Order 766874 A.edited.docx - TEVA'S ENTREPRENEURSHIP STRATEGY TEVA PHARMACEUTICALS\u2019 ENTREPRENEURSHIP STRATEGY Name University Course Tutor Date 1

Order 766874 A.edited.docx - TEVA'S ENTREPRENEURSHIP...

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TEVA'S ENTREPRENEURSHIP STRATEGY 1 TEVA PHARMACEUTICALS’ ENTREPRENEURSHIP STRATEGY Name: University: Course: Tutor: Date:
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TEVA'S ENTREPRENEURSHIP STRATEGY 2 Introduction Growing a new business can be challenging. The business requires a different solution to meet the ever-changing opportunities and challenges. What worked in the previous year may not be useful in the current climate; hence there's a need to keep adapting. Identifying and overpowering common business pitfalls is essential for the thriving and growth of a new business. Szycher (2018) found that having effective corporate governance ensures a growing company takes advantage of the incoming opportunities to create future sustainability. As a young company, Teva incorporated inorganic growth approaches with strategic partnerships, M&A with production capacity, and swift rationalization. The pharmaceutical company's successful growth is mainly attributed to its intrapreneurship strategy, whereby ordinary employees act like entrepreneurs. Such employees are action-oriented, proactive, and self- motivated persons who track innovative services and products. This strategy fosters independence and autonomy while benefitting the company’s culture. Teva’s corporate entrepreneurship behavior model Teva Pharmaceuticals has successfully grown over the years while competing with other related companies. It has been growing at a 12% rate and a 20% ROE (Campbell, 2015). It is made up of the Generic and Pharmaceuticals sectors. Innovation in the pharmaceutical sector is risky due to the high investment of capital in research and development, low likelihood of development approval that exceeds investment capital. The Generic Pharmaceuticals sector is dependent on patent drug production. It has a 16% growth globally. It consists of commodity generics, niche generics, and biosimilars. The pharmaceutical industry is competitive globally because of its fragmentation. Teva’s corporate tactic is diversification to other related businesses through strong chain values such as localized marketing management and centralization of APIs,
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TEVA'S ENTREPRENEURSHIP STRATEGY 3 manufacturing, and R&D. Through this strategy, they derive more benefits than their competitors and make them stand out. Teva’s business strategy is mainly centered on cost leadership. This leadership is invested in keeping research and development practices low, managing its supply chain efficiently, and backward pharmaceutical ingredient integration. The company also focuses on difficult execution through the acquisition team with a successful reputation. They file ANDA applications quicker than their competitors. Through their low-cost culture and acquisitions, they have successfully blended into fresh markets which gives them an edge over their competitors (Globerman 2020; Darabi 2020) Moreover, Teva has infiltrated innovative markets whereby they have launched their products successfully by swaying big market players such as pharmacy-driven markets. Former CEO, Eli
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