Q1 Using Pestel Analysis, identify what environmental factors are affecting big pharmaceutical companies strategically?
Introduction
Johnson and Scholes (2002) p10 define strategy as “the direction and scope of an organisation over the long term, which achieves advantage for the organisation through its configuration of resources within a changing environment and to fulfil stakeholder expectations.” The purpose of an environmental scan is to develop a list of diverse variables from an uncertain and complex world to offer actionable responses and in so doing allow a structured framework for defensive or offensive actions.
The Pharmaceutical Industry environment is an ethical drugs industry aimed at providing beneficial products and services for human consumptions as well as chemical medicaments and biotechnology. The 21st century has brought about changes within the pharmaceutical industry. The pharmaceutical industry today is highly competitive non-assembled global industry. To define the non-assembled aspect of the industry is where manufactures components parts or materials are relied on for example glass, woodwork and chemicals. It was in the sixties and seventies that the pharmaceutical industry was to expand rapidly as it was a period referred to as the spending boom. Research and development (R and D) was also a major investment and trust which was provided for Universities and education institutions. Pencillin which was the major discovery in the pharmaceutical industry in the 40’s, which led to research and development in the 50’s becoming firmly established in the industry the seventies, saw many remarkable changes within the pharmaceutical industry with tighter regulatory controls being enforced within the industry. This could be seen in the way generics were to be manufactured, generics are medicines that are manufactured after patent expiry date by