Departments. One
more initiative must be taken by the top management however: The top management should bring in
newer environmental policies, which could create a level playing field for all the players in the industry.
It represent a great opportunity for ImmuCell Limited to drive home its advantage in new technology
and gain market share in the new product category.
Evaluation & Control
The current information system, is indeed, capable of providing sufficient feedback on implementation
activities and performance. Through AB Testing, it may be able to measure strategic factors by setting
metrics to measure performance of the certain strategies. Performance results can be pinpointed by
department and its specific metrics. For example, the marketing department can measure sales,
engagement, query calls to see the effect of a new marketing strategy. The information is timely as all of
this is measured on virtual platforms. The corporation is currently not using benchmarking to evaluate
its functions and activities.
As mentioned above, there are certain appropriate standards and measures used to evaluate
performance with the recommended strategic plan. The example of the Marketing Department above
reflects that. The HRM department handles rewards system which can recognize and rewarding good
performance of employees
References
Editorial, Reuters. 2021. "ICCC.OQ - ImmuCell Corporation Profile | Reuters". Reuters.com.
https://www.reuters.com/companies/ICCC.OQ.
Ezez. 2021. "ImmuCell Corporation (ICCC)". Finance.yahoo.com.
https://finance.yahoo.com/quote/ICCC/.
Ezez. 2021. "ImmuCell Corporation - AnnualReports.com". Annualreports.com.
https://www.annualreports.com/Company/immucell-corporation.
Ezez. 2021. "News". Immucell. https://immucell.com/investors/news/.
Ezez. 2021. "ImmuCell to Announce Unaudited Financial Results for the Second Quarter Ended June
30, 2021". WSJ. https://www.wsj.com/articles/immucell-to-announce-unaudited-financial-results-for-
the-second-quarter-ended-june-30-2021-01628159675?tesla=y.
