PESTLE, SWOT, and VRIO Analysis of Novartis Pharmaceuticals UK

This report covers the PESTLE, SWOT, and VRIO analysis of Novartis Pharmaceuticals UK, a medium-sized organization that deals in medical facilities. The report provides an overview of the organization, followed by an analysis of the external and internal environment. The PESTLE analysis covers political, economic, social, technological, environmental, and legal factors. The SWOT analysis covers the strengths, weaknesses, opportunities, and threats of the organization. The VRIO analysis covers the valuable, rare, inimitable, and organized resources of the organization.

Project

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
About Organization.........................................................................................................................1
PESTLE ANALYSIS......................................................................................................................1
SWOT ANALYSIS.........................................................................................................................2
VRIO ANALYSIS...........................................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
To operate a business successfully in changing environment there is need to analysis the
market properly that can help to understand what changes needs to bring in organization. The
present report is based on internal and external environment analysis (Luijt, 2021). To do this,
Novartis Pharmaceuticals UK has been selected that deals in medical facility to their customers.
The report covers PESTLE, SWOT, and VRIO analysis that supports to grow business
continuously.
MAIN BODY
About Organization
Novartis Pharmaceuticals UK is medium size organization that sales different types of
medicines to their customers for providing good health. The organization was founded in March
1996 by Johann Rudolf, and Alexander Clavel. The management of such organization
understand requirement and provide kind of products that could help to provide safe life (He,
2021).
PESTLE ANALYSIS
PESTEL analysis is a tool used by managers to analyse external environmental factors that
influence a particular organisation as well as industry. It helps organisations to grab the external
opportunities and use them in effective and efficient manner to achieve the organisational goal.
The PESTLE analysis of Novartis Pharmaceuticals UK is defined below:
 Political factors
Political factors comprise of all the factors that are related to political environment
prevailing in the particular country. Political factors such as political stability, trade barriers,
international relations influence the growth of the industry. UK enjoy the good trade relations
with developing countries, tariffs and trade restrictions are low in the country that encourages
Novartis Pharmaceuticals UK to operate its business effectively by following government
regulations (Kuzmenko, and et.al., 2021).
 Economic factors
Present situation of the economy can foster as well as hinder the overall progress of the
company. Economic factors include deflation, inflation in the economy as they impact the pocket
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of their target customers. In response to pandemic, a supportive monetary policy adopted by UK
in the pandemic scenario that became an opportunity for Novartis Pharmaceuticals UK to grow
its business at different location. Lower tax rates allow company to export its product worldwide
and proves to be in favour of the company (Brown, 2021).
 Social factors
Social factors entails customer preferences, life style they follow it comprises of deep study of
customer buying behaviour. Novartis Pharmaceuticals UK follow people needs and provide
medicines at affordable rates that can help to run a business effectively (Liu, and Wang, 2021).
 Technological factors
In today's world technology is everything. The company who keeps updated itself with latest
technology available will surely exploit the market better than others. Novartis Pharmaceuticals
UK is using new technology in manufacturing, distribution and delivery of medicines that
impacts positively.
• Environmental factors
Keeping environment sustainable and healthy is the responsibility of all the citizens.
Governments set various laws & standards to minimise the carbon emissions so as to create a
healthy environment. Novartis Pharmaceuticals UK is contributing in CSR and minimum
wastages while providing products that can help to develop business performance (Ghosh, 2021).
 Legal factors
Legal issues create a lot of hindrances in the success path of the organisation. They occur
between starting phase of establishing a production plant till the product reaches its final
customers. Novartis Pharmaceuticals UK following health and safety, employment and equality
act in running their business that impacts positively.
SWOT ANALYSIS
SWOT Analysis – This is a framework that used by companies to know strength,
weakness, opportunities and threats. The SWOT analysis of Novartis Pharmaceuticals UK is
defined below:
Opportunities and threats
Healthcare
rationing
Complex and
changing
buying
Increased
integration of
Informed
patients
+ -
2

structure health care
Strength 2 3 4 2 10
Good
knowledge of
medicine
3 2 4 2 11
Has global
reach in 140
countries
4 4 4 4 16
Strong brand 3 2 2 2 9
Higher
employee
strength
3 3 4 4 14
Weakness
Controversies
about certain
products
-2 -3 -2 -2 -7
Having
competitors
in market
-1 -1 -1 -1 -4
Weak ICT
capabilities
-3 -3 -2 -2 -10
Highly
depend on
leading
product
-3 -4 -4 -2 -13
VRIO ANALYSIS
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VRIO analysis is a framework which is uses by business entity in order to increase
capabilities and business performance effectively. By this technique organisation evaluate
various resources to take the competitive advantages and becoming productive organisation. This
analysis considers four element valuable, rare, inimitable and organised that are as defined in
context to Novartis Pharmaceuticals UK such as:
Resources Valuable Rare Inimitable Organised
Skilled Employees Yes No No No
Technology Yes Yes No No
Market presence Yes Yes Yes No
Financial Resources Yes Yes Yes Yes
Valuable - This states what are resources valuable for organisation and how it helps to
increase capabilities. In context to Novartis Pharmaceuticals UK, having different resources
such as skilled employees, technology, market presence and financial resources that all are
valuable for organization. The employee who is working in organization having good knowledge
about pharma sector, medicines and safety that can help to develop business activities and
maintain higher performance (Modi, and Rawani, 2021).
Rare – This stage states importance of sources which are rarely available and used to
improve the business activities. In relation to Novartis Pharmaceuticals UK, technology that
used in pharmaceutical sector is rarely available for others that can help to attain the competitive
advantages and maintain higher productivity. This can help to manage all business activities and
function by offering better quality of medicines (Trad, 2021).
Inimitable - This states imitability of products and services which could be success and
failure for running business. If products are inimitable for organization, then will be opportunity
to attain competitive benefits. In relation to Novartis Pharmaceuticals UK, market presence is
inimitable as organization distributing its products worldwide by maintaining good relations with
countries and following their trade regulations that can help to run a business effectively and
increase performance in changing environment (Hameduddin, 2021).
Organised – This means all products, services and sources which are available in
organization should be properly organized that can help to regulate a business effectively. This
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can help to manage each function along with sources. In relation to Novartis Pharmaceuticals
UK financial resources, which are available in industry is properly organised and recorded that
can help to spend fund on requirement and increase the profitability. The management of such
organization prepare budget every year and allocate the activities according to budget which can
help to managing all business activities and functions (Lee, Kim, Kim, and Kang, 2021).
From the above VRIO analysis it can be explained that Novartis Pharmaceuticals UK
having different sources which are most important and used to managing business activities. The
management understand requirement and bring changes in their products which influences
number of customers and develop business productivity.
CONCLUSION
From the report it can be concluded that strategies environment is important for business
industries as it used to analyse business environment and arrange sources accordingly. The
management uses different sources for the purpose of arranging and managing business activities
that supports to develop business productivity. PESTLE and SWOT analysis relates to analysing
internal as well as external environment that provide opportunity or create challenges in running
business. VRIO model is used to analysing competitive forces and attaining competitive benefits.
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REFERENCES
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INNOVATION BASED ON POSITIVE PSYCHOLOGY ON ECONOMIC
DEVELOPMENT. Psychiatria Danubina, 33(suppl 6), pp.252-0.
Modi, P. and Rawani, A. M., 2021. Drivers of innovation practices in SMEs: a literature
review. Research Anthology on Small Business Strategies for Success and Survival,
pp.1-15.
He, J., 2021. Improve the Effective Data Analysis Method of Enterprise E-Commerce
Marketing. CONVERTER, pp.731-735.
Lee, J., Kim, I., Kim, H. and Kang, J., 2021. SWOT-AHP analysis of the Korean satellite and
space industry: Strategy recommendations for development. Technological Forecasting
and Social Change, 164, p.120515.
Hameduddin, T., 2021. Employee Engagement in Government: Exploring the Role of the
(Perceived) External Environment1.
Ghosh, S., 2021. Experimental Approaches to Strategy and Innovation (Doctoral dissertation,
Harvard University).
Brown, M., 2021. The influence of the changing external environment and demographics on
orthodontics.
Zhichkin, K., Nosov, V. and Zhichkina, L., 2019, November. Waste management system in the
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337, No. 1, p. 012009). IOP Publishing.
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