Crafting Organizational Strategy

Crafting organizational strategy 1
Crafting organizational strategy
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Crafting organizational strategy 2
Introduction
Teva Pharmaceuticals Industries Limited is an international pharmaceutical company
which specializes in in the marketing, production and development of proprietary and generic
branded pharmaceuticals and active pharmaceutical ingredients. The company is among the top
20 pharmaceutical organizations worldwide. The paper aims at discussing the macro-
environmental trends affecting the organization, the strategic methods chosen by Teva, drivers
for internationalization and why Teva’s strategy for internationalization changed after 2011.
A short analysis of how macro-environmental trends and industry conditions have
impacted the ‘pharma’ sector in the 21st Century
Economic
Growth in the pharmaceutical sector is linked with the growth in GDP. A higher growth
rate in the major markets such as the USA market enhances the sale force and assists in
increasing the volume of sales. Opportunities: The development of technology may alter the
economic factor which results to a decline in the rate of employment and an increase in the
demand for professionals. Threat: The pharmaceutical industry growth may be turned down by
the turning down of the economic condition.
Social
Opportunities: An ageing population implies that there is high demand for medicine. In
addition, population growth also results to an increased demand for medicine. Threat: Providing
health cover to employees results to an increasing health cost to the company thus declining the
competitive power of the business. In addition, the insurance funding system has the potential to
provide the latest innovation, but is unable to share the benefits of the population increase.

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Technological
Opportunities: Re-development and increase innovation can make people live a longer
life. Therefore, a rise in technology may result to an increase in the population and an increase in
the demand for more medicine. In addition, high technology results to the manufacture of high
quality medicine. Threat: The expenditure on research and development rises significantly thus
leading to high costs particularly in biotechnology. Additionally, the traditional R&D
organization is outdated due to the swift technological growth.
Environmental
Opportunities: Nowadays, the environmental problems has increased which has resulted
to people falling ill occasionally due to environmental pollution, especially water and air
pollution. Therefore, people rely on the developed medicine for cure. Threat: A polluted
environment increases the risk of ill health of people leading them to rely on the pharmaceutical
industry for cure. Therefore, institutions have to invest on more research for the provision of
current medicine to people. In addition, a failure in research may lead to a loss of investment.
Legal
Opportunities: The regulation by governments may result in an increased consumer
confidence. In addition, the patent system helps in the protection of the original brand of
medicine for the prediction of the generic medicine attack. Threat: Some generic products having
the same healing effect may be developed resulting to competition with the patented medicine.
Furthermore, harmful medicine may result to the death of patients thus resulting to a large
financial loss to the organization.