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Rohini N Sharma

1MBA ‘I’
Pharmaceutical Industry in France
The current French management practices are the result of several constraints such as strong and specific
regulations, demography unique in Europe, the acceleration of internationalization of large organizations,
and sociological upheaval. These practices are converging with those of other countries under pressure from
similar factors. French managers are striving to adapt French organizations to their environment by relying
on unique practices similar to those implemented in other countries.

Planning: Short term yearly plans are followed. Decisions are taken together by taking the opinion of the
staff at the lower levels. The decision making is fast but the implementation is slow. Day-to-day problems
and challenges are a main topic of discussion and constant criticism may make it seem like there are many
problems. Agreeing on solutions may take a long time as all members of the team express their opinions on
and explore well-reasoned solutions. The pharmaceutical industry is seeking other areas of significant
growth, such as exports, emerging markets, partnerships in research, biotechnology and life sciences and
personalised medicine, in order to maintain its high value to the French economy.

Organizing: The pharmaceutical industry business model in France is mainly based on developing and
marketing drugs that are reimbursed by social security (72 per cent of their income), and are distributed by
22,000 pharmacies or sold to 3,000 hospitals and clinics

Staffing: Frequent performance evaluation for new employees is done. Use individual talents to support the
goal of the team. Respect authority and co-workers. Expect precise, thorough explanations for decisions.
Nearly 99,000 people are employed directly by pharmaceutical companies in France, including 42,000 in
manufacturing operations. Fifty percent of the 20,000 people working in R&D hold a research position

Leading: Leaders may be autocratic, expecting loyalty and respect. Employees may share opinions, but it is
difficult to question expertise of a supervisor. France is a leading player in the global vaccines market, with
world-renowned institutions such as the Institut Pasteur International Network (RIIP), totalling 23,000
personnel overseeing 768 projects at 33 establishments in 26 countries on every continent. The RIIP plays a
major role in particular against emerging infections wherever they occur across the globe.

Controlling: The superiors control an individual’s performance in the industry. In addition to controlling
drug prices, the government continues to draft plans to control health spending, especially on drugs, by
using different levers that include:
Demand management of drugs
Supply management

 Retrieved June 16, 2018 from
 Retrieved June 16, 2018 from