The government is tied directly to the political

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drugs safe for the consumers. The government is tied directly to the political system and political ideologies on which the cost of drugs and medicines are high, and the government continuously wants to cut the prices of the drugs (Ahearne, Lam & Kraus, 2014). The recent reforms in health care in the USA have resulted in increased pressure on price. The outcome means that the pharmaceutical companies such as the Allstar must review its operational objectives to retain the market share (Nagle & Müller, 2017). The lack of long term understanding of the health care policies means that a company would be faced with challenges when it comes to long term 8
strategic and management planning. Nevertheless, the government continuously engages with the manufacturers in implementing policies that are beneficial to both the manufacturers and government objectives. o Economic The current economic climate means that pricing is an important aspect in pharmaceutical industry. The government wants the reduction of prices resulting in emergence of generic brands and other strategies to reduce overall price of drugs (Nagle & Müller, 2017). A developed country has the ability to acquire drugs and subsidize the health care industry using insurance and related modalities. However, when the prices increase, it means that the people cannot access the right health care. These processes forces companies such as Allstar has to reduce the price or adjust the price to reflect the economic situations. In addition, competition means that the cost and prices of the drugs have to be reviewed to meet the changing workplace demands. o Social There are different cultural and social factors such as expansion of diabetes, obesity, malnutrition and poverty tart affects the pharmaceutical industry. In addition, the unhygienic health conditions have a major impact on emergence of numerous diseases including tuberculosis, malaria and other preventable diseases. The health care industry also faces other issues such as poor oral hygiene, smoking drinking and poor sanitations leads to various diseases. These health concerns point to the need of pharmaceuticals meaning that more sales would be made to address the health concerns. The increasing aging population and awareness on importance of health care continues to influence the actions of the consumers (Nagle & Müller, 2017). The consumers want to solve their issues and the solution is taking the right medicines. The changing environmental 9
conditions also contribute to emergence of more diseases pointing to the requirement of medicines and drugs. Based on social and cultural factors, the demand for drugs and medicines would continue, which is a positive aspect to companies such as Allstar. o Technology Technology provides numerous benefits and opportunities to the pharmaceutical industry.

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