Generally the pharmaceutical industry operates in a heavily regulated and controlled environment. In South Africa, the regulations governing prescription drugs do not allow the pharmaceutical companies to advertise the prescription drugs directly to the consumers. As a consequence, the greater part of the marketing efforts of the pharmaceutical companies is directed at the medical practitioners, who occupy the crucial decision-making position for the prescription drugs. The study broadly investigates the relative influence of the various promotional factors that may influence the General Practitioner's choice of prescription drug and more specifically, focuses on the characteristics of the pharmaceutical sales representatives that may influence the prescribing behaviour of the General Practitioners. An area sample of 67 general practitioners in Pietermaritzburg, South Africa, was carried out. A total of 58 responses were analysed to determine the perceived influence of various factors on the GPs' choice of new and existing prescription drugs. A specific attempt was made to determine the key influential factors with respect to the promotion by the pharmaceutical representatives and GPs' appreciation of basic statistics used in the presentations by the pharmaceutical representatives. / Thesis (M.B.A.)-University of Natal, Pietermaritzburg, 2003.

The increase in use and distribution of pharmaceuticals on a global scale has caused pharmaceuticals to play an integral role in the notions of quality of health. This study is concerned with how Western medication is transacted and interpreted in explicit and implicit contrast to the other context. I observe the commercial trade of medicines, specifically the effects of regulation of pharmaceutical drug trade in a suburb of Johannesburg (Yeoville) a low income area where many migrant groups have found long and short term refuge. A Policing and Mobility Project (Hornberger & Cossa 2010) centred on tracing paths of medication and the level of policing thereof in Johannesburg revealed that clandestine sale of medication occurs in the suburb’s local market. This prompted a comparison between the formal and informal pharmaceutical trade spaces. Simon (a pharmacist) and Teresa (a former nurse turned market trader) sell pharmaceutical drugs in seemingly contrasting contexts. Despite their expertise in health care, Simon and Teresa were flung to opposite ends of the trade spectrum by regulation. In the weeks I spent with Teresa and Simon it became abundantly clear that the spaces which had been initially presented as the opposite of one another may have had a few layers of common ground. At first it seems as though only regulation has the ability to produce authority, trust and accountability. But later it becomes evident that such aspects can be reproduced through manipulation of everyday practices. Roger Cotterrell’s (1999) interpretation of Emile Durkheim’s view of the law as a ‘Social Fact’ (1999:9), demonstrates how the collective experience of regulation (an aspect of the law) affects the individual. But De Certeau (1984) claims that the same individual can tacitly undermine this collective experience (the dominant form) through everyday practices. The findings suggest that the assumed roles of regulated and unregulated pharmaceutical trading spaces are not as static as they appear. The study concluded that authority, trust and accountability can be reproduced outside of regulation. And secondly thus the formal and informal trade of pharmaceuticals in Yeoville have more in common than perceived since both Simon and Teresa, had authority in health, their customer’s trust and loyalty and were accountable within the trade.

No abstract available. / Thesis (MBA)-University of Natal, 2002.

The levels of service quality at International Healthcare Distributors (IHD) have been determined. Service quality in organisations require a strong emphasis on customer service and service delivery processes. The main area of this study focuses on the need for appropriate levels and criteria of service quality that will satisfy customers of pharmaceutical distributors. Various determinants affecting service quality levels have been discussed. The nature of service quality has been outlined and customer expectation standards have been determined. Customer satisfaction versus service quality has been discussed and the consumers’ perceptions towards service quality have been identified. Obstacles to attaining service quality have been described and potential causes of service quality shortfalls have been defined. Various surveys were studied to determine the implementation of service quality dimensions in a variety of disciplines. A sample was taken from the IHD customer base and a questionnaire was designed and distributed to the customers. The questionnaire examined five dimensions, tangibility, reliability, responsiveness, assurance and empathy. There was a hundred percent response rate. The results indicated that the tangibility dimension was highest in terms of customer agreement and reliability the lowest. The results of the questionnaire have proven that two of the hypotheses are negative and one positive. Concluding remarks and recommendations were highlighted and it is evident that IHD needs to improve its level of service quality in order to meet their customer requirements.

M.Phil. (Information Management) / The purpose of this study was to establish what the current situation is within the South African pharmaceuticals industry's competitive intelligence (CI) capacity. For a developing country such as South Africa, its political history and newly acquired democracy clearly make it vulnerable to the competitiveness of globalisation. South Africa faces a massive challenge to implement quality social and economic policies to redress the wrongs of the past. In so doing, it continues to disrupt natural market forces through legislation and policies. It has set a goal of optimal growth by 2018 for the pharmaceutical industry. Despite government s promotion of research and the funding of certain aspects of the industry, to date the strategy seems to have failed. The question can therefore be asked whether a legal and ethical business tool such as CI assist in the industry s defence against competitive markets and whether senior management can make use of CI s capacity to help with strategic planning, thereby enhancing decision-making. The findings of the study confirmed that CI activity takes place in the pharmaceutical industry. The study is mainly descriptive. A questionnaire survey methodology was used. Questionnaires were administered electronically to senior managers in the industry. The majority of the respondents were of the opinion that a culture of information sharing and an environment of collaboration on competitive issues existed in their companies. Furthermore, they endorsed the fact that CI generates profit. Respondents confirmed that CI is used on a continuous basis in strategic decision-making and that company strategies are being used to manage competitors.

“Outsourcing has been touted as the ideal way for organisations to reduce cost, focus on core business processes, improve services, enhance skills, reduce time-to-market and increase overall competitive advantage,” (Power, Bonifazi and Desouza, 2004). A pertinent question is therefore ‘Can South African companies in the pharmaceutical industry remain competitive by outsourcing, what is driving these companies to outsource and how effective has the initiative been?’ The purpose of the study is to identify the extent to which various key factors play an influential role in motivating pharmaceutical companies in SA to outsource. South African pharmaceutical companies as part of the global arena, have to continually assess the feasibility of manufacturing their products in-house or allowing contract manufacturers to manufacturer and or pack on their behalf. The research questions posed in this research were: why are companies outsourcing, what is outsourcing and what is happening amongst the South African pharmaceutical companies? The results of this qualitative rich study have shown that outsourcing in SA is not just about cost savings or reduction in product costs but that this process is able to afford the contract giver the ability to tap into additional capabilities (facilities, technology and skill) of their outsourcing partner. Outsourcing has enabled the contract manufacturers in SA to assist the contract givers in numerous areas such as cost reduction, cost saving, reduction in capital investment, increased flexibility and allowed the contract givers to focus on their core competencies. The implementation of off shoring may result in South African contract givers incurring additional ‘hidden costs’ which may be attributed to quality problems, reduced flexibility of transport, product write-offs (due to large volumes ordered), currency fluctuations and additional resources that may required (technology transfer, documentation review, and validation). The responses from the research questionnaires indicate that the key drivers of outsourcing in South African are aligned with those identified in global ii marketplace by Jiang and Qureshi; Copestake and Lau and Zhang (2006). The main drivers being profitability increase (cost reduction, cost saving and capital reduction), strategic considerations (focus on core competence, increased flexibility and to facilitate market penetration) and access to knowledge and skills. The key for the South African outsourcing service providers lies in ensuring that their clients are kept satisfied so that they can minimise the threat of offshore providers. The results of the study are line with Momme and Hvolby (2001) suggestions in which they advocate that organisations only outsource when suppliers have a comparative advantage and that an organisation proactively have a stronger focus on its internal core business areas. In SA governmental changes in regulations/ laws such as those addressing parallel importation, patents, foreign investors and trade would impact on the countries national competitive advantage. However although outsourcing is highly beneficial, organisations need to carefully manage the process, identify hidden costs, risks and initiate preventative measures to ensure success. This study was the first step towards conceptualising the impact of the key drivers, decision making and strategic issues on the South African pharmaceutical manufacturing industry. / Graduate School of Business Leadership / MBL

Mini-study project (MBA)--University of Stellenbosch, 2003. / ENGLISH ABSTRACT: This report reviews the global and South African pharmaceutical and biotechnology industries and provides an overview of the changes taking place within these two industries. It highlights the impact this relationship will have on a developing South African biotechnology industry. Since the 1980s the pharmaceutical industry has experienced phenomenal growth in sales and profits. By the mid 1990s drug sales exceeded USD250 billion. Today the pharmaceutical industry is dominated by multi-national corporations with extensive R&D budgets, widespread use of trademarks and patents and complex commercial process technology. However they face threats from depleted product pipelines, patent expiry on billion dollar drug products, generic competition, increases in drug approval times, costs and price pressures. The entrepreneurial biotechnology industry promises to solve a number of the pharmaceutical industry's problems. In recent years biotechnology companies proved more effective in the development of new molecular entities. They promise individualised therapeutics, novel and more efficacious drug discovery and development of preventative treatments. However the decrease in equity financing after 2001 left almost 40% of biotechnology companies with less than 1 year of R&D funding. The industry experienced losses again in 2002 and the world is divided over the ethical, environmental and economic implications of biotechnological applications. The biotechnology and pharmaceutical industries have a symbiotic but antagonistic relationship. The change in this relationship will hugely affect South Africa's ideals of developing a biotechnology industry. Various diseases plague South Africa including HIV/AIDS, TB, obesity, diabetes, hypertension and infective diseases. These diseases will have a huge impact on South Africa's society. Yet only 10% of global R&D funding is committed to third world diseases and existing drugs and treatments are either not effective or too expensive for developing countries. It is in this situation that biotechnology and the development of a biotechnology industry could playa major role in alleviating South Africa's health burden. South Africa is already capable in first generation biotechnology, but third generation applications holds the most promise. Developing countries face various obstacles and challenges, but all boast well for South Africa. The government has committed R400 million (over a three year period) to utilize South Africa's biotechnology potential. Further, the country has highly skilled researchers, indigenous plant and animal species, a diverse population and a favorable exchange rate (low R&D costs). / AFRIKAANSE OPSOMMING: Die projek ondersoek beide die globale en Suid Afrikaanse farmaseutiese en biotegnologie industrieë. Verder word die veranderinge wat plaasvind in die industrieë onder die soeklig geplaas. Die projek beklemtoon die impak wat die verhouding sal hê op 'n ontwikkelende biotegnologie industrie in Suid Afrika. Die farmaseutiese industrie het sedert die 1980s dubbel syfer groei getoon in omsete en wins. Teen die middel 90's het verkope van farmaseutiese middels US$250 miljard wêreldwyd oorskry. Vandag word die farmaseutiese industrie oorheers deur multi-nasionale korporasies met omvattende navorsing en ontwikkelings begrotings, algemene gebruik van handelsmerkte, patente en komplekse proses-tegnologieë. Ten spyte hiervan word die industrie bedreig deur leë produksie-lyne, verval van patente, miljard dollar farmaseutiese produkte, generiese kompetisie, verlengde produk-goedkeurings periodes en prys-mededinging. Die biotegnologie industrie met sy innoveerende eienskappe beloof om verskeie van die farmaseutiese industrie se probleme op te los. Onlangs het biotegnologie maatskappye getoon dat hulle meer effektief is in die ontwikkeling van nuwe molekulêre eenhede. Biotegnologie beloof nuwe en meer effektiewe produk-ontwikkeling asook beter individuele terapieë en voorkomende behandelings. Die industrie staar finansiële krisisse in die gesig. Slegs 40% van biotegnologie maatskappye het voldoende navorsing en ontwikkelings-kapitaal tot 2004. Dit is hoofsaaklik as gevolg van 'n afname in eienaars-finansiering na 2001. Die industrie as 'n geheel het weereens 'n verlies gelei in 2002 en die wêreld is verdeeld oor die etiese, omgewings en ekonomiese implikasie van biotegnologiese toepassings. Die biotegnologie en farmaseutiese industrieë het 'n simbiotiese maar tog vyandige verhouding. 'n Verandering in die verhouding gaan Suid Afrika se ideale om 'n biotegnologie industrie te skep grootliks beïnvloed. Suid Afrika gaan gebuk onder verskeie siektes insluitende MIVNIGS, TB, vetsugtigheid, diabetes, hipertensie en infeksie siektes. Hierdie siektes het 'n groot impak op Suid Afrika se samelewing. Tog word slegs 10% van die globale navorsings en ontwikkelingsfondse aangewend om 'n oplossing te vind vir derdewêreld siektes. Verder is bestaande produkte en behandelings oneffektief of onbekostigbaar vir ontwikkelde lande. Dit is in sulke gevalle waar biotegnologie en die ontwikkeling van 'n biotegnologie industrie 'n groot rol kan speel in die verligting van Suid Afrika se gesondheids-las. Suid Afrika is vaardig in eerste-generasie biotegnologie, maar wêreld wyd hou derde generasie biotegnologie die meeste belofte in. Die tegnologie is tot op hede onderbenut in Suid Afrika. Ontwikkelende lande staar verskeie uitdagings in die gesig, maar Suid Afrika het talle sterk punte. Die regering het R400 miljoen (oor 'n drie jaar periode) beskikbaar gestel vir die ontwikkeling van Suid Afrika se biotegnologie potensiaal. Die land beskik ook oor navorsers van hoogstande gehalte, onbenutte inheemse plante en dier spesies, 'n diverse populasie en 'n gunstige wisselkoers (lae navorsings en ontwikkelings kostes).

M. Tech. Business Administration / The findings of the study indicate that monetary incentives motivate the salesforce to achieve sales targets. This was further affirmed by the finding of a significant negative relationship between monetary incentives and reduced performance, in that the presence of monetary incentives was not reducing the performance of the salesforce. In addition, it was found that task complexity plays a role, with difficult tasks rendering the influence non- existent, as they might be unachievable regardless, while no statistically significant relationship was found with easy tasks and monetary incentives. Quarterly incentives, yearly salary increases based on individual performance and commissions were the most common forms of monetary incentives offered to the salesforce by the pharmaceutical company in which the study was conducted.

“Outsourcing has been touted as the ideal way for organisations to reduce cost, focus on core business processes, improve services, enhance skills, reduce time-to-market and increase overall competitive advantage,” (Power, Bonifazi and Desouza, 2004). A pertinent question is therefore ‘Can South African companies in the pharmaceutical industry remain competitive by outsourcing, what is driving these companies to outsource and how effective has the initiative been?’ The purpose of the study is to identify the extent to which various key factors play an influential role in motivating pharmaceutical companies in SA to outsource. South African pharmaceutical companies as part of the global arena, have to continually assess the feasibility of manufacturing their products in-house or allowing contract manufacturers to manufacturer and or pack on their behalf. The research questions posed in this research were: why are companies outsourcing, what is outsourcing and what is happening amongst the South African pharmaceutical companies? The results of this qualitative rich study have shown that outsourcing in SA is not just about cost savings or reduction in product costs but that this process is able to afford the contract giver the ability to tap into additional capabilities (facilities, technology and skill) of their outsourcing partner. Outsourcing has enabled the contract manufacturers in SA to assist the contract givers in numerous areas such as cost reduction, cost saving, reduction in capital investment, increased flexibility and allowed the contract givers to focus on their core competencies. The implementation of off shoring may result in South African contract givers incurring additional ‘hidden costs’ which may be attributed to quality problems, reduced flexibility of transport, product write-offs (due to large volumes ordered), currency fluctuations and additional resources that may required (technology transfer, documentation review, and validation). The responses from the research questionnaires indicate that the key drivers of outsourcing in South African are aligned with those identified in global ii marketplace by Jiang and Qureshi; Copestake and Lau and Zhang (2006). The main drivers being profitability increase (cost reduction, cost saving and capital reduction), strategic considerations (focus on core competence, increased flexibility and to facilitate market penetration) and access to knowledge and skills. The key for the South African outsourcing service providers lies in ensuring that their clients are kept satisfied so that they can minimise the threat of offshore providers. The results of the study are line with Momme and Hvolby (2001) suggestions in which they advocate that organisations only outsource when suppliers have a comparative advantage and that an organisation proactively have a stronger focus on its internal core business areas. In SA governmental changes in regulations/ laws such as those addressing parallel importation, patents, foreign investors and trade would impact on the countries national competitive advantage. However although outsourcing is highly beneficial, organisations need to carefully manage the process, identify hidden costs, risks and initiate preventative measures to ensure success. This study was the first step towards conceptualising the impact of the key drivers, decision making and strategic issues on the South African pharmaceutical manufacturing industry. / Graduate School of Business Leadership / MBL

A research report submitted to the Wits Business School, University of the Witwatersrand, in partial fulfillment of the requirements for the degree of Masters of Management in Innovation Studies November 2014