Exploring Strategy Case Study: Teva Pharmaceutical Industries Ltd

Case in Exploring
Strategy Case Study
(Teva Pharmaceutical
Industries Ltd)

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
1) Short analysis of how macro-environment trends and industry conditions have impacted the
‘pharma’ sector in the 21st Century.......................................................................................3
2) Analyse the strategic directions followed, and strategic methods chosen, by Teva. Discuss
the rationale for choosing M&A, rather than organic methods or growth via alliances and
joint-ventures..........................................................................................................................5
3) Evaluate the drivers for internationalisation that underpinned Teva’s rapid growth in the
21st Century............................................................................................................................7
4) Discuss how and why Teva’s international strategy changed after 2011..........................9
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Pharmaceutical is one of the largest industry flourishing in several different economies of
the world. Health care sector is fast establishing and have gained huge growth in past few
decades (Eker and Eker, 2019). The pharma organisations are evolving, developing new drugs by
huge research but after numerous failures companies and doctors are generating medicines and
drugs of several types for curing several sever diseases. The report is based on a case study over
a pharmaceutical company known as Teva Pharmaceutical Industries Ltd commonly known as
Teva. A public company which was founded in 1901 and headquartered in Israel and United
States. The assignment acknowledges several aspects of the case study beginning with the
macro-environmental analysis with the help of PESTLE framework. Next up, a discussion will
be conducted about the strategic direction followed and chosen by company along with its
rationales. Moving along drivers of internationalisation and growth are evaluated with the mode
of entry as well. Lastly, a discussion is conducted for knowing the ways and reasons of change in
international polices and strategies.
MAIN BODY
1) Short analysis of how macro-environment trends and industry conditions have impacted the
‘pharma’ sector in the 21st Century.
The macro-environment is a condition which is incorporated with several factors existing
in the economy and impacting upon the industries in either positive or negative manner
depending upon the situations. The macro-environment is a mixture of several external factors
which affects the industries and businesses running in it. These macro factors have influenced
the pharmaceutical industries as well of separate economies in the 21st Century. The PESTLE
analysis framework is utilised to evaluate these effects of the macro units over the industry in
the past decades (Tuwanku, Rohman and Rofiq, 2018).
 Political/Legal- The political environment refers to the impacts which are being caused
due to changes taking place in the governmental laws and new regulation being
introduced. The political framework for pharmaceutical industry is complexed and
uncertain. Governments of every region has separate laws and regulations for pharma
companies either manufacturers or retailers. Organisations dealing in international

markets are exposed to more sever environment as they have to comply with all the laws
and legislations of different economies.
 Economic- The pharmaceutical industry is adopting Mergers and Acquisition strategy, as
the survey shows the engagement of businesses in acquiring other international brand for
brands. Merger and Acquisition is a common practice and in pharma sector it is on boost.
The economic factors plays a vital role showing the major regions are USA, Europe and
Asia. The healthcare investments of economies are increasing gradually even when the
global crises are increasing. This shows the support and influence economy have the
sector is positive and vital. The economy also gets the benefits of the growth and success
of industries and pharma is considered as the most beneficial which support the economy
from rising above of the crises and keep the economy stable. International relations with
other countries also develops which are helpful for the country in other trade as well.
 Social- The social trends develops huge opportunities as the number of people ageing
every year are increasing, moreover the mortality rate is decreasing developing growth
for the industry as people will consumer medicines and take curing measures to live. The
threats are also rising but these can be mitigated easily. It implied that the social trends
have the positive impact over the industry (Johnson and et. al., 2017).
 Technological- A vital role is played by the technology in growth and success of the
pharmaceutical sector. In pharmaceutical industry research and development is the base
of any business and organisation. Technology is updating and revolutionary changes are
taking place which is creating better instruments with rapid results for conducting
research and developing medicines and vaccines. For instance, earlier a test result use to
take five days to a week taking huge time but with technology the same have become a
task of few minutes. The pharmaceutical companies are able to develop products faster
investing the time resource in other potential actives. Although, these technologies are
very expensive to procure but the results received are much more profitable.
 Environmental- This is the new and most recent external factor which is added to the list
fro evaluation in order to make arrangements accordingly by the organisations and
industries. The environmental factor has a positive impact on pharmaceutical industry as
it provides open ground to businesses and organisations to explore and develop new
offering for curing people and making health care better. But on the same side it can be