Factors That Affect The Accomplishment FROM THE Operational Superiority Business Essay

One of the most competitive industries on the planet is the pharmaceutical industry. For a long period, the operation of the pharmaceutical companies has been at the mercy of scrutiny, especially by the government of each country of procedure. The underlying known reasons for the rigid attention include: the price tag on medications and drugs available, the reduced life circuit of product development, the technical improvements which impact businesses and the nature of medical care systems. In addition, the pharmaceutical industry, like other businesses, is affected by factors like the issues of recruiting development and sensitivity to culture and diversity. In fact, each of them have affected the beginning of the new and improved upon meaning of functional excellence.

The increasing needs for a better productivity and manufacturing costs have been the growing matter of pharmaceutical companies today. The need to meet the quickly changing needs of the market for a higher standard and quality drugs has also resulted to increased targets not only from the consumers but from all stakeholders (suppliers, shareholders, employees and the government). However, the quest for a much strong product is an extremely significant issue. The common goal is to lessen the attrition rate in delivering new medicines in the market as well as in creating a fair and reliable standard in finding the right pharmaceutical company to prize the patent. As more and more consumers are becoming matter of the medication s its short-term efficiency and its own long-term side effects, marketing for the medication has also be innovative and active. Within this view, the functional processes and executive for pharmaceutical product has come to a fresh level.


The old adage Health is Wealth is normally true nothing at all can become more valuable than being healthy and alive. The aim of the government of each country about the world to provide its people with healthcare services has been notable but still incomplete and unsuccessful. Not only the indegent and underdeveloped countries will be the ones having problems with high medical costs and insurances but even the developed or economically strong countries. There are numerous factors that contribute to the inability of the government to properly provide for its people in conditions of health care, for one, medical service is truly an expensive part of man s need to reside in and the costs of services are high because medical gadgets are expensive not mentioning the maintenance cost of each hospital. Hence, the necessity to secure the health benefits of people is just about the motivating factor for the federal government to present in an plan, its health goals for the American Nation.

Statement of the Problem

The pharmaceutical business is one of the most crucial industries on the planet. The huge benefits people gain from the results of research and development conducted by the pharmaceutical firms, such as discoveries of the treatments for many diseases, and the lessening time required to treat the individual that lead to conserving of lives, can't be equated with money. Even the wealthiest person on earth gets suffering and requires medicine. Suffering people and their families are happy whenever they learn that there is an end to their diseases and that their lives are lengthened by the healing power of medicine. However, with the high cost of creation, stiff competition, and the ever-changing government legislations, pharmaceutical companies are facing major difficulties. While the period to bring the pharmaceutical product in the market quickens, the risk involved in the cost restoration and industry survival increases for many pharmaceutical companies. In this particular view that the picked problem is titled: Achieving Operational Superiority in the Pharmaceutical Industry.

The preferred research problem evaluates the functional and engineering functions employed by the pharmaceutical companies. Getting operational brilliance requires that pharmaceutical companies understand the factors which might affect their procedures, like the changing human resources relative to social diversity and manpower outsourcing, the impact of environmentally friendly factors, which might include changing federal government legislations, market tendencies and future opportunities and threats and the near future trends, operational systems, collaborative initiatives (merging, tie-ups, etc. ) that will all change lives amid heavy competition and highly selective customers. The chosen statement of the condition hopes to show you the possible answers to the troubles and in the long run provide a wider perspective predicated on the data offered, evaluated and examined.

Purpose of the Study

The goal of the research is to learn the relevant factors that influence the achievements of the functional brilliance of the organizations in the pharmaceutical industry. In addition, it hopes to learn and know very well what makes a successful pharmaceutical company and exactly how operational excellence may be accomplished.

Significance of the Study

The findings of the research will serve as useful information on understanding the pharmaceutical industry as a whole. Readers will also have a complete view of the pharmaceutical industry from its begging up to the current time. Research workers of the same issue will have a concrete basis of examining and assessing for the same. Pharmaceutical companies will have a wider point of view of the industry where they can be found, providing them with more information useful in the creation of marketing strategies and functional upgrades. The government will also reap the benefits of this research because, it will present an alternative interpretation of the key factors impacting on the pharmaceutical industry.

Research Questions

This paper looks into the next issues:

(1) How should the current pharmaceutical industry be detailed in terms of:

a. Operational operations and engineering;

b. Pharmaceutical technology;

c. New product development, Research and development; and Product life circuit;

d. Development systems (total quality management, total beneficial maintenance, etc. ); and

e. Factors that characterize operational excellence (guidelines)?

(2) How are performances evaluated?

a. The Porter s diamonds strategy in a pharmaceutical setting

(3) What exactly are the obstacles of achieving operational efficiency in view of:

a. Sensitivity to culture and variety regarding a unified corporate thinking;

b. Globalization; and

c. Recruiting development?

(4) What are the expected future developments?


Pharmaceutical companies are categorized based on the nature of the business procedures: they are the research-based firms; manufacturing-based firms and a mixture of research-based and manufacturing-based organizations. Seen as a its two distinctive functions: research and development (R&D), and creation, the pharmaceutical industry was reported as a $600 billion worth of sales in the year 2006 (economywatch). Specifically, there is a 7 per cent increase on the sales of prescription drugs worldwide or a complete of $602 billion based on the survey of some major pharmaceutical and medical information companies. These pharmaceutical organizations are either, mostly employed in Research and Development (R&D) by themselves, learning diseases and evolving drugs and medicinal potency while other businesses concentrate on the drug production process. Large, financially-able and world renowned pharmaceutical companies employed in both activities.

The US is recognized as having the number one pharmaceutical market and an increasing development in the pharmaceutical industry all over the world. According to figures the highest recorded annual sales of pharmaceutical products and services in the US only is $252 billion and rises at around 5. 7 % annually (economywatch). Regarding to a pharmaceutical industry report, the key countries in the world in conditions of potential market are India, China and the United States. The article specifically explained that: The survey proved that there surely is an increasing demand and market for the pharmaceutical industry due to increasing health knowing of the people all around the globe.

Literature Review

Market intelligence data from IMS Health, a study company providing on pharmaceutical and medical industries proven that: in 2002, the estimated worldwide sales for prescription medications was about $400 billion; and that america expenditure on prescription drugs in 2002, was approximately 200 billion us dollars which accounted for about half of all sales worldwide. But not surprisingly high costs, america placed as the 21st rate on infant mortality on the planet, way below Greece and South Korea in support of a lttle bit higher in Poland. Also, the United States positioned at the 17th rate in terms of life expectancy all around the globe. The research firm also reported that in 2008, the united states prescription medications sales possessed amounted to an impressive $291 billion dollars every year (sourcewatch).

In this view, the problems experienced by the pharmaceutical industry about the world are enormous (Sherk). One of the primary reasons is the pressure of bringing down the costs of drugs and drugs that are believed contributive to the escalating costs of medical care and attention services (Sherk). The cost of health care in america is generally dual compared to other developed countries in European countries such as Britain, France and Germany. (yahoonews) Furthermore, the United States has reportedly spent 7, 290 dollars per person in the entire year 2007 but provided no important advantage in conditions of quality of treatment, and placed far behind the averages in the key indicators including the infant mortality and life span rate compared to the previously mentioned countries. The suggested healthcare reform in america, includes the analysis of the drug costs and the likelihood of fabricating legislations that will regulate the procedures of pharmaceutical companies.

Research Design

The research design which will be used to evaluate and answer the determined problem titled: Achieving Operational Excellence in the Pharmaceutical Industry is qualitative research. Your choice to work with the qualitative research design was based on the next factors: limited time available, and also, the utilization of secondary data. In order to answer the general and specific questions, the researcher uses the descriptive research as a kind of qualitative approach to research. The researcher gathers supplementary data from earlier researches, statistical reviews, surveys, demographic information, and online language resources. The data accumulated are detailed, sorted and analyzed in order to answer the problems undertaken.


The following will be the findings that were gathered using supplementary information, specifically from prior researches, statistical records, and other resources.

(1) How if the current pharmaceutical industry be defined in terms of:

(a) Operational Operations and Anatomist in the Pharmaceutical Industry

Drug Authorization and Subscription Process

As executed by the Food Drug and Plastic Act, the stringent compliance of the law should be viewed in all stages of the operational process and engineering in the Pharmaceutical Industry, mainly, in the subscription (FDA, 2010) The Food Drug Administration (FDA) s fundamental objective is protect the public health is the collection of these details, which is used for important activities such as post-market security for serious undesirable medicine reactions, inspection of drug manufacturing and finalizing facilities, and monitoring of medicine products imported in to the United States. Broad, appropriate, and up-to-date information is critical to doing these activities with efficiency and performance. (FDA, 2010)

(b) Process Analytical technology (PAT)

One of the new systems that are being used in the pharmaceutical industry is known as the Process Analytical technology (PAT). The term "Process Analytical Technologies (PAT)" has been used to describe "a system for building and controlling processing through timely measurements (i. e. during handling) of critical quality and performance features for raw and in-process materials and also functions with the purpose of ensuring last product quality". The PAT effort focuses on building quality in to the product and making processes, as well as constant process improvement. (pharmainfo. net)

c) Industry Operating Procedures

The pharmaceutical industry, just like other companies uses the US standard of Accounting GAAP (irs. gov). Pharmaceutical companies have to apply for the subscription of their recently uncovered drugs or medicines. Before a medicine can be examined in people, the medicine company or sponsor performs lab and animal checks to discover how the medicine works and whether it's apt to be safe and work very well in humans. Next, some exams in people is started to determine if the medication is safe when used to take care of a disease and whether it provides a genuine health benefit. The process must be based on the steps set by the Food and Drug supervision of the united states of operation. The development and Endorsement Procedure for Drugs in the United States is believed to be the safest and the most advanced pharmaceutical system on the globe. Another unique operational process employed by the pharmaceutical companies is the area of marketing. Unlike, the original selling and buying area of many products, offering drugs is an extremely complicated concern. Before companies can sell drugs, they have to seek approval and certificate from the FDA. Marketing in the pharmaceutical industry is often through salesmen.

(2) How are shows evaluated?

Porter s Five Causes of Industry Research of the Pharmaceutical Industry

The pharmaceutical industry has high barriers to entry, generally because capital is huge in this business. The necessity to allocate closely on research and development is very important if one will enter into this industry, not talking about high risk from government plans, and much longer or no profits on return. The supplier electric power has low impact because materials supplies are solely for pharmaceutical companies only, and shelf life of chemicals is longer than any common supplies. Buyer electric power depends on the type of medication being produced, if the medicine has no other substitute, then buyer ability is low, and vice versa. The risk of substitutes is also lower in the pharmaceutical industry, because although generics have been gaining popularity and approval, still, many consumers imagine branded drugs are far better. In conditions of competitive rivalry, the pharmaceutical industry is highly competitive. Mullins (2006) reported that the industry was overpopulated rather than one company has more than 5 percent market talk about. In addition, market progress rate is also nominal.

(3) What are the difficulties of achieving functional efficiency because of (a) Level of sensitivity to culture and variety with respect to a unified commercial thinking; (b) Globalization and (c) Human resources development.

The changing panorama of business due to the makes of the new and changing environment have become the major influences in the way in which leading function in the organization is performed today. Unlike the traditional management process, global control stretches its functions to new horizons and length that increased ideals for businesses, hence an elevated risks. Leaders are more adaptable and multi-skilled today. Thus, home based business horizons that provide new and improved opportunities are for sale to global leaders to take advantage of. With the winning attitude and skills, success in the business is possible for global leaders. The secrets however, rest on the power of the first choice to understand these new principles and issues.

Human Source Management or HRM can be an activity that is focused on recruiting, controlling and developing folks in an company. This function also handles the issues regarding employee settlement, hiring, performance evaluation, safety, development, health and fitness, communication, training and development. The individuals source management in the organization plays a huge role to make strategic and coherent method of managing the business s most significant property; its people. The HRM function is seen by most companies as a significant contributing element in aligning specific project to the employee s capacities. In doing so, the company will be able to efficiently achieve its goals at the very least required resources. Factors that affect staffing and staffing turnover are believed to be a large problem encountered by human source of information professionals. Pinkerton (2001) made an attempt to know the reasons that affect the staffing needs of nursing homes. The answers fluctuate with respect to the hospital, the top three include, teamwork or no teamwork/device cohesiveness, chaos factors impacting the delivery of medical care and performance of communication.

The factors affect staffing which can be categorized under external and interior. The external factors are the degree of education, the prevailing attitudes in world (the type of frame of mind toward work), the many regulations that directly have an effect on staffing, the economic conditions, and the way to obtain and demand for the manpower beyond your venture. Organizational goals, tasks, technology, organization structure, the kinds of people employed by the business, the demand for and the way to obtain managers within the business, the compensation system, and various kinds of policies are the internal factors which might affect staffing. For instance, the utilization of high technology generally in most industries requires extensive and rigorous education and training.

The group s capacity to results change is largely afflicted by the organizational culture since it serves as the essential aspect and characteristics of the complete corporation. Where organizational culture is profound seated and forms root subcultures, it is more challenging to change and for that reason sets a more challenging role for leaders who wish to put into action change in the organization. The propensity to resist change is higher when organizational culture is more cohesive plus more symbolical. Because the organization comprises of people that contain different behaviors, abilities, skills, knowledge, ideals, personality and many other differences, working along they seriously terms to manage one another s variations. Culture is the action which created when the folks in the business meet and arranged verbally and nonverbally and creates rule for doing the task. (Heathfield)


The variety in the business was previously regarded as a negative factor, however in today s environment where change is unavoidable, it results in the business s flexibility to be able to survive the competition in the market. In an group where variety is high, the leader must understand and learn how to package with it and use them effectively as a competitive advantages. Nowadays, many organizations utilize diverse band of employees because they would like to create a unique culture which results in the worthiness of the organizational labor force. Common diversities in the organization include racial mixes, international workforces, women face to face, and disabled employees.

(4) What are the expected future tendencies?

Major transformations are occurring in the delivery of medical care worldwide. Medical and healthcare technologies are ever more impacting the specialized medical as well as the administrative dimensions of healthcare care and attention delivery. Innovations presented within the last 10 years have created accumulated effects that'll be compounded with the continuing technical progress in medicine. Areas such as telemedicine, telehealth, computerized medical files, e-health and use of the Internet in B2B and B2C applications in healthcare are some of the milestones in the almost total revamping of the healthcare landscape. Medical and healthcare systems are already changing the procedures, design and mission of nursing homes. In this respect, the challenges for future years are an exciting opportunity for review, reflection, planning, and treatment.

Technology diagnosis (TA) arose in the mid-1960s from an understanding of the critical role of technology in modern society and its potential for unintended, and sometimes harmful, consequences. Congress commissioned unbiased tests by the Country wide Academy of Sciences, the National Academy of Executive (NAE), and the Legislative Reference Service of the Library of Congress that significantly affected the development and request of TA. These studies and further congressional hearings led the National Science Foundation to establish a TA program and, in 1972, Congress to authorize the congressional Office of Technology Diagnosis (OTA), which was founded in 1973, became operational in 1974, and set up its health program in 1975.

Another factor that is considered as a menace not and then pharmaceutical industry but all industries is the globalization. Globalization has been creating effects to various industries and individuals. The options associated with it are countless. Hence, it also poses higher risks to many. Globalization has inspired major transformations on the organizational set ups, and the functions of organizations whether locally or internationally handled. Globalization also redefined the functions and assignments of the intermediaries. Circulation of products is becoming entirely reliant on the intermediaries. Companies want to lessen connection costs and because of this, have outsourced services from other countries to have good thing about the economies of size. Industrial sectors have to endure comprehensive structural changes which are more noticeable in the areas that are founded highly on the advanced solutions. Examples include the automobile industry, pharmaceutical industry and the telecommunications, among others.

Conclusions and Recommendations

Based on this study, there are several lessons which could be learned from the analysis of and research performed in the pharmaceutical industry. Largely, the security and safety of your lives rely upon the power of the FDA (Food and Medication Supervision) and, CDC (Centers for Disease Control and Elimination), the AMA (American Medical Connection) and APA (American Pharmacists Association), to display and select the safest drugs, drugs and vaccines. The conditions set should and consistently be tested, proven, and communicated to all or any industry players. Second, the procedures of the pharmaceutical companies are usually influenced by the changes on the market. The relative amount of information available in understanding or talking about a situation can significantly assist in making valuable decision regarding the business procedure.

Third, the risk on the recruiting because of globalization is known as a very critical issue even in the pharmaceutical industry. In the problem where there is limited available resources, need is high for an effective HR planning. Making the most of employee performances through devising appropriate training is also vital to the needs of the company. The strategy will also assist in maximizing the return on investment of the any firm s real human capital and minimizing the financial risk is the key objective of recruiting. Finally, it will therefore be figured the operational superiority in the pharmaceutical industry will only be performed when companies figure out how to modify the changes and innovations as a result of the globalization.

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