...The primary focus of this essay is the analysis of the global pharmaceutical industry and the substantially significant factors that shape this industry; the industry is primarily defined by very few yet critically influential factors; these consist of: governing bodies, the role of corporate social responsibility, and the emphasis put on the industry and firms by the Research and Development process. The most consequential factor placing emphasis on the industry is the governing body, with it being the legislative body and largest purchaser of the industry exclusive of the USA creates a strategic dilemma for the corporations in terms of profit maximization. Patent limitation, regulatory controls, price or reimbursement controls and extensive safety legislations are methods adopted by the government to legislate control and limitations over the industry. These legislations construct a paradigm that the main objective behind the intervention is to keep medicinal costs low as the majority of the population i.e. under 18’s, over 65’s and people primarily on benefits, medical costs are paid for by the government and with the ageing population the expenditure is ever increasing hence the various limitations. Being the legislative body and the largest purchaser gives the government various types of buyer control; the case study implies that the industry is a “monopsony”, giving the corporations very little bargaining power in terms of profit maximization and can often alter the strategic...
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...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...
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...Title: Strategy, Process, Content, Context, an international perspective Authors: Bob de wit en Ron Meyer Third edition Chapter 6,7,8 and 11 (each chapter also contains two readings) Chapter 6 Corporate level strategy Firms have a lot of growth options, while staying within the boundaries of a single business or broaden their scope even further through venturing into other lines of business and becoming multi-business corporations. Vertical integration: when a firm enters other businesses upstream or downstream within its own industry column. It can strive for backward integration by getting involved in supplier businesses or it can initiate forward integration by entering the businesses of its buyers. Horizontal integration: if the firm integrate related businesses at the same tier in the industry column. (Horizontal) diversification: if a firm expands outside of its current industry. The issue of corporate configuration: the issue of deciding on the best array of businesses and relating them to one another. Determining this can be disentangled into two main questions: 1. What business should the corporation be active in? (corporate composition. 2. How should this group of business be managed? (corporate management). Corporate composition This can be divided into: - corporate scope (how many businesses) - corporate distribution (the relative size of the activities in each business are covered) A common way of depicting...
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...SA SERIES SSL VPN APPLIANCES PRODUCT LINE PRESENTATION Submitted by: RADIUS Consulting Ghana Limited AGENDA 1. SSL VPN Market Overview 2. SSL VPN Use Cases 3. Access Control and AAA 4. End-to-End Security 5. Junos Pulse 6. Secure Meeting 7. Business Continuity with SSL VPN 8. Hardware, Management and High Availability 2 www.radiusconsultingghana.com Copyright © 2010 Juniper Networks, Inc. www.juniper.net BUSINESS CHALLENGE: GRANT ACCESS VS. ENFORCE SECURITY Maximize Productivity with Access... Allow partner access to applications (Extranet portal) Increase employee productivity by providing anytime, anywhere access (Intranet, E-mail, terminal services) …While Enforcing Strict Security Allow access only to necessary applications and resources for certain users Mitigate risks from unmanaged endpoints Customize experience and access for diverse user groups (partners, suppliers, employees) Enable provisional workers (contractors, outsourcing) Enforce consistent security policy Support myriad of devices (smartphones, laptops, kiosks) …And the Solution Must Achieve Positive ROI Minimize initial CAPEX costs Lower ongoing administrative and support OPEX costs 3 www.radiusconsultingghana.com Copyright © 2010 Juniper Networks, Inc. www.juniper.net THE SOLUTION: JUNIPER NETWORKS SA SERIES SSL VPN APPLIANCES Mobile User – Cafe Secure SSL access to remote users from any device or location Easy access from Web-browsers – no client software to manage...
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...Pfizer and the Challenges of the Global Pharmaceutical Industry Case Study Introduction This report is to summarize the results of Pfizer’s challenges on global pharmaceutical industry and analyze driving factors of competition. I briefly give the industry definition describing the scope of the analysis. The paper has the following major goals: 1) To analyze the current situation, major competition challenges and the prospects of the pharmaceutical industry; 2) To assess Pfizer’s position as a major players of the global pharmaceutical industry and make a comparative analysis of other business practices and financial results using the VRIO method; 3) To recommend Kindler opportunities for further strengthening of their positions by conducting Porter 5 forces. Pharmaceutical Industry Overview Historically, the pharmaceutical industry has developed, produced and marketed one of the most profitable and high margin drugs for many years. This industry has gone through substantial changes in the last few decade and pharmaceutical firms face major challenges, including headline-grabbing litigation, imminent patent expirations, new technologies, rising drug development costs, generic drug substitution, international competitors, and complex public policy issues. Competition Challenges and Prospects A firm must develop a product-market diversification strategy otherwise it may face substantial setbacks once the product loses momentum. It’s important...
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...The Global Pharmaceutical Industry: Conduct an external analysis Introduction The pharmaceutical industry is described by high levels of risky and lengthy R&D process, tough competition for intellectual property, tighter government regulations and powerful pressures on buying power. (Johnson, 2006) In 2011, several blockbuster drugs patent like Lipitor will expire, possibly endangering the revenues of the pharmaceutical industry for the next three to five years. On the global level, the historical supremacy of the US was being challenged with the highest market growth rates recorded in emerging markets. The industry more than ever need to get a handle on the slippery business by offering a true step change in strategy. This case study will critically analyse the Global Pharmaceutical Industry with PESTEL, Porter’s five forces, SWOT analysis and plausible views of industry in the future. PESTLE PESTLE analysis used to help organisation to understand in depth that what is the current status of the organisation and the external factors which are effecting. It also helps to the Management to make strategy for the future and overcome the weak areas of the organization. PESTLE is comprises of political, Economical, Social, Technological, Legal and Environmental factors. Political The both policies (domestic and foreign) of government have a great effect on the industry innovation as compare to the other factors. To get the attentions of firms due to increase the economic...
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...CASE 1 : THE GLOBAL PHARMACEUTICAL INDUSTRY : SWALLOWING A BETTER PILL 1. INTRODUCTION The global pharmaceutical industry is a multinational industry that develops, manufactures, and sells drugs licensed for the treatment. Pharmaceutical companies can sell generic or patent medicines. Health products of the pharmaceutical industry is very often found on the market in the world so that makes the brand of the pharmaceutical industry they are known in the world because of the many products sold are certainly many benefits. As we know there are many companies working in this field. Among the companies that are well known, namely Bayer Healthcare, Johnson & Johnson, Pfizer, Novartis, Hoffmann-La Roche, GlaxoSmithKline, Sanofi-Aventis and many more. The names of these companies are not necessarily familiar to the public. Among the names of global pharmaceutical companies are already very well known, many of which are based in United States. With reasonable price, not too expensive or cheap and very easy to find. Medicinal products from global pharmaceutical companies to be very favorite countries in the world. But of course if explored further, something will have positive and negative, strengths and weaknesses also have external influences whether it be an opportunity or a threat. In this paper will explain a little about the SWOT analysis of the global pharmaceutical companies along with solutions and recommendations. 2. SWOT Analysis SWOT analysis is the analysis...
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...PHRMA Table of Contents 1) Introduction page 3 2) History/Overview of the Industry page 3 3) Economic Characteristics page 4 a) Structure b) Costs c) Demand d) Competition- The Rise of the Generics e) Market Failure, Government Intervention and Price 4) Performance page 7 5) Impact of the Global Economic Downturn page 9 6) Summary page 10 7) Conclusion page 11 Bibliography page 12 8) 1. Introduction This paper briefly examines the current state of the pharmaceutical industry, as well as the economic characteristics, performance, and the impact of the global recession. The industry is made up of several enterprises engaging in the research, development, manufacture and marketing of medicines, vaccines, medical devices, and nutritional products for humans and animals. Though, this multi-billion dollar industry includes large ethical drug multi-nationals (often referred to as Big Pharma), mid-sized specialty pharmaceutical companies, manufacturers of generics, small biotechnology and biopharmaceutical firms, and service companies, 1 for the purpose of this paper, the emphasis will be mainly on drug makers. 2. History/Overview of the Industry The pharmaceutical industry of today is a far cry from its humble beginnings in the nineteenth century of physicians mainly prescribing plant extracts to being technology intensive, dominated by a few...
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...The History and Analysis of the Pharmaceutical Industry Pharmaceuticals Industry Analysis 1. 2. 3. 4. 5. 6. 7. 8. Origins and Evolution Environmental Analysis (PEST) Structural Industry Analysis (Porter’s Five Forces) Strategic Issues Facing The Industry Analysis of Key Industry Participants and Strategy Pfizer – SWOT Analysis and Strategy Review Conclusion References 2 2 4 5 6 8 10 10 i Pharmaceuticals Industry Analysis Executive Summary This report provides an analytical strategic review of the pharmaceutical industry; it’s origins, evolution, development and competitive environment within which it operates and the strategic issues facing the industry. The report also offers an overview of the industry, it’s key players, their strategic outlook, the impact of technological developments and other strategic issues facing the industry. The latter sections of the report focuses on the industry’s leading firm, Pfizer\Pharmacia. Page 1 Pharmaceuticals Industry Analysis The Pharmaceutical Industry 1. Origins and Evolution 1 The modern pharmaceutical industry is a highly competitive non-assembled global industry. Its origins can be traced back to the nascent chemical industry of the late nineteenth century in the Upper Rhine Valley near Basel, Switzerland when dyestuffs were found to have antiseptic properties. A host of modern pharmaceutical companies all started out as Rhine-based family dyestuff and chemical companies e.g. Hoffman-La Roche...
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...The Pharmaceutical Industry 1. Origins and Evolution The modern pharmaceutical industry is a highly competitive non-assembled1 global industry. Its origins can be traced back to the nascent chemical industry of the late nineteenth century in the Upper Rhine Valley near Basel, Switzerland when dyestuffs were found to have antiseptic properties. A host of modern pharmaceutical companies all started out as Rhine-based family dyestuff and chemical companies e.g. Hoffman-La Roche, Sandoz, Ciba-Geigy (the product of a merger between Ciba and Geigy), Novartis2 etc. Most are still going strong today3. Over time many of these chemical companies moved into the production of pharmaceuticals and other synthetic chemicals and they gradually evolved into global players. The introduction and success of penicillin in the early forties and the relative success of other innovative drugs, institutionalized research and development (R&D) efforts in the industry 4. The industry expanded rapidly in the sixties, benefiting from new discoveries and a lax regulatory environment. During this period healthcare spending boomed as global economies prospered. The industry witnessed major developments in the seventies with the introduction of tighter regulatory controls, especially with the introduction of regulations governing the manufacture of ‘generics’5. The new regulations revoked permanent patents and established fixed periods on patent protection for branded products, a result of...
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...Student Name : Singh, R. : Hariram, E. : Marimuthu, V.K. Student Number : 20054057 : 20101233 : 19852274 Assignment Title : The Global Pharmaceutical Industry. Date : 10 March 2012 Programme : BTECH-MANAGEMENT IV Question 1 Identify the main environmental forces currently affecting the global pharmaceutical industry? PESTEL analysis of the global pharmaceutical industry: Political * Governments set stringent regulation and is a powerful purchaser. * Governments around the world focus on pharmaceuticals as a politically easy target in their efforts to control rising health care expenditure. * Inter-country pricing disparities. Economic * European free trade agreements. * Deregulation of market to allow foreign drugs to compete. Social * Ageing population puts pressure on healthcare systems. * Epidemic of chronic diseases. * Rising consumer expectations. * Payers choosing generic drugs for first-line treatment of common ailments. Technological * Increase productivity, decrease costs and develop new treatment modalities to enhance profitability. * Impact of Internet on traditional business models. * Impact of genetic research on industry. Environmental * Industry operations are becoming more stringent with increasing standards and requirements for environmental protection. Legal * Rigorous regulatory scrutiny governed by legislation. * Legislation enacted to set a...
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...The pharmaceutical industry is described by high levels of risky and lengthy R&D process, tough competition for intellectual property, tighter government regulations and powerful pressures on buying power. (Johnson, 2006) In 2011, several blockbuster drugs patent like Lipitor will expire, possibly endangering the revenues of the pharmaceutical industry for the next three to five years. On the global level, the historical supremacy of the US was being challenged with the highest market growth rates recorded in emerging markets. The industry more than ever need to get a handle on the slippery business by offering a true step change in strategy. This will critically analyse the Global Pharmaceutical Industry with PESTEL, Porter’s five forces, SWOT analysis and plausible views of industry in the future. PESTLE PESTLE analysis used to help organisation to understand in depth the current status of the organisation and the external factors which are effecting it. It also helps to the Management to make strategy for the future and overcome the weak areas of the organization. PESTLE is comprises of political, Economic, Social, Technological, Legal and Environmental factors. Political The both policies (domestic and foreign) of government have a great effect on the industry innovation as compare to the other factors. To get the attentions of firms due to increase the economic importance, government offer special incentives which encourage to the industry to globalisation. For...
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...• The Global Pharmaceutical Industry: Swallowing a Bitter Pill 1. Identify the main environmental forces currently affecting the global pharmaceutical industry. PESTLE analysis used to help organisation to understand in depth that what is the current status of the organisation and the external factors which are effecting. It also helps to the Management to make strategy for the future and overcome the weak areas of the organization. - Political: Governments targeted this industry in their effort to avoid high healthcare costs. Strict regulations were established by them. Governments are very powerful and important purchasers of pharmaceutical products. Stringent government regulation and powerful purchaser pressures. Governments around the world focused on pharmaceuticals as a politically easy target in efforts to control rising healthcare expenditure. Inter-country pricing disparities. - Economic: Some markets suffer constraint. Recession causes tax revenues to fall, market contraction. European free trade agreements. - Social: Ageing population creates pressure on healthcare system. This is caused by the increment of the average life expectancy, among many other things. Also, expectations of consumers are higher. Ageing populations create pressure on healthcare systems. Epidemic or chronic diseases (e.g. obesity). More expectations from the consumer. Payers choosing generic drugs for first-line treatment of common ailments. - Technological: The new modern communication...
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...Report analyzes the US pharmaceutical industry Report analyzes the US pharmaceutical industry Published on April 9, 2010 at 12:04 PM Research and Markets (http://www.researchandmarkets.com/research/eded8d/pharmaceutical_ind) has announced the addition of the "Pharmaceutical Industry in the United States" report to their offering. Over the past decade, pharmaceutical companies have pushed the scientific envelope, working at the cellular and molecular levels to dramatically advance the treatment of disease. Between 1995 and 2005, more than 300 new drugs, biologics, and vaccines that prevent and treat over 150 conditions were approved by the FDA. The FDA also gave the go-ahead for numerous new indications for previously approved medicines, allowing physicians to tailor treatment strategies to meet a patients individual disease status, past medication history, side effect tolerance, and preferences. The US pharmaceutical industry is a highly globalized industry, dominated by multinational companies that engage in significant business activity in many countries and whose products are distributed and marketed worldwide. The industry has undergone dramatic structural changes over the past few decades, with the rise of the biotechnology sector, substantial growth in demand driven by demographics and substitution away from other therapeutic modalities such as surgery, and increased competition from globally active generic manufacturers. The pharmaceutical industry is under mounting scrutiny...
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...that drive the pharmaceutical industry with a brief insight into how these levers impact the key players and decisions in the sector. The report will also relate the key drivers of the industry to the pharmaceutical industry in Ireland and how it is facing these global challenges. Historically, the sector was dominated by large scale bulk compound manufacture but this has evolved into a diverse range of complex technologies and treatments. In order to elaborate/detail on how this influences the strategy of individual organisations, we will highlight some of the activities of Glaxo-Smithkline (GSK) and how this company has evolved to adapt to the dynamic nature...
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