Environmental Scan and ETOP Analysis-Tipseecs: Internal Medicine Segment of Novartis - Essay Example

Environmental Scan and ETOP Analysis-Tipseecs: Internal Medicine Segment of Novartis Technology Factors Technology is a powerful tool in enhancing the manufacture of internal medicine. Novartis continues to use continue to enhance its drug manufacture and improve workflow. One of the technologies the company uses in its internal medicine segment is the transcription-mediated amplification (TMA) (Wendling 1). The company has collaborated with various institutions to innovate in the use of technology in drug manufacture. One of these institutions is University of Pennsylvania where the company will use chimeric antigen receptor (CAR) technology to develop cancer treatment therapies (Anita and Gautam 1). In the Genomics Institute of Novartis Research Foundation (GNF), Novartis use technology to enhance sequencing, automation, imaging, computation and screening in drug manufacture. Novartis uses computer-aided designs in its internal medicine drug manufacture and research (Nguyen et al. 1). International Factors Internal medicine manufactured by Novartis face stiff competition internationally and this makes is critical for the company to come up with strategies to remain ahead in the market (Rojas 118). One of the international strategies to beat competition is the use of differential pricing. The differential pricing policy is intended to ensure that Novartis’ drugs are affordable to the global population. Consequently, the medicines are sold at subsided in poor countries. In addition, the company offers some drugs freely under its malaria initiative for public sector. Novartis does not patent medicine in least developed countries to enhance access to drugs (Danzon 57). Furthermore, Novartis manufactures “high quality generic medicines” to enhance access of its drugs in the international market. Development of “high quality generic medicines” was necessitated by a realization that there are counterfeits drugs in the market which customers are cheated into buying due to low costs (Nair 1). Generic drugs are produced by Sandoz and its affiliated manufactures such as 1A Pharma. Novartis forms partnership with other drug manufacturers to enhance its penetration in the international market. Political Factors Political stability is one of the most critical factors required by a company to ensure that it carries out its operations in a favorable business environment. Novartis operates in a business environment that is less affected by political factors given the stability that is experienced globally (de Wilde 53). Political factors are also important when entering a new market. In some countries, political factors may be prohibitive to the company’s entry. For instance, in Bangladesh bureaucracy and corruption issues may make entry into the market difficult (Hendry 47). Social Factors A business that seeks to succeed must carry out analysis of the social factors of the environment within which it operates. This is because social factors determine what the people in such a market can consume and what is not allowed (Pasquale 1). Given that Novartis operates in a global market, there is interplay of many social factors that can influence its operations. One of these factors is religion where in some poor countries; some religions prohibit people from taking drugs. Additionally, people in some countries take herbal medicine. Consequently, the company has also taken an initiative to use plants and animals to manufacture drugs (Franchini, and Molly 1). The company is operations are also affected by social beliefs held by some people that generic drugs are not effective. This therefore means that the company must be aware of these factors before deciding what to release (Novartis 1). For instance, people in developing countries may have no problem taking generic drugs compared to their counterparts in developed nations. Ecological Factors In drug manufacture, Novartis must be considerate of the ecological factors. Ecological factors influence the health conditions common during a specific time (Novartis Pharmaceuticals Corporation 2). In addition, the company gets its resources from the environment and releases waste to the environment. Consequently, Novartis is usually committed to sustainable environment. Novartis seeks to ensure that it conforms to all environmental legislation when conducting business (Novartis 2). The company also makes contributions and donations for environmental protection. In the manufacture of its products, Novartis considers ecological factors that influence the prevalence of parasites and therefore makes drugs targeting such disease causing organisms (Novartis 2). The company has also adopted strategies to minimize waste. Energy Related factors In conducting business, Novartis is always conscious to ensure energy conservation. The type of energy used determines the level of pollution and the costs incurred (Han et al. 5467). Consequently, the company adopts strategies to ensure conservation of energy. In the manufacture of drugs, renewable energy is used, as this does not cause an increase in carbon dioxide leading to enhanced global warming (Novartis Diagnostic Global 1). The company also encourages its employees to drive energy efficient vehicles to promote energy conservation and prevent pollution. The company also invests in proactive measures to ensure energy efficiency in its operations. Novartis adopts innovation to ensure energy conservation (Novartis Marks 20 Years of Improving Patients' Lives with Innovative Treatments for Transplantation 1). In addition to advocating for use of energy efficient vehicles among its employees, the company has a green car policy to minimize energy use and prevent pollution. Economic Factors Business operations of Novartis like those of other countries are affected by the economic factors of the market in which it operate. Given that Novartis carries out business in an international market where the levels of economic development are varied, it is always committed to ensure access of medicine to all (Johnson 1). The company asserts that it has economic responsibility to its customers, shareholders and its business associates. The company uses differential pricing based on the country’s economic profile. In poor countries, the company charge subsided price in contrasts the price charged in developed countries. Lower economic growth in countries is however also negatively affecting money spent in health care. Companies producing generic medicine are aggressive in challenging the issue of patents (Novartis Corporation- Sandoz Day -Conference Call – Final 1). Although Novartis does not concern itself with the issue of patents in developing countries, it may negatively affect the profitability of the company in developed countries (Boscheck 277). Competition Factors Novartis faces competition from both home based countries and international drug manufacturers. Competition is even complicated by the fact that medicines from different manufacturers treat similar conditions (Boscheck 277). Consequently, to remain ahead of competition, the company uses its brand name to distinguish its products from those of competitors. Another factor in competition is presence of generic products that are cheaper. To deal with this form of competition, Novartis produces high quality generics that are sold in developing countries (Ekpenyong 28). Ethical Factors Ethical considerations are important when doing business. Ethical factors touch on the treatment of customers, employees and the products sold. Novartis is keen to ensure that it conducts its operations ethically by ensuring that it does not exploit its customers (Novartis 2). The company fixes its prices based on the cost of manufacturing and ensures that poorer customers also can also afford the drugs. The other consideration made by the company is to ensure that the employees are compensated adequately. By ensuring that the work environment is conducive, the company cannot its employees to competitors. Products developed by the company are produced after intensive research to ensure that they meet quality standards (Anita and Gautam 1). Works Cited "Novartis Corporation- Sandoz Day -Conference Call - Final." Fair Disclosure Wire: n/a. Sep 03 2008. ABI/INFORM Complete. Web. 13 Sep. 2012. 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