Teva's Success as a Pharmaceutical Giant

Teva Pharmaceuticals is a pharmaceutical company specializing in generic and proprietary drugs. It is the world’s 11th biggest pharmaceutical company. Apart from its major market, US and Europe, it has a major presence in Russia, Latin America, Japan and South Korea. In 2012, it had revenue of 20.3 billion and a net income of 1.96 billion (see table 1).

In the pharmaceutical world, payers have switched to the generic brand over the brand-name drugs (The Commonwealth Fund, 2016). Although efforts to slow down the costs of healthcare might have work a little bit. A recent report shows spending has grew 5.7 percent in the past year (Altarum Institute, 2015).

As they explained, their Basic Beliefs are the Company’s values and principles that guide both strategic decisions and daily behavior. The Basic Beliefs are deeply rooted in the philosophy and heritage of the Company’s founder, the main purpose of these belief are Quality, People, Ethics, Growth, and Independence (Histories, 2007). These beliefs give the company an outstanding commitment with quality and excellence. The reputation and success are built on a foundation of quality that is applied to their brands, products, manufacturing methods, workers and customers. Their company growth is based in the commitment to balance their growth within prudent financial parameters. This balance growth enables them to both enhance their consumer franchise and provide a fair return to their shareholders. Therefore, their strategy to remain independent from short-term, help them to take decisions on a long-term perspective, they believe that thanks to this strategy and the hard work of their employees has made a huge difference in the company growth and economic

Stable cash flows with estimated total revenues increasing from 559.9 million in 1978 to 937.8 million in 1984 (Note also its strong intellectual property as shown by its

The technology portion of their company has grown tremendously which has caused so much of their growth. In addition, they found the perfect formula to appeal to and retain customers. Most of their customers are loyal to their company and insist on sticking to their products. Their market capitalization, $639,922 million, is extremely high compared to other companies in their industry They returned about $8 billion to shareholders during their quarter. Also, their gross margins, currently at 38.01%, are high at passed by

This isn’t surprising, namely its market capitalization could be said high, also within the industry, but its income is lagging behind the main competitors.

It has been the major factor behind their success and can be seen as their business strategy.

Stable cash flows with estimated total revenues increasing from 559.9 million in 1978 to 937.8 million in 1984 (Note also its strong intellectual property as shown by

Excellent equity position: $820 Million cash on books so they are well positioned for growth.

Petrobras is a huge oil company in Sao Paulo, Brazil that had a very successful year in 2015. Petrobras success in the year of 2015 was so great that it surpassed their actual target for that year. Another success was that they broke history with having the largest annual average of any competitors. What is intensely captivating about this success is that the scale of this operation is huge. It allows the production of the company to realize that what they are doing is right and then to continue with it. Petrobras president gave away the secret to what makes his business successful in a press release, which could now help other businesses like his own. There were large scale changes that were made in 2014 to formulate success for 2015. The different levels of production and management credit different zones for the success. Good management in every sector is what allowed for the company to be prosperous; every segment is doing something right.

The third reason why good-to-great companies outperform, is they do not cover up the bad news (confront the brutal facts). Nobody likes to hear the bad news, but we have to facing it and take reaction about it. Furthermore all good to great

A company like Teva Pharmaceuticals is subject to all of the factors of the external environment given the nature of its business and global expansion. Pharmaceuticals is an industry where high profits can be achieved, but it is also an extremely challenging business when one considers all of the political/legal aspects involving government regulation and patents. Every country has strict regulation and testing requirements for drugs that affect companies differently depending on their position in the market. Originally, innovative pharmaceutical companies had to obtain patent protection and FDA approval but this would translate to years of protection from the generic competition. Once the

i. They mainly concentrate on value rather putting their thoughts on long term goals, that means they always concentrate in reduction of the costs in a strategic context and with a reasonable spotlight on their core. ii. They misuse opportunities one of a kind to the downturn, which can mean anything from utilizing misfortune to increase new clients to squeezing forward with advancement. iii. They act quickly, with a spryness that allows them to keep pace with, or development of, speedy changes in the business environment. Successful companies always put their eye on the growth of the organization and they will try to keep the customers as they don’t need to lose their valuable customers. So they will move on from their comfort zones and thrive hard towards their growth in the competitive world. They always show their commitment towards the innovation that helps in being a part of the successful company. (Berman, 2009).

In terms of targeted niche, the company seems inimitability however the innovative products being offered by the company are still unique since other companies are still launching their business and are at initial stages.

Teva Pharmaceuticals- Founded in 1901, Teva is a large Israeli pharmaceutical company based in Petah Tikva. This company focuses on generic and proprietary products. They are the largest generic pharmaceutical manufacturer in the world and the 15th largest pharmaceutical company. This company has operations in 5 continents and is listed in the NYSE and in the Tel Aviv Stock Exchange. Teva Pharmaceuticals has 4 facilities in South America, 12 in North America, 8 in Asia, 2 in Africa and the bulk of their representation is in Europe where they have 35 facilities. Teva had 20.3 billion dollars of revenue in 2012 and a Net income of 1.9 billion in the same year. They employ 46,000 people and have had rising stock prices in 2014(Currently $51).