Business strategy in financila services Essay Example | Topics and Well Written Essays - 2000 words

Business strategy in financila services - Essay ExampleA host of sophisticated pharmaceutical companies all started out as Rhine-based family dyestuff and chemical substance companies e.g. Hoffman-La Roche, Sandoz, Ciba-Geigy (the product of a merger in the midst of Ciba and Geigy), and Novartis1 etc. Most ar still going strong today2. Over time many of these chemical companies moved into the production of pharmaceuticals and other synthetic chemicals and they gradually evolved into global players. There are certain factors akin the introduction of the penicillin during the late 1940s, its success and relative success of many other innovative drugs which actually charge the efforts of research and development (R&D) in the pharmaceutical manufacturing. 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 generics3. The new regulations revoked permanent patents and launch fixed periods on patent protection for branded products, a result of which the market for branded generics4 emerged.PESTLE outlinePESTLE analysis is a reclaimable tool for understanding the big picture of the environment, in which you are operating, and the opportunities and threats that lie within it. By understanding the environment in which you operate (external to your company or department), you female genitalia take advantage of the opportunities and minimize the threats (RAPIDBI).Specifically the PEST or PESTLE analysis is a useful tool for understanding risks associated with market growth or decline, and as such the position, potential and direction for a business or organization. Technological advancements, tighter regulatory-compliance overheads, rafts of patent expiries and volatile investor confidence have made the advanced(a) pharmaceutical industry an increasingly tough and competitive environment. An analysis of the structure of the pharmaceutical industry apply the PEST (political, economic, social and technological) model (Susanne, 2004) is given below.Increasing Political AttentionOver the years, the pharmaceutical industry has witnessed increased political attention due to the increased recognition of the economic importance of healthcare as a component of social welfare. Political interest has also been generated because of the increasing social and financial burthen of healthcare. Examples are the UKs National Health Service debate and Medicare in the US.Increased Economic ValueDuring the year 2003, there were many high value mergers and acquisitions which were witnessed by the global pharmaceutical industry. With a projected var. value growth rate of 10.5% (2003-2010) and Health Care growth rate of 12.5% (2003-2010), the audited value of the global pharmaceutical market is estimated to reach a huge 500 billion dollars by 2004. Only information technology has a higher expected growth rate of 12.6%. Majority of