Summary: The plan to simultaneously improve the top and the bottom line seems to be a good one. Bottom Line Plan: The bottom line plan focused on profitability. For the raw materials 90% of the ingredients came from exports whereas the other 10% were internal to Indonesia. The plan proposed to reduce profit fluctuations related to the changes in currency. The objective was to sell raw materials for cash in order to reduce the collections time and utilize the cash to pay back the suppliers. By doing so in a short span of time, the company aimed at removing uncertainties related to differences between the dollar conversion rates while buying and selling (currency fluctuations). The other initiative they planned was to peg the price the raw materials to the dollar. By doing so it again limited the complications that it could face in currency price fluctuations. Another benefit this move provided was that it eliminated the need for NI to deal in local currency and adjust prices to inflation. Inflation fluctuations were equally high and were difficult to ascertain. By leaving the prices constant with respect to the dollar amount, the company would additionally maintain good relationships with its customers, which would allow them to retain their existing clients in the long run when the economy gets back on track. By not raising process NI also sent goodwill signals to the government, who are its consumers, and this relationship will prove them helpful in the long term in establishing themselves in the Indonesian market.
Top line plan: The top line plan relied on increasing the market share of NI within the pharma and the generics market in Indonesia. The economic slowdown presented NI a perfect opportunity to become one of the leading sellers in these categories as all companies including the competitors will face issues related to a declining market, lower revenues and hiring costs thus driving some of them to bankruptcy. The top line plan focused on increasing...