Case Studies

Case Studies

Chapter 2

1. The barriers to entry in the pharmaceutical industry are the high costs of developing drugs, the patent issues and the time taken by them to be able to reach the market after a long span of research and development. It is not even sure that the drug will generate profit for the company once it is lodged in the market. These entry barriers provide reasonable protection to the already existing companies as it is not an easy thing for competitors to launch the same product as theirs.

2.The pharmaceutical industry is one of the most profitable industries of the U.S since America has a lot of facilities of research and development for new, as well as, the existing drugs. Most of the owners of these pharmaceutical industries are also rich enough to sponsor such research and development projects. A lot of development is also taking place in the unites states in the scientific fields like genomics. This is encouraging the drug manufacturers to put in more money in developing drugs.

3. There are many factors of the general environment which influence the task environment of the pharmaceutical firms; the spending on the health care has gone up, the politicians are trying to keep the prices of the drugs down by passing bills. A lot more people are demanding drugs, the legal issues also influence the production and sales of drugs.

4. The profitability of the pharmaceutical industry might come down in the next decade as most of the patents of medicines will expire. To counter this threat, the managers of the pharmaceutical firms must find new drugs which can replace the existing drugs in the market. The high costs of medicine are also a serious debate these days, and the buying of drugs from other nations is an option. The managers can counter this by trying to control the prices of their medicines to remain competitive in the market.

Chapter 4

1. The values that were articulated by the founder Sam Walton recognized the claims, but there was some problem on the implementation of all those practices. All the values were explicitly explained, but the employees still had issues with the Wal-Mart. And the issues were of major concerns that needed to be answered.

2.In order to contribute to the lawsuits by the disgruntled employees of the Wal-Mart, the major change that might have been implemented would be to answer their concerns. The only possible way to do that is to take into account the issues that are brought forward by the employees, and take the needed actions that would be fair to the employees.

3.Yes, to some extent they are factual. In large organizations like Wal-Mart, problems do arise. But the main point is to look into the concerns raised by the employees, and solve the issues that they are facing. This will not only prove to be in the benefit of the employees, but it will also bring the loyalty of the employees back to the ...