SMITHEFORD PHARMACEUTICALS
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General Robert Smitheford was a former officer in the civil war who founded the Smitheford pharmaceutical in the year 1878. This company expanded rapidly because the founder used management incentives and also followed Taylor on his ways of improving the company and satisfaction of employees (Ungar & Tobias, 2012). Despite the company adopting the total quality management philosophies, it has failed in implementing these philosophies in the manufacturing sector. The company is currently faced with many challenges since NAFTA impacted some pros that Canadian manufacturing might enjoy. Before NAFTA the pharmaceutical had several benefits in having a manufacturing facility in Canada.
First is that the company was able to get educated and skilled employees at a lower cost. Canada has the best education system, and therefore it equips learners with the necessary skills and expertise in handling problems. The nation has an extensive network of health care institutions with a lot of research centres and medical schools. The availability of higher education holders and graduates in Canada, in the health sector, served both educated and skilled employees in the Pharmaceutical industry. The high concentration of employees led to stiff competition in the market sector hence making employees available at a lower cost.
The second advantage is research and development. In the medical and health sector, Canada has more than enough researchers who are equipped with skill and knowledge to solve medical problems. However, the country has low administrative costs that are needed to open up pharmacies (Hall & Weghmann, 2019). There are exceptional researchers who can analyze the market and come up with vital information concerning the pharmaceutical industry. The manufacturers in Canada have both international and domestic customers who will purchase the medicine at a very high rate. Researchers can come up with modern solutions to the problems that are affecting the operations of the industry.
Another advantage is the lower cost of manufacturing bases. Canada offers low cost for pharmaceutical manufacturers who want to open up research and development base centres. There are numerous services which are offered at a lower price, for example, product testing and biomedical research. In terms of providing cost-effective services and manufacturing centres for pharmaceutical products, Canada is ranked the first among other nations. The country offers 15% less on these services as compared to other superpower countries as the United States (Mohamed, 2018).
Lastly, is the provision of the market to ready-made medical products. Research shows that Canada has the best transport system, including air, rail and road, making the country easily accessible. Since the transport system is good, it will help to reduce the transportation costs of the pharmacy products to the US. Many people will be able to access services conveniently without delay caused by jams on the roads. According to Villareal & Fergusson (2017), the company will be able to transport its products to the people of Canada without delay. Good market access will assist the company in delivering quality services to its customers globally hence increase customer loyalty and also earn high revenue.
References
Hall, D., & Weghmann, V. (2019). Public ownership, benefits and compensation III: the potential risk of legal action under BITs or ECT over compensation for the nationalization of water and energy grid companies.
Mohamed, F. A. (2018). NAFTA-The Politics Behind Drug Production.
Ungar, P. S., & Tobias, P. V. (2012). 2 Academic genealogy. African Genesis: Perspectives on Hominin Evolution, 62, 19.
Villareal, M., & Fergusson, I. F. (2017). The North American Free Trade Agreement (NAFTA).