The pharmaceutical industry: an industry note


Please read pages 431- 449 (Case 1) of the course textbook Strategic Management in Health Care Organizations. Create a 5 or more page report in Microsoft Word document that answers the following questions.


Case Study:


1.       Do Americans spend too much for drugs?


2.       Should the pharmaceutical industry become more regulated? If the government buys the rights to patented drugs and then distributes the drugs to the public, will the costs for pharmaceuticals be reduced?


3.       Is acquisition the most effective method to increase market share for pharmaceutical companies?


4.       When one of the major pharmaceutical companies planned the development of a new drug, what was the minimum revenue it would need to generate?


5.       Does the competition by generic drugs against the brand name drugs impact the innovation of new drugs?


6.       What is minimum value of new drugs that the pharmaceutical industry must introduce every year to avoid shrinking?


7.       What world markets should the major pharmaceutical companies be targeting?


8.       What are the critical success factors (CSFs) for the pharmaceutical industry?










Ø  Clearly define the problem to be solved or identify symptoms the suggest an underlying problem


Ø  Who are the stakeholders in this situation and how are they involved or impacted by this problem?


Ø  What alternatives should be considered in solving this problem? Please quantify where possible.


Ø  Indicate which alternative you would recommend and why?


Ø  How do you expect that each of the stakeholders will react to your recommendation?


Ø  Indicate the potential risks if this recommendation turns out to be wrong.


Ø  Justified ideas and responses by using appropriate examples and references from texts, websites, and other references or personal experience.




Length: 5 or more pages


References: 5 or more


APA format


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