Dechra Pharmaceuticals SWOT and PESTLE Analysis (Research Paper Sample)

Dechra Pharmaceuticals SWOT and PESTLE Analysis Institution Name Date Introduction According to the Dechra Veterinary Products website, Dechra is a professional in veterinary pharmaceuticals, as well as other relating products (Dechra Pharmaceuticals PLC, 2014). Dechra’s expertise is on the manufacture, development, marketing and sales of products of high quality for a great number of veterinaries around the globe. The company was founded in 1997 through a buy-out from another company, Lloyd Chemists. Dechra sells pharmaceuticals for domestic animals such as dogs, horses, and cats among others (Dechra Pharmaceuticals PLC, 2014). The company is presented in two partitions: the United States Pharmaceuticals and the European Pharmaceuticals. It has also expanded to other regions around the globe increasing the sale of its products, as well as services. Conducting a SWOT and PESTLE analysis of Dechra Pharmaceuticals will create an understanding of its regional and global performance, as well as future goals and objectives. Dechra Pharmaceuticals is under the pharmaceuticals and biotechnology sector. This is a broad sector as a large number of companies produce and sell pharmaceutical products to consumers. It is under pharmaceutical production that targets products for animals, especially, domestic animals such horse, gods, and cats among others. As of 2013, the company had a net worth of 17.9 million pounds, which has continued to increase over time (Dechra Pharmaceuticals PLC, 2014). It has branches that operate in a larger region in Europe and America. SWOT Analysis In order for a business to be successful, it should have a well-functioning internal organization. This means the internal environment of the organization or business should be focused on achieving a common goal or objective. It is critical to examine the internal environment of a business, which is best explored using a SWOT analysis. A SWOT analysis focuses on the Strengths, Weaknesses, Opportunities and Threats that influence the performance or survival of a business. There are a number of strengths that support the existence and success of Dechra Pharmaceuticals. According to Dechra Pharmaceuticals PLC (2014) Dechra manufactures its own products that it sells to other retail businesses, companies and third parties. Manufacturing its own products is essential for cost effectiveness and it is also possible for the company to produce products that meet the needs or demands of customers. Dechra also manages to be successful because of its strategic objective that seeks to manufacture efficiently and economically and produce a range of products, as well as a reliable supply chain for the Dechra Group. It produces a range of services that deliver to the veterinary flexibility required by the market. It is also a one-stop shop for external consumers. A business cannot be completely successful as there will always be limitations brought about by possible weaknesses. These weaknesses expose the company to competition and also encourage financial limitation. Although Dechra is considered a successful business with remarkable returns and expansion, it has invested more in the European and American markets compared to other regions around the globe. This exposes the company to increasing competition from other pharmaceutical manufacturing and selling companies. Globalization creates an opportunity for the company to expand to untapped markets around the world and make reasonable profits. The emergence of the global market has opened opportunities to many businesses. Companies have expanded to other regions with an attempt to promote their products and make profits. In this case, Dechra Pharmaceuticals has also expanded to other regions of the world other than Europe and America. The company can increase its profits by entering other markets and introduce its one-stop shop services (Dechra Pharmaceuticals PLC, 2014). This will attract more customers, especially, in regions where they rely on imports to get their stocks. When Dechra identifies such regions, it could take advantage of such a need and introduce branches that offer one-stop shopping. In this case, it will be assisting customers reduce import expenses; thus they will increase their purchases and the company’s revenues will increase as a result. A common threat to most businesses is competition from existing companies and new entrants into the market. When there is great demand for a particular product or services, it is absolute that more investors will desire to invest in the market and earn profits. Dechra faces competition from other companies that have invested in similar products and services. New entrants create substitute products that may be less princely and attractive to a large number of consumers. Another threat other competition is the internal management of a company and its sub-branches. When there are cases of misconduct or disagreements between the top management and their subordinates, there will be high likelihood of poor performance. PESTLE Analysis PESTLE analysis is a framework that is used to explore a company’s environment. This involves the current environment in which the company is operating and the environment in which the company plans to operate. PESTLE examines elements of the macro-environment, which are: Political, Economic, Social, Technological, Legal and Environmental. On the political element, the political environment of the current markets in which the company has invested is encouraging for businesses. Europe and the United States have a record of political stability that has been a contributing factor to growth and development. Political stability is a long term contributing factor among domestic and foreign investors. Some developing countries are faced with political problem and hinder investors from basing their trust on the country. A country’s or a region’s economic condition also matters significantly in determining whether a business will invest in the region. For example, most developed countries have achieved economic stability and their condition is promising to potential investors and current investors. Europe and America has been a base for Dechra’s investment before the company became global. The economic environment of these areas has a promising potential. However, some instances such as depression and inflation impact the operations of a business. Before investing in a target market, Dechra considers economic factors such as inflation, employment, population, and interest rates. The United States has been facing economic challenges over the past years and this seems to be a threat to businesses. The social and cultural aspect of a market in which a business has invested has great impact on its success. The social aspect of Europe and American could explain why Dechra has heavily invested in these regions. These areas have great demand for veterinary services because a large number of individuals and families keep animal pets. It could be estimated that globally, Europe and America have the largest number of domesticated animals as pets. Other regions of the world, especially developing nations, do not have such great demand since the people are too poor to maintain animals as pets or their cultures do not encourage keeping pets. Technology plays a significant role in promoting a business. For example, manufacturing companies require lat...