The Global Pharmaceutical Industry
Strategic Management
Student name: Thivhilelililio Mkojiholo
Assignment Title: The Global Pharmaceutical Industry
Date: 2011 August 20
Table of content
Contents Page
1. Introduction 4
2. Pestel analysis of the global pharmaceutical industries 5-6
3. Drivers for change in the future of pharmaceutical 7
4. Five forces analysis on the global pharmaceutical industry 8-10
5. Threats to a big pharmaceutical company 11
6. Conclusion 12
7. Bibliography 13
Introduction
The pharmaceutical industry
According to (Johnson et al, 2008:56) the pharmaceutical industry can be traced to the late nineteenth century. It develops, produces drugs for use as medications. The pharmaceutical companies are allowed to deal in generic and or brand medications and medical devices. According to the Wikipedia the industry is are subject to a variety of laws and regulations regarding the patenting, testing and ensuring safety and efficacy and marketing of drugs. This industry has made huge contribution to human well-being. The industry has seen significant changes in the recent years with the introduction of many regulations to regulate the industry in part to protect the users and in part to control the rising cost which the industry was synonymous for which resulted in the industry lacking the public and the political support to fight off the many regulation that were coming its way (Johnson et al, 2008:56). Wikipedia also stated that the pharmaceutical industry is very risky because to develop a drug it requires huge investments and out of the thousands discovered compounds, only one might become an approved drug for sale with the failure rate very high and very difficult to get return on investment.
Question 1
PESTEL framework
According to Morrison & Daniels (2011) PESTLE analysis is often used as a generic 'orientation ' tool to find out where an organisation or product is, in the context of what
Student name: Thivhilelililio Mkojiholo
Assignment Title: The Global Pharmaceutical Industry
Date: 2011 August 20
Table of content
Contents Page
1. Introduction 4
2. Pestel analysis of the global pharmaceutical industries 5-6
3. Drivers for change in the future of pharmaceutical 7
4. Five forces analysis on the global pharmaceutical industry 8-10
5. Threats to a big pharmaceutical company 11
6. Conclusion 12
7. Bibliography 13
Introduction
The pharmaceutical industry
According to (Johnson et al, 2008:56) the pharmaceutical industry can be traced to the late nineteenth century. It develops, produces drugs for use as medications. The pharmaceutical companies are allowed to deal in generic and or brand medications and medical devices. According to the Wikipedia the industry is are subject to a variety of laws and regulations regarding the patenting, testing and ensuring safety and efficacy and marketing of drugs. This industry has made huge contribution to human well-being. The industry has seen significant changes in the recent years with the introduction of many regulations to regulate the industry in part to protect the users and in part to control the rising cost which the industry was synonymous for which resulted in the industry lacking the public and the political support to fight off the many regulation that were coming its way (Johnson et al, 2008:56). Wikipedia also stated that the pharmaceutical industry is very risky because to develop a drug it requires huge investments and out of the thousands discovered compounds, only one might become an approved drug for sale with the failure rate very high and very difficult to get return on investment.
Question 1
PESTEL framework
According to Morrison & Daniels (2011) PESTLE analysis is often used as a generic 'orientation ' tool to find out where an organisation or product is, in the context of what
Bibliography: 1. Johnson, G., Scholes, K. Whittington, R, 2008. Exploring Corporate Strategy, Text and Cases. Prentice Hall. UK 2. Shaw, A. January - 19 – 2011. A PESTLE Analysis for the Pharmaceutical Industry. Strategic-Planet. 3. Mind Tools. 2011. Assessing the Balance of Power in a Business Situation. Porter’s Five Forces. http://www.mindtools.com/pages/article/newTMC_08.htm#. 4. Berger, R. July 7 2008. Strategy consultant: Global pharmaceutical road at a crossroad. www.rolandberger.com 5. Gillespie: Foundations of Economics - Additional chapter on Business Strategy. PESTEL analysis of the macro-environment. 2007 Oxford University Press http://www.oup.com/uk/orc/bin/9780199296378/01student/additional/page_12.htm 6. Morrison, M. Daniels, K. 2011. PESTLE analysis. CIPD. http://www.cipd.co.uk/hr-resources/factsheets/pestle-analysis.aspx. 7. Wikipedia. Pharmaceutical industry. http://www.wikipedia.org/wiki/pharmaceutical_industry