MBA Assignment Report: Kent Pharmaceuticals' Strategic Analysis

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This MBA assignment report provides a comprehensive analysis of Kent Pharmaceuticals, a UK-based pharmaceutical company. The report delves into the application of various business theories, including PESTLE analysis, micro-environment analysis, marketing mix, and the internal marketing model, to evaluate the company's external and internal environments. It examines political, economic, social, technological, legal, and environmental factors impacting the company. Furthermore, the report explores the competitive landscape, supplier relationships, and distribution channels within the UK market. It also assesses the company's marketing strategies, including product, pricing, place, and promotion, and discusses the importance of employee management. The report concludes with recommendations for strategic improvements, such as expanding business, enhancing promotional activities, and improving employee training to foster a stronger competitive advantage.
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Running head: MBA ASSIGNMENT
MBA Assignment
Name of the Student
Name of the University
Author Note
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Executive Summary
The purpose of this report is to analyze the theories used in the EBI cycle of inquiry. The
theories analyzed in this report will be PESTLE, Micro Environment Analysis, Marketing Mix
Analysis and Internal Marketing Model Analysis. In this report the importance and method of
implementing the theories in the practice will also be discussed. Finally, the result of
implementation of the theories has been discussed in the report.
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Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Importance of implementing PESTLE in my practice................................................................3
Analysis of PESTLE theory.........................................................................................................4
Political Factors.......................................................................................................................4
Economic Factors....................................................................................................................4
Socio-Cultural factors..............................................................................................................4
Legal factors............................................................................................................................5
Technological factor................................................................................................................5
Ecological and ethical environment.........................................................................................5
Theory of Micro environment analysis........................................................................................5
Importance of Micro environment Analysis............................................................................5
Market......................................................................................................................................6
Competitors..............................................................................................................................6
Suppliers..................................................................................................................................7
Distributors..............................................................................................................................7
General public and media........................................................................................................7
Analysis of Marketing Mix Theory.............................................................................................8
Importance of marketing mix..................................................................................................8
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Place.........................................................................................................................................9
Price.........................................................................................................................................9
Promotion................................................................................................................................9
People....................................................................................................................................10
Analysis of the internal marketing model..................................................................................10
Results........................................................................................................................................10
Conclusion.....................................................................................................................................12
Reference List................................................................................................................................13
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Introduction
Kent Pharmaceutical can be considered as one of the eminent medicinal drug
manufacturers in UK. The company has the reputation of producing high quality generic over 30
years in UK. As a result of its grand reputation, Kent Pharmaceuticals has a huge client base
across the world. The company also has a major partnership with NHS which is supposed to be
highly beneficial for the company. The major consumers of Kent Pharmaceuticals include
middle aged and elderly individuals. Considering the fact that the above mentioned consumer
group is highly volatile to handle, Kent Pharmaceuticals needs to continuously research on
innovation of new drugs and development of the already existing ones. In this reflective report, I,
being the manager of the Company have analyzed the internal and external environment of the
company in order to understand the strength, weakness and further opportunities of the
companies. In this report critical analysis of the cycle of inquiry has been conducted. The cycle
of inquiry used in the previous task include Internal and external audit, Macro and Micro
environment analysis and internal marketing. Apart from that, in this report, I will analyze why
and how the above mentioned cycle of inquiries have been used and finally the result of using
the theories in the practice.
Discussion
The first theory used for analyzing the external environment of Kent Pharmaceuticals is PESTEL
Analysis.
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Importance of implementing PESTLE in my practice
The full form of PESTLE Analysis is Political, Economic, Social, Technological,
Environmental and Legal Analysis. The chief purpose of executing PESTLE Analysis includes
identification of the external factors stated above that can impose both positive and negative
impact on the business of Kent Pharmaceuticals1. Being a manager, by performing PESTLE
Analysis, I will be able to assess the risks posed by the identified factors and use the obtained
knowledge for evaluating the opportunities.
Analysis of PESTLE theory
Political Factors
By analyzing the political factor of the Kent Pharmaceuticals in UK, I feel that since a
stable and fair political environment prevails in UK, UK is able to provide various business
opportunities to the Company. However, according to me, the issue of Brexit and various hidden
corruptions within the country will impose a highly negative impact on the business of Kent
Pharmaceuticals.
Economic Factors
From Economic analysis, I found out that due to diverse economy and high GDP, UK has
a really stable economic condition. Since the economy is diversified, Kent Pharmaceuticals will
be able to gain more opportunity to invest in the business. In spite of the fact that UK is still
recovering from the effect of recession, I think, being a developed country, UK will provide a
good market to the above mentioned company due to its enhanced economical conditions.
1 van Wijngaarden, Jeroen DH, Gerard RM Scholten, and Kees P. van Wijk. "Strategic analysis for health care
organizations: the suitability of the SWOTanalysis." The International journal of health planning and
management 27, no. 1 (2012): 34-49.
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Socio-Cultural factors
While analyzing this factor, I found out, since several number of health services are
provided to the citizens of UK, it may impose a negative impact on the overall revenue of Kent
Pharmaceuticals. However, since UK is considered to be the country of Aging population, the
company will be able to flourish in this country due to higher number of health care users.
Legal factors
After analyzing legal factors of UK, I found out that the work time of employees in UK is
lesser than that of several underdeveloped countries. Besides that several issues like racism,
inequality and gender discrimination are also prevalent in the country. According to me, these
issues will definitely impose negative impact on the internal environment of the company.
Technological factor
Being a developed country, the technology of UK is highly developed. I think, this is
going to be beneficial for Kent Pharmaceuticals Ltd., as being a health care service provider, the
company will need highly advanced equipments and health care machines of latest technology,
so that it can provide efficient service to its service users.
Ecological and ethical environment
In order to abide by the environmental and ethical norms of the country, Kent
Pharmaceuticals has adopted several CSR activities. According to me, this phenomenon will
impose a positive impact on the business of the above mentioned company, since, adaptation of
CSR for protection of the environment will enhance the reputation of the company along with its
consumer loyalty.
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Theory of Micro environment analysis
Importance of Micro environment Analysis
By analyzing the micro environment of UK, I will be able to understand the small force
within the organization which has the ability to serve its consumers. Like macro environmental
analysis, analysis of micro environment of Kent Pharmaceuticals is done in order to create an
effective marketing strategy for the company that will help it to increase its overall revenue2.
Being the manager of Kent Pharmaceuticals, my responsibility is to analyze an incorporate the
theory of Micro environment analysis.
Market
Considering the fact that UK has aging population, the chief target of my company will
be middle aged and old aged service users. After analyzing the market of UK, I understood that
in order to attract health care service users towards the company, I need to focus an effective
consumer focused strategies. For this, I have to manage the resources of the company effectively
and provide unique facilities to the consumers in order to enhance the consumer loyalty of the
company.
Competitors
After analyzing the market of UK, I found out that Ratiopharm and Ranbaxy are two of
the major competitors of Kent Pharmaceuticals Ltd. The service provided by the above
mentioned companies are more or less similar. In order to gain competitive advantages, both the
companies have incorporated highly advanced equipments to provide better service to the health
care service users. I also found that these companies are providing high quality services at lower
2 Armstrong, Gary, Philip Kotler, Michael Harker, and Ross Brennan. Marketing: an introduction. Pearson
Education, 2015.
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costs in order to attract consumers towards themselves. In order to cope up with the highly
competitive market, I would suggest Kent Pharmaceuticals to reduce operational and
manufacturing cost in order to cope up with the market. Another strategy suggested by me will
be to incorporate advanced equipments in order to provide better heath care service to the healh
care service users.
Suppliers
While analyzing the power of the suppliers in health care industry, I found that some of
the major suppliers of Kent pharmaceuticals are Bio Pathica Ltd, Euro Medical and Ambe Ltd.
While Active Pharmaceutical ingredients (API) are supplied to the above mentioned company by
Ambe Ltd, Bio Pathica Ltd. provides raw products for the manufacturing of various products.
According to me, since API is the chief component of medicinal drug, the company must ensure
effective relationship with the suppliers.
Distributors
Unlike its competitors in UK, Kent Pharmaceuticals has its own distribution channel. In
order to ensure the enhancement of the overall revenue of a company, I think, distribution
channel plays a major role. In spite of the fact that the distribution channel of our organization is
really strong, I will suggest Kent Pharmaceuticals to use their distribution channel more
effectively.
General public and media
According to me, in order to enhance the number of consumers, Kent Pharmaceuticals
should incorporate social media as a part of its promotional activities. Effective promotion is
important to attract consumers and thus ensure enhancement of consumer loyalty and brand
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equity3. While analyzing the importance of general public and media in the health care market of
UK, I found that Kent pharmaceuticals has not involved social media as an effective way to
communicate with the consumers. The chief reason behind this is the issue faced by the company
due to health care problem. According to me, in spite of the issues faced by the company, Kent
Pharmaceuticals Ltd. should incorporate social media in its promotional strategies. The reason
for which I am suggesting social media for promotion is that the company will be able to
communicate with its consumer directly thorough social media. Direct communication with the
company will ensure enhancement in consumer loyalty. Another advantage of engaging social
media platform for promotional purpose includes low or cost free promotion.
Analysis of Marketing Mix Theory
Importance of marketing mix
In order to ensure the enhancement of competitive advantage of Kent Pharmaceuticals
Ltd., Marketing Mix analysis is highly crucial. This analysis will help me create effective tactics
and marketing strategies for increasing the consumer loyalty of the company4. The marketing
mix analysis chiefly includes the analysis of the product, pricing, place and promotional tactics
of Kent Pharmaceuticals.
Product
3 Hollands, G.J., Shemilt, I., Marteau, T.M., Jebb, S.A., Kelly, M.P., Nakamura, R., Suhrcke, M. and Ogilvie, D.,
2013. Altering micro-environments to change population health behaviour: towards an evidence base for choice
architecture interventions. BMC public health, 13(1), p.1218.
4 Hollands, G.J., Shemilt, I., Marteau, T.M., Jebb, S.A., Kelly, M.P., Nakamura, R., Suhrcke, M. and Ogilvie, D.,
2013. Altering micro-environments to change population health behaviour: towards an evidence base for choice
architecture interventions. BMC public health, 13(1), p.1218.
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Considering the fact that the target consumers of Kent Pharmaceuticals include middle
aged and elderly health care service users of UK, the company’s chief products includes
medicines for respiratory, cardiovascular and analgesics anti-infective issues. According to me,
the product manufacturing strategy of Kent Pharmaceuticals is perfect since the above mentioned
healthcare problems are highly common among the target consumers of UK. However, in order
to cope up with the competitors, I will recommend the company to provide high quality
medicines in a lower price range.
Place
During analysis, I found that Kent Pharmaceutical Ltd. chiefly sells product in Ireland
and Britain. Considering the fact that several other pharmaceutical organizations also sell their
products in Britain, I will suggest the company to expand its business in other parts of UK as
well. This will not only ensure enhancement in the global market but will also enhance the yealy
revenue of the company.
Price
I found the pricing strategies of Kent Pharmaceuticals Ltd. satisfying because of the
following reason. Like majority of its competitors, Kent pharmaceutical Ltd. offers high quality
products to the consumers following the premium pricing system. But unlike its consumers, the
mentioned company offers discount to its permanent consumers in order to gain competitive
advantages.
Promotion
In today’s era of modernization, I will suggest Kent Pharmaceuticals Ltd. to promote it
business through popular social media platform like Twitter, Instagram and Facebook.
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According to me, Social media marketing is the most cost effective way to communicate with the
consumers and promote the business at the same time.
People
In order to improve the efficiency of the employees recruited by the company, I will
suggest the management of the company to provide effective training to the employees. In spite
of the fact that the company provides training to the employees for 15 days after recruitment, I
will suggest enhancement of the training period for better performance of the employees.
Analysis of the internal marketing model
I think that managing employees is highly crucial for the above mentioned organization
since employees are considered to be the internal consumer of the organization. If employees are
not happy with their job profile, they will not be able to relate to the ultimate goal of the
organization. As a result, the company will face major employee retention issues. In order to
cope up with this issue, I will suggest Kent Pharmaceuticals Ltd. to establish better
communication of the employees with senior managers. This will ensure that the organization
work as a single entity and provide high quality service to the ultimate consumers of the
company.
Results
After implementing the PESTLE theory in my practice, I have got positive results that
have ensured the increment of overall revenue of the company. Since UK has stable political
condition, Kent Pharmaceutical has the opportunity to gain various kinds of business facilities.
Besides that, being a developed country, the economic condition of the citizens in UK is stable
enough to invest a good amount of money for their own health care. Another advantage of
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establishing business in UK is the highly advanced technology of the country. Kent
Pharmaceuticals Ltd. has enhanced its service by implementing advanced machines for
operational purposes. Besides that, since the population of UK is considered to be an aging
population, I think, the health care market of UK can be considered as a huge opportunity for the
above mentioned company. By analyzing the Micro environment of the company, I am able to
gather necessary information about the suppliers, competitors, market and promotional methods
of the company which in turn, helped me to implement effective measures for the betterment of
Kent Pharmacy.
The main result of using these theories help to determine the whole structure of the company’s
internal and external environment and also help to determine the strength and weaknesses of the
company. The marketing mix theory reflects the marketing strategy of the Kent Pharmaceutical
Ltd where they used the four components of the marketing price, product, place and promotion.
Their products are basically focused on the generic medicine which helps to collect profit from
the old and middle-aged people. Place is also important for the company as they operated their
business in the Britain and Ireland market to get the success. Price of their product is higher than
their competitors as they offer high quality products but various discounts attract and satisfy their
permanent customers. The term promotion is done basically using the social media as this is the
best promotional platform for the Kent Pharmaceutical Ltd. This marketing mix theory
precipitated their strategy in the market and how they incorporated into the market and
competitors. As a result, whole marketing policy and analysis of their marketing techniques have
been analyzed by the theory. The main purpose of using theory is to reveal the strategy in more
specific manner, which will help to understand the marketing and also help me to understand the
steps that I can use in my business marketing context. This theory also helps me to understand
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the marketing environment and how to adjust to it. Using theories to understand the whole
concept is very systematic and proper and marketing mix theory resulted in the entire strategy of
Kent Pharmaceutical Ltd from which I can also judge my concept with this. Using this theory in
the reflection helps me to understand how products, price, promotion, place are important for
establishing the business in the oligopoly market. Also, this theory is used by the Kent
Pharmaceutical Ltd to beat their competitors and gain in the business.
Conclusion
From the above discussion, it can be concluded that the political and economical
situation is fair enough for the Kent Pharmaceutical Ltd to do the business. UK government also
supports the company in many ways, but legal factors sometimes create some problems for the
company as a high labor rate and many other rules. the socio-environmental situation is also
suitable for the company as helping the patients is a culture UK and this help the company to
facilitate their business in the market.Technological advancement also helps the company to
provide smooth and flexible service to their customers. Competitors of the company are high in
the market, and Kent Pharmaceutical Ltd must need to find out the innovation to stay healthy in
UK medicine market. Sales revenue of the company is also high for the company, and the profit
margin is also favourable. For the above discussion, it can also be concluded that using
marketing mix in a sustainable manner help to get the brand image and profit. Also, a reflection
on the above evaluation is also described in this paper which will help me to understand all the
theories and use of the theories in the business context.
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Reference List
Armstrong, Gary, Philip Kotler, Michael Harker, and Ross Brennan. Marketing: an introduction.
Pearson Education, 2015.
Hans, Erwin W., Mark Van Houdenhoven, and Peter JH Hulshof. "A framework for healthcare
planning and control." In Handbook of healthcare system scheduling, pp. 303-320. Springer,
Boston, MA, 2012.
Hollands, G.J., Shemilt, I., Marteau, T.M., Jebb, S.A., Kelly, M.P., Nakamura, R., Suhrcke, M.
and Ogilvie, D., 2013. Altering micro-environments to change population health behaviour:
towards an evidence base for choice architecture interventions. BMC public health, 13(1),
p.1218.
van Wijngaarden, Jeroen DH, Gerard RM Scholten, and Kees P. van Wijk. "Strategic analysis
for health care organizations: the suitability of the SWOTanalysis." The International journal of
health planning and management 27, no. 1 (2012): 34-49.
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