Analyzing Abbott Laboratories: Business and the Business Environment

This report provides a comprehensive analysis of Abbott Laboratories, a pharmaceutical manufacturer in the UK market. It examines the company's background, industry overview, and organizational structure, highlighting its business objectives and their impact. The report uses SWOT and PESTLE analyses to assess the company's strengths, weaknesses, opportunities, and threats, with a focus on external factors like the COVID-19 pandemic. It also discusses different types of organizations (public, private, voluntary) and legal structures within the private sector. The analysis covers Abbott's environmental priorities, market impact, and organizational structure, concluding with recommendations based on the findings. Desklib offers a range of resources including similar reports and study tools for students.

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