International Management Decisions: UK Pharmaceutical Industry

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International Management Decisions: UK Pharmaceutical Industry The pharmaceutical industry engages in researching, developing, manufacturing, and marketing drugs used in healthcare (Shah 2012, p. 36).According toKesic(2008, p. 59), the global pharmaceutical industry has changedmuchover the past few years; because, the intensive globalization is reinforcing a consolidated pharmaceutical industry. Moreover, mergers and acquisitions are creating alliances that will strategicallyorientatethe global pharmaceutical industry. Kesic(2008, p. 59) points out that alliances are creating strategic synergies within the pharmaceutical industry as competition between various global companies intensifies. Therefore, multinational peer companies dominating UK’s pharmaceutical industry, face new challenges in international management decisions that influence their operations (Brown & Grundy 2004, p. 57). As the industry becomes more competitive, scholars conclude that strategic management will play a key role in international management decisions that are industry-specific to the UK. As an example The University of Manchester, GlaxoSmithKline (GSK) and AstraZeneca announced the creation of the Manchester Collaborative Centre for Inflammation Research in May 2011, a unique collaboration to establish a world-leading translational centre for inflammatory diseases. The industry-specific approaches that UK pharmaceutical companies use to adapt to competitive environments have effects on management decision-making and will always be debatable. Project uncertainty has created precise, yet unrealistic plans for the pharmaceutical industry in the UK (Burgel et al. 2014, p. 14). The pharmaceutical business depends on calculated risks, researches, and innovations to optimize on its defined goals. Therefore, international management decisions made in this industry affect even company-independent institutions, including hospitals (Burgel et al. 2014, p. 14). The UK pharmaceutical industry seeks advice andcooperationfrom institutions that take part in the scientific and therapeutic process to acquire partner specific research and development topics. Since attaining, the scientific and therapeutic economic progress is the main aim of pharmaceutical industries, project management, strategic management and all relevant techniques work to meet the UK industry’s overall goal (Tzeng 2014, p. 3). Thus, international management decisions play a key role in the process to solve the risks that the UK pharmaceutical industry faces. The pharmaceutical industry leads all industries in terms of R&D spend. Jaruzelski et al. (2011) report that four out of the top five global R&D spends and eight out of the top twenty global R&D spends are by pharmaceutical firms. Of these firms, six (Roche, Pfizer, Novartis, Merck, GlaxoSmithKline, and AstraZeneca) increased R&D spend from 2009 to 2010 (ranging from 0.3 to 53 % increase) despite volatile global economic conditions. This suggests that pharmaceutical firms continue to invest heavily in their portfolios with the top eight spending between $5 billion and $10 billion per year, translating to between 11 and 21 % of annual sales. To make sane decisions for the pharmaceutical industry in the UK,Pharma’s New Productivity Challenge: Perspectives from Europe(2014) recommends that the R&D operations should track country-specific regulations. They should also track industry specific trends and accept future developments. Furthermore, since country-specific regulations, just as trends, often change, UK’s pharmaceutical companiesneedmanagers to watch the trends and regulations in the market.KofinasandSaur-Amaral(2008, p. 257) state that lacking knowledge of language and culture specific to a particular country is inefficient for UK’s pharmaceutical companies.

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