· Business model

  • Value creation
  • Strategic focus and future orientation

Key observations:

Chugai's value creation model is summarized on pages 20 – 21 of its annual report and is based around 7 identified strengths that provide value to patients and competitive advantage for the company. Chugai considers these 7 strengths as the source of their current value creation but recognize the need to evolve and adapt these in order to continue to create value in a changing environment over the medium to long term. Pages 50 – 54 describes how Chugai’s strengths drive the creation of value and how they help meet the strategic objectives of the company’s mid-term business plan 2016-2018 (summarized on pages 30 – 31). Pages 55 – 57 then give examples of outcomes and value created from these strengths.

The next step for Chugai might be to consider more explicitly linking its outcomes back to the capitals (as defined in paragraphs 2.10 – 2.19 of the International <IR> Framework) to effectively demonstrate how value has increased, decreased or been transformed through its business activities.

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