The formulation of strategy for Moriana Muti
Traditional healing has become an integral and recognised part of health care in South Africa. Consumers are allowed to choose who to consult for their health care, and legislation is changing to facilitate the controlled use of traditional practitioners. The main objective of this study is to formulate a strategy for Moriana Muti trading in traditional and herbal medicines. The exploratory nature of this research study mitigates the need for a hypothesis to be formulated. The study is focused on developing a unique model for trading in traditional and herbal medicinal products, rather than on the confirmation of prior research, although certain aspects and factors proved in prior research might be used in the development of the strategy. A comprehensive literature study was undertaken to determine what modern approaches are being used in the formulation of strategy. In parallel, prominent role players in the health care industry were analysed to determine what these companies viewed as an appropriate process or methodology to formulate a strategy. Moriana Muti was analysed on the basis of the modern approach to strategy formulation in an attempt to evaluate the organisation's strategy development process. The health care industry was also analysed to determine which factors and elements are of strategic significance. Moriana Muti was also evaluated against the industry and major competitors. It is evident that Moriana Muti is in an industry that is attractive. Growth potential and the return on investment are substantial, given that the company follows the correct strategy. The best strategy for Moriana Muti is a joint venture with pharmaceutical companies Wyeth and Schering Plough. Additional to the joint venture, the pharmaceutical infrastructure, distribution networks and research and development technologies can be utilised to further ensure growth and to acquire market share. Subsequent strategies have been identified, namely vertical integration and franchising which could be pursued after the primary strategy has been successfully implemented. The balanced scorecard approach will be used to monitor progress and the degree of successful execution of the strategy's critical activities.