The Adventures Of Huckleberry Finn By Mark Twain - 1453 Words

Throughout The Adventures of Huckleberry Finn by Mark Twain, certain characters help influence the development of Huck’s morality immensely. For instance, Jim gave Huck a sense of loyalty and respect, Meanwhile Huck’s father and the con men Huck encountered allowed him to see how not to treat others and what not to value. With all these influences weighing on Huck, he was able to progressively learn how to choose between the rights and wrongs amongst the decisions made by himself and others around him. Huck’s moral development as a character is mostly credited to himself in learning how to analyze situations and people in his life and deciding whether or not they keep strong values and morality. Throughout the beginning of the story,†¦show more content†¦His only experiences in life are negative but he refuses to give up. Huck developed the courage to escape the situation and go about on his own. In the text, Huck narrates â€Å"It was kind of lazy an d jolly, laying off comfortable all day, smoking and fishing, and no books nor study. Two months or more run along, and my clothes got to be all rags and dirt, and I didn’t see how I’d ever got to like it so well at the widow’s, where you had to wash, and eat on a plate, and comb up, and go to bed and get up regular, and be forever bothering over a book, and have old Miss Watson pecking at you all the time. I didn’t want to go back no more. I had stopped cussing, because the widow didn’t like it; but now I took to it again because pap hadn’t no objections. It was pretty good times up in the woods there, take it all around. But by and by pap got too handy with his hick’ry, and I couldn’t stand it. I was all over welts. He got to going away so much, too, and locking me in† (Twain 26). This is the point in the story where Huck analyzes how he isn’t being treated fairly and needs to leave. I think that is a huge step, being able to leave your normal life and start a new one is tremendous for someone as young as he. This also represents the beginning development of his morality, he’s able to conclude that what his father has been doing to him is not right or fair. Soon enough, Huck proves a development of sympathy and

Mark Edmundson And Paulo Freire - 915 Words

Although Mark Edmundson and Paulo Freire believe that a higher form of education such as, a stronger teaching ethics, deeper understanding, and more passionate students is needed to correct the issues at hand. In their essay they both adopt a different style to present tis idea. Paulo Freire wants the individual to form himself rather than be formed. To this end, he proposes that educational topics or opportunities be taken from the daily experience the individual constantly encounters and avoid the current educational pitfall of resorting to artificial experiences. While, Edmundson is trying to show how education has change due to the leak of consumerism into universities. Edmundson acknowledge his own conformity and promise to change back to what he thinks will make a good class and challenge his students to think on another level. Paulo Freire dwells on the idea that a teacher’s task is to simplify â€Å"fill† a student’s mind. He describes the banking concept as a habitual learning process where the teachers oppress the knowledge that they considered important on the student by supplying the student with the material and not given them the opportunity to question the material presented. Freire states; that â€Å"In the banking concept of education, knowledge is a gift bestowed by those who considered themselves knowledgeable upon those whom they considered to know nothing. Projecting an absolute ignorance onto others, a characteristic of the ideology of oppression, negatesShow MoreRelatedTraditional Education1159 Words   |  5 Pagesare unsure of whether they should go into the armed forces or join what Paulo Freire describes as a â€Å"misguided system† of education (Freire 1). Some students have been citing the need for educational reform in response to the age old question â €Å"should I go to college?† Too distracted by the weight of the reform problems, many haven’t realized that there’s a reasonable solution. While 1960’s Paulo Freire and 1990’s Mark Edmundson both agree that they wanted students to revolt against their respectiveRead MoreEducation : Consumer Vs. Liberal Education916 Words   |  4 PagesEducation: Consumer vs. Liberal Education Both writers, Paulo Freire and Mark Edmundson have a sense of the teacher – student relationship that is based on some experiences they have had. The relationships are not mutual; it is more of a give and take understanding. The schools will stop at nothing to attract students to their universities even if it goes against morals and norms. Although others have noted liberal education is the new way of conducting business, they have overlooked the importanceRead MoreAn Article About The Educational System And Where We Stand On A Global Scale960 Words   |  4 Pagesstudents accepting that explanation as fact. Of course the transmitter receiver style of education, has been challenged by some. Paulo Freire, a Brazilian educator, presents the argument that the class room should be more of a two-way conversation. According to an article by John Sparks, Freire considers traditional education to be a â€Å"teacher-student contradiction.† Freire believes that each individual should be able to contribute to the classroom setting, adding their own perspective and making aRead MoreEducational Concerns Built On Generalizations1196 Words   |  5 Pagespoints. Clearly any student can remember cramming for exams. Many hear the complaints of a generation nation. We are a consumer culture. The articles â€Å"The Banking Concept of Education†, by Paulo Freire and On the Uses of a Liberal Education: As Lite Entertainment for Bored College Students, by Mark Edmundson, are generalizations. Their articles may make one consider the education system is close to broken. There are facts that may prove otherwise. FREIRE’S POINT Freire’s ideas point to education

Principles of Auditing and Assurance Ethics

Question: Discuss about the Principles of Auditing and Assurance Ethics. Answer: Introduction: Considering the principles of Accountants Code of Ethics, it can be said that Peter Harmon has not violated the principles of professional ethics. As per the principles under section 240-241, Code of ethics B, consideration of professional accountant in public practice includes referral fee or commission if it is not received or paid that creates self- interest threat with respect to objectivity, integrity and professional competence and due care. Professional ethics on competence and due care requires the accountants to possess skills and knowledge to provide competent services in order to act diligently for clients (Bonaci et al. 2013). However, in the given case 10% commission received by Peter Harmon for sale of computer services is in accordance with the principles of Accountants Code of Ethics. According to the principles of Accountants Code of Ethics, professional accountant or auditor is required to maintain the confidentiality of clients business and necessary information. In the given situation, David Smith, an auditor referred ten clients to the Allied Insurance Company without their awareness hence, it can be said that David has violated the principles of ethics in terms of confidentiality. Code of ethics regulation provides that professional auditor is required to maintain clients confidentiality to keep the business information private (Bampton and Cowton 2013). Auditor can disclose certain information only is it is required by legislation and with the permission of respective clients. David as an auditor referred ten clients without clients knowledge hence, he is contented to have violated confidentiality and professional behavior and would be held under APES 110 for professional misconduct. As per ethical code APES 110, profession accountants and auditor is required to maintain integrity, objectivity and professional competence and due care. Wrench Company, Chartered Accountant in the given situation maintains details of clients in the computer records to use as per the requirement. In order to assist the clients for input data Wrench and company is able to arrange the members from administration as well as audit branch while the audit staffs can be involved for client audit if required by audit partners. Accordingly, the company said to have violated the ethical principles in terms of objectivity, competence and due care because requirement of audit partner cannot be replaced with the audit staffs. Accountants Code of Ethics and conceptual framework it is against the principles to make solicit approaches to the clients or professional parties through the electronic mode or by any other means. In the present situation, Stephanie Barrys audit client Williams Pty Ltd uses the management services from another public accountant accordingly, Barry provides her firms literature to Williams for management services based on monthly records which was unsolicited. As per the regulation of code of ethics APES 110, unsolicited services are fair and common while solicited services are against the ethical principles (Tweedie et al. 2013). Therefore, Stephanie Barry cannot be said to have violated the principles of ethics and cannot be held for professional misconduct based on Accountants Code of Ethics. Ethical Codes on professional accountant and auditors provides that an employee of the organization or a member of the company cannot be an auditor or audit assistant of the company. It is stated that the auditor of the organization should be independent and not to be involved in any business activities or any business decision which influence the auditors opinion (Soltani and Maupetit 2015). The present case of Katrina Ng, an audit manager of the non- profit organization as well as an honorary Board member which does not include her activities in management capacity. Principles of professional ethics provide that the auditors involvement in the companys management affect the independence, confidentiality and competence. Therefore, it can be concluded that Katrina has violated the principle ethics on auditor independence being an honorary member of the audit company. Services of professional accounting include auditing assurance, tax advisory general business advisory and consultancy under the professional legislation. Peter Beattie in this case is a public accountant, provides services of tax advisory, management, book- keeping and auditing for the same audit client. In view of the professional services as per Accountants Ethical Code includes all the services providing by Peter Beattie to the audit client (Griffith, Hammersley and Kadous 2015). Accordingly, Peter Beattie cannot be held liable for violating the principles of ethics or professional misconduct under the regulations of APES 110. APES 110 under Accountants Code of Ethics states that the professional accountants should not advertise their professional work or they should not be involved in case of inaccurate publicity. Further, code of ethics also provides that the professional accountants must not be involved in comparisons for professional capabilities with any other professional member (Han Fan, Woodbine and Cheng 2013). Accordingly, advertisement of professional audit work in the local newspaper with the colorful pictures of staff along with the comparison from other professional is said to be against the ethical principle of professional behavior and integrity. Therefore, Hornsby Auditors is to held liable for professional misconduct against the principle of ethics for integrity and professional behavior because the auditor entered into inappropriate publicity to obtain clients. As the auditor advertised the work in local newspaper and compared the professional work for providing benefit of higher tax ded uctions to the clients hence, Hornsby is said to have violated ethical principles. Regulation of Accountants Code of Ethics provides that professional accountants are entitled to retain books and statutory documents of clients if there is a default in payment of audit fees. The auditor can take this action to exercise claim for the purpose of delayed audit fees against the audit work (MaAyan and Carmeli 2015). In the given situation, David Cheadle audited the books and financial statements of Nestree Ltd for the year ended 30 June 2015 but the payment of audit fees had not been made. Accordingly, he is entitled to retain the books and documents of the audit client to claim against the dues, which is not against the ethical principles of APES 110 also he can continue the audit process for subsequent year 2016. In the given case, auditors inability to obtain the confirmations from three major customers of the audit client that is included in the sample while the auditor satisfied himself for the available account balances used in other audit procedures. As the auditor failed to obtain the confirmations from third party with respect to the major customers of the audit client, there is information or details on the misrepresentation identification (Dombrowski, Smith and Wood 2013). Therefore, the auditor in this case should state unmodified- emphasis of matter paragraph as audit opinion in the audit report for the verification of clients financial statements. This audit opinion is required because the auditor had not found any material misrepresentation or non- compliance of GAAP in the financial report hence, the auditor should highlight the fact of non- confirmation from third parties to draw the users attention. The auditor provides Disclaimer of opinion if there is limitation on the scope of audit procedures by the organizational management and as a result, auditor is not able to complete accurate audit report. In the present situation, auditors client restricted the auditor to examine the records of property, plant and equipment that forms a material part i.e. 20% of the total assets (Craft 2013). As per the standards of accounting and auditing, property, plant and equipment forms an integral part of the companys total assets therefore, it is important to conduct proper examination and verification of the fixed assets to analyze the true and fair view of the financial information and disclosures. In this case, as the company restricted the auditor in verify the integral fixed asset, auditor is bound to provide disclaimer of opinion. If the management governance of the audit client provides limitation on the scope of audit evidence then the auditor is required to state disclaimer of opinion in the financial report because the auditor could not present accurate audit report. Besides, unmodified opinion- emphasis of matter paragraph is to be given if the auditor finds that the financial statements are in compliance of GAAP and there is no misrepresentation but there is lack of confirmation from material sources (Tsipouridou and Spathis 2014). Hence, in this case, exclusion of contingent liability disclosure should be reported as an unmodified- emphasis of matter paragraph in the financial report to draw users attention. Moreover, in case the liability occurs as actual liability, it will affect the materiality of the financial position therefore, auditor should provide disclaimer of opinion due to the limitation in the scope of audit evidence. If the financial statements have not been prepared in accordance with the regulations of GAAP, auditor is required to provide adverse opinion. In addition, if the financial statements represent gross misrepresentation due to fraud or error while recognizing and representing financial information then adverse opinion should be provided (Chen et al. 2013). In the given situation, significant proportion of cash sales and appropriate records of the retailer have not been maintained appropriately. To determine the appropriateness and accuracy of cash sales, no audit test can be performed in particular. Therefore, the auditor is required to provide adverse opinion because there was misrepresentation in the financial statements due to error in recognizing cash sales, which is an integral part in determining the profitability. As per the auditing standards, it is important to examine the opening balance of books of accounts for the auditing financial year. The auditor performs the audit procedure for the current year on the basis of appropriate and accurate recognition of accounting balances of previous financial years (Lobo and Zhao 2013). However, in the present situation, the audit client refused to supply details and information on the opening balances of the accounts as the management contended that the financial information of the current year free from material misstatements. Therefore, it can be said that auditor should provide disclaimer of opinion since, there was limitation on the scope of obtaining audit evidence with respect to the opening balance of the previous years accounting balance. In order to prepare and present the financial report of the organization it is important to follow the regulations of Australian Accounting Standards and GAAP to measure true and fair results. However, the organizational management is responsible to recognize the financial information in compliance with the principles and standards of accounting for the benefit of users. Auditor has reasonable responsibility to determine the correctness and accountability of organizational financial information (Skaife, Veenman and Wangerin 2013). Therefore, in case the auditor finds any misrepresentation or error in preparation of financial statements along with the non- compliance of GAAP then the auditor is required to provide adverse opinion. Hence, in the given situation, adverse opinion should be provided because the audit client did not follow the principles of Australian Auditing Standards from last five years. During the process of audit, non- compliance of Australian Auditing Standards provides material effect on the accurate results of organizational financial statements. In such situation, auditor is required to provide adverse opinion stating the non- compliance of the regulations and principles that affect the transparency and accountability of the financial statements (Zimmerman 2016). In the present case, the client used LIFO method for inventory accounting, which is not permitted in accordance with the Australian Auditing Standards. Additionally, this method affected the financial position of the organization in terms of inventory value since it constitutes a significant part of the total assets. Therefore, auditor should provide adverse opinion for applying inappropriate method on valuation of inventory in presenting the financial statements. Preparation of financial statements based on going concern framework is managements responsibility whereas auditor is responsible to measure the appropriateness of going concern assumption as per ISA 570. Therefore, if the auditor discovers the companys inability to maintain going concern then the explanatory paragraph followed by the opinion paragraph is to be given (Goh, Joos and Soonawalla 2016). Accordingly, in the given situation auditor identified substantial doubt on going concern but there was no material misstatement was discovered. Hence, modified opinion including an explanatory paragraph highlight reason on liquidation of organizations major customers is to be provided. Reference List Bampton, R. and Cowton, C.J., 2013. Taking stock of accounting ethics scholarship: A review of the journal literature.Journal of Business Ethics,114(3), pp.549-563. Bonaci, C., Strouhal, J., Mllerov, L. and Roub?kov, J., 2013. Corporate Governance Debate on Professional Ethics in Accounting Profession.Central European Business Review,2(3), pp.30-35. Chen, J., Cumming, D., Hou, W. and Lee, E., 2013. Executive integrity, audit opinion, and fraud in Chinese listed firms.Emerging Markets Review,15, pp.72-91. Craft, J.L., 2013. A review of the empirical ethical decision-making literature: 20042011.Journal of Business Ethics,117(2), pp.221-259. Dombrowski, R.F., Smith, K.J. and Wood, B.G., 2013. Bridging the education-practice divide: The Salisbury University auditing internship program.Journal of Accounting Education,31(1), pp.84-106. Goh, L., Joos, P. and Soonawalla, K., 2016. Determinants and Valuation Implications of Compulsory Stock Option Disclosures in a Weak Regulatory SettingThe Case of France.Journal of International Financial Management Accounting,27(1), pp.26-64. Griffith, E.E., Hammersley, J.S. and Kadous, K., 2015. Audits of complex estimates as verification of management numbers: How institutional pressures shape practice.Contemporary Accounting Research,32(3), pp.833-863. Han Fan, Y., Woodbine, G. and Cheng, W., 2013. A study of Australian and Chinese accountants attitudes towards independence issues and the impact on ethical judgements.Asian Review of Accounting,21(3), pp.205-222. Lobo, G.J. and Zhao, Y., 2013. Relation between audit effort and financial report misstatements: Evidence from quarterly and annual restatements.The Accounting Review,88(4), pp.1385-1412. MaAyan, Y. and Carmeli, A., 2015. Internal Audits as a Source of Ethical Behavior, Efficiency, and Effectiveness in Work Units.Journal of Business Ethics, pp.1-17. Skaife, H.A., Veenman, D. and Wangerin, D., 2013. Internal control over financial reporting and managerial rent extraction: Evidence from the profitability of insider trading.Journal of Accounting and Economics,55(1), pp.91-110. Soltani, B. and Maupetit, C., 2015. Importance of core values of ethics, integrity and accountability in the European corporate governance codes.Journal of Management Governance,19(2), pp.259-284. Tsipouridou, M. and Spathis, C., 2014, March. Audit opinion and earnings management: Evidence from Greece. InAccounting Forum(Vol. 38, No. 1, pp. 38-54). Elsevier. Tweedie, D., Dyball, M.C., Hazelton, J. and Wright, S., 2013. Teaching global ethical standards: a case and strategy for broadening the accounting ethics curriculum.Journal of business ethics,115(1), pp.1-15. Zimmerman, A., 2016. The Joint Impact of Management Expressed Confidence and Response Timing on Auditor Professional Skepticism in Client Email Inquiries.Managerial Auditing Journal,31(6/7).

Pharmaceuticals RD India and China Essay Example

Pharmaceuticals RD India and China Essay Title:Analysis of Novo Nordisk Pharmaceuticals Company’s Strategy in China Name : (CHEN Jianfeng) ID Number :20092711001 Supervisor : Guangdong University of Foreign Studies 2010? 10? 08? Tutor’s Comments and Grade signature Date 2010- Abstract In this case report we will try to analysis the detailed strategic options for Novo Nordisk as a top human Insulin provider to sustain its growth internationally. We will give comments for our recommendations and evaluate the VRIO Framework of the internal organization and provide a clear Five Forces Analysis. Novo Nordisk is a Denmark based Bio-Pharmaceuticals giant that has been one of key company which shaping diabetes care industry was known by health care professional Novo Nordisk has occupied one third European and Latin America insulin markets. The company now has high ambitious to enter into Asian market especially China Market in the coming five years. We have developed one strategy base on its Marketing strategy and China ctual diabetes healthcare situation for management to consider. We divided Our strategy into two parts, one is maintain the leading position in Insulin market ( Novo Nordisk ), another is to expand the market share of oral anti-diabetes. Follow the strategy we will suggest NN should segment the Market into different tier of cities within China, at the same time NN may need to differentiate the strategy of Insulin wi th oral anti-diabetes drug. We will write a custom essay sample on Pharmaceuticals RD India and China specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Pharmaceuticals RD India and China specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Pharmaceuticals RD India and China specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Novo Nordisk manufactures and markets pharmaceutical products and services that make a significant difference to patients, the medical profession and society. With headquarters in Denmark, Novo Nordisk employs more than 29,000 employees in 81 countries, and markets its products in 179 countries. Novo Nordisk’s B shares are listed on the stock exchanges in Copenhagen. Its ADRs are listed on the New York Stock Exchange under the symbol ‘NVO’ Novo Nordisk (China) was established on 1994 and its Headquarter was set up in Beijing. NN China has set up its sale net work over China with affiliates or offices in 6 cities nationally. NN China has employed over 1,500 people in China. Vision of NN Our vision paints a picture of what Novo Nordisk wants to achieve as a company – our place in the market and our overall goals in relation to patients, society and employees. 3. NN’s Strategic Objectives †¢ NN gained marketing share in modern insulin market in strategic hospitals over 70% †¢ The market share of OAD of NN in strategic hospital increase to 14% †¢ All product’s growth rate is more than market in the coming five years   Sales in China mainland increased by 19% in local currencies. †¢ Sales growth measured in local currencies is expected to be in the range of 6-10% whereas operating profit measured in local currencies is expected to increase by around 10% annually in the coming 5 years Key issues and problems Key issues and problems for NN China include how the company manages to coordinate its growth and to maintain its competitive advantage in the dramatically changing market environment of the dynamic Joint venture Pharmaceutical sector. VRIO Table 1. 1 The VRIO framework |Value |Rarity |Imitability |Organization |Competitive Implication | |Integrative insulin treatment|Yes |Yes |Yes |Yes |Sustained Competitive advantage | |line | | | | | | |leading hospitals penetration|No |Yes |Yes |Yes |Sustained Competitive advantage | |rate | | | | | | |National refrigerated supply |No |Yes |Yes |Yes |Temporally competitive advantage | |chain | | | | | | |RD capacity |Yes |No |No |Yes |Sustained Competitive advantage | |Strong relationship with |Yes |No |Yes |Yes |Temporally Competitive advantage | |Health Authority | | | | | | 3. Integrative insulin treatment line One of the key elements of NN to occupy the market is its unique and excellent production line and injection tool. From fine needle to Flexpen, NN has developed humanized and easy use treatment tool for diabetes patient. Furthermore, unique insulin injection pen can develop patient’s loyalty. Currently, some companies have developed its own injection tool but n one of them can exceed NN’s injection tool with regard to the convenience, quality and price. And one key point is the patient can not inject others brand insulin with NN’s injection pen that may guarantee its sale. 3. 2 Leading hospitals penetration rate Till now, production of insulin and analogue of insulin have occupied 68% consumption within all strategic hospital. And high occupation rate has experienced drastic challenge from others pharmaceuticals companies. As for key cities, NN’s market share was 57%. , its opponent Sanofi-Aventis has 33% and Lily has 10. 7% in year 2009. 3. 3 National refrigerated supply chain NN has set up it national refrigerated supply chain since 1995, and keep strategic relationship with all key supplier within China. This expensive supplier chain cost millions of dollar to maintain it annually. That is why some domestic company can not expand its market into remote area. 3. 4 RD capacity We can see whole company’s profit primarily driven by the robust sales growth for our portfolio of modern insulins. The launch of Victoza ® in Europe is very encouraging and we look forward to continuing the global roll-out of Victoza ® following the recent approvals in the US and Japan. NN strong RD capacity makes it impossible to surpass by its opponents recently. And new and advanced treatment will ensure NN to maintain its leader position in diabetes treatment field. Victoza will be approved by sFDA in China at year 2013. 3. 5 Strong relationship with Health Authority In China, we value the relationship with health authority, especially, during national bid process. NN has build up its relation net web since 1995 as pioneer joint venture Pharmaceutics Company in China. The strong relationship has given NN a lot of advantage in participating primary healthcare system reform and national bid process. 4. Porters five forces 4. 1 The threat of established rivals 1. Sanofi-Aventis Company Information ? Total number of Lantus’s rep. would reach about 380 in 2009. ? Set up an exclusive sales team for Amaryl in 2009, around 180 rep. in China. ? Sanofi-Aventis would pay more and more attention on the Lantus; its sales revenues target in 2009 is RMB 220-250 million. Marketing Activities ? Frequently hold the news conference of kinds of activity; highly pay attention to media’s direct participation. Launched its disposable pen-OptiSet at the end of year 2007 to replace its penfill product. ? Promote the principle of ADA: the best treatment to diabetes is to use basal insulin plus first-line oral anti-diabetic drugs (for example, Metformin) by the methods below: 1. To train 100 young speaker in China national wide to expand influencing coverage 2. To promote principle among doctors by frequent provincial academic conference 3. To promote principle from the association of Chinese endocrinology and diabetes by sponsoring them with other 5 companies 4. To conduct VIP summits in China to influence doctors of low level Unethical Promotional Activities Expansive coverage of PMS: about RMB 50 (in small hospitals or peripheral cities)-250 (in large hospitals or important cities) as prescription incentive for each new OptiSet patient. Product Information ? Apidra, short-acting modern insulin, is expected to be launched in 2009. And its disposable pen-SoloSTAR will be launched after that very soon. Performance in IMS 21+3 cities/regions ? About 60% of total Lantus’ rep. located in IMS 21+3 cities. ? Substantial investment in important hospitals, such as invite chief of department to attend abroad meeting and give prescribing doctor more incentive. ? Recruit more rep. in important cities to add visiting number to key hospital doctor. Start to promote Lantus in middle small even community hospitals in some city in which it has better performance Sanofi-Aventis’s Impact to NN ? Its young speaker training plan pointed to the promising doctors in important cities. Generally, those doctors are considered as the successor of current chief of department. They are limited resources that every player in this market would exert much effort to use. ? Its effort in promoting new ADA’s principle of diabete s treatment in China would provide much more help for its sales. ? Dangerous cities which maybe lose leading position to Sanofi-Aventis: Wuhan ? Its unethical promotional method deeply influenced NN’s sale. 2. Lilly Company Information It clones our small-city plan to increase the number of rep. in small cities at the peripheral of large cities. ? Lilly pays same attention both on human insulin and modern insulin. Its sales forecast of 2008 in human insulin is around RMB 290 million; modern insulin is 32 million. Marketing Activities ? Investment in Chinese clinical research in diabetes through sponsoring CDS. It would invest about RMB 18 million in basic research in three years. The total investment also includes inviting the specialists in EASD CDS to conduct short-term academic courses for helping more young diabetic doctors. ? More novel and creative patient educational method. Promotional Activities Expansive coverage of presenting its injection pen to patients when the y purchase Humalog, from 3 (in large hospitals or important cities) to 5 penfill (in small hospitals or peripheral cities). And it pays doctor about RMB 100-150 as prescription incentive. Product Information ? In the near further 3 years, Lilly would launch at least 15 drugs and medical instrument; many of them are related to diabetes, including Byetta (GLP-1) in 2009, ruboxistaurin (Arxxant) for diabetic retinal disease and diabetes peripheral neuropathy (DPN), anti-obesity drug (to prevent the occurrence of diabetes). Performance in IMS 21+3 cities/regions ? About 60% of total insulin rep. located in IMS 21+3 cities. ? Recruit more rep. in important cities to add visiting number to key hospital and doctor. Substantial investment in important hospitals, such as invite chief of department to attend abroad meeting, give doctor more incentive, and present its injection pen to patients when they purchase 3-5 penfill of Humalog. Lilly ’s Impact: Not only treatment, but to all of areas in diabetes ? Its investment of RMB 18 million may not produce immediately impact to NN, since it is a three-year’s plan and includes the fee which would pay for the invitation of EASD’s experts. But it certainly can help Lilly to build a very good impression in China’s CDS and diabetes patient. ? What is more, Lilly’s patient education methods are very creative and novel; if NN has no further improvement in it, NN’s leading position in this area will face with substantial challenge. The investment in basic clinical research, more patient education activities, all of above which Lilly did is to enlarge and then occupy much more diabetic market through the improvement of patients’ awareness and treatment rate on disease. ? As for the prevention of diabetes and diabetes complication’s treatment, Lilly also made great effort. ? Furious competition in IMS cities listed below: Qingdao, Fuxiaquan, Shenyang, Hangzhou, Suxichang, ? Dangerous city which maybe lose leading position to Lilly: Chengdu ? Its unethical promotional method deeply influenced NN’s sale. 3. Bayer Company Information ? Bayer hopes to build up its good public image through many projects involving enterprises social responsibility since its huge investment in company image in 2007. ? The sales revenue of Glucobay in 2007 is around at RMB 920 million. Marketing Activities Glucobay is trying to strengthen and maintain its leading position in OAD market. After achieving better performance in large hospitals in large cities, Bayer has begun to promote its product in small cities and small, even community hospitals in large cities, since it conducted many marketing activities in these areas, such as ‘diabetes cabin’ in community hospitals in large cities, and designed training plan for doctors in country level hospitals at some small cities. ? Set up an academic team in Chinese Medical Doctor Association to build Glucobay’s image in cardiologist; and promote its function in diabetes prevention through ACE (Acarbose Cardiovascular Evaluation) project. Promotional Activities Glucobay’s mainly focused patients are elder citizens, patients of no-good PPG control, and patients who frequently happen cardiovascular events; and it also conduct a post-clinical trail (RMB 100-300 incentive to doctor for each new diagnosed diabetes patient) in North China to catch new patients. ? About RMB 5-10 per box as prescription incentive. Product Information ? Its human insulin, Insugen, expected to be launched in China in 2010. Bayer’s Impact ? NN has no new OAD product in the future two years, NovoNorm’s job is to catch up with Bayer’s Glucobay. ? Among all of 21+3 cities/regions, NovoNorm has advantage in value share only in Harbin ? After leading the market of large hospitals in large cities, Bayer begins to enter small cities and small, even community hospitals in large cities. . 2 Threat of substitute products The threat of substitutes for diabetes treatment over the existing medication is moderate. Patient has to choose OAD at the beginning, now one of new OAD is DPP4 and its effect is similar to Novonorm of NN but it may has less side effect based on current research but the new OAD may be more expense then existing OAD. So its impact to existing OAD is moderate. Long acting GLP-1 was considered as pivotal revolutionary medication in Diabetes, and NN has developed its GLP-1 10 years ago, now Vitoza has launched in USA and European. But Roche’s weekly GLP-1 was regarded as potential opponent in the coming 10 years. In a conclusion, the threat of substitute can be reasonable moderate in this industry based on the RD plan within top 10 pharmaceuticals companies over the world. 4. 3 The threat of new entrants The threat of new entry highly influenced by the RD strategy of others pharmaceutical companies and Chinese huge market potential. Till now, Roche has announced it will enter into diabetes care with its weekly-dose GLP-1, and it is expected to get the FDA approval in year 2017. Some pharmaceutical giants such as Norvatis and Merks has speeded up their RD progress and their market plan to capture Chinese market. 4. 4 Suppliers Supplier’s power in this industry is low. In the raw material part of the insulin, most of the company has developed their manufacture factory and Lab centre, so the suppliers of the insulin have a low impact on the price of products. Furthermore some big joint venture Pharmaceutical companies has set up their own factory in China to cut down the cost of product. 4. 5 The bargaining power of customers Till now, China has about 100 million diabetes patients. And the average cost of diabetes care has reached 200 RMB/per mother/per patient based on the current epidemiology investigation. Now about 50% patients were covered by social insurance system and most of the existing anti-diabetes drugs were listed into primary drug list, so this part of patients will not sensitive to the price of drug. Table 2. 1 Market Positioning Grid: High |Coverage | |Lily |Novo Nordisk | |Sanofi-aventi | | | | | | | | |Low |High | |Market share |Bayer Market share | |GSK | | |Norvatis | | | | | |Low |Coverage | 5. Strategic proposal There is lots of Challenge in the diabetes care market in China in the coming five year even NN China has occupied two third market shares for a long time. The manager teams of NN experienced heavily pressure to maintain its leading position because there are some uncertain factors such as national healthcare reform and annual bid. The strong RD capacity can give NN the opportunity to be in front of all the competition in the Chinese market. What we propose that NN enlarge its market with market segmentation. As for insulin market, NN should enlarge the market by increasing the diabetes diagnosis rate and boosting insulin use rate. Also, NN need to increase market share by capturing OAD failed patient to use insulin and switch the patient who use other brand insulin to use NN insulin. Moreover NN also can promote production combination concept to increase the analogue use rate. All of above measure may increase the insulin and insulin analogue’s penetration rate in the existing diabetes treatment market. As for city segmentation, we can divide mainland cities into three tiers. Firstly, we resist the competition form others companies in east China region and Guangzhou, Chengdu cities. Secondly, we may increase analogue use rate in Tianjin. Finally, we can enlarge the market in Beijing and Zhuhai cities. The key point of the market strategy is to increase the possession rate of new diagnosed diabetes patients. With a strategy to enter and take a market share in potential cities, NN does not have to make large fixed investments in the cold supply chain. Instead NN can use its strategic relationship to expel its competitors. To occupy the new diagnosed diabetes patients within large patient pool, NN should concentrate community hospital on the big cities first, making access to general physician available in the city of NN product that only NN can access. This way the company can see how the patients and doctors like being connected to a faster and better treatment with a more advanced injection tool through its strong customer service center located at each branched offices. As we know, we can make fixed monthly payment for the patient once they recognized NN‘s treatment package. 6. Strategy Implementation Considering the industry and competitive conditions, we think the pharmaceuticals industry belongs to rapid growth industry; in particular, diabetes treatment market was ranked as 3rd biggest market in China. There are total about 100 billion patients need OAD and insulin treatment , and the number of patients will increased 10% annually. Comparing company’s resource and capabilities with the potential and existing competitors, NN is in the industry – leading position. Hence, the strategy of NN China is to enlarge the market volume then increase its market share. Likewise, NN still need to cultivate its competitive culture to pay attention the potential competitors in the coming yars. We therefore recommend NN choose to move forwards with our recommended strategy. This strategy involves the most stable and fit for NN culture, so we firmly believe that the industry is moving more and more towards and more and more patients may choose advance and safety treatment . Implementing strategy we recommend that NN keep firm strategic alliances with cold chain supplier to explore the second tier cities such as cities of west China. Also establish alliances or strengthen alliances with the health authority and National Diabetes Association.