Case study:

N-Pharma

Economic
&
Environmental

Economic

Economic boom in Japan market expansion/more outlets

decreasing rate of employment and other countries
High cost of R&D The price of drugs is relatively expensive
During economic difficulties the price of the drugs increase
many people cant afford to purchase it people tend to
buy generic drugs demand for N-Pharmas products is
income elastic.
Income elasticity of the drugs means that there will be less
demand for the drugs as incomes are falling.

Economic

In Japan, the rate of inflation is lower than in Europe

Thus, market in Japan is more success compared than
in Europe.

Government provide subsidy enable N-Pharma to

expand their market globally.

Poor cash flow and liquidity problem cause their

business becomes more challenging.

N-Pharma shares traded on the Tokyo stock exchange

Shareholders have traditionally been happy tom
invest in N-Pharma, regarding the shares as a relatively
risk-free, safe investment.

Economic

Australian citizens already have a high

standard living, they dont want any financial
incentive The profit gain by N-pharma can
be used to run their business better.

Environmental

Increase in pollution cause people to rely on

medication to stay healthy.
Flood/Tsunami in Japan might cause major
loss to the business.
Geographical location Urban area is better
than Rural area. Customers in urban area
can afford their products.