Business Policy and Analysis Global Pharmaceuticals Abstract The global pharmaceutical industry is one of the most politicized and contentious industries in international commerce and trade. This is because it is closely related to the humanitarian challenge to preserve life and the quality of life to which all people are entitled to…
It requires a large investment by big corporations that could afford to hire the most qualified and competent scientists and physicians, acquire highly sophisticated equipment and laboratories, and sustain the entire effort for years at a time. This type of activity can be undertaken only by large pharmaceutical companies in the rich, developed countries, and only on promise of financial gain. The business of Global pharmaceuticals cannot be sustained without earning a substantial profit on its investment. It must therefore be embarked upon with the proper strategic planning. This is the context upon which this report is based. In examining the global pharmaceutical industry, the report makes use of two environmental tools for analysis – the PESTLE model, and Porter’s five forces model. Both these tools supply information about the environment of an industry that would sound off potential threats and opportunities that corporations in the industry must address. The analyses are given based on the available academic and industry literature, with the corresponding conclusions for each part. Table of Contents Title page 1 Abstract 2 Table of Contents 3 1. Introduction 4 2. Part I – PESTLE Analysis 4 2.1 Political 4 2.2 Economic 4 2.3 Social 5 2.4 Technological 5 2.5 Legal 6 2.6 Environmental 6 2.7 Conclusion – PESTLE Analysis 7 3. ...
It is based on the case study, “The global pharmaceutical industry” (Holland, 2007) in page 208 of Johnson, Scholes and Whittington (2008). The industry to be examined is the “ethical (research-based) sector of the industry” (Johnson, et al., p. 208). This industry is distinguished from the generic medications industry, which does not undertake its own original R&D, but relies on formulations of large companies the patents of which had already expired. 2. Part I – PESTLE Analysis 2.1 Political The market holds the pharmaceutical industry responsible for issues such as predatory pricing (i.e. charging too much when the cost of producing the medicine does not justify the price). An innate distrust in the pharmaceutical industry (Agres, 2007, p. 8) prompts governments in industrialized countries to impose price controls (Johnson, et al., p. 611) and to open up the industry to international competition. Since in many countries governments are the biggest purchasers of drugs for their healthcare programs (45% in the U.S., even higher in Europe where social benefits are provided the people), health policies favor lower cost alternative like generic drugs (Floyd, 2008). 2.2 Economic In developed countries, the spending on healthcare products, particularly pharmaceutical products, is as much as 16% of GDP, compared to only 6% in 1960 (Floyd, 2008). Furthermore, there are opportunities for growth in pharmaceutical sales in emerging economies, particularly China, India, and the other Asian economies (Agres, 2007). Overall, spending even in the mature economies are to expand by 4% to the year 2020 (Floyd, 2008). However, parallel trade threatens to undercut the legitimate ...
Cite this document
(“Business Policy and Analysis: Global Pharmaceuticals Essay”, n.d.)
Retrieved from https://studentshare.net/music/36208-business-policy-and-analysis-global
(Business Policy and Analysis: Global Pharmaceuticals Essay)
“Business Policy and Analysis: Global Pharmaceuticals Essay”, n.d. https://studentshare.net/music/36208-business-policy-and-analysis-global.
Valeant Pharmaceuticals based in North America is countering large shifts in its leadership structure which is helping the company to embrace new cultures and new ideologies. The company is found to counter larger pressures owing to its reduction in stock prices in the stock markets of the region.
The evaluation of the competitive advantage that can be achieved by AstraZeneca in the time and age of today is also discussed in detail throughout the length of this case study.
AstraZeneca is a world renowned pharmaceutical company that has made it big due to its relentless efforts and endeavors, which it has been doing for the last 10 years.
At the end of 1989, the country started off with the process of privatizing its telecommunication services. Regrettably, frequent changes in the related regulations during the process generated insecurity of the prospective
Furthermore, the paper provides detail information on comparison of cultural elements and dimensions between the Nation of Singapore and the United States of America. At the end, the paper provides information on US
1) indicated Chile’s edge as inclusive of its “high level of foreign trade,” “strong financial institutions and sound policy,” a government-strengthened economic reform, “bilateral or regional trade agreements,” as well as its “free trade agreement with the US”
king into account this goal, the paper is going to have the following structure: executive summary, overall economic characteristic of North Africa, transnational economies in the modern world, conclusions.
The modern world is the world of changes. It is characterized with a
Until the mid-80’s Japan’s economic progress was in the right direction. In 1980, Japan’s financial system- and in particular its banking system – was the largest in the world. In terms of loan assets size, nine out of the world’ top ten banks were Japanese. Japanese products were believed to be the best products in terms of quality at that time.
The report also includes a section covering scenario analysis of pharmaceutical industry with possible changes that might be experienced in the industry also being highlighted. The last section is dedicated to analysis of