Essays on Evolution of the Pharmaceutical Industry Assignment

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The paper "Evolution of the Pharmaceutical Industry " is a perfect example of a management assignment. The case study is that to be used in answering this essay describes the evolution of the pharmaceutical industry and the unusual strategic environment in the industry. Great attention is drawn to the environmental pressures from the payers and the regulators. The case study has also discussed the key driving forces in the industry and this also includes the addressing of the unmet medical needs the important role played by innovation as well as the time to market as well as globalization.

The case study has also discussed how the ever-increasing hostile environment while combined with the decline in R& D productivity and this has led to the loss of jobs, consolidation in the industry, diversification and outsourcing. This essay, therefore, seeks to address the question below which includes the identification of the main environmental forces that affect the global pharmaceutical industry, analyses of the five forces framework, identification of the strategic groups within the industry, the manner in which the strategic customers has evolved over time for the global pharmaceutical companies and lastly the identification and discussion of the prevalent ethical stance in the industry. Discussion Question 1a: Main environmental forces that affect the global pharmaceutical industry In assessing, the environmental forces that affect the global pharmaceutical industry the PESTLE analysis will be used.

The PESTLE analysis in most instances assists the organization in the understanding in more details the status of the organization and industry as well as the external factors that are affecting them (Shabaninejad et al. 2014). Through the analysis, players in the industry can come up with strategies for the future and tackle the weak areas in the organization. Political factors Foreign and domestic policies implemented by the government in a way have a great effect on the industry as opposed to other factors (Shabaninejad et al.

2014). A major factor that can be noted is the great influence that the government has on the industry. Based on the case study the pharmaceutical industry is subject to monophony in that there exists one powerful purchaser and that is the government. The government effect will greatly felt as since the industry is seen as an easy target in the government efforts to control the ever-rising expenditure in the healthcare sectors. Economic factors Of late the pharmaceutical industry is fewer effects as compared to other industries that major on manufacturing.

Some of the major economic aspects that affect the players in the industry are the taxes, interest, exchange rates in addition to inflation (Shah et al. 2015). Research and development seem to be a lengthy procedure and it has an economic effect on the players in the industry.

This has led to mergers and diversification to allow the companies to develop new drugs and enter new markets. Social factors The physical activities, the social life in addition to the level of health in the community also affects the industry in a great way. The changes in trends and social life mean a new direction in the industry (IFPMA 2015). For instance, the elderly in the society needs more drugs as compared to the people in the same society and when combined with the epidemic of the chronic diseases there is a creation of an unsustainable situation.

References

International Federation of Pharmaceutical Manufacturers & Associations (IFPMA) 2016, Facts and Figures 2015, The Pharmaceutical Industry and Global Health, viewed 15 March 2017, http://www.ifpma.org/fileadmin/content/Publication/2015/IFPMA_-_Facts_And_Figures_2015_web.pdf

International Federation of Pharmaceutical Manufacturers & Associations (IFPMA) 2016, 2015 Pharma by Numbers, The Pharmaceutical Industry and Global Health, viewed 15 March 2017, http://www.ifpma.org/fileadmin/content/Publication/2015/IFPMA_2015_Pharma_by_Numbers.pdf

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OTC Pharmaceuticals Industry Profile: Global 2015, Market Line, pp.1-39. EBSCOhost, viewed 15 March 2017, http://eds.a.ebscohost.com/eds/pdfviewer/pdfviewer?sid=9b27d47e-d1ce-4ee8-a3f0-93f20ef0b57c%40sessionmgr4005&vid=6&hid=4203

Porter, M. and Heppelmann, J 2014, How Smart, Connected Products Are Transforming Companies, Harvard Business Review, viewed 15 March 2017, https://hbr.org/2014/11/how-smart-connected-products-are-transforming-competition

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Shabaninejad, H., Mehralian, G.H., Rashidian, A., Baratimarnani, A. & Rasekh, H.R 2014, ‘Identifying and prioritizing industry-level competitiveness factors: evidence from pharmaceutical market’, DARU Journal of Pharmaceutical Sciences, Vol. 22 No. 35, pp. 1 – 17.

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