QUESTION 1

Since the beginning of the epidemic, the healthcare sector and more individuals have relied
on telemedicine. The business may help the development of digital healthcare. With Johnson
& Johnson's collaborations, they are able to make healthcare delivery more efficient and med-
ication more individualised and accurate for every patient.
Political: The present war involving Russia and Ukraine is indeed an illustration of how John-
son & Johnson's operations have been impacted by political instability since the business
opted to cease operations in Russia. Political considerations have a significant influence in
defining the variables that might affect Johnson & Johnson's long-term profitability in a par-
ticular nation. Johnson & Johnson's conduct will have a significant impact on their revenue
because Russia was a significant market.
Economic: Johnson & Johnson's external environment is impacted by economic issues.
Higher inflation may necessitate that the corporation regularly raise prices to keep up with in-
flation, which might result in decreased brand loyalty and ongoing efforts to control ex-
penses. The pace of inflation may have an effect on Johnson & Johnson's demand (Dustin
Johnson faces backlash after committing to PGA Tour, 2022). However, unlike other compa-
nies, Johnson & Johnson will not be severely affected by recessions since the corporation pri-
marily sells medical and pharmaceutical items. These things are a need but not a luxury, so
demand for them will not decrease much during economic downturns.
Social- Since the brand provides a variety of items, it must consider the demographics of each
region to choose which products to sell in order to maximise income. Social considerations
have a significant impact on Johnson & Johnson's business (Marinović-Matović and Arsić,
2020). For instance, as the demographics of the United States and the European Union age,
the demand for items that appeal primarily to this demographic will increase. Before releas-
ing new product advancements, Johnson & Johnson must study demographic trends and in-
clude features that appeal to this market.
Technological: The introduction of 5G is anticipated to transform every industry. This tech-
nology may be used by Johnson & Johnson to acquire a competitive edge over its rivals. New
technological solutions are enhancing the efficacy of healthcare items and decreasing their
costs. People want Johnson & Johnson to be technologically sophisticated so that it can sat-
isfy their demands as effectively as possible, given that it operates in the healthcare and medi-
cal industries.
Environmental: Consumers are inclined to favour businesses that use renewable technology.
Since Johnson & Johnson is extending its company across several regions, it must be mindful
of the operating environment. The firm may profit from renewable subsidy programmes. This
will enable it to invest in green technology. Environmental issues are rapidly gaining popular-
ity among consumers, regulators, and policymakers. This is advantageous because it pro-
motes long-term sustainability, enhances stakeholder satisfaction, and broadens the client
base via brand enhancement.
Legal: Johnson & Johnson must guarantee that they are not responsible for any lawsuits;
study anti-discrimination legislation thoroughly when designing human resource procedures;
and implement data protection rules to preserve consumers' privacy and security. Legal as-
pects often regulate the conditions to access the market, the laws to do marketing, and the
methods to settle any issue with other players.
As per Johnson & Johnson it would continue its research and development for its operations
in order to remain technologically ahead of its competition. Its investments in cutting-edge
technology and collaborations with creative entrepreneurs and businesses will assist in ad-
dressing not just the present public health crisis with COVID-19, but also other critical unmet
medical needs.
QUESTION 2

In order to increase the number of individuals who get vaccinated, the government must first
reduce the fear that people have over the possibility of vaccine adverse effects. However, this
is because they are too terrified of the vaccine's adverse effects. Not because they are uncon-
cerned about their health or do not want to get vaccinated, a large number of individuals de-
cline vaccinations.

As more individuals become active on social media and accept practically all of its content as
factual, they have also begun to believe that vaccination has negative effects that cannot be
ignored. Using social media, some unpatriotic individuals have promoted this fear among the
populace in an attempt to mislead the authorities (Vining, 2003). Therefore, the government
should first identify those sources that are disseminating negative information about vaccina-
tions and must organise camps where prominent and well-respected physicians are requested
to speak to the population about the vaccine, explaining that it is safe and the adverse effects
are minimal.

Whenever people refuse to be vaccinated, the government intervenes in economic and social
affairs to take remedial measures. This may assist individuals in not overestimating the possi-
bility of negative effects. When markets create an excessive amount of a good or service,
market failure theory dictates that the government should implement corrective taxes propor-
tional to the intensity of the excess and then let the consumers do as they choose. Market fail-
ure happens when a product or service is not delivered optimally to the population (Kristof
and Ritter, 2022). It will also attempt to offer appropriate amounts of vaccinations to the pop-
ulation and prevent vaccination-related negative effects. If the government charges those who
reject the vaccine, it may result in more people who reject the vaccine, but the government's
interference might generate market imperfections because people may stand against the fee
and fail to accept the vaccine. To ensure the safety of others, the government may intervene
and levy levies on those who support the anti-vaccine movement, compelling them to get
vaccinations. It will result in the wasteful allocation of resources, leading to market failure
(Whitehead et al., 2019). Also, the government should give those who get vaccinated a cer-
tificate and make it mandatory for everyone to get a certificate after getting vaccinated. When
individuals will be required to get vaccinations and a certificate, failing which they will be
unable to travel and we will be confined to our homes all day.

The government should regulate the market, provide positive externalities, and offer com-
plete information on the advantages of the vaccine in order to incentivize individuals to get it.
Let the public know that if they get the vaccination, they will protect themselves and others
as well. So, the government should support these ideas and get involved in the market so that
the market doesn't fail and everyone is willing to get vaccinated.

QUESTION 3

Industrialization has enhanced the effectiveness of all items via the use of several manufac-
turing systems. The quantity of commodities and services produced by all nations in the
world determines the economic activity of all nations. Recently, the COVID-19 pandemic has
encouraged all nations to rapidly produce vaccinations for public use in order to avert the ter-
rible impacts on human life. Vaccine medicine production requires the highest care in terms
of maintaining quality standards, particularly on the part of the medical industry. The theories
and models of industrial structure models stress discussing and providing answers to R&D
COVID-19 vaccination centres.

Due to monopoly power, the result or product will actually have a high starting price. This
could lead to a positive externality, and the government will have to use its money to give
benefits to fix the situation as a whole (A Guide to Types of Market Structures | AU Online,
2022). Indeed, this has a great deal to do with the capitalist market, which allows dominant
sectors to earn higher profits, allowing corporations to reinvest in their business and have
more funds for vaccine research.

Vaccines should be priced affordably for all segments of the population, taking into account
manufacturing costs. R & D centres have the challenge of balancing overhead expenses and
marginal revenue for any new vaccination units. WHO has instructed all pharmaceutical busi-
nesses to adhere to the manufacturing system rules. Low-and middle-income individuals con-
tinue to be concerned about their ability to afford these vaccinations, despite the fact that the
price is set by WHO directive principles. Insufficient medical enterprises exist to generate all
vaccination doses. Here, the monopolistic pharmaceutical companies grabbed the lead and
drove prices beyond the buying power of all low-and middle-income groups. It will affect the
worldwide supply and demand for additional vaccination doses (Ebeling, 2022). Using an
equal proportion of manufacturing components to pool capital funds and an equation to cal-
culate vaccine medications presents difficulties for all pharmaceutical companies. Labor-in-
tensive nations must spend money on their industrial activities, whereas capital-intensive na-
tions must contend with a scarcity of inexpensive labour. It also results in the market's inabil-
ity to provide all immunisation demand at a fair price.

As a government, it has a duty to ensure that vaccinations are made available to as many peo-
ple as possible while minimising costs and generating enough income to pay for the manufac-
turing costs for the chain of production. However, the government has a high level of ac-
countability and honesty about the functioning of this business. First, this industry is entirely
concerned with public health. Therefore, it is the government's job to safeguard the product
generated by such an industry by offering a patent for its manufacturing and sale. Secondly,
because there are relatively fewer of these industries functioning in the marketplace and less
rivalry, the prices of newly produced items are excessively expensive, and the people's out-
of-pocket costs are likewise excessively high (Francois and Wooton, 2010). This is a major
government problem. Additionally, the government must monitor the supply chain of these
items, from the maker to the supplier to the customers. Moreover, since the product is for all
vaccinations, the government must ensure affordable costs for everybody. Lastly, there is a
significant likelihood of the dissemination of asymmetric knowledge about such items as well
as the fabrication of replicas of such items by unauthorised market actors (Murphy, 2017).
Consequently, this is also a priority of the government, so that the public has access to trust-
worthy and highly secure goods and the flow of products generated by these businesses is as-
sured.

QUESTION 4

It is in both businesses' best interests to collaborate on the intellectual property. There is a

strong financial incentive for them to do so. If one business does not participate, both busi-
nesses will suffer (OWEN, 2013). There is a significant financial incentive for both firms to
work on intellectual property since it is in their best interests. If one firm does not work with
another, then both will suffer. This game has two benefits:

● One company does not distribute its assets to others, and no company saves on con-
struction costs.
● The two companies exchange intellectual property, thus saving on development costs.

Each company's returns are as follows:

Astra-Zeneca BioNTech

If both companies share 10 10

If Astra-Zeneca does not 0 0

share

If BioNTech does not share 0 0

The following problems were reported by AstraZeneca and BioNTech:

● AstraZeneca has A technology but needs B technology.

● BioNTech has B technology but needs A technology.

While it is likely that the businesses will not share fairly when the deal is reached, the two
companies will benefit from sharing their unique updates. Both organisations benefit from the
exchange of their technologies (Game Theory, 2022). However, an organisation has a chance
to terminate the contract after signing it.

This payment matrix game is as follows:

 AstraZeneca BioNTech

-10 -10
Technology A

Technology B -5 -5

AstraZeneca BioNTech

5 5
Technology A

Technology B 10 10

Both companies were inspired to hide information about their technology in this game. Both
companies must manage state-of-the-art technology assets to reach Nash capital. This will re-
sult in the company not being rewarded.

One of these companies may offer larger fees to validate their practices to increase the risk
that they will get the best and most desirable benefits. If BioNTech, for example, returns 10
percent to the company's support in the development and commercialization of AstraZeneca
B Technology, it will benefit most from Technology B integration, with the two companies
deciding to prioritize their technology over production (Marples, Douglas, Xavier and
Collins, 2022). This will relieve the pressure of a company to lie and keep its technology.
This will eliminate the need for companies to lie and keep their technology to themselves.

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