What other strategy could turn the company around?

Identify and describe 5 managerial lessons to be learned from the case.

For the exclusive use of A. Parnerkar, 2022. IVEy Publishing W20575 SARVA PHARMACEUTICALS IN CAMBODIA: FIGHT OR FOLD? Sandeep Puri, Rakesh Singh, Ray Agninotri, and Bindu Gupta wrote this case solely to provide material for class discussion. The authors do not intend to mustrate either effective or ineffective handing of a managerial situation. The authors may have disguised certain names and other identiying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized, or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies of request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, NOG ON1; (1) 518.651.3208; (e) cases Givey.ca; www.iveycases.com. Our goal is to publish materials of the highest quality, submit any amala to publishcases drivey.ca. Copyright @ 2020, Ivey Business School Foundation Version: 2020-07-08 "The essence of strategy is choosing what not to do." - Michael Porter' Jai Prakash Chaubey, the managing director of Sarva Pharmaceuticals Private Limited (Sarva), was facing a dilemma. In January 2020, he received a proposal from Gursim Pharmaceutical Limited (Gursim) to market some of Sarva's products in Cambodia. Sarva started its international operations in 2010 and had undergone substantial growth since. The company had a strong cash flow with good profits. As 2019 ended with sales worth $855 million'-an increase of about 21 per cent over the previous year (see Exhibit 1)- Chaubey was optimistic about his company's target of achieving a net revenue worth $1 ,200 million with around 40 per cent growth in 2020. Although the company had done well in terms of sales however, Chaubey was concerned about the company's profitability in 2019, which increased only marginally at 4 per cent over 2018. The company's profitability was being negatively affected by Sarva's operations in Cambodia. The Cambodia unit contributed around 40 per cent of the total revenue of the company. Chaubey had intended to start operations in neighbouring Myanmar, and the Cambodia scenario was forcing him to rethink his intent. He discussed the problem with his brother, Dinesh, and realized that the company's distribution arm in Cambodia was performing well; it was the marketing arm that was responsible for the low sales and profitability. High marketing expenses, a lack of coordination among the sales team members, and an incorrect customer segmentation and targeting strategy had led to losses across every month of 2019. Chaubey was not impressed with the performance of John Taing," the company's country head in Cambodia. Taing was unable to guide the sales and marketing team in the right direction, which had resulted in most of the sales team members promoting easy-to-sell but low-profit products. A friend suggested that Chaubey reduce the product portfolio from 53-25 items in Cambodia, but the problem was low sales of high-profit products. Chaubey knew that reducing the number of low-profit products, which comprised Joan Magretta, "Jim Colins, Meet Michael Porter," Harvard Business Review, December 15, 2011, accessed January 13, 2020, http:W/hbr.org/2011/12jim-collins-meet-michael-porte. Gursim Pharmaceutical Limited was an international pharmaceutical company, marketing pharmaceutical products in Myanmar, Vietnam, and Thailand. Company name disguised. INR = Indian rupees; US$1 =