PHARMACEUTICAL INDUSTRY

Pharmaceutical Industry

Pharmaceutical Industry

Introduction

For an organization factors of macro environment not only affect the organization but these factors possess the tendency to affect the whole industry. There have been many cases where the factors of macro environment have shown its affect t in changing the trends of the industry. One such example is of pharmaceutical industry. Whenever, one talk about the affects of macro environment on an industry the first industry that comes in mind is of pharmaceutical. The aim and objective of this paper is to talk about impact of macro environment on pharmaceutical industry from variegated aspects.

Macro Environment

Macro environment factors are those factors that are not directly linked to the organization but it affects organization's policies and decisions. Macro external factors include; political factors, economical factors, social factors, legal, ethical and technological factors (Lynch 2009, 16).

Macro Environment of the Pharmaceutical Industry in 2003 (Case Study's period)

One of the macro environment factors that have caused its impact on pharmaceutical industry is of the politics. This political factor is related to the government price control. The pricing control of the government affected the pharmaceutical industry in the form of parallel trade. Parallel trade allowed practicing free pricing strategy (Johnson, Scholes and Whittington 2010, 621). This free pricing showed its impact on various economical factors such as taxation, general demand, consumer spending, government spending, interest rates and exchange rates has shown their affects on the pharmaceutical industry. The slowdown in the economy and the recessionary period affected the global pharmaceutical industry (Johnson, Scholes and Whittington 2010, 623). Besides economical factor there are various social factors that also affected pharmaceutical industry. Social factors include various cultural issues. This phenomenon embraces attitude, style, thinking, behaviour and lifestyle of consumers. Social factors influence different decisions of the organization. One of the social factors that ...