...balThe global pharmaceutical industry THE GLOBAL PHARMACEUTICAL INDUSTRY INTRODUCTION According to Hunter s. Thomas "you can turn your back on person, but never turn your back on a drug, especially when it's waving a razor sharp hunting." The global pharmaceutical industry had done tremendous contribution to mankind, but now pharmaceutical companies are facing tough time in a decade. The case is broken in to different parts which is emphasized on how internal and external factors affecting the industry firstly, the main environmental forces currently affecting the industry through PEST analysis. Secondly, the implications of the changes in business environment that is internal factors through porter's five force theory. Finally, the use and limitations of the tools applied to solve case are discussed. ORIGIN AND EVOLUTION The present pharmaceutical industries are non-assembled and more of competitive but it had emerged in early 19th century in the Rhine valley near Basel Switzerland where dyestuffs were found to have antiseptic properties. Companies like Hoffman-la rochy, Sandoz, Novartis are all started as Rhine based family dyestuff and chemical companies, which are still doing tremendous business even to day. Slowly these chemical companies started making pharmaceuticals and synthetic chemicals and evolved as global players. In early 1940's the industry showed drastic changes such as introduction of penicillin and other drugs. In 1960's industry growing rapidly with the...
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...Background of insurance industry of bd Insurance is not a new idea or proposition to the people of Bangladesh. About half a century back, during the British regime in the then India, some insurance companies started insurance business, particularly life, in this part of the world. Since 1947 until 1971 insurance business gained momentum in this part of what was then known as East Pakistan. There were about 49 companies transacting both life and general insurance business. These companies were operating under a free competitive economy. After the emergence of the People’s Republic of Bangladesh in 1971, the government, in order to make available the fruit of liberation to the general mass, nationalized the insurance industry along with the banks in 1972 by Presidential Order No. 95. By virtue of this order, save and accept postal life insurance and foreign life insurance companies (other than the Pakistani companies), all companies and organization transacting all types of insurance business in Bangladesh came under this nationalization order. At the same time, five insurance corporations were initially established by the Government, viz, Jatiya Bima Corporation (National Insurance Corporation), Teesta Bima Corporation (Teesta Insurance Corporation), Karnaphuli Bima Corporation (Karnaphuli Insurance Corporation), Rupsa Jiban Bima Corporation (Rupsa Life Insurance Corporation), Surma Jiban Bima Corporation (Surma Life Insurance Corporation). On 14th May, 1973 the Insurance Corporation...
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...PEST Analysis P- Political Factors affecting the healthcare environment Insurance mandates, such as the individual mandate, are an element in the political sphere that could have an impact on healthcare. The individual mandate requires that individuals or families have health insurance or pay a penalty. Although it has recently been repealed, it continues to affect the healthcare environment, as many will continue to be uninsured. E- Economic Factors affecting the healthcare environment Unemployment is an example of how economic factors affect the healthcare environment. If people are losing their jobs this means there will be a greater loss of health insurance coverage, which will affect the type of health services people receive. S- Sociocultural Factors Demographics, values, and beliefs of various consumer groups should be identified in a PEST analysis. Organizations should be knowledgeable about the community it serves to avoid violating community values. For example, the Hispanic population is a growing population and as of 2017, the percentage of Hispanics in the United States is 17.8 (census.gov). T- Technological Factors...
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...exportation of goods or services. The Emirates Motor Company has for many years engaged in the importation of Mercedes Benz from Germany into the UAE. One of the major challenges that the organization has suffered is lack of sufficient funding. As such, the organization has not been in a position to fully exploit the UAE market. The company also has to deal with high cost of operations. Importation activities require firms to pay for shipping and loading charges for the goods. The importer also has to incur insurance charges. The costs result in an increase in the cost of commodities making them undesirable to customers. Delays in payment also make it difficult for the company to replenish its stock. Outline 1. Executive Summary 2. Introduction 3. Literature Review a) An Overview of the Emirates Motor Company’s Import Business b) History of Importation of Mercedes Benz Automobiles from Germany to the UAE c) External Analysis of the World Automobile Industry d) External Analysis of the Trade between the UAE and Germany in Automobiles e) Internal Analysis of the Emirates Motor Company (EMC) 4. Methodology 5. Results 6. Discussion Challenges Facing Mercedes Benz UAE in the Export of Cars to Iran Introduction Mercedes Benz is a Germany based manufacturer of automobiles. It is a division of Daimler AG. Mercedes Benz as a brand engages in the manufacture of a wide variety of automobiles which range from...
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...Political Factors Political factors includes government regulations and legal issues defines both formal and informal rules under which firm operates some example like tax policy, trade restrictions and tariffs, political stability. Political arena has huge influence up on the regulations of business and the spending power of consumers and other business. Over many years the pharmaceuticals industry has increased political attentions because of increase in recognitions of the economic important of healthcare as a component of social welfare . It takes 10-15 years on average to experiment drug to travel from lab to patient consumption, as patent protection is fixed that is only 20 years but companies has to spend 15 years on experiments by the time it reaches to the market the patent will be almost comes to expired and which will result in birth of generic medicines which has exactly same ingredients as of branded drugs but shows huge difference in price, because the generic brand does not spend on clinical trials so the entry of generic are the major impact on pharmacy industry because of the legal policy set by political forces example in us 84% of sales had been dropped in 12 weeks by Allegra hay fever treatment because of expiry of patent in 2006. Another major problem affecting the industry in many countries are monophony which means only one powerful purchaser who are government. Since 1980 government around the world attracting pharmaceuticals as a politically easy target...
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...------------------------------------------------- Economics of the Pharmaceutical Industry Some of the factors affecting Supply in the Pharmaceutical Industry September 18, 2013 MBA BATcH 8 Prepared by: Amel Mohamed, Muna Abbas & Wafaa Gaafer September 18, 2013 MBA BATcH 8 Prepared by: Amel Mohamed, Muna Abbas & Wafaa Gaafer The well-being of the pharmaceutical industry is dependent largely on the economy. It is also a heavily regulated industry. Drugs are evaluated for safety, efficiency, and manufacturing quality as a condition of market access, and promotional messages must adhere to approved product characteristics. Drug prices also are regulated in most countries with national health insurance systems. The main factor that affects the industry is employment because a majority of Sudanese receive health insurance through their employers. Other economic factors such as the number of people who are uninsured or underinsured, performance and industry structure, the effects of regulation on prices, availability and utilization of drugs and productivity as well as the government stimulus plans also affects the industry. Unemployment Paramount to any industry is the number of people who are unemployed. In the first decade of the 20th century, this became a major political issue in the United States. Unemployment affects the pharmaceutical industry in two major ways. First, people who do not have jobs usually do not have the funds to buy the pharmaceuticals...
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...European Journal of Economics, Finance and Administrative Sciences ISSN 1450-2887 Issue 17 (2009) © EuroJournals, Inc. 2009 http://www.eurojournals.com A Synthesis of the Critical Factors Affecting Performance of the Nigerian Banking System Godwin Chigozie Okpara Department of Banking and Finance, Abia State University, Uturu E-mail godgozie@yahoo.com Abstract This paper is set out to determine the factors impacting most on the performance of the banking system in Nigeria. To do this, factor analysis technique was used on the factors identified by the collaborative study of the CBN/NDIC. The result revealed that factors such as undue interference from board members, political crises, undercapitalization and fraudulent practices are the most critical factors inhibiting the efficient performance of the Nigerian financial institutions. The author therefore contends that the just concluded N25billion recapitalization exercise of the central bank was a necessary but not a sufficient measure in the right direction. The sufficient measure must be one that controls all the identified critical factors at the same time. 1.0. Introduction Banks in most economies are the principal depositories of the public's financial savings, the nerve centre of the payment system, the vessel endowed with the ability of money creation and allocation of financial resources and conduit through which monetary and credit policies are implemented. The success of monetary policy, to a large extent, depends...
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...Different factors affecting sony company: “Analyse of the external environment could be assist by acronym PEST, which is standing for political, economical, sociocultural, and technological factors. It is also known as environmental scanning. PEST is useful tool to monitor and evaluate forces and factors affecting the company in long term” J Morrison (2002). Political/legal environmental: It is roles and regulation, which has been imposed by a stable government on the business. On the other hand, these changes may expected from the government in the future by business. Political factors of Sony can be changed at any time, which could affect business of the Sony at time of change. As well as instability in political situation of country will affect the business Reduction in recession and credit crunch could cause Sony to speed up its trade; meanwhile same situation could happen for the competitors of Sony, which may affect Sony negatively. Therefore, Sony needs to be very careful to its innovation and idea generation. Sony is globalized company so that changing in international law or trade restriction could affect the way in which Sony works, and Sony needs to follow the rules and regulations, that are imposed by the government. The terms legal always cannot come with term political because most of the time, by change in the politics of a country the legal terms and condition for business environment may remain the same. So that it could be named exceptionally, separate...
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...decisions depending on the factors in the macro environment.To analyse these external factors, the bussiness planners categorised to as PESTEL model.It is helpful strategic tool for understanding business position, market growth or decline, potential. PESTEL analysis is vital and used widely to understand the external factors affecting the organisation.It is a strategic external analysis used to evaluate (Political,Economic,Social,Technological,Environmental ,Legal) of a particular organisation or business.It is very important when you start operating in a new region or country.It also helpful to break your unconscious assumptions,and you can adapt to the reality of new environment. POLITICAL: political factors are how and to what degree a government interfere in the country economy.It includes areas like tax policy,labour laws, environmental laws,trade restrictions,political stability. ECONOMICAL:The factors include in economical are economic growth, interest rates,exchange rates,inflation rates.It is how government supports trading and business in the country. SOCIAL: Social factors include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. TECHNOLOGY: Technological factors include technological aspects such as research and development (R&D) activity, automation, technology incentives and the rate of technological change. ENVIRONMENTAL:The factors include ecological and environmental...
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...for Political, Economic, Social and Technological factors, which are used to assess the market for a business or organizational unit. The PEST analysis headings are a framework for reviewing a situation, and can also, like SWOT analysis, and Porter's Five Forces model be used to review a strategy or position, direction of a company, a marketing proposition, or idea. To get the most out of a PEST analysis, businesses should understand each of the four factors. 1. Political : * New state tax policies for accounting * New employment laws for employee handbook maintenance * Political instability in a foreign partner country 2. Economic: * International economic growth * Changes in interest rates 3. Social : * Shift in educational requirements and changing career attitudes * Population growth rate 4. Technical : * Automated processes in the industry * Rate of innovation * Changes in technology incentives 2. Give four examples of other external factors not featured in the case study. There are few more factors which affects business than PEST analysis factors. Few of them are as below: (1) ENVIRONMENTAL FACTORS : Environmental factors itself suggest that it is related with nature. This is also important factors which influence firm's business. No one can predict that what will happen in future because future is unpredictable. This environmental factor affects specially industry such as tourism, farming, and insurance. Environmental...
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...The Macro Environment factors are: 1) Demographic Environment 2) Economic Structural Environment 3) Technological Environment 4) Political Environment MACRO-ENVIRONMENTAL FACTORS A business and its forces in its micro environment operate in larger macro environment of forces that shape opportunities and pose threats to the business. It refers the major external and uncontrollable factors that influence an organization's decision making, and affect its performance and strategies. These factors include the economic factors; demographics; legal, political, and social conditions; technological changes; and natural forces. The important environmental factors are; (1) Economic Environment (2) Political and Governmental Environment (3) Socio-cultural Environment (4) Natural Environment (5) Demographic Environment (6) Technological Environment (7) International Environment. 1. Economic Environment: - Economic environment of business has reference to the board characteristics of the economic system in which the business operates. The business sector has economic relation with the government, capital market; household sector and global sector. These sectors together influence the trends and structure of the economy. The form and functioning of the economy vary widely. The importance external factors that affect the economic environment of a business are; (i) Economic Conditions: - The general Economic conditions prevailing in the country viz. national income, per capita...
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...and Brazil A country with a free economy have a higher standard of living than countries with poor economies. The standard of living can be determined by the overall economic standing, policy or reforms, political, social, and cultural conditions that a country displays. These factors can be measured in different ways such as the GDP, population, history, and various sources. In this paper, I will examine the economic structure of six countries and emphasize factors that contribute to the standard of living. Sweden Sweden is the world's 27th freest economy. According to the 2008 Index of Economic Freedom (IEF), it has an economy that is 70.4% free. Services, industry, and agriculture account for 59.8%, 38%, and 2.8% of GDP (World Factbook). It relies heavily on international trade, accounting for more than 50% of GDP. Main exports include paper products, machinery and transport equipment, and chemicals. The population is 9 million with a GDP of about $308.9 billion. Citizens are provided with a broad spectrum of public services and social welfare benefits that guarantee a minimum living standard and all residents are covered by national health insurance (Soldenberg). It is known to have one of the highest living standards in the world. Factors affecting economic freedom and living: 1. The ethics and adherence to the system in Sweden is very favorable to Swedes. The government is a socialist government. Judging by its social welfare benefits, the well-being...
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...Analysis conducted consists of both an extensive analysis on the external environment and the internal environment. The external environment analysis is conducted in order to identify the nature of the environment Ryanair operates in and its impact on the strategic situation of the company. Through PESTEL, External factor and Industry analysis conducted, rejection of Aerlingus offer and rules and regulations imposed by governments etc. are recognized as the critical external environmental factor affecting Ryanair’s strategy. An analysis of the internal environment through Value Chain model and SWOT analysis reveals the key issues hindering the strategic success of the firm; poor customer service and human resource problems. While this initial environmental analysis is used to assist the strategic analysis that is to be conducted on Ryanair, the importance of taking necessary actions regarding the critical issues is highlighted, CONTENT EXECUTIVE SUMMARY 1 CONTENT 2 1INTRODUCTION 3 2 OVERVIEW OF RYANAIR 4 3 CRITICAL ISSUES 5 4 EXTERNAL ENVIRONMENT ANALYSIS 6 4.1 MACRO ENVIRONMENT ANALYSIS (Appendix 1) 6 4.2 INDUSTRY ANALYSIS (Appendix 2) 8 4.3 EXTERNAL FACTOR ANALYSIS (Appendix 3) 8 5 INTERNAL ENVIRONMENT ANALYSIS 9 5.1 VALUE CHAIN ANALYSIS 9 5.2 SWOT ANALYSIS 11 Strengths 12 Weaknesses 12 Opportunities 12 Threats 13 6 CONCLUSION 14 7...
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...Marketing Environment Analysis for India We would see on what is the marketing Environment analysis with the PESTAL ANALYSIS, which stands for Political, Economic, Social, Technological, Legal and Environment, all areas affecting a business. * POLITICAL: The capital market of India is very vulnerable. This is because of its democracy way and also the extremely unbalanced growth and rampant corruption. India has been politically instable in the past but it is a little politically stable nowadays. The political instability of the country has a very strong impact on the capital market. The share market of India changes as the political changes took place. This is clearly seen in the Hindus and Muslims crisis between 2003 and 2004. The capital market of India is too weak and is based on speculations. The political stability of the country is very important for the stability and growth of capital market in India. The political imbalance or balance of the country is the major factor in deciding the capital market of India. The political factors include: 1. employment laws 2. tax policy 3. trade restrictions and tariffs 4. political stability * ECONOMICAL: The economical measures taken by the government of India has a very strong relationship with the capital market. Whenever the annual budget is announced the capital market goes up and down with the economical policies of the government .If the policies are supportive to the companies then the...
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...Summary Kohl’s Corporation currently does not do business in India. Kohl has opened their first store in Brookfield, Wisconsin back in 1962. Today Kohl’s operates approximately 1,160 family-oriented department stores in the United States and is now trying to establish its business in India. According to Kohl’s .com Investor relations, the company is involved in retail trading of merchandise in different forms. The company position is between the higher-end department stores and the discounters, selling everything from candy to engine oil to sporting equipment. Kohl’s stores are stocked with everything customers need for themselves and their homes - apparel, shoes & accessories for women, children and men, plus home products like small electrics, bedding, luggage and more. Kohl’s is a retail-trading business that would be a good fit entering into the Indian Market. India as a country is improving year after year in many phases and the economy of India has improved dramatically over the last decade. Because of the improvement’s year after year, India may establish itself as one the best economies going forward. The population of India is estimated to increase by 283,272,877 (22.4%) to 1,550,674,726 in the year 2100. (Blue Marble Citizen, n.d.). as the population grows, the income levels for people have gone up and they will spend more money in such merchandise that kohl’s offer. The income levels of people in India have come up because of the good numbers of employment...
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