Critical Analysis Assignment Sample

Get Assignment Help from Industry Expert Writers (1)

Here’s the best sample of Critical Analysis Assignment of Australian Pharmaceutical Industries, written by the expert. 


This report discusses briefly about the Australia health care company i.e. Australian Pharmaceutical industries (Attaway et al., 2013). Additionally, the study critically analyse the company internal, external factors which impacts its operations. In the analysis part, there are various methods or techniques that will be used to evaluate the Australia health care company such as PESTEL analysis, company resources & tools, SWOT analysis, 4P’s, company supply chain management and Quality improvement etc. These are the areas that reveals about the company value, process and USP. On the basis of study, the company position will be analysed in Australian market. It means that in what area company perform extremely well and the part where company is lacking.

Company Profile

Australian Pharmaceutical Industries(API) Limited is considered as a health and beauty related companies in Australia that is more involved in pharmaceutical distribution, retailing and manufacturing etc (Parvin and Kabir, 2011). However, APIs is Australia largest wholesale distributor of pharmaceutical and allied products. The company operates two segments such as Australia and New Zealand. Similarly, it is also involved in wholesale product delivery, marketing programs, business advisory services and retail services to pharmacies etc. Therefore, it makes product and service under the Soul Pattinson chemist and Pharmacist Advice, Club Premium etc. At last, this company was founded in 1910 and is based in Camberwell Australia.

Critical analysis of Australian Pharmaceutical Industries Limited

The critical analysis involves the PESTEL, porter five forces model, SWOT analysis and 4Ps analysis (You et al., 2010). These will be undertaken for analysing the current situation of Australia Pharmaceutical Industries Limited.

Industry Analysis

PESTEL Analysis

Political factor plays a significant role in regards to affect the business operations. Likewise, Australia pharmaceutical industries(API) has stable and supportive political environment especially for the pharmaceutical. Due to this practice, API limited is operating the business successfully in more than dozen cities (Yüksel, 2012). But at the same time, the interferences of some political leaders is influencing the functions of the health care services.  





Political Factor







Economic Factors


There are various economic factors which are present in the form of inflation rate, interest rate, foreign exchange rate and economic cycle etc. The demand and the investment in the economy are determined on the basis of these areas. With regards to Australian market, it is dominated by healthcare service sector. Such advantage is also achieved by Australian pharmaceutical industries sector in the way to fulfil the large number of demands. However, high labour cost tends to be concern area for the Australian companies in regards to achieve productivity and efficiency.
Social factors have a strong impact on the company existence. This is because social factor involves the set of beliefs, customs, policies that change the market trends. Similarly, Australia is the collection of diverse people so different demand and needs exist in this market. Due to this factor, Australian pharmaceutical industries sector gets various opportunities in the way to fulfil the diverse people needs and demands (Andrei and Prisecaru, 2014). This manner, company creates customer base but diversity also affect the company with regards to frequently change in customer needs.  





Social Factor




Technological Factor


Technological factors have special emphasis on R&D activities, automations, innovation etc. Australia country is rich in technology due to high government support, availability of skilled human resources (Frynas and Mellahi, 2015). Due to this, Australia pharmaceutical industries sector is easily able to develop the R&D on medicine.  Government provide support in the form of making capitalavailable.  However, ineffective communication among the healthcare industry, government and university researchers and this issue dominates the technology policy.


Environment factors are becoming the crucial area in this increasing environmental issue. Transportation industry is the good case to address the Australia health care companies. The easy availability of transportation in the Australia market is the biggest supporting system for the pharmaceutical industries sector (Tukdeo et al., 2016.). However, high taxes, rapid climate change and growing pollution are the factors that impact the company ability to provide the health care services in a timely manner.  






Environmental Factor







Legal Factor

The legal framework tends to be important factor especially when it comes to protect any product or service. Likewise, various Australia legal policy exist for the companies such as Data protection, Consumer protection and e-commerce, Employment law, Anti-trust law in health care Equipment & Service industry and overall in the country (Babar et al., 2016). These legal frameworks of Australia provide support to pharmaceutical industries sector in terms to protect its product pattern from copyright. But company face the problem related to information privacy and growing cybercrimes.

Porter Five Forces Analysis

Michel porter developed a five competitive forces model which helps the organization to analyse the industry structure in strategic processes. These forces determine the intensity of competition and also the attractiveness and profitability of an industry (Rahman and Zaman, 2017). Australian pharmaceutical industries limited use Porter five forces analysis to develop a strategic position and explore the profitable opportunities within the healthcare services and equipment industry. These five forces are given below:

Critical Analysis Assignment

Threats of new entrants

Due to new entrants in health care services and equipment, innovation and new ideas of doing things, Australian pharmaceutical is pressurized to reduce the cost and offer new value prepositions to its customers. But to enter in this industry, organizations need more capital so the effect of new entrants is low.

Bargaining power of supplier

All the companies in health care services and equipment depend on several suppliers so the suppliers feel that they can control the organizations (Akram et al., 2015). This dominating position of suppliers decreases the margin of Australian pharmaceutical which can be earned by it. Suppliers use their bargaining power to charge highest prices from the organizations so the impacts of bargaining power of suppliers are very high.

Bargaining power of buyer

Buyers always try to buy the best product by paying the lower prices. This makes the pressure on Australian pharmaceutical to maintain its profitability for long time. There are various organizations which are surviving in this industry, so the bargaining power of buyer is very high.

Threats of substitute services or products

An industry’s profitability is suffered, when a new product or service is introduced. There are many substitutes which impact the Australian pharmaceutical in health care industry. Various products are available in market related to health care so the impact of substitute services and products is very high.

Industry rivalry

The rivalry among the existing customers within the same industry impacts the prices of products or services. Industry rivalry is also high due to various businesses in this industry.

Value Chain analysis

There are various strategy tools which are used to analyse the organization internally as well as externally. The value chain analysis is one of the strategy tools which is helpful to the organization to analyse the internal activities of the organization. Due to this analysis, it is easy for the organization to find out its goals (Akram et al., 2015). Value chain analysis explains the important activities which need to be improved to take competitive advantages, within the organization. In context to Australian Pharmaceutical industries, two types of activities like primary activities and supportive functions are found in pharmaceutical industries. The primary functions of Australian pharmaceutical Industries are given below:

  1. Discovery
  2. Development
  3. Production
  4. Distribution (Attaway and Zaborsky, 2013)
  5. Marketing & Sales
  6. Customer support

Primary functions play a vital role to operate all the functions in Australian pharmaceutical industries. These functions are essential to make organization’s activities more effective. There are many supportive functions which are done as only for supporting Australian pharmaceutical Industries. These supporting functions do not need more focus (David et al., 2015).

SWOT Analysis


·       Company offers large & multiple ranges of pharmacy services.

·       Its subsidiary includes Priceline, Soul Pattinson Pharmacist Advice.

·       It includes multiple product line.




·       The pharmaceutical industries limited are affected by the accounting discrepancies. It influences the goodwill (Helms and Nixon, 2010).

·       Less marketing activities

·       Less focus on six-sigma methods for maintaining quality.


·       Since awareness related to healthcare is growing, API (Australia pharmaceutical industries limited) gets the huge scope to come-up with unique or innovative health-care facilities (Yuan, 2013).

·       It can focus more on the R&D due to having an Australian government support towards adopting the advancement of technology.


·       The reform in Pharmaceutical Benefits scheme i.e. PBS reform can damage the company.

·       The margins of the company gets reduced because of PBS which may create a trade barrier between Australia and US drug companies.

4P’s analysis of Australia Pharmaceutical industries Limited

The 4Ps analysis helps to identify the particular company product ranges, price structure, promotional technique and distribution pattern. In regards to this, the study will identify the Australia Pharmaceutical industries limited ways in which it take new product or service. It helps to define the marketing options in terms of price, product or promotions etc (Singh, 2012). On the basis of this analysis, the capabilities and resources of Australia Pharmaceutical Industries Limited will be studied. Below are the product, price, promotion and physical distribution of Australia Pharmaceutical industries limited.

  • Product: Australia Pharmaceutical industries limited involves the healthcare related product & services. It engages in the wholesale distribution of Pharmaceutical medical, health, beauty and lifestyle products. Other than that, it offers the services in the form of wholesale product delivery, business advisory services to clients and conduct marketing camps for creating awareness related to health care (David et al., 2015). The USP of the product is that company manufactures the pharmaceutical medicines and consumer toiletries by its own rights. Besides that, company purchase then sells health, beauty and lifestyle products. Thus, it is stated that company has an innovative Product line.
  • Price: Australia Pharmaceutical industries limited follows the competitive pricing strategy to set the price of its product line (Alipour et al., 2011). However, competitive pricing strategy is the practice in which company set its price as per the competitors. The competitor of the Pharmaceutical industry limited are the Sigma Pharmaceuticals, Symbion health, Alphapharm etc. furthermore, since company has own manufacturing rights and sell the product in bulk then in that case it does not charge extra cost to the clients. That’s why it enjoy high customer base.
  • Promotion:It promotes or markets its products and services under the Soul Pattinson Chemist, Pharmacist advice, and Club Premium and Pharmacy Best Buys brand names (Long et al., 2013). At the same time, it also conducts the campaigns related to health awareness which give great recognition to the pharmaceutical products. In regards to retail products such as health, beauty and lifestyle products etc, it uses the advertisements through newspaper, Television. Digital marketing is also used for promoting the retail products. It is the best way to make capture large market. Thus, these are the tools that pharmaceutical industries limited (API) used for informing individuals about the product.
  • Physical Distribution: API operates as a franchisor with 462 Priceline Pharmacy stores. The company also has retail stores in Australia market for selling the products related to health, beauty and lifestyle. Moreover, Pharmaceutical medicines are sold under the Soul Pattinson Chemist, Pharmacist Advice and Club Premium etc. This way, API supply or distribute its product to the final user or consumers.

Company’s customer relationship marketing (CRM)

The Australia pharmaceutical industries limited adopt various practices for developing the healthy customer relationship (Wang et al., 2010). However, it offers the standardised medicines which are created by company. At the same time, company provide the product and services at lower price as compare to competitors. That’s the best strategy within which attracts customer in huge manner.

In regards to supply chain management, API initially uses the OneERP but with the advancement of technology, it replaces OneERP with SAP ERP IT system (Jacobsson et al., 2017). It proves to be useful for delivering the enhanced customer service, improved logistics and finance processes and operational efficiencies. The ERP system also helps the company in timely availability of resources without having any wastage. It results in timely supply of product and services to the customers. Furthermore, API also installs the CRM system in order to improve customer services. Likewise, company with this system identify the customer changing needs and preferences and accordingly it caters the need of the people. For instance, company conduct the survey in the Australian market for identifying the changing needs of people, then it incorporates in its offering. Thus, through this manner, company fulfil the demands of the individual and make them loyal towards the brand.

Company Supply Chain

API uses various methods of performances measures of Supply chain management. Likewise, Process measurements are the one in which company set KPIs and accordingly track the progress (Kheng et al., 2010). It works with the development of standard result and basis of this, the actual results are compared. This action takes place to monitor the supply chain.

Furthermore, the SCOR Model (Supply Chain Operations References Model) is the best way to monitor the supply chain of the company. It is also adopted by the API for checking its supply chain operations. It is done through use of four levels that represents the path that company undertakes for bring improvements (Attaway and Zaborsky, 2013).

  • Level 1 provides the definition of plan, source and deliver process type so that company can recheck the supply chain objectives.
  • Level 2 defines the 17 core process categories that are components of supply chain.
  • Level 3 provide the information related to target market, system software capabilities etc. (David et al., 2015)
  • Level 4 it concentrates on the implementation part when companies put specific supply chain improvements into reality.

Thus, these phases help to check and bring improvement in supply chain of companies and API mostly used this method for its supply chain management.

Company Operations Management

The operations management contribution is significant in terms of focusing on the production of products and services of organization. The proper operations management results in minimizing the cost and enhance the productivity of product. In a similar manner, API collaborates with TCS for managing its operations and functions. TCS engaged with API in 2013 as a strategic partner for the project ‘OneERP’ and this system helps the company to manage inventory, improved logistics etc (Zhou et al., 2011). Besides that, TCS designed a SAP ERP platform that incorporates various suits. This system allows to aligning, review different process. Furthermore, company establishes its own manufacturing unit for creating the quality product and it extracts the raw material by itself. The merger and partnership strategy are also used by the company for operating its business successfully.


API should focus on the following recommendations to improve its value chain performance:

  • Need to conduct training programs for employees to fulfil skill gap and enable them to handle the future challenges
  • Focus on quality control and quality management plans to enhance the quality of the products and services.
  • Participative decision making as employees should be allowed to communicate their concerns and issues related to value chain
  • Collaborate with the supply chain members properly to know their views and opinions for the betterment


From the above study, it is concluded that Australia pharmaceutical industries limited is performing well in the Australia market. This study helped in identifying the performances of the company by analysing the internal and external factors. Additionally, 4P analysis and CRM activities are also studied to analyse the company capabilities and efficiency in this competitive market.


Akram, K., Mehmood, N. and Khan, I., 2015. A conceptual linkage between knowledge management, competitive advantage and competitive maneuverings of organizations. International Journal of Scientific and Research Publications, 5(2), pp.1-6.

Alipour, M., Ghanbari, A. and Moniri, S., 2011. The impact of marketing mix (4Ps) on marketing audit and performance in Iranian SMEs. International Journal of Humanities and Social Science1(2), pp.112-117.

ANDREI, V. and PRISECARU, I., 2014. The Use of Pestel Analysis in Development of the Romanian Geological Repository. Scientific Bulletin of University Politehnica of Bucharest, Series C, 76, pp.247-254.

Attaway, D.H. and Zaborsky, O.R. eds., 2013. Pharmaceutical and bioactive natural products (Vol. 1). USA: Springer Science & Business Media.

Babar, A., Khan, B., Godman, B., Hussain, S., Mahmood, S. and Aqeel, T., 2016. Assessment of active pharmaceutical ingredients in drug registration procedures in Pakistan: implications for the future. Generics and Biosimilars Initiative journal5(4), pp.156-163.

David, B., Wolfender, J.L. and Dias, D.A., 2015. The pharmaceutical industry and natural products: historical status and new trends. Phytochemistry reviews14(2), pp.299-315.

Porter, M.E. (2008).    The Five Competitive Forces That Shape Strategy, Harvard Business Review, 86(1),         pp.57-71.

Frynas, J.G. and Mellahi, K., 2015. Global strategic management. Oxford University Press, USA.

Helms, M.M. and Nixon, J., 2010. Exploring SWOT analysis–where are we now? A review of academic research from the last decade. Journal of strategy and management, 3(3), pp.215-251.

Jacobsson, E., 2017. Kinds of industries over-and underrepresented in CRM case studies.

Kheng, L.L., Mahamad, O., Ramayah, T. and Mosahab, R., 2010. The impact of service quality on customer loyalty: A study of banks in Penang, Malaysia. International journal of marketing studies, 2(2), p.57.

Long, C.S., Khalafinezhad, R., Ismail, W.K.W. and Rasid, S.Z.A., 2013. Impact of CRM factors on customer satisfaction and loyalty. Asian Social Science, 9(10), p.247.

Parvin, M.M. and Kabir, M.N., 2011. Factors affecting employee job satisfaction of pharmaceutical sector. Australian journal of business and management research, 1(9), p.113.

Rahman, M.M. and Zaman, M.U., 2017. Evaluating the Financial Performance Through ‘Consumer Centric Decision’Approach in Pharmaceutical Companies of Bangladesh: a Business Planning Perspective. European Journal of Economics and Business Studies, 9(1), pp.168-183.

Singh, M., 2012. Marketing mix of 4P’s for competitive advantage. IOSR Journal of Business and Management, 3(6), pp.40-45.

Tukdeo, R., Kalilombe, E., Onyeugbo, O.C., Okafor, F. and Ebeleghe, R., 2016. The global pharmaceutical industry.

Wang, W.Y., Chan, H.K. and Pauleen, D.J., 2010. Aligning business process reengineering in implementing global supply chain systems by the SCOR model. International Journal of Production Research, 48(19), pp.5647-5669.

You, T., Chen, X. and Holder, M.E., 2010. Efficiency and its determinants in pharmaceutical industries: ownership, R&D and scale economy. Applied Economics, 42(17), pp.2217-2241.

Yuan, H., 2013. A SWOT analysis of successful construction waste management. Journal of Cleaner Production, 39, pp.1-8.

Yüksel, İ., 2012. Developing a multi-criteria decision making model for PESTEL analysis. International Journal of Business and Management, 7(24), p.52.

Zhou, H., Benton, W.C., Schilling, D.A. and Milligan, G.W., 2011. Supply chain integration and the SCOR model. Journal of Business Logistics, 32(4), pp.332-344.


Know more about UniqueSubmission’s other writing services:

Assignment Writing Help

Essay Writing Help

Dissertation Writing Help

Case Studies Writing Help

MYOB Perdisco Assignment Help

Presentation Assignment Help

Proofreading & Editing Help





Leave a Comment