The pharmaceutical industry is a major driving force in the worldwide economy today. Millions are spent every year for health care research and illness prevention. The development of drugs and health products are the main challenges that pharmaceutical companies have to face. Fifty billion aspirin tablets are consumed worldwide every year. Due also to the increase in life expectancy, the United States economy currently has net gains of an estimated two billion trillion per year.
According to the Pharmaceutical Research and Manufacturers of America, the industry is “one of the largest employers of scientists in the United States— and its success or failure relies heavily on their ability to make breakthroughs. ” According to IMDiversity. com, a one-stop career and self-development site devoted to serving the cultural and career-related needs of all minorities, whose one of the employers is the pharmaceutical giant Roche, thousands of new substances are being tested each year but only yield to ten to twenty prescription medicine. (http://www. gsk. com/press_archive/press_02222001. htm)
There is one more classification of strategic management approaches. It is also divide into strategic management, which focuses on efficiency, and strategic management, which concentrates above all on effectiveness. (http://www. gsk. com/press_archive/press_02222001. htm) Efficiency deals with arranging things in a proper right way. Effectiveness or efficacy deals with performance of right tasks and things. It was also notice that successful organizational strategy may combine both effectiveness and efficiency, because “there is no point in acting efficiently if what you are doing will not have the desired effect”.
(Strategic management techniques) There are three types of strategic management techniques: ? Bottom-up technique. The employees offer proposals and ideas to senior managers who find the best ways how to “bring back to life” them. This type also involves capital budgeting. The proposals are evaluated with the help of financial criteria including cost-benefit analysis and investment return. The approved proposed become the base for new strategic plan. (Glaxo) ? Top-down technique. This technique is widely-spread and the most used by companies including Reuters.
The Chief Executive Officer sets the overall direction of the company. He may be assisted by planning team. ? Collaborative technique. This type of technique is not frequently used by companies and organizations. It recognizes “the emergent nature of strategic decisions”. (Canals 2000) Strategic management involves several levels of strategy: functional strategy, operational strategy, business strategy, dynamic strategy and corporative strategy. Strategic business unit is also included. (McLannahan 2005)