Abbott Laboratories: Business and the Business Environment

This report analyses Abbott Laboratories, a pharmaceutical manufacturer based in the UK, to determine if it is a worthy investment. It includes a SWOT and PESTLE analysis, as well as a discussion of the company's background, industry overview, and business environment.

Business and the Business Environment
Title: Abbott Laboratories
Word Count :
Executive summary

The report will be highlighting the main macro environment of a pharmaceutical
manufacturer that is active on the United Kingdom’s market. The main purpose is to
highlight if a certain company is worthy to invest in the Abbott company by analysing
different aspects of it including the threats, weak and strong points but also opportunities that
may occur and bring the company on a higher level. The 6 factors that most influence a
business will be explained a given examples for a better and more detailed image of the
company.
Table of Contents

Title: Abbott Laboratories..............................................................................................................1
Executive summary.............................................................................................................................2
Table of Contents.................................................................................................................................3
Background..........................................................................................................................................4
Industry Overview.............................................................................................................................4
Company overview..........................................................................................................................5
Section 1...............................................................................................................................................5
Business Environment – Abbott laboratories................................................................................9
Section 2.............................................................................................................................................14
Macro Environment.........................................................................................................................14
SWOT Analysis...............................................................................................................................17
Strengths.....................................................................................................................................19
Weaknesses.................................................................................................................................19
Opportunities.............................................................................................................................19
Threats........................................................................................................................................20
Recommendations:............................................................................................................................20
Conclusion...........................................................................................................................................20
References:..........................................................................................................................................21
Introduction

First, due to the business-related topic of the report, there will be discussed details
about types of organizations such as private, public, and voluntary sectors as well as the legal
structure of Abbott. This report will have in consideration the main background,
organizational structure, and functions of Abbott, which is a pharmaceutical manufacturer
based in the United Kingdom. The main business objectives will be analysed to see if they
align with Abbott company and its size as well as their impact on the market. The
environmental factors of the company will be taken into consideration to create a wider
image about the benefits or risks while investing in the company. To have a better
understanding about the subjects mentioned above, there will be used SWOT and PESTLE
analysis with a focus on the external factors such as Covid-19 Pandemic. A course of action
will be analysed within the report to highlight the knowledge and the ability to understand
how the external factors impact a certain situation of Abbott company.
Abbott company is american multinational medical devices and health care company
with headquarters related to competent vision and innovative working engagement priorities.
The company also further has been heading to bring on new extended high rise in quality
perspectives based on technical functional priorities. This has been found to be also
essentially specific for extended technical scope based on extended wellness criteria for
prioritized wellness goals. Business environment holds huge significant working rise based
on extended technical goals, where the raised up specific efficacy holds huge functional focus
towards significant benchmarks.
Background
Industry Overview
The pharmaceutical manufacturing industry is making al the processes from searching
formulas until the drugs are already in store. Because of this fact, a pharmaceutical
manufacturer company needs a huge capital to be able to delivers drugs that cure different
kinds of diseases starting from diabetes, heart issues or a simple flu. There is need of ultimate
technology and continuous investments in innovation and excellent professionals that manage
the whole situation such as managers, engineers, researchers, so on. (Poongodi, 2020)

The company’s revenues reached over $27 billion in 2017 which Its best-selling products are
its cardiovascular and neuromodulation products such as nutritional, diagnostics along with
varied range of new drugs. Abbott ranked No. 1 in worldwide adult nutrition and blood
testing in 2017. Its new 24/7 blood glucose monitoring devices where technology
advancement has been found to be also advanced based on mechanisms, for strengthened
functional engagement (Da and Sailaja, 2020) Industry overview, also signifies that there
has been also new range of competitive significant expansion coming up in innovation based
on extended technical targets.
Company overview
Abbott company is a United Kingdom pharmaceutical manufacturer that is have a long
history, starting with opening the business in 1937. During World War II, the company has
started its journey by being one of the key suppliers of anaesthetic products. Abbott is not just
a regular pharmaceutical manufacturer but it is developing healthcare solutions to make a
significant change for the world and make sick people more active, vital, and healthy
(Abbott, 2020).
Abbott Laboratories has over 130 years’ experience in the consumer health care and
pharmaceutical industry, where it has has 31 manufacturing sites and 12 development centers
around the world. Abbott makes 1,500 products with more than 400 currently in
development, and has been globally recognized as one of the best brand known for significant
innovation rise. Abbot is one of the best company based on extended technical scope, for
keen extended technical up rise based on determined growth targets with its huge machinery
and also towards attaining diverse technical up rise.

Section 1
The public organizations are those led by national or local government and they are
funded by taxes. The main public companies are rated to health, housing, social work such as
help, integration and education (BBC, 2020).
For example, hospitals are public organizations that receive money for the medicines and
needed furniture and machines from the government. Doctors are also paid by the hospital
and they are considered public organization workers.
The private or commercial organizations are first, not paid by the public sector and they are
partnerships that are able to generate profit. In short terms, the private organizations are self-
sustaining themselves and the people that work within it, are paid from the profit generated
by the company. Although, the income of the workers will be divided because private
companies should pay taxes for the government (Up Counsel, 2020).
The voluntary or not-for-profit sector companies are aiming to make the world a better place
and for this reason, their purpose is to help the society, to integrate people, to develop certain
unfavourable areas and so on. The government is bot making so much interventions because
the funds usually come from private sector such as investing companies or individuals that
sustain the projects proposed by the voluntary sector organizations (Privacy Sense, 2016).
Different types of legal structures in Private Sector

To give tax benefits to owners, minimise liability, and increase operational efficiency, private
sector companies are formed in a variety of ways. Sole traders, partnerships, limited
liability firms, and corporations are the most popular business activities. Abbot has
been also known as one of the best company having global market presence, based on
extended new technical working goals ((Kolster, 2021). Also company has been
witnessing huge best technical expansion functionally, where the
mechanism has been significantly growing on new patadigms.
Sole Trader- The person who owns a business and is fully responsible for its obligations and
liabilities is called to as a sole proprietorship. A lone proprietor is someone who performs
business as a freelancer or contractor without forming a legal entity. Even though the sole

proprietorship is not a separate legal organisation, it is nevertheless responsible for adhering
to all applicable registration, licence, and permit rules (de Zayas and Matusitz, 2021).
ADVANTAGES DISADVANTAGES EXAMPLES
 Sole proprietorships are
quick to set up and
nominally expensive
 Sole proprietors have
completed decision-
making authority
 The firm is simple to
dissolve
 Minimal paper work and
has contact with the
customers
 Hiring quality employees is
more difficult
 have unlimited liability and
are responsible for all debts
 the company cannot be
shared and is more difficult
Hiring quality employees
Coffee shops
Carpenters
Window cleaners
Partnership - When two or more persons start a business with the intention to make money,
they form a partnership.
ADVANTAGES DISADVANTAGES EXAMPLES
 easy to establish
 it is easier to hire skilled
staff since new
employees can be offered
a stake of the business
 taxation is simple
 Each partner is
responsible for the
business's debts
 Each partner can legally
force others to a business
contract
 Some employee benefits
may not be deductible on
income tax returns
 Spotify &
Uber
 Amazon &
American
Express
 GoPro &
Red Bull
Limited liability firms - a business structure in which members are not made personally
responsible. Because an LLP is an unusual combination of a conventional partnership and a
modern limited company, it combines the best of both worlds.

ADVANTAGES DISADVANTAGES EXAMPLES
 flexibility in structuring and
No restrictions on the number
of members allowed.
 Owners are not individually
liable for the debts and
liabilities of their businesses.
 it does not require as much
annual paperwork.
 More expensive to form
than sole traders and
partnerships.
 Ownership is harder to
transfer
 Limited life.
 More expensive.
 Nike
 Sony
 Ebay
 Apple
Corporations - Owners are not personally liable. Corporations can profit, pay taxes, and be
held legally responsible where Abott is one of the best brand having huge range of expertise
owned services. Abott being one of the best company having expansion strategically on
varied levels aims to further enhance operative working growth parameters actively. The new
range of corporate significant benchmarks plays active determined role, based on extended
technical growth rise for connective working expansion.
ADVANTAGES DISADVANTAGES EXAMPLES
 ability to raise capital.
 unlimited life.
 Easy Ownership transfer.
 limited liability for
Stockholders.
 the double taxation to
shareholders
 Higher Start-up costs.
 Ownership and
management are separated.
 Government regulation is
expensive
 Google
 Amazon
 Coca-cola
 Facebook
Business Environment – Abbott laboratories
Abbott`s targets are ambitious. There are three environmental priorities

 Reducing Carbon Emissions
 Conserving Water
 Reducing Waste
It is important to speak about the impact Abbott had on the overall market and how many
good things they did develop since the company was founded almost 100 years ago. First, the
size of the company is huge since they have trusted brands such as Free Style, Similac,
Alinity, AlinIQ, Brufen, Cardio Mems which are the best-known companies in certain health
fields al around the world not just in the United Kingdom. Employees that take part of the
pharmaceutical manufacturer Abbott are more than 109 thousand. (Abbott, 2019) The
company has been also optimising hug insignificant rise in sustainability parameters, where
competent working expansion holds huge specific benchmarks to be operatively headed on
wider levels.

Abbott is a public company with divisional hierarchical structure, where this has been also
analysed to be one of the most essential parameter to be worked on strategically on extended
paradigms. The brand has been witnessing huge specific expansion functionally on wider
levels due to optimistic functional technical determinants which has operatively made
company structure enhanced up strategically. It can be also analysed that company has been
witnessing best quality rise among keen competitive scenarios, rising for gaining operative
functional growth paradigms innovatively.
An organisational structure is the way a company organises its employees to
represent the various levels of management (Block, 2021).
 Holocracy - are decentralised in which there are no assigned roles and
employees are free to take on various tasks and move between teams. It
has self-managing teams that are accountable for their actions and
decisions.
 Fatarchy - It combines functional and flat structures to enable more
distributed decision-making. This model can be both powerful and
disruptive.

 Hierarchical (or tall) - can either be functional or divisional a
 Horizontal (or flat).
Businesses use mainly two types of organisational structures:
Advantages Disadvantages
Hierarchical -
structure has many
leaders and layers of
management, and
businesses with this
structure regularly
recruit a 'top-down'
approach with a long
chain of command.
 Excellent prospects for
growth
 Workers have been under
the personal supervision of
managers.
 Various aspects of the firm
are closely monitored.
 Due to a lengthy rank
structure, conversation
is slow.
 Organizational
changes can be
difficult to implement.
 Employees may
become demotivated
as a due to a lack of
autonomy (Heino,
and Huotari,
2020).
Flat-
When using this
structure, the
communication
 Some less layers correspond
better communication.
 Employees will have much
more independence.
 Incomplete
opportunities to
achieve
 Managers' workloads

pathway is short,
which often results in
faster, more effective
communication
 Employees may feel more
motivated therefore more
productive.
are increasing.
 Managers have more
subordinates than
staff.
Abbott is committed to make the world a better place and for this reason, the company is
focusing in making the research necessary to bring on the market high-quality products
and make a significant impact on the niches they are accessing and manufacturing
pharmaceuticals into. Gastroenterology, women’s health, cardiovascular, pain management,
central nervous system disorders, respiratory, influenza vaccine are the focus of Abbott
company. The gastroenterology medicines are focusing on the rhythm of the colon,
intrahepatic cholestasis, bowel syndrome and treating them in the best way existing.
Gynaecological disorders are nowadays a huge problem and for this reason, Abbott is
committing into helping women to solve these kinds of issues all over the world. (Abbott,
2021)
Organization structure refers to the systems which outlines how some activities will be
directed in order to attain the objectives of an organization. They can involve various
activities such as rules, responsibilities and roles etc. it also helps in determination of how
information n an organization flows at its different levels.
Organization structure have a major role in the creation of products and services which are
sold in markets. Through these organizational structures products can be created and sold in
the markets. Through an organizational structure the activities are aligned in an appropriate
manner so that products can be produced. Through the organizational structure the employees
are able to perform various activities which contribute in the production of such products.
The product based organizational structure is the divisional structure in which there are
various divisions in organizations. The divisions are line of products and services which the
company produce, the customer segment which it deals with and geographical in which it
serves. Through these divisions, organizations can attain their organizational objectives.
Through the organizational structure the company can focus on meeting the needs of
customers more effectively through providing them products and services which it offers.
Section 2
Macro Environment
The macro environment of a company follows the rules and regulations as well as the
factors that are capable to influence a certain business (Kharti, 2021). In our case, Abbott will
be supposed to an analysis on their macro environmental level that represents discussing

about Threats, Strengths, Weaknesses but also opportunities, as well as the main factors that
bring negative or positive influences on the company.
PESTEL Analysis is a strategic framework for evaluating a company's external world by
identifying and classifying risks and opportunities into Political, Economic, Social,
Technological, Environmental, and Legal factors.
Political
FACTORS 1. BREXIT
2. Labeling Product
3. Political stability and importance of Medical Appliances & Equipment
sector in the country's economy.
4. Intellectual property protection
5. Wage legislation - mínimum wage and overtime
COMMENTS Economics are always related to business and for this reason, Abbott s
suffering because of the major downturn in economics that happen due to the
COVID-19 pandemic. (Gopinath, 2020). In short terms economy has been
falling but the main luck of Abbott is the fact that the pharmaceutical industry
has registered a huge demand due to the fact that people are more likely to
protect themselves and treat any disease they have as the situation with the
virus was so dramatic (Mcclimon, 2021).
Opportunity
/Treats
Since the COVID-19 Pandemic have been forcing Governments to offer more
and more free pharmaceutical stuff for the population, Abbott company may
take advantage about this fact and sign contracts with several Governments al
around the world (Sky News, 2020).

Economic
Factors 1. Inflation rate
2. Labor costs and productivity in the economy
3.Covid-19
4. Skill level of workforce
Comments Economics are always related to business and for this reason Abbott is
suffering because of the major downturn in economics that happen due to
the COVID-19 Pandemic (Gopinath, 2020). In short terms, the economy
has been falling but the main luck of Abbott is the fact that the
pharmaceutical industry has registered a huge demand due to the fact that
people are more likely to protect themselves and treat any disease they have
as the situation with the virus was so dramatic. (McLemon, 2021)
Opportunity
Threats
Positive Outlook for Global Pharmaceutical Industry
Cost Containment Pressures
Social
Factors 1. Education level as well as education standard in the Abbott Laboratories ’s
industry
2. Leisure interests
3. Demographics and skill level of the population
4. Culture (gender roles, social conventions etc.)
5. Attitudes (health, environmental consciousness, etc.)
Comments The main social factors when it comes to the pharmaceutical manufacturers such
as Abbott company are related to the diseases that the people are facing. For
example, the fact that the diabetes in all its forms have been alarmingly increasing,
generated a bigger demand for Abbott in matter of diabetes pharmaceutical
products. (Klonoff, 2009). The same situation happen once the number of COVID-
19 infections was increasing and for this reason, Abbot had a huge demand in the
pharmaceutical products used in treating the diseases such as flu, cough an
immunity issue. (Charity, 2021)
Opportunity
Threats
Comes about for Now-a-days the increment in diabetes has expanded a part.
Numerous individuals don’t know that they have diabetes. Typically due to quick
alter in their way of life, nourishment propensities. Due to this reality individuals
gotten to be more proactive and always checking almost their wellbeing. This alter
will unquestionably help for the Abbott’s development. The alter in ways of life of
the individuals, the rate of individuals having heart issues has expanded.

Nowadays individuals are more cognizant almost their wellbeing and proactively
checking approximately their wellbeing conditions. It is vital for the company to
create unused items which helps for the people’s wellbeing.
Technological
Factors 1. Rate of innovative dissemination
2. Impact on respect chain structure in Healthcare part
3. Technology's affect on item advertising
4. Recent technological developments by Abbott Laboratories competitors
Comments Abbott create the items and administrations within the healthcare which is
quickly changing. There ought to be consistent advancement of modern items
which can productively give the benefit to the individuals. To investigate and
create modern items, the company ought to grasp the modern innovations.
The company ought to too make strides its coordinations and supply chain
innovation for smooth operations.
Opportunity
Threats
In the pharmaceutical industry as in Abbott company, the technology is vital
due to the fact that it helps in innovating and discovering new formulas so
developing new products that satisfy the needs and requirements of the
worldwide population. (Davidson, 2018)
Environmental
Factors Environmental Factors
Due to the fact that Abbott is a hug consumer of energy, the
environmental factors such as cutting off energy waste an implementing
other sustainability procedure might affect Abbott. On the other hand, this
is a factor that helps environment to get cleaner and sustain protecting it,
for this reason, Abbot started certain projects in cutting off the carbon
emissions, consume less energy and also waste management. (MBA
Skool, 2021)
Comments Changes in the climate
Laws governing environment pollution
Waste management in the healthcare industry
Opportunity
Threats
On the other hand, this is a factor that helps environment to get cleaner
and sustain protecting it, for this reason, Abbot started certain projects in
cutting off the carbon emissions, consume less energy and also waste
management. (MBA Skool, 2021)

Legal
Factors Data protection
Health and safety
Discrimination legislation
Comments Government which means that if in a certain country
a substance is forbidden, then they should not sell the pharmaceutical
products containing it or erase them. For example, anti-trust laws are
regulating only some of the substances while other are completely
forbidden. (A Plus Pharma, 2019)
Opportunity
Threats
Legal Factors
Consumer laws in the healthcare industry are the main threatening
factors of Abbott company because of the fact that they should meet the
laws and regulations of each
SWOT Analysis
Swot analysis is a method for evaluating these four aspects of the business.

Strengths The strongest point of Abbott company is that they are spread all around the
world and this means a strong network due to their presence in more than 100
countries. (Fortune, 2018). Moreover, the fact that Abbott has so many trusted
brands and it is resent not just in the pharmaceutical industry but n other niches,
it is a strong point due to the fact that their palette of customers are increasing.
For example, if a customer is using pharmaceutical products for the colon from
Abbott and they are satisfied by it, they will also use Abbott pharmaceutical
products while having gynaecological diseases. (Abbott, 2019). The reliable
supply chain created by their collaboration with several other companies has
launched Abbott company into the top and now they just have to manage the
innovation and development part. The dealers on the other hand, are not just
selling the products for the company but they are investing tie and money in
developing several selling strategies and expand their sales as well as creating a
pyramidal business related to the selling process. Penetrating the new markets
was a success for Abbott which means that the expansion process is something
that customers embrace and the products are gaining trust continuously. (Invest
in Holland, 2020)
Weaknesses As it is presented on (Culture 500, 2020), Abbott is having issues due to their
culture and the website has presenting the positive and negative aspects from the
employees' point of view. First of all, the employees are hardly adapting to the
changes that may occur in the company due to the innovation and development
process which means that the company may lose time or they need to take action
into training better the employees while changes appear. The respect is another
issue as it is state on the website as well as promotions, which means that the
employees are not paid as their results but their efforts are not actually taken into
account as it should be. On the other hand, the fact that it is a lack in investing in
new technologies may create issues for the company because of the fact that
competitors may overpass them if they do not invest as it should. Poor
technology will lead to poor performances and competition may become a threat.
(Kehoe, 2020)
Opportunitie
s
Since the COVID-19 Pandemic have been forcing Governments to offer more
and more free pharmaceutical stuff for the population, Abbott company may take
advantage about this fact and sign contracts with several Governments al around
the world. (Sky News, 2020). Because of the same situation of the COVID-19
Pandemic, the number of customers that order online is alarmingly increasing,
which is an advantage of Abbott to sell their pharmaceutical products via their
websites and create a strong marketing plan in order this to happen. (MacDonald,

2021)
Threats The main threats of Abbott company are the competitors, Agilent Technologies,
Bruker Corporation, Johnson & Johnson, Medtronic, AbbVie. Abbott ranks 1st in
Customer Net Promoter Score but the competitors may always be considered
their strongest threats as they do not invest in the proper technology, competition
may rank them down. (Comparably, 2021). Moreover, another threat might be
the lack of specialized people in the pharmaceutical and healthcare industry,
which is a huge issue because of the fact that companies such as Abbott, if they
fail with a single pharmaceutical product, everything they have built during these
years may be lost because the customers will lose trust and look for other
options. (Flynn, 2021)
Recommendations:
From the PESTEL analysis and SWOT analysis and other a number of issues were
identified. Following recommendations can be used to overcome those issues:
 From the PESTEL analysis, it was analysed that various political environment threats
such as COVID-19. So it is recommended that the company should invest more in the
latest technologies and develop products and service delivery without human touch.
 Another issue was analysed that there is intense completion in the industry. Due to the
intense competition there are a number of companies which offer similar products as
Abbot does. So it is recommended that the company should use various marketing
strategies so that it can emphasis more on attracting new customers. The company can
update from its previous market-line and exact form them as well.
 It was also analysed that customers today are becoming more aware towards
environment sustainability. So it is recommended that the company should produce
the products and buy materials which are made from the environment friendly
materials. The products should be made from the materials which are environment
friendly.
 As it was also analysed that there are constant changes in the technology. Due to these
changes in technology customers keep on shifting to other companies. So it is
recommend that the company should invests more in its innovations and technology.
It will help the company in retaining its customers within it.
 There is a crucial issue which is that if one product fails in the market, the company
will lose everything as customers will lose trust in the company. So it is
recommended that the company should realise its products only after the proper
testing and research and development.
Conclusion
In conclusion, Abbott is a company that worth investing in because of the fact that it is present
on various markets all around the world, as well as their expansion in the last years is amazing.
Moreover, consumers will always trust a company that has a certain history and the main advantage of
investing in the company is the fact that many governments already signed with it in order to provide
supplies for population during COVID-19. Even there are also threats and weak points, the company
is always investing in technology and innovation, which means it is on the right path to succeed.

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