Mangement Analysis of Civica Rx And Enterpreneurship

Running head: MANGEMENT
Analysis of Civica Rx and entrepreneurship
Name of the student
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ANALYSIS OF CIVICA RX AND ENTREPRENEURSHIP
Executive summary
This report is an analysis of the importance of entrepreneurship. The organisation chosen for
this analysis is Civica Rx a pharmaceutical company established in September of 2018. A
brand new organisation aims to stabilize the current national shortage of drugs in the U.S.
The report explores various aspects of funding of the organisation, followed by the various
challenges and potential risks. It concludes that entrepreneurship is vital for growth and
improvement of the nation.

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ANALYSIS OF CIVICA RX AND ENTREPRENEURSHIP
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Funding..................................................................................................................................4
Challenges..............................................................................................................................4
Economic............................................................................................................................5
Political..............................................................................................................................5
Legal...................................................................................................................................5
Social and cultural..............................................................................................................6
Technological.....................................................................................................................6
Potential risks.........................................................................................................................7
Conclusion..................................................................................................................................8

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ANALYSIS OF CIVICA RX AND ENTREPRENEURSHIP
Introduction
Innovation is synonymous to development and one of the best innovations is that
which brings economic, social and cultural development. Entrepreneurship is very essential
to any economy not only for its growth but also for overall development of the whole nation.
New business creates jobs, reduces concentration of economic power, and provides
opportunity for equal distribution of wealth and several other benefits. Therefore, it is very
important to support and nurture such endeavours that can help promote sustenance of the
society (Drucker 2014). New endeavours do not always aim at essentially the economic
perspective, some stem from long standing social issues that inspires to start a venture. The
market is always changing and there is constant need to explore new options and bring
changes in the existing options. Therefore, it makes entrepreneurship even more important in
this time and age. This report analyses aspects that is necessary any new business and
discusses about various challenges that it faces in the current market and the potential risks
involved (Tavares 2018). The new business that is the topic of discussion is an American
brand called Civica Rx, which will be analysed in depth.
Discussion
Civica Rx is an American non-profit generic drug manufacturer founded in 2018.
Created to meet the crisis of drug and high pricing of the medicines in hospital across
America. Drug shortage has plagued America in recent years, which has subsequently led to
escalated prices overall health care and incurred a huge cost in labour. The company aspires
to act in the best interest of the patients by providing low cost generic drug for their use,
reduce extra labour cost, and improve the patient care system. To address the crisis more than
120 hospitals and organisations have vouched their commitment to the manufacturer. The

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company’s headquarter is in Utah, and it currently manufactures 14 generic medicines that
has been approved by the FDA to stabilize the current drug crisis. Martin Van Trieste is been
named as the CEO of Civica Rx who has agreed to lead this organisation without any
compensation (Roehr 2018).
Funding
Funding is essential for functioning of any organisation. Owing to the rising concern
of drug shortage and deficit in patient care system, Civica Rx has garnered a lot interest from
the medicine community for its unique non-profit model. According to their official website,
Catholic Health Initiative, HCA healthcare, Mayo clinics, Intermountain Health to name a
few out of the seven organisations have joined to fund the agency. They will be part of the
board of directors, involved in representing the company and 500 other hospital across U.S.
Three other philanthropic organisations have also come forward to capitalise the project with
a total of $30 million dollars namely the Peterson Center on Healthcare, the Gary and Mary
West Foundation and the Laura and John Arnold Foundation. This company has been able
gather significant funds because it has targeted at abating a national crisis. The funds for this
particular company has been obtained through donation and joint initiative, since it is non-
profit organisation and promotes sale of low priced generic medicine for the betterment of the
society. Vizient a performance improvement company has also collaborated with Civica Rx
that will help the company anticipate gaps with its analytics and data capacity (Civica Rx
2019).
Challenges
Entrepreneurship is challenging, with a variable market dynamics, it has to constantly
evaluate and consider various aspect to improve its service and revenue. The discussion will
explore the various challenges that Civica Rx can anticipate in the future.

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ANALYSIS OF CIVICA RX AND ENTREPRENEURSHIP
Economic
Civica Rx is essentially a pharmaceutical company and even though, the current
market seems to favour the pharmaceutical sector. Studies shows, the following it could be
facing some challenges. The primary challenge remains the drug shortage all over U.S and it
subsequently affects the global drug pricing as well (Hernandez et al 2019). Civica Rx will
have to face challenges with the changing market that has a disruptive healthcare and slow
growth rate of pharmaceutical company worldwide. Civica Rx‘s motto is price transparency
for the patients, however it faces a challenge, as the billing in hospitals do not often offer that
transparency while billing. The patients are required to pay in parts or entirely without any
clarification on what are they paying for or the medicines they are saving on. This leads to
confusion and problems in the payment procedure. The partners, collaborators and the CEO
will not be profiting economically from this venture as this is strictly for the benefit of the
customers (Civica Rx 2018).
Political
New companies face challenge from the political sphere; it can influence their
prices, services and other factors. Politically, current government initially promised to allow
Medicare that is under the U.S government to set drug prices that meant to reduce the overall
cost of healthcare. However, the government failed to deliver this promise that has led to the
current price inflation and shortage of medicines (Saltzman and Eibner 2016). With the
increase of pressure on healthcare from the global government, pharmaceutical companies
face an immense pressure on their drug pricing. Civica Rx targets this issue that can help it
gain advantage over other pharmaceutical industries and reduce their profit. However, since it
is very new company the extent of its deliverance is to yet to be observed.

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ANALYSIS OF CIVICA RX AND ENTREPRENEURSHIP
Legal
Civica Rx is an independent company with collaboration and funding from various
agencies, as a non-profit organisation it needs to adhere to the country’s rules and policies
concerning non-profit organisation. As members of various organisation is involved in the
board of directors, representing the company, there needs to be certain legal code of conduct
that is suitable for all the members to abide by, therefore the legal procedures might be a bit
complicated in regard to the company.
There is rise of ecommerce website that sell drugs, these third party sellers often may
sell counterfeited medicine under a popular company name. These can be extremely injurious
to health of the consumer and bear severe legal charges. Therefore as a new company, they
must ensure their product bears their seal or some sort of identity that allows the customers to
know the real from the fraud (Lavorgna 2015).
Social and cultural
The social factor too is challenging pharmaceutical companies to overcome (Martí
2018). The current population is very aware and have increased expectation regarding
healthcare services. Americans often end up paying different prices for the same medicine
due to involvement of pharmacy benefit managers who hike up the price of the same
medicine differently in different platforms. This poses a major challenge to Civica Rx who
will need to meet the expectation of the consumers, while maintaining their production and
quality of medicines.
Lifestyle problems caused by obesity has led to cultural demise of the U.S. Obesity is
a social and cultural problem. Diabetes, loss of eyesight, heart disease, mental health issues
are few common consequences of the majority of American population affected by obesity
(Klaczynski and Felmban 2019). The country is faced with extreme social and cultural

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spasm. With the rise in health risks and problems, job sector is gradually collapsing with
more and more people rendered incompatible to work because of the same problem. The
American population has a rise in older generation and geriatric health issues is increasing
(O'Brien 2015). Subsequently, an increased population seeking medical facility, often without
proper insurance and inability to access basic health care. The country is faced with extreme
social and cultural spasm. Civica Rx faces an important challenge to improve the
affordability of regular medicines, even though, that is the primary goal. It remains to be seen
the true effectiveness of the company.
Technological
The new age has welcomed the intervention of internet and e-commerce is booming.
There is surge of online marketing that delivers medicines to the doorstep of the client and
allows them to compare prices online. This has increased direct patient interaction, improved
delivery of the products and customer service. Hence, companies that cater to the online sales
will have precedence over Civica Rx that does not have an online portal yet (Laudon and
Traver 2016). Therefore, it imposes pressure on Civica Rx’s technological sector. New
industries need to consider the latest developments in technology to stay at par with its
competitors.
Technological advancement is causing patients to be more aware about various new
trends in medicine. This can be challenging the pharmaceutical industry to understand health
technology and its partnership with medical community or having direct business
communication with consumer. Therefore, it will be most important to maintain utmost
transparency, consistent quality and production (Caputo et al).

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ANALYSIS OF CIVICA RX AND ENTREPRENEURSHIP
Environmental
Production of pharmaceuticals generates waste. Bio waste can be hazardous to
humans and the environment since they are harder to breakdown in the ecosystem. The gas
emission contribute to air pollutants causing, eye irritation, asthma and others. People are
aware of the environmental issues and favour companies that are concerned with
environment. Pharmaceutical companies have faced backlash for their inappropriate waste
emission and disposal method. This is a challenge for Civica Rx, and needs to set itself apart
from the rest of the pharmaceuticals or be categorised in the similar group. Civica Rx should
understand the implication that the company must have on the environment, and enact
environmental friendly options in waste management (Bielen 2017).
Potential risks
Every organisation faces potential risks, it is important for the company to anticipate
risk and take precautionary measures (Kickul and Lyons 2016). Civica Rx is a new company;
it has established itself as a non-profit organisation. Its primary benefactors, directors and
CEO do not receive any remuneration for their services, this company primary goal is to
provide low cost generic medicines and stabilize the current drug crisis. The goals and
motivations are unique; however, like any other organisation it faces certain risks.
As, a non-profit organisation, it can face the risk of theft by the members, employee
or third party members. According to studies, 10% of non-profit organisations across the
world are involved in committing fraud and embezzlement of fund (Subaida, Musyarofah and
Prasetyono 2017). Civica Rx should monitor their funds and always issue extreme security
and transparency in record. Civica Rx should be accountable for every financial transaction;
loss of any money can cause to effect the functions of the organisation. Another, very
common fraud is the medical crowd funding fraud, as a non-profit organisation is heavily

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dependent on the favour of the donor agencies. It must practice caution, as there is chance
third party can impersonate as members of Civica Rx and launder money under their name,
spoiling their good image. Hence, it is extremely important for the company to implement
very high security measures (Zenone and Snyder 2019).
Analysing the market dynamics remains one of the most important factors, that effects
the growth of the company directly. Civica Rx is targeting the price inflation and the drug
crisis; however, it is important to maintain the quality and consistent service to build a strong
customer base (Lidstone and MacLennan 2017. Civica Rx has hired experienced and
renowned people for their core team, which should add to the advantage of the company. A
company should invest time and money to source the right people for the job, since it is in its
initial stages it could use experience and influence from experienced employees to deliver
proper service to the public.
Economic stability and flow of funds is crucial to deliver the intended services. Since
this organisation in discussion is a non-profit organisation, it is heavily dependent on the
donor organisation, this is very important factor to consider and ensure that there is enough
funds to carry out regular functions of the organisation (McCann and Ortega-Argilés 2016).
Lack of funds can cause disruptive service, subsequently affect the supply of drugs, and
eventually harm public service and response. The directors and officers play an important
role in representing the values and maintaining the vision of the company. They are also
responsible for maintaining and managing the funds of the organisation to ensure the
organisation can carry its regular duty while ensuring the majority of the money goes to the
charitable cause. It is common for directors and officers to take personal liabilities in regards
to their professional duties within the organisation, this can have a direct impact on their
work. If there is miscalculation of allocation of fund or if the members indulge in

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ANALYSIS OF CIVICA RX AND ENTREPRENEURSHIP
malpractices. It can reflect negatively on the company and influence its sales and public
response.
Considering Civica Rx is a non-profit organisation, it can hire volunteers to help the
organisation with no compensation. In this case, the company should practice precaution and
thorough screening of the candidates to avoid any chance of misconduct that can take place
(Brudney 2016).
Conclusion
Entrepreneurship is extremely important for growth and innovation of a nation. They
add to job market and help in providing infrastructure and support to the society. Civica Rx is
ambitious, aiming to stabilize the drug shortage that is persistent in the American society at
the same time it promotes cheaper health facility to the patients (Hawley et al 2016). If
successful Civica Rx will effect Americans and eventually the world population with its plan
for affordable healthcare, obliterating malpractices that is currently prevalent. It is faced by
various challenges however; its future depends on the decisions that it takes in the future.

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