Environmental Analysis Framework

Environmental Analysis Framework
To some companies such as NORVARTIS, which is a pharmaceutical company, some factors such as technological, social cultural and economic factors are of little impact. There are certainly some advantages of investing in such an industry as opposed to a luxurious company such as BMW. When a corporation gets legal support, and the government exempts taxes on the sale of products, then the success of the business becomes paramount. The same cannot be said for products that face additional added costs from complementary products. On the other hand, the pharmaceutical industry faces competition threats as compared to working in a distinguished company like BMW. The latter relies on class and distinction where the customers make their orders on preferences based on the quality and the association given to such a model. On the former the case is entirely different where preference is not a prevailing factor as opposed to need and necessity.
Customers are the bottom-line determinants of product success in the market. However, when the heuristics are influenced by external factors in favor of some products as opposed to other leads to wondering where the freedom of the free market starts and ends. It should be noted that essential goods and products are promoted by market influencers such as the government and the legal factors. The case of Quintiles, for example, is worth considering. The marketing power of the company faces strict quality and price regulations. For this reason, threat from new entries is minimized which it makes difficult for fair competition. Comparing this to the case of BMW, the company maintains high standards in production models. In cases where technological factors rarely influence the business performance, it is prudent to adopt a favorable approach that reduces the final cost of the product.

References
Barney, J. & Hesterly, W. (2006). “Strategic Management and Competitive Advantage”. (2nd edition). New Jersey: Pearson Prentice Hall.
Carter, Glenn. (2005). “Healthcare Articles: Competitive Strategy in the Pharmaceutical    Industry”. Pharmaceutical Professionals Pty Ltd.
Daft, Richard L. (2012) Organization Theory and Design, 11th Edition. Cengage Learning, pp 170
Novartis Global, (Online): http://www.novartis.com/ (Accessed on January 16, 2015)
Porter, M. E. (1979) How competitive forces shape strategy? Harvard Business Review, pp 83





5 comments

ITSolution24x7 provide ground-breaking services to its customers in almost every niche. Itsolution

We are well experienced to bring your dream results into real life and make the cash come in from our work. Objectual Pakistan

security researcher hacks This virus was identified by Belgian academics; this vulnerability could have allowed criminals to circumvent the $100,000 car’s onboard security systems.

We have expert teams to create successful eCommerce platforms as per your requirements and wishes on all platforms, whether Magento, Shopify, WordPress or so on. Why delay? Get connected with us right away! wordpress store online

Trello is a digital whiteboard for managing tasks and projects. It lets you organize, manage, and plan tasks. It enables individuals to design their work and personal responsibilities, build workflows for entire teams, and coordinate complex projects. Trello is composed of a patent software that is easy-in-use and has a friendly interface. Despite its simple design, Trello offers many useful functionalities. work logger app


EmoticonEmoticon