SG7001 Managing Strategy Operations
Activity 4
4 (a)
| Stage in the industry life cycle | Growth Stage |
| Implications | Industry life cycle includes four stages such as introduction stage, the growth stage, maturity stage, and decline stage. Looking at the history of revenue generation of Sothema pharmaceutical company, it is clear that the organisation in its growth stage. This is because the revenue of this pharmaceutical company was USD 172,663 in the financial year 2019 (Pitchbook, 2022). Furthermore, it has increased and in 2020, it was USD 183,487 (Pitchbook, 2022). Moreover, in 2021, the revenue of the organisation was USD 221,641 (Pitchbook, 2022). Apart from that, net income of this organisation was USD 21,660 in 2019 and it became USD 30,062 in 2021 (Pitchbook, 2022). This increment in the net income and revenue is evidence that the organisation is in its growth stage. |
4 (b)
| Issue | Survival factor | Success factor |
| Environmental
regulation to control water and air pollutants of pharmaceutical activites |
In order to deal with the issue regarding environment regulation for controlling air and water pollution, which is imposed by the activity of pharmaceutical companies, they needs to be focused on sustainable development. In this regard, the use of renewable energy is considered as one of the most important survival factor for pharmaceutical companies such as Sothema (Kansteiner, 2021). | The focus on the utilisation of renewable energy would help pharmaceutical companies to positively impact the environment through their business operational activities and reduce their carbon footprint (Kansteiner, 2021). This would undoubtedly can consider as a success factor to companies such as Sothema, as the focus on sustainability not only would help it to deal weight the issues regarding environment and regulation but also increase its competitive advantages. |
| Technological issue | The increasing use of updated technologies would help companies in the pharmaceutical industry to deal with the technology-related issues. Moreover, harnessing artificial intelligence with supercomputing can help in clinical research in the pharmaceutical industry European Pharmaceutical Review, 2022).
|
The use of technology such as artificial intelligence, 3D printed organs, and robotics, would help pharmaceutical companies to deal with technology issues and be sustainable in the competitive marketplace (European Pharmaceutical Review, 2022). |
References
European Pharmaceutical Review, (2022). Energize initiative to boost renewable energy access for pharma suppliers. [Online]. Available at: <https://www.europeanpharmaceuticalreview.com/news/165113/energize-initiative-to-boost-renewable-energy-access-for-pharma-suppliers/> [Accessed 23 July 2022]
Kansteiner, F., (2021). The energy switch: Big Pharma harnesses sun, wind and water in quest for a low-carbon future. [Online]. Available at: <https://www.fiercepharma.com/pharma/solar-wind-water-pharma-go-planet-astrazeneca-novo-nordisk-novartis-and-amgen-talk-renewable> [Accessed 23 July 2022]
Pitchbook, (2022). SOTHEMA General Information. [Online]. Available at: <https://pitchbook.com/profiles/company/165069-73#stock> [Accessed 23 July 2022]
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