Business Environment

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Table of Contents
1.0 Introduction………………………………………………………………………………………………………………………1 2.0 PEST Analysis…………………………………………………………………………………………………………………….5 2.1 Political Factors………………………………………………………………………………………………………………………………6-8 2.1.1 Taxation Policy

2.1.2 General Incentives
2.2 Economic Factors…………………………………………………………………………………………………………7-8 2.2.1 Unemployment rate
2.2.2 GDP (Gross Domestic Products)
2.3 Social Factors………………………………………………………………………………………………………………9-10 2.3.1 Age structure.
2.3.2 Lifestyle changes
2.4 Technological Factors……………………………………………………………………………………………………11 2.4.1 Bio-technology
2.4.2 Information Technology (IT)
3.0 Recommendation…………………………………………………………………………………………………………12 4.0 Conclusion……………………………………………………………………………………………………………………12 5.0 References……………………………………………………………………………………………………………………13

1.0 Introduction
“In the geographical area, India is the seventh largest country in the world with approximately 1.12 billion of population. India is the second populated country after China”. (factsaboutindia, 2011)

Diagram 1: Maps of India, Source from: http://www.mapsofindia.com/geography/ (Accessed on: 20th January 2012) Diagram 2: Flag of India, Source from:http://www.indianchild.com/images/indiaflagbig.gif (Accessed on: 20th January 2012) Major problems that always had been facing by the India’s Government are the unemployment, poverty and illiteracy. Almost 83% are Hindus, and also India has one of the largest Muslims populations amounting 120 million. The rest of the religions are the Christians, Buddha, Sikhs, Jain and Parsis. In the past, the Indian Pharma Industry grew at a very slow pace from 1947 to 1970; this is because the lack of labor workers and the government is not stable at that time. Thus, the industry soon had been started to grow nationwide because the government regulations and policy changes, controlling price and absence international patent protection. Nowadays, “there are total of 24,000 companies fighting with the USD 3.9 Billion market. The India pharmaceutical market is in the rank 12th over the world. The India pharmaceutical market had passed through a difficult stages or waves. But now, the Indian pharmaceutical industry is the important distributor with over 400 bulk drugs and around 60,000 formulations, which are distributed by 5,000,000 chemists all over the country. Due to the problems that faced by the government of India, this give an opportunities to the government of India to grow another higher stage where increase in the fields of production, development, manufacturing and research. This is due to the cheap labor costs, low cost of manufacture, education and skilled manpower.” (MapsofIndia, 2011). Furthermore, the factors will be discussed on the following.

Diagram 3: Pharmaceutical Industries in India Source from: http://business.mapsofindia.com/pharmaceutical/ (Accessed on 21st January 2012) The diagram above shows that the Pharmaceutical Industries are present with large quantities of distributors of medicine. This show how important is the Pharmaceutical Industries to the whole word. According to the research said that: “India ranks third in terms of manufacturing pharma products by volume.” In 2007-08, India exported drugs worth US$7.2 billion in to the US and Europe followed by Central and Eastern Europe, Africa and Latin America. The Indian vaccine market which was worth US$665 million in 2007-08 is growing at a rate of more than 20%. The retail pharmaceutical market in India is expected to cross US$ 12-13 billion by 2012. The Indian drug and pharmaceuticals segment received foreign direct investment to the tune of US$ 1.43 billion from April 2000 to December 2008” (MapsofIndia, 2011)

2.0 PEST Analysis
In this assignment, PEST analysis is going to discuss on the following. What is PEST? The word “PEST” is come from four factors which are the political, economic, socio-culture and technology factor. The purpose of PEST analysis is to analyze the external...
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