Question

Prudent Pharma has been a well-established manufacturer of curative medicines in India for the past 15 years. The company is planning to enter a new line of products known as ‘nutraceuticals’ which has both nutritional and medicinal benefits. With rising awareness levels and easy access to information, people are keen to try nutraceuticals, as these health supplements claim to delay or reduce the impact of chronic diseases. As income levels of the population have improved, nutraceuticals promise to emerge as a growing niche market in the country. It is governed by health and safety regulations and the company needs to acquire the required licenses to venture into this field. Though the concept is new to India, internationally it is already a growing market with multiple international brands. Prudent Pharma is in talks for a potential international tie-up for research and development.

On the basis of the given text, identify, by quoting lines, any three macro-environment factors that may affect the future of Prudent Pharma.

Answer 1

Macro-environment factors that may affect the future of Prudent Pharma are:

• ‘Governed by health and safety regulations and the company needs to acquire the required licenses - Legal factor
• ‘Rising awareness levels and easy access to information of people’ - Social factor
• ‘As income levels of the population have improved’ - Economic factor