...TEACHING NOTES The Global Pharmaceutical Industry Sarah Holland (Manchester Business School) and Bernardo Bátiz-Lazo (London South Bank University) 1. Introduction The case describes how the prescription pharmaceutical industry has changed since its modern beginnings in the early 1950s. The various forces affecting the competitive environment of the industry are discussed in terms of origins, immediate past and immediate future (2004 onwards). As a result, the note provides insights into the evolution of barriers to enter and exit the industry for prescription pharmaceuticals, while aiming to help students to recognise how to set boundaries for an industry. This is a detailed industry note on the “ethical” pharmaceutical industry which provides an opportunity to analyse key success factors of major players. The note centres on a descriptive overview of the predominant issues in the three major Triad market areas: the US, Europe and Japan (although major issues in emerging markets are also mentioned). The note covers the overall industry environment with in-depth discussion of the driving forces in the industry such as globalisation (in particular global regulatory issues, changing world demographics and worldwide pricing disparities); development of new technology; the importance of time to market; and amalgamations. The case also examines issues around corporate social responsibility. 2. Position of the Case The pharmaceutical industry case study lends itself to: • assessing...
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...Intensive situation of manufacturing industry in china China is the largest exporter and the second largest importer in the world. There became the largest manufacturing country in the world, overtaking the U.S. in 2010. This has raised debate that whether China has lost edge as world’s factory. In recent years, the average income in China has steadily gone up as China’s labor cost has grown by over 60 percent since 2009. However, Vietnam’s labor cost is 40 percent of that in China, while in Bangladesh and Myanmar labor costs are as little as one-fifth of China’s labor cost.9 Other factors are also contributing to foreign manufacturers’ profit decline in China, such as: the appreciation of the Renminbi, variability of various local tax rates, stricter regulations on environment protection, as well as government’s policies towards a more service-based economy. In addition to cheaper labor cost, some Southeast Asian countries have put more effort into attracting foreign investment, such as lowering or exempting import tariffs on equipment required by manufacturing activities. However, unsettled political situations, undeveloped infrastructure, unskilled workers, incomplete industry chain systems, and a smaller domestic market in the Southeast Asian countries remain the biggest concerns for foreign investors. Throughout the years, China is still remains competitive manufacturing base while some foreign manufacturers moved out and relocated to Southeast Asia. Many foreign manufacturers...
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...The Global Pharmaceutical Industry Case Analysis This case by Sarah Holland and Bernardo Bátiz-Lazostudies studies the evolution of the ethical pharmaceutical industry and analyses the various forces affecting the discovery, development, production, distribution and marketing of prescription drugs. The authors further analyses the critical issues of corporate social responsibility in the industry and the strategies being followed by major pharmaceutical companies and the challenges and opportunities for the future. This case bases its research to find evidence to support or disprove findings of a report published in the Gardiner by analysts at the investment bank of Dresdner Kleinwort Wasserstein which claimed that the world's major drugs companies are operating a business model that is unsustainable and rapidly running out of steam. On the surface however, the pharmaceuticals business seems like the epitome of a modern, mature industry that has found a comfortable way to make profits by the billion. According to the case large pharmaceuticals companies are currently facing the most challenging times since a decade. Even though the industry has made tremendous contributions to human well-being, its roles and actions are still criticized by the media and under constant scrutiny by national governments in their efforts to reduce expenditure in healthcare. Stringent laws and regulations have come in action which has made product approval, pricing and promotions costlier...
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...Industry Snapshot The Indian pharmaceutical industry is highly dynamic and offers great opportunities for both domestic and foreign companies. The industry is estimated to have generated revenue worth US$ 13.1 billion in FY 2011, according to a new Research and Market’s report, “Indian Pharma Sector Forecast 2014.” India will emerge as a leading global player in pharmaceutical industry by 2020, securing a place among the top five major global markets, according to Ikon Marketing Consultant (IMC). Also, Associated Chambers of Commerce and Industry (Assocham) has said it expects the Indian pharmaceutical industry to reach US$ 20 billion by 2015, making it one of the world's top 10 pharmaceuticals markets. India has a strong local manufacturing base and domestic players are developing substantial international presence. Healthcare is also one of the largest service sector industries in India, in terms of revenue and employment. Rising health awareness and increasing government expenditure on healthcare sector is driving growth in the sector. Medical tourism and health insurance are also on a rise, with significant growth in healthcare sector and establishment of large number of hospitals, both public and private. The Indian healthcare industry, estimated at US$ 50 billion, is expected to reach over US$ 75 billion by 2012, and US$ 100 billion by 2015. Talent Challenges While specialised talent is critical for any knowledge industry, it is more so within the pharmaceuticals industry...
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...PHARMACEUTICAL INDUSTRY RESEARCH PAPER Submitted By RAKESHKUMAR PATEL NILAMBEN PATEL MONROE COLLEGE NOVEMBER 19, 2012 MG 620 RESEARCHES FOR STATISTICS Presented to DR. ANNE WALSH ABSTRACT The United States is the world’s largest market for pharmaceuticals and the world leader in biopharmaceutical research. U.S. firms conduct 80 percent of the world’s research and development in biotechnology and hold the intellectual property rights to most new medicines. In 2010, the pharmaceutical sector employed approximately 272,000 people (source: Bureau of Labor Statistics), and according to the Pharmaceutical Research and Manufacturers of America (Parma), those manufacturers spent $67.4 billion on research and development in 2010. The markets for biologics, over-the-counter (OTC) medicines, and generics show the most potential for growth and have become increasingly competitive. Biologics, valued at $67 billion in 2010 (source: IMS Health), account for a quarter of all new drugs in clinical trials or awaiting Food and Drug Administration approval. OTC market growth will be driven by a growing aging population and consumer trend to self-medication and the conversion of drugs from prescription to non-prescription or OTC status. Generic drug sales in the United States were valued at $78 billion in 2010 (source: IMS Health). The U.S. market is the world’s largest free-pricing market for pharmaceuticals and has a favorable patent...
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...Switzerland vs. Mexico Switzerland My research paper will individually concentrate on Switzerland and Mexico in its history, competitive advantage, export, trading, and globalization. I will then compare and contrast both countries by their competitive advantage in the market, government intervention, trading, export, and globalization. The Switzerland economy is founded on an exceedingly competent labor force and skilled work. The principal areas consist of micro technology, hi-tech, biotechnology, and pharmaceuticals, also, includes banking and insurance knowledge. Switzerland was not the success story that it is today; in the late nineteenth century Switzerland was a poor nation and its major exports were mercenaries and emigrating citizens. By the early period of the twentieth century, Switzerland had emerged as an industrial nation of importance despite its small size. Switzerland was one of the richest nations in the postwar period and by the 1960 using some measures, Swiss per capita income was the highest in the world. The wealth of Switzerland is the outcome of national competitive advantage where there are shockingly numerous competitors in a wide range of advanced manufacturing and service industries and Switzerland a small nation was able to establish their competitive advantage over large nations and their competitors. The industrial success has allowed Swiss citizens to be employed at high wages and for many years the unemployment has affected...
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...WTO? Conclusion • WTO- Its Need − to contribute towards international peace − is based on rules and has nothing to do with power of the nation − gives consumers more choice and a broader range of qualities to choose from − stimulates economic growth − allows disputes to be handled constructively 1. The main benefits of World Trade Organization are as follows: - 2. The system helps to contribute towards international peace, by helping the trade to flow smoothly and dealing with disputes over trade issues. 3. The system allows disputes to be handled constructively. With Global boundaries evading, more and more trade is taking place, and hence, leading to more chances for disputes. To put forth to the claim, around 300 cases have been filed since inception of WTO, and without peaceful and harmonious way to resolve them, they could have led to a political crisis. 4. It's a system, which is based on rules and has nothing to do with power of the nation. 5. It gives consumers more choice and a broader range of qualities to choose from. 6. The fact that there exists a forum to handle crisis, gives confidence to nations to do more and more trade, thereby increasing the income, and stimulating economic growth. Role of India in WTO India is a founder member of the General Agreement on Tariffs and...
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...Table of Contents Introduction 3 1.0 Problem Statement 3 2.0 Situational Assessment / Environmental Scan: CREST ANALYSIS 5 2.1 Analysis of the Competitive Landscape 5 2.1.0 Porters Five Forces: Global Beverage Industry 5 2.3 Economic 7 2.4 Social 7 2.5 Technology 7 2.6 Natural 8 3.0 SWOT Analysis 9 4.0 Alternatives 9 4.1 Alternative #1: Maintain business model 9 4.2 Alternative #2: Change business model 10 4.3 Alternative #3: Combination of new product and sustainable conduct 11 5.0 Evaluation 12 5.1 Analysis of the Alternatives 12 5.1.0 Alternative 1 12 5.1.1 Alternative 2 13 5.1.2 Alternative 3 13 6.0 Recommendations 13 7.0 Action Plan 14 8.0 Contingency Plan 15 9.0 Conclusion 15 10.0 References 16 Introduction FIJI Water was founded David Gilmour a Canadian hotel and gold mining mogul. In 1996, FIJI Water started its operations in the Islands of Fiji (McMaster & Nowak, 2009). They leased land from the Fijian government that was located on top of a massive artesian aquifer in the Yaqara Valley of Fiji's main island (McMaster & Nowak, 2009). FIJI Water was able to successfully attract consumers to its pure artesian water with slogans like "untouched" and "unpolluted" (McMaster & Nowak, 2009). With adopting a successful branding and marketing strategy, FIJI Water gained competitive advantage over its competitors through creating a unique brand image that is portrayed healthy, trendy, and high-end. Recently, FIJI Water has been facing heavy...
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...business in society. Here we discuss how the crisis may affect their trajectories, and we address the implications for strategy. Some trends, we argue, remain firmly on track, but uncertainties are cropping up around others. We also see signs of new forces emerging, which we will be exploring in more detail in the months ahead. The overall picture is of an altered business landscape. It does seem there will be no going back to the precrisis world. hbr.org Are these the right trends to watch? Share your thoughts with the authors at landscape.hbr.org. business executives are looking again to the future. As they reengage in strategic thinking, many are struck by a sense that the world has changed: The turmoil was not merely another turn of the business cycle but a restructuring of the economic order. Is that impression accurate? To answer this question, it is necessary to examine the underlying forces that shape the business environment and to look for discontinuities. McKinsey & Company tracks the most important of these forces, from the growth of emerging markets Lorenzo Petrantoni Eric Beinhocker is a senior fellow at the McKinsey Global Institute, McKinsey & Company’s economics research arm, where he leads research on economic, management, and public policy issues; he is based in London. Ian Davis, also based in London, is McKinsey’s th managing director. Lenny Mendonca is the chair of the McKinsey Global Institute and a director in the firm’s San Francisco o ce. hbr...
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... 2 VSM GROUP 1 2.1 Organisational Purpose 1 2.2 Corporate Governance 2 2.3 Stakeholders 2 2.4 Organisational Performance 2 3 MACRO ENVIRONMENT 2 3.1 PESTEL Analysis 2 3.2 Scenario Building 3 4 SEWING MACHINE INDUSTRY 3 4.1 Global Business Environment 3 4.2 Market Analysis & Structure 3 4.3 Industry Analysis 4 4.4 Competitor Analysis 4 4.4.1 Market Segmentation 4 4.4.2 Strategic Group Analysis (SGA) 5 4.4.3 Customer Value 5 5 STRATEGIC CAPABILITIES 6 5.1 Resources and Competencies 6 5.2 Diagnosing Strategic Capability 6 5.3 Development of New Competencies 7 6 COMPETITIVE/BUSINESS STRATEGY 7 6.1 Basis of Competition 7 6.2 Sustaining Competitive Advantage 7 6.3 Basis of Future Competitive Strategy 7 7 STRATEGIC OPTIONS 8 7.1 Improvement on Operating Profits 8 7.1.1 Production Relocation 8 7.1.2 Revenue Growth 8 7.2 Long-term Growth and Strategies 8 7.2.1 Market Diversification 9 7.2.2 Revenue Diversification 9 7.2.3 Cost Efficiency 9 8 BUSINESS IDEA 10 9 STRATEGY EVALUATION 10 9.1 Suitability 10 9.1.1 Options vs Key Strategic Issues 10 9.1.2 Options vs Scenarios 10 9.2 Acceptability 10 9.3 Feasibility 11 9.4 Evidence 11 10 RECOMMENDATION 11 11 REFERENCE 13 12 APPENDICES 18 EXECUTIVE SUMMARY VSM...
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...Summary: This is a five-week crash course in business, corporate, and global strategy – developing an understanding of strategy while exposing you to the challenge and rewards of negotiating your position as an opportunistic entrepreneur in a complex organization! Each block will provide you with information about (1) yourself, (2) fundamental perspectives in strategic management and global strategy, and (3) the interdependence of strategy formulation and implementation. The topics and concepts covered in each block are outlined below, and detail on your assignments are provided in the following pages. An integral part of the class will be the application of what you have learned throughout the program in an independent final project on your firm. Week One (Jan 12 & 13) Concepts S1-Friday: Intro and Amgen Case S2-Saturday: Jeffrey Immelt Case Week Two (Jan 26 & 27) S3-Friday: IBP Case S4-Saturday Copeland-Bain Case Week Three (Feb 9 & 10) S5-Friday: Millennium (A) Case S6-Saturday: Wendy Simpson Case Week Four (Feb 23 & 24) S7-Friday: Masco & Household Furnishings Cases S8-Saturday: Cisco & Grand Junction Cases Week Five (Mar 9 & 10) S9-Friday: Cross-cultural simulation S10-Saturday: Dennis Hightower Case Grading: 55% Group Case Projects, 30% Individual written project,...
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...1. D. The top priority of any software designer is to design a program that is useful to the end user. 2. C. Spreadsheets are too complicated for young children. As a result, it is typically more appropriate to start them out with a simpler file format such as a database. 3. A. Students should be familiar with common phishing ploys as well as the process of authenticating websites. 4. C. A peripheral is a device outside of the computer that either brings information into the system or allows the system to create an output. 5. B. Students can learn new computer programs much faster when they are allowed to participate and make progress through trial and error. 6. D. In the early years of school, children should only use software that reinforces the concepts that they have acquired through traditional instruction. 7. A. A virus hidden in a seemingly harmless program is known as a Trojan horse. Students should learn how to scan programs with anti-virus software to minimize the risk of Trojan horses. 8. B. Students need to work together in order to obtain all of the social and cognitive benefits that technology offers. 9. B. Social networking sites, blogs, and wikis are all considered to be part of Web 2.0. 10. D. Websites that are created and updated by users on their own browsers are typically called wikis. The best known wiki is Wikipedia, the user-generated encyclopedia. However, it is important to remember that the information on wikis is not always trustworthy. 11...
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...Infrastructure Tax environment Counterfeiting Intellectual property Conclusion 30 Related reading: Pharma 2020 31 References 32 Acronyms 38 Introduction The pharmaceutical industry’s main markets are under serious pressure. North America, Europe and Japan jointly account for 82% of audited and unaudited drug sales; total sales reached US$773 billion in 2008, according to IMS Health. Annual growth in the European Union (EU) has slowed to 5.8%, and sales are increasing at an even more sluggish rate in Japan (2.1%) and North America (1.4%).1 Impending policy changes, promoting the use of generics in these key markets are expected to further dent the top- and bottom-line of global pharma majors. The industry is bracing itself for some fundamental changes in the marketplace and is looking at newer ways to drive growth. promise, either as places with untapped demand for...
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...1. Acquisition Motives 5 3.2. M&A vs. Alliance 5 4. Target Identification 7 4.1. Protalix - an R&D Acquisition 9 5. Synergy Analysis 10 6. Standalone, Synergy and Premium Valuations 12 6.1. Market Value 12 6.2. Trading and Transaction Multiples Valuations 12 6.3. Discounted Cash Flow (DCF) Valuation 14 6.3.1. DCF Methodology and Assumptions 14 6.3.2. Summary of the Standalone and the Synergy DCF Valuation 15 6.4. Premium 16 6.5. Walk-away Price, Net Value Creation and Financial Feasibility 17 Part 2 - The Integration Plan 18 Bibliography 21 APPENDIXES 22 Appendix 1 - Pfizer's Executive Leadership Team 23 Appendix 2 - Pfizer's Organizational Structure Scheme 24 Appendix 3 - Five Forces Analysis for the Pharmaceutical Industry 25 Appendix 4 - Pfizer's PEST Analysis 27 Appendix 5 - Level of Competition Between the Acquirers & the Uniqueness of the Acquired Company 31 Appendix 6 - Acquisition Motives 33 Appendix 7 - Protalix Management and Board of Directors 35 Appendix 8 - Technology Adoption Lifecycle 36 Appendix 9 - Pfizer's SWOT Analysis 36 Appendix 10 - Protalix's Financials 38 Appendix 11 - About the Valuation Methods 40 Appendix 12 - List of Companies and Their Multiples 41 Appendix 13 - Complete Results of Multiples Valuations 42 Appendix 14 - DCF Data and Assumptions 43 Appendix...
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...address issues such as organizational boundaries, location of the operational activities, what activities to focus on and selection of value partners. The business model by which firms operate needs also to accommodate the spatial dimensions indicated by globalization; and the emergence of global technology markets. Little is known to date about the extent to which business models accommodate or are adapted to internationalization, innovation and entrepreneurship. This paper presents a review of the business model literature from which a generic business model framework is derived, identifying and introducing the main elements of these A. Onetti (&) Faculty of Economics, University of Insubria, Via Monte Generoso 71, 21100 Varese, Italy e-mail: alberto.onetti@uninsubria.it A. Zucchella Faculty of Economics, University of Pavia, Via San Felice 5, 27100 Pavia, Italy e-mail: antonella.zucchella@unipv.it M. V. Jones Business School, Department of Management, University of Glasgow, University Avenue, Glasgow G12...
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