Company Strategic Plan
LimeTab Inc. is a subsidiary of ABC Company. LimeTab Inc. manufactures and distributes pharmaceutical products in different countries across the globe. At LimeTab Incorporated, we subscribe to meeting consumer desires while at the same time shielding the environment. To achieve company’s goals and objectives, we are continuously allocating funds for market research in order to facilitate strategic market positioning. LimeTab Inc. integrates favorable research outcomes in its core processes and ensures excellent quality. The company’s workers embrace the culture of stringent observation of the organizational measures and practices in the manufacturing of pharmaceutical products. Our employees understand the need for zero negligence and no tolerance for excuses.
To continuously adapt our environment-friendly products to new approaches derived from research, recommendations and regulatory requirements with a strong goal to satisfying consumer pharmaceutical needs.
Using PESTLE analysis, it is possible to assess LimeTab Inc.’s current status as well the external forces affecting the company. PESTLE analysis will aid the company’s management to strategize for the future position, and address weak areas that limit its operational efficiency. PESTLE analysis will encompass political, social, legal, economic and environmental factors (Grünig, Kühn, & Clark, 2005).
Foreign and domestic policies pose huge economic impact on the pharmaceutical innovation as compared to other factors. As in the case of GlaxoSmithKline, the state may extend special incentives to encourage the industry to globalize. GSK expanded its operations in Singapore because of low taxes. Other pharmaceutical firms are likely to expand into new markets because of state support. For instance, the United States government has committed to purchase no less than 45 percent of drugs from local manufacturers to boost the domestic firms’ financial base. The state’s intervention is aimed to benefit the domestic firms by introducing low prices ad reduction in health care cost (Dooris, Kelley, & Trainer, 2004).
Since 1980s, the government targeted pharmaceutical industry to manage the challenges of monopoly, price control and trade. In some European countries like France and Portugal, domestic producers ship their products to the UK, Sweden and Germany for higher prices, as the competition in local pharmaceutical market requires lower prices. Another example is that due to the lack of price control in the United States, pharmaceutical goods are more expensive as compared to Canada. The prices in the US are sometimes three times higher than in Canada.
Pharmaceutical firms often feel under siege with increased enthusiasm of environment movements. The activists advocate for greener environments and reduction in carbon and chemical emission from the pharmaceutical industry (Grünig et al., 2005). The expected care for the environment is paramount for the pharmaceutical firms, as they are stipulated by the contract with the United Nation Charter for better and clean environment. For instance, medical companies such as Pfizer Pharmaceutical target to save the environment from wastewater, chemicals and carbon emitted from their manufacturing plants. Various approaches are employed to lower carbon and chemical waste from pharmaceutical companies in order to protect the environment. Proper use of disposal materials, purification of hospital waste water using advanced water treatment technology, among other initiatives, will help the company decrease environmental pollution. Therefore, LimeTab Inc. must utilize three key pillars to lower pollution. The strategy encompasses the use of advanced technical approach, stakeholder training and proper employee education (Caroll, 2008).
In addition to corporate social responsibility, the social life and condition of health in a society impacts the pharmaceutical industry. Adjustments in trends and lifestyle choices entail a new approach for the pharmaceutical industry, locally and internationally. The predominant age bracket of the citizens affects the pharmaceutical industry. In ffact, an aged individual is bound to use more drugs to support his or her health than a young person. Another social factor is that the recent effects of global diseases like AIDS, Ebola and SARS have put the industry under glare of the media (Espejo, 2012). Consequently, the firm is required to embrace comprehensive corporate social responsibility that promotes social programs aimed at improving the value of life in the community.
Deployment of technology plays a critical role for pharmaceutical firms as evidenced by the new methods of development and manufacturing of drugs. Technology has opened new ways of research and development. For example, a pharmaceutical firm can digitally simulate the effect of a drug on humans and predict its real effects before any clinical trials are carried out. Advanced technology helps in improving accuracy and efficiency of processes practiced. LimeTab Inc. strives to upgrade and integrate in its production the cutting edge technology. The utilization of technology in the pharmaceutical industry is indispensable (Spilsbury, 2012).
The pharmaceutical sector is less impacted by economic slump as compared to other sectors such as manufacturing. The pharmaceutical industry, therefore, becomes a suitable and attractive target for foreign direct investment. However, it is necessary to notice that the sector is not fully protected from the general effects of economic challenges. Appreciation and depreciation of foreign currency affects the import and export of drugs (Grünig et al., 2005). High interest rates, exchange rates fluctuations and inflation continue to affect the pharmaceutical sector. High interest rates can have detrimental effects on investment in the pharmaceutical sector for shareholders. Moreover, research and development investment spans over several years and will economically impact the industry. As in the case of Ciba and Sandoz, mergers and diversification enable the businesses to venture into new markets. Novartis was born by the merger of Ciba and Sandoz in an effort to lower costs of research and development (David, 2005).