Abstract
This case explores the phenomenon of organization decline and the dilemma around the different paths that may be traversed by Dr. Reddy’s Laboratories Ltd. There are multiple theories of organizational decline, and mostly they encompass both the external environment and the internal aspects of the firm, including the context of decision-making. Moreover, the organization decline-and-turnaround model highlights the different causes of decline, response factor, firm action and outcomes in a unified and comprehensive manner. To that end, based on secondary data sources and the study of the phenomenon of organization decline in a pharmaceutical industry setting, this case depicts the application of one of the organizational decline-and-turnaround models. The case highlights the company’s trigger for the decline, industry structure, market dynamics, current threats, the competitive landscape along with the fall and the way forward. The case attempts to trigger discussion in the classroom on why organizations decline from their seemingly high standards and what paths can be explored during the decline to enable turnaround.
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