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    Case Study: N-Pharma: Economic & Environmental

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    Taeee
    N-Pharma is a Japanese pharmaceutical company facing economic and environmental challenges. High R&D costs have led to expensive drug prices, reducing demand during economic downturns when people cannot afford medications and opt for generics instead. While low inflation has helped N-Pharma succeed in Japan compared to Europe, cash flow issues and a reliance on the stock market make their business challenging to sustain. Environmental factors like pollution increasing health issues and natural disasters in Japan also threaten N-Pharma's operations and profits.

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    Case Study: N-Pharma: Economic & Environmental

    Uploaded by

    Taeee
    42 views5 pages
    N-Pharma is a Japanese pharmaceutical company facing economic and environmental challenges. High R&D costs have led to expensive drug prices, reducing demand during economic downturns when people cannot afford medications and opt for generics instead. While low inflation has helped N-Pharma succeed in Japan compared to Europe, cash flow issues and a reliance on the stock market make their business challenging to sustain. Environmental factors like pollution increasing health issues and natural disasters in Japan also threaten N-Pharma's operations and profits.

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    N-Pharma is a Japanese pharmaceutical company facing economic and environmental challenges. High R&D costs have led to expensive drug prices, reducing demand during economic downturns when people cannot afford medications and opt for generics instead. While low inflation has helped N-Pharma succeed in Japan compared to Europe, cash flow issues and a reliance on the stock market make their business challenging to sustain. Environmental factors like pollution increasing health issues and natural disasters in Japan also threaten N-Pharma's operations and profits.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    42 views5 pages

    Case Study: N-Pharma: Economic & Environmental

    Uploaded by

    Taeee
    N-Pharma is a Japanese pharmaceutical company facing economic and environmental challenges. High R&D costs have led to expensive drug prices, reducing demand during economic downturns when people cannot afford medications and opt for generics instead. While low inflation has helped N-Pharma succeed in Japan compared to Europe, cash flow issues and a reliance on the stock market make their business challenging to sustain. Environmental factors like pollution increasing health issues and natural disasters in Japan also threaten N-Pharma's operations and profits.

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    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.

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