Design Company Novartis Hellas Pharmaceuticals Firms

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SUBJECT: DESIGN COMPANY NOVARTIS HELLAS pharmaceuticals firms

PEST ANALYSIS
To understand the impact of the environment in any industry, it is imperative to consider four main factors that influence this particular political, economic, social and technological factors. It is a fact that in Greece factors are rather disproportionate influence on the functioning of a healthy market competition. The business environment is regulated by opaque procedures, middlemen, bureaucrats, businessmen and politicians. Difficulty is something that encourages free enterprise for disposal. Political Factors

1. Today there is an intense political uncertainty due to the economic crisis in the country but also globally. The combination of different political thoughts in a government with probably the same orientation (the country out of the crisis), but not necessarily identical manner actions create a coalition with ideological contradictions that cause reasonable doubts.  Therefore, consistent policy or economic policy can not be expected. Regarding the Greek case, the model of health is a compromise between a social security system and a National Health System. The prolonged social crisis, the failure of the welfare state to offer new solutions to social problems globalization of the economy, the continued upward trend in spending on health, depletion in combination with the global economic downturn led to a need to refocus health policy in the Greek world and the application strategies productive and efficient use of human

and material resources.
2. The Memorandum provides for measures to ensure that at least 50% of the volume of medicines used by public hospitals is composed of generics and drugs whose patent has expired, making it mandatory to procure pharmaceutical products by all public hospitals criterion for the active substance.

3. The investment framework in Greece is rather frustrating for someone who wants to start a new investment because of bureaucracy that exists.

Economic Factors
1. Greece has spent 2007 on pharmaceutical expenditure 9.7% of GDP occupying the highest position in the list of OECD in relation to the average of countries (health spending 9% of GDP). Remedial measures taken by the government expects this expenditure to fall below 6% of GDP (IOBE study 12/14/2011).

2. The ypersyntagografisi has increased excessively pharmaceutical expenditure and has practically impossible even bearable health The single entity created must be found about 1 billion. Euro suppliers of public hospitals (medical articles, pharmaceutical companies, etc.). According to an announcement by NOVARTIS only debts that exceed 90 million net these past years (www.Capital.gr on 07/26/2012) posing-as claimed by the company-jobs at risk.

3. The recent reduction in the minimum wage does not seem to have passed in the prices of drugs still exists after the high profit margin of pharmacies and the reluctance of pharmaceutical companies to reduce their profit, especially after they are due quite money from their health care providers.

 
Social factors
1. The increase in the number of immigrants from third countries (Asia, Africa) who bring with them diseases which had almost disappeared (malaria, cholera, tuberculosis, etc.) will be charged a health system anyway with no solid foundation.

2. The very nature of the product:
                     - Consumer product (still used unnecessarily-culture                                                                   polypharmacy)               Trichotomimeni demand
                      - Doctor
                      - Patient
                      - Insurance Fund             Supply and demand are largely determined by the same operator:                       Powerful role of the physician

3. The drug in Greece is a social good, as this expenditure is mainly covered by social insurance. 4. The reduction in drug prices is not a solution to the problem of increasing...
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