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What are their external influences?
The main external influences are from environmental and regulatory pressures as explained elsewhere in this profile. Making sure that the plant fulfils all the requirements of legislation and the regulation framework does significantly add to its overall costs of operation. However, this is very much the same situation facing all firms in this industry so it is not necessarily a source of competitive disadvantage. Indeed, it could be argued that having robust and highly professional safety and risk management procedures in place gives it a competitive advantage when securing clients. They can be certain that they are dealing with a highly professional and well run organisation.
The firm is also affected by changes in the following external factors:
- Changes in the global economy
- Changes in world demand
- Changes in demand arising from new research and funding into drugs and other aspects of the pharmaceutical industry
- Changes in the regulatory framework
- Changes in energy prices - the price of gas for example, is a major source of cost for the plant. The rapid increases in gas prices over the last few years have had a significant effect on the business.
- Changes in exchange rates
- Changes in interest rates
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