Economics In the Pharmaceuticals Industry

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As far as businesses are concerned, Economics plays a fairly vital role. It also plays an equally important role in our daily lives but the impact is more pronounced when it comes to these businesses. What is economics? It is basically a science that focuses studies and analyses how different factors in the external, internal, micro and macro environment affect our choice. Economics is the social science that deals with the production, distribution, and consumption of goods and services and with the theory and management of economies or economic systems. It is all about the available resources and using them and how to create new resources and to satisfy what people or what we ourselves want. A customer wants to satisfy his needs and wants while the producers, entrepreneurs, businesses, corporates all want to maximize their returns on whatever they want to invest and economics is basically a means to this approach based on cost minimization and profit maximization principles. In terms of pharmaceutical industry like Wyeth Economics becomes doubly important for a number of reasons. It is a health-oriented sector and the responsibilities are manifold. There are ethical, moral pressures and environmental issues have to be taken into consideration as well. It is all about bridging the gap with the usage of economics and the gap is bridged by looking up the demand and supply factors and meeting the demands. It is a sector where you cannot just create the demand at will. A company such as Wyeth has a lot product lines and some are more in demand in seasons and that is what dictates the shifts or movements along the demand and supply curves. For instance the medication for fever and flu is bound to be higher in the colder season and ...

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... big company. Considering these factors government has to often step in along with its policies rules and regulations and that is why we have health and quality checks and these ISO Certifications in order to safeguard the interests of the final consumers. Besides the governments have to check that these major players are not exploiting the consumers and in order to have this they have their monopolies and mergers commission. For a company as large as Wyeth which operates in 17 countries, sells its products in 60 nations and employs more than 40000 people worldwide these economic policies and demand and supply analysis becomes that much more important because they have to look at things from a different perspective and put them into context for each and every one of their minor operations. References Britannica Encyclopedia Grolier’s Encyclopedia
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