Internal Environmental Analysis of Adaptimmune Therapeutics

Internal Environmental Analysis of Adaptimmune Therapeutics

            Adaptimmune therapeutics is a firm that primarily engages in the treatment of cancer immunotherapy brands through a TCR T-cell therapy approach. This company uses T-cell to eliminate cancer cells through the harmonious linking of T-cell receptors (TCRs). In this case, the internal environmental analysis of this company is a useful tool for identifying its strengths and weaknesses so that it may act as a framework for establishing ways to compete in the market. This technique is achieved using the company’s resource plans, policies, business, and objectives. Internal environmental analysis is vital for Adaptimmune therapeutics as it will enable it to realize effective strategic management that will support planning, performance, and coordination of its activities, such as marketing, human resource management, operations, production, research, and finance and accounting. For the proper realization of Adaptimmune therapeutics’ internal environmental analysis, there is a need for exploring its corporate strengths and weaknesses where corporate-level strategies, SWOT analysis, IFE matrix analysis, and Grand Strategy Matrix will be used. Also, there will be an exploration of the strategic role of the internal resources of the company by analyzing its business and functional levels. Besides, strategic financial analysis will be performed by calculating leverage, liquidity, efficiency, and profitability ratios of Adaptimmune therapeutics.

The corporate-level strategies of Adaptimmune therapeutics include maintaining a strong Specific Peptide Enhanced Affinity Receptor (SPEAR) T-cell base to achieve quality immunotherapy brands. More so, this business enterprise has developed a plan, which identifies cancer targets that leads to genetic TCR’s production, and therefore it produces therapies for the consumers. Besides, the firm has invested in TCR’s genetic engineering to maximize cancer harmonize specific peptides so that it can eliminate the disease in patients’. Adaptimmune Therapeutics is focused on creating many SPEAR T-cells to various peptides’ targets for more effective therapies that will be used in the treatment and re-treatment of clients who are affected by cancer. The company has strategically developed three quality clinical trials for SPEAR T-cells that are tailored towards MAGE-A10 and NY-ESO-1 (cancer-testis toxins).

Since Adaptimmune Therapeutics is a top company in the industry, it has various weaknesses and strengths that determine and affects its operations, which are identified in the SWOT analysis table below.

Strengths

Adaptimmune Therapeutics has records of performing better in new markets, such as in the United States. This strength is as a result of high expertise, which made it capable of penetrating into new and profitable markets. This strength has been helpful to the firm by contributing towards diversification of economic risks in their existing markets and the realization of high revenue flow. Besides, the firm has been experiencing high returns in capital expenditure that has helped in developing new capital streams.

Additionally, from the past, the company has maintained a firm association with its dealers. The training that sales teams are involved in has enabled the consumers to recognize the benefits of this cancer treatment products. This action has also benefited Adaptimmune therapeutics by promoting its brands faster in the market than its competitors. Besides, the company’s devotion has developed high brand equity among the targeted customers, which has ensured that they reap high profits throughout the year.

Also, the continuous development of Adaptimmune therapeutics’ projects has been achieved through its firm capital flow. This expansion has enabled the company to increase its annual profits and dominate the local and global markets. The efforts of Adaptimmune therapeutics in developing the right product’s image has given it an opportunity of engaging in other business and has created a sense of loyalty to its clients.

Weaknesses

Adaptimmune Therapeutics has unclear marketing strategy of its main product, despite being successful. This situation has been brought by the inability to clearly define the selling proposition and positioning, a weakness that can be used by the competitors to outdo them in the market. Besides, the absence of clear solutions for dealing with the problem of new entrants has made the company to lose its small market shares. Also, Adaptimmune therapeutics has failed to favorably compete with its major competitors due to the inability to work with other organizational culture. Research has been the backbone of many companies to fully enjoy the dynamics of the market, a benefit that Adaptimmune Therapeutics has failed to achieve. Slow research practices have made the firm maintain less competition, compared to its competitors’ who utilize new ideas.

Furthermore, Adaptimmune therapeutics has been unable to add other products in its business due to its existing organizational culture. Such practice has limited the company from enjoying more profitable benefits that accompany the diversified product segment. Using the annual reports of this company, it shows that it has ineffective financial planning. This claim is as a result of comparisons between the current liquid asset ratio and the asset ratio, which shows that it has chances of spending less money.

Strategies on improving the strengths and reducing the weakness

From the above partial SWOT analysis, Adaptimmune Therapeutics has to invest more in the strength practices that favor their continuous existence in the market. Also, it needs to establish strong company management that will continue to engage in sound decision making. However, the firm has to be flexible so that it may be able to associate with other companies for a stronger competitive advantage. Moreover, Adaptimmune Therapeutics has to develop a mechanism of internal feedback from their product sales teams to cushion itself from common market challenges. Besides, the company has to establish a firm marketing team that will formulate effective measures to curb the frequent effects of new entrants in the market, which will increase its market share.

Also, Adaptimmune therapeutics should struggle to spend less money on marketing activities so that it may use the remaining in research practices. This company needs to engage in marketing practices that will clearly define its product, and also be flexible to use other products to open enter new markets, which will assure the company continuous new cash flow. Through the above recommendations, Adaptimmune therapeutics will be able to expand further, which will enable it to thrive in the competitive market.

Matrix

A matrix is a rectangular array that is formed by a group of numbers/entries/elements arranged in columns and rows. Since its introduction, a matrix has been widely used in many fields, such as business and economics, physics, engineering, mathematics, and geography. It was first developed as a determinant or a square array, which later developed as an algebraic entity called the matrix. This term was first developed by James Sylvester, an English mathematician in the nineteenth century. Since Sylvester did not bring the complete matrix concept, Arthur Cayley, his mathematician colleague, was the one who fully developed it in his 1850’s papers. The matrices were initially used in the systems of linear equations by Cayley, which is its significant area in the 21st century. Besides, this method is vital as a result of its ability to form algebraic systems that leads to the development of fundamental laws and principles, such as IFE matrix analysis.

key                                                         

1-major weakness 2-minor weakness 3-minor strength 4-major strength

Strategic Role of Internal Resources/Departments/Processes

1) Perform an analysis of the focal company’s business-level strategies 

1. a) The product line of Adaptimmune therapeutic entails avoidance of low priced-products by increasing the supply chain efficiency and reducing the production cost. After that, it provides brand coupons and discounts so that it can minimize pressure from competitors and hit the targeted sales. Also, the company uses a cost leadership approach to promote its product and encourage the client’s drug purchasing.

The cost leadership approach used by this company helps it to reach its target market, which implies the provision of economical brands. The cost leadership approach has helped the company to expand in the market, which is dominated by middle-class individuals. Besides, Adaptimmune Therapeutics makes efforts to reach the targeted market by maintaining affordability and focusing on ways of easily availing its product in all markets across the world. This method has enabled high sales growth by uplifting brand awareness, a practice that has granted the company a competitive advantage.

Moreover, Adaptimmune Therapeutics has focused on differentiation strategies of its product line that has been effective in increasing the consumer base, through unique brand’s features. These distinctions have been realized by incorporating various innovations, through the company’s researches that are conducted to address the clients’ health problems. For instance, currently, the product line of Adaptimmune therapeutics has extended after venturing in a study that was intended to monitor the customer’s dynamic interests so that it can differ from similar brands of other companies.

This company has managed to instill a sense of the brand’s loyalty in its consumers through the use of cost leadership and differentiation strategies to distinguish it from various available competitors’ options. Adaptimmune Therapeutics has achieved the use of the strategy through more in-depth experience, high investments in endorsement, advertisements, firm presence, and marketing, which have minimized other product’s pressure.

Adaptimmune therapeutics product logo is unique, which has created a strong positive reputation in the clients’ minds. In addition, through the extensive use of product flavors, it has met the needs of each customer’s taste, a practice that has developed a firm market base.

(b) Among the business-level strategies of Adaptimmune therapeutics, there is the development of ADP-A2AFP, ADP-A2M4, and ADP-A2M10 cancer toxins. This strategic advancement is targeted to improve its business by offering more therapeutics clinical information. The realization of this strategy is ensured through partnerships with top cancer organizations, such as the MD Anderson Cancer Center. Also, the company has planned to stick to its SPEAR T-cell plan that will produce cancer therapies at minimal resource applications, which is meant to cut down the costs where continuous right medications will be produced through its established technology.

Furthermore, the company has planned to increase its process development and industrial abilities for a competitive advantage. This approach has been made effective through their SPEAR-T cell established industries in the USA and UK to fully produce cancer treatments. Also, this strategy will be achieved by maximizing SPEAR-T’s manufacture, analytical skills, and supply with the advancement of off-the-shelf therapy brands. Additionally, the firm is focused on expanding the company’s intellectual possession portfolio by advancing their technological base in their entire corporate activities. Adaptimmune therapeutics will strengthen its brand as it strains to maintain top position in T-cell therapies.

2. Perform an analysis of the focal company’s functional-level strategies

The organizational structure of Adaptimmune Therapeutics is a functional-structural, which is hierarchical that ranges from directors to the salespeople. At the top, there is a CEO, which is followed by the production and marketing managers, who are then followed by foreman and sales officers, respectively. The lowest level is the group of workers and salespersons. In this form of organizational structure, employees are categorized in various departments, and they take part in activities related to their specialized professions, such as customer care, human resource, information and technology, production, and marketing. Besides, the managers’ role is to organize all the functional area’s activities. In this company, all individuals’ efforts are tailored towards marketing the firm’s brands.

Adaptimmune therapeutics benefits from this form of structure, and also makes it faces some challenges. First, all employees learn how to effectively conduct their respective tasks, while the existence of departments in this organization nurtures people to obtain specific functional skills. Also, the structure is effective in realizing high efficiencies and economic practices due to its functional departments. Besides, it helps in the creation of teamwork since employees in various departments have similar characteristics, such as educational level. On the other hand, this type of functional structure may contribute towards strategic inefficiencies due to slow execution of operations.

Adaptimmune therapeutics has an organizational culture that is meant to push it towards achieving success and reputation in the business. First, this company responds towards the e-commerce market’s demands through its values and traditions that impact workers’ behavior. For instance, the recruitment of new workers is a way of welcoming new skills that eliminate traditional practices and boundaries. Also, this firm supports its existing organizational culture to maintain talented and skilled employees for prolonged business benefits.

Furthermore, this company has maintained its organizational culture by engaging in customer-centered business practices. For instance, the company has a well-established customer care department that addresses clients’ demands and needs. Besides, from the past, Adaptimmune therapeutics has invested in organizational research to monitor the dynamic trends of customers’ choices to gain a strong competitive advantage in the market. Also, it has maintained a flexible culture technology in therapeutic researches, where it is capable of allowing adjustments to adapt to the most effective machines while eliminating unproductive ones.

Adaptimmune therapeutics organizational culture enhances continuous practices that are tailored towards the realization of the firm’s vision and mission, which reinforces developments. Also, this practice is useful since it contributes towards treating the consumers as the priority and fulfilling their choices and expectations. In contrast, the organizational culture of this company limits an easier adaptation of changes, which may, in turn, contribute towards slow growth. Some employees who are unwilling to adopt some cultures face a lot of pressure in such environments.

This firm has optimally utilized marketing production factors, such as labor, raw materials, capital, and scientific processes. Adaptimmune therapeutics engage in sound and effective interaction between the production and marketing individuals. The resultant high and quality production by the company has developed a firm and prolonged consumer relationship. This firm has optimally utilized marketing production factors, such as labor, raw materials, capital, and scientific processes. The claim implies that the company engages in sound and effective interaction between production and marketing individuals, which leads to a prolonged consumer relationship.

Also, this company invests in both costly raw materials and renewable resources to produce economical and quality products and supports the recycling process, respectively. Both skilled and non-skilled labor is adequately utilized by the firm to achieve optimum production marketing. Effective labor is encouraged through the provision of salaries, incentives, and allowances that act as motivation. Besides, it engages in the training of employees so that they can gain the necessary production skills. People are allocated their specific roles for specialization and division of labor, which enables the company to realize quality production.

Adaptimmune therapeutics invests capitals in the business, such as computers, vehicles, and delivery motorcycles for effective production means. This company provides specific employees with relevant capital, for instance, research therapists are given microscopes for conducting various peptides researches meant for medical purposes, while the secretaries are allocated with computers for office roles. Scientific processes play key roles in Adaptimmune Therapeutics, which combines both capital, labor, and land for continuous production of goods that leads to a competitive advantage in the market.

In the scientific process, the company has been focusing on a technology called “next generation” that will support the SPEAR T- cells’ durability and potency, for instance, using lent viral delivery systems to add active proteins and to support therapy production. The firm has various internal ongoing programs that seek collaborations from third parties for effective therapies production, for instance, CD8 constructs, which enhances tumor inflammation and epitope spreading. Other Programs, such as inducible IL-7 and phosphodiesterase constructs for SPEAR T-cells, are manufactured to help in persistence and proliferation of cancer, respectively. Additionally, the company tends to increase scientific production means by improving the manufacturing processes, for instance, reduction of apheresis duration and transformation of SPEAR T-cell industrial process by developing a suspension measure and faster sterility testing.

Adaptimmune therapeutics company uses TCR for faster and safer transportation of clients’ cells through an improved regular technological parameter. It has also invested in firm in-house industrial platforms and robust treatments that enhance interactions with therapists. Although Adaptimmune therapeutic operations have been effective, the company has entered into an agreement with Cryoport to boost them through SmartPak II™ Condition Monitoring System (SCMS). The operations of this firm, therefore will soon be effective as a result of the ability to minimize vein-to-vein duration during therapies and maximizing its product’s supply and manufacture. Also, the association will increase Adaptimmune therapeutics use of current digitization and technological systems in their supply chains. Besides, it will improve communications between patients, therapists, stakeholders, and the community at large for easier, faster healthcare operations.

The financial reports of Adaptimmune therapeutics portray that it depends highly on tax credits and clinical candidates for their finance. In accounting, the company obtains financial reports by calculations that incorporate revenue, operating loss, and loss before tax, loss for the period, basic, diluted loss per share, non-current assets, current assets, equity, and liabilities equity. Therefore, finance and accounting are used concurrently to formulate Adaptimmune therapeutics final accounts for particular periods, which are internally used to manage its subsequent and present operations.

The R&D of this company has been on the advancement path following its efforts to treat cancer. It has focused on establishing a building block with new facilities in Milton Park, Oxfordshire, that has a capacity of sixty-seven thousand square foot, under the name “enterprise zone.” The R&D is purposed to offer more laboratory spaces, cafes, and meeting rooms, which should accumulate two hundred medical expertise. Since its establishment, Adaptimmune Therapeutics has made exceptional achievements incorporate expertise and science that have backed its established clinical and preclinical medical platforms. Also, it partnered with the University of Pennsylvania and established its branch in the United States that has expanded cancer therapies. Besides, Adaptimmune Therapeutics is a step ahead in R&D, as a result of its United States 5 phase I/II trials for the provision of hematologic and solid cancers’ antigen called NY-ESO-1. It has also developed various IND, MAGE-A10 clinical trials that are scientifically equipped with skilled personnel for the provision of cancer therapies.

These strategies align with the company’s vision and mission statements by presenting similar goals, objectives, and purpose. Also, they identify a similar audience and their accompanied business interests for the company’s strategic development. Besides, the strategies have measurable and realistic outcomes, which help the company to measure its achievements effectively.

The strategic financial analysis of Adaptimmune therapeutics for the last reported fiscal year

From December 31^st, 2018 to June 30^th, 2019

1. Long term debt ratio = Long term debt/total assets

= 24237/ 239521

= 0.1012:1

2. Debt to equity ratio = Total liabilities/equity

=52530/186991

=0.2809:1

3. Net working capital to total assets ratio = (Net working capital/total net assets) ×100

= (175133-28293/175133)

=83.84%

4. Current ratio = Current assets/current liabilities

= 175133/28293

= 6.19:1

5. Quick ratio = Liquid current assets/total current liabilities

= 137215/28293

= 4.849:1

6. Return on equity = Net income/shareholders’ equity

= 36217/186991

= 0.1937

7. Cash ratio = Current assets/current liabilities

= 133406/28293

= 4.715:1

8. Total debt ratio= Total liabilities/ total assets

= 52530/239521

= 0.219:1

9. Return on assets = Net income/total assets

=36217/230521

= 0.1512:1

10. Cash coverage ratio = Cash& Cash equivalents/current liabilities

= 34574/28293

=1.222:1