Novartis Environmental Analysis Case Study Example | Topics and Well Written Essays - 1000 words

Novartis Environmental Analysis - Case Study Example In order for Novartis to achieve excellence in its international markets, it has employed technology to foster innovation in drug manufacturing and promotion. As a result, the company has been able to adapt effectively to the technological environment for excellence and effectiveness in achieving its goals and objectives in the market. International Factors Since Novartis’ pharmaceutical business is internationalized, global or international factors have a significant impact on its operations (Pharmawatch 15). This includes the forces of globalization which has made international companies to comply with the changes in international markets. In this regard, it is reflective that the developments and changes in the pharmaceutical businesses across the world have an influence on the operations of the company. As a result of the international factors, Novartis has been able to form mergers with international companies (Novartis AG 154). In addition, the international forces in th e labor market have an impact on the recruitment and employee retention practices of the company. Political Factor Political risk is related to all forms of international business. This is due to the political forces which are likely to have an impact on the operations of a company in its international market. For example, changes in governments would have a negative or positive impact on the business activities and success in a specific market and economy. Because of the inevitable political forces, Novartis has engaged in political risk assessment in the international markets and economies in which it intends to venture into (Global Pharmaceuticals 129). The assessment of political risk is aimed at allowing the company to be able to determine the possible changes in the political environment which are likely to lead to negative implications on its business activities (Andreas 1). Through this assessment, accurate and informed strategic decisions are made in the company’s in ternationalization program for its pharmaceutical business (PR Newswire 1). Social Factors The social environments which comprise of the culture, religion, beliefs and practices of a society significantly affect the success of an international company within a specific market (Fair Disclosure Wire 1). The pharmaceutical business in characterized by inevitable implication from the social environment which includes the beliefs of a society on the use of conventional drugs as opposed to the religious traditional approaches to healing (Novartis AG SWOT Analysis 7). It is in this sense that it is evident that the success of Novartis in various drug markets across the world depends on the social factors. It is therefore reflective that Novartis employs socially, culturally and religiously acceptable forms and strategies of marketing communication for its drugs so that it would conform to the values and beliefs of the society within which it operates its business (Datamonitor 5). Ecologica l Factors There are ecological risks which internationalized pharmaceutical companies face in their operations. These include possible eco-toxicity and degradation of forests in the extraction of raw materials for the production of the environment (Franchini 6). Novartis has therefore employed chemical analysis processes to ensure that its products are not harmful to the environment in which it operat