Create a new account

It's simple, and free.

STRATEGIC AUDIT: MERCK & CO.

ions is reviewed within the context of PorterÆs (1995) Five Forces model extended to include considerations of relevant social, political, technological, and economic factors. Effectively, the analysis of the companyÆs external environment is an analysis of the pharmaceutical industry and the environment that shapes and controls the industry.

The pharmaceutical industry is described by the United States government in the Standard Industrial Classifications (SIC) manual as the Pharmaceutical Preparations Industry, SIC 2842. The industry group is 283, which is drugs. The industry is described as follows: ôEstablishments primarily engaged in manufacturing, fabricating, or processing drugs in pharmaceutical preparations for human or veterinary use. The à products of these establishments are finished in the form intended for final consumptionö (Standard Industrial Classifications, 2000, p. 2842)

Pharmaceuticals preparation is a $205 billion industry. The major players in the industry typically conduct operations in related industrial classifications, as well as in the pharmaceutical preparations industry (Rho, 1998). High levels of research and development, together with the application of sophisticated technology, is crucial to success in the pharmaceutical industry (Forcinio, 2002).

The trend toward mergers in the global pharmaceutical industry is a strong influence in the industry. Larger companies will be able to cut costs and will be better positioned to deal with managed-care organizations and governmental agencies attempting to drive down prices for pharmaceutical products. The larger companies will generate the resources required to expand research and development budgets.

Equally important is the increasing necessity for global coverage in the launching of new drug products. In the global environment of economic activity, new drugs must be introduced simultaneously in all markets to develop and maintain m...

< Prev Page 2 of 9 Next >

More on STRATEGIC AUDIT: MERCK & CO....

Loading...
APA     MLA     Chicago
STRATEGIC AUDIT: MERCK & CO.. (1969, December 31). In LotsofEssays.com. Retrieved 20:16, March 28, 2024, from https://www.lotsofessays.com/viewpaper/1712808.html