Reference no: EM133100102
Explain in depth how each of the following internal and external factors would affect Glaxo SmithKline. Please quote your reference
External factors
Political factors. Most countries maintain frameworks that include guidelines about safety standards and certifications. They also mark the banned drugs, which may cause health hazards. If a pharmaceutical company fails to follow those regulations, its business may suffer severely. Administrations of most countries try to gain control over the price of the drug to make it affordable for people. It may toll on the growth of pharmaceutical companies. In addition to that, governments of some countries subsidize the pharmaceutical companies to keep the essential drugs within the commoners' reach. It helps the companies to survive in the competitive market.
Legal Factors. As pharmaceutical products are one of the essential ones, the government always uses laws to control the fraud regarding the expiration dates and manufacturing of the batch of drugs. If a company fails to adhere to the set guidelines, it may have to face legal proceedings. Pharmaceutical companies should maintain strict legal guidelines while formulating the framework for their business and researches. They ensure the safety of the products. It helps them to avoid legal issues. Thus, allowing them to stay away from the high expenses of proceedings.
Environmental Factors. Environment is a significant concern, and the impact of waste materials on the environment has worried the environmentalists. As the production of drugs is related to a large carbon footprint, many countries are coming up with regulations to decrease the effect on the environment. As abiding by these regulations may be costly for the new companies, they may fail to establish their business.
Economic Factors. The economy of any direct impacts the businesses. The pharmaceutical industry like GSK is also affected when the economic conditions of a country get affected. As the economic conditions of the countries are developing with time, the household income of people is also increasing. It may allow them some essential drugs. They may have the urge to buy costlier drugs, which were previously out of reach for many people.
Internal Factors
Materials and Methods. Including new types of products and expanding the range must be considered. With a constantly evolving market and the appearance of new types of products, it is important to respond in time, correctly evaluate, and possibly introduce new products to the market, if they are cost-effective
Availability of direct long-term contracts with domestic producers. It allows purchasing domestic drugs directly from producers, bypassing the extra links of the distribution chain. As a result, a competitive price can be offered in the market, and the maximum benefit from the sale can be obtained.
High growth of the pharmaceutical market. The pharmaceutical market is a dynamically developing sector of the global economy. According to the data of the Monthly Retail Audit of the Russian Pharmaceutical Market conducted by DSM Group marketing agency, 5.3 bln packages of drugs worth about 991.9 bln rubles (in retail prices) were sold through pharmacies in 2018. The drug sales grew by 4.6% in value and 4.9% in kind compared to 2017. This raises concerns as high growth in the industry raises competition in the market.
Development of technology. It is often necessary to instantly invest a tangible amount of money to implement a new technology, and it is important to estimate the benefits for the company from this investment in the future. A company like GSK must be open to development and innovation so that they can provide quality goods to clients and consumers. This is a factor to be considered since changes when it comes to technology is inevitable.
Prepare a reconciliation of net income for year two
: Prepare a reconciliation of net income for Year 2 and shareholders' equity at December 31, Year 2, under IFRS to an ASPE basis
|
Maintain plans for scheduling quality assurance
: Apply complex decision making to select appropriate testing techniques and Write professional level management, planning, quality assurance and testing document
|
What is the total present value of Option two
: Option 2: Make a payment of $22,000 immediately and the balance of $23,550 in 3 months to settle the invoice. What is the total present value of Option two
|
Prepare journal entries for this equipment
: Prepare journal entries for this equipment for the years ending December 31, 2020, and December 31, 2021, under (1) U.S. GAAP and (2) IFRS
|
Internal and external factors would affect glaxo smithkline
: Explain in depth how each of the following internal and external factors would affect Glaxo SmithKline. Please quote your reference
|
Compute the annual equivalent cost of the machine
: The machine has a useful life of seven years and a salvage value of $14,878. Compute the annual equivalent cost of the machine
|
Evaluate the relevance of god image to culture-making
: What does "being made in God's image" imply about humanity's relationship to the created world and humanity's role as creators in general and creators of cultur
|
Explain the auditor planning process
: Audit planning process allows the audit senior to acquire adequate knowledge about the entity. Explain the auditor planning process
|
How the provinces affected the general roman economy
: Discuss how the provinces affected the general Roman economy.
|