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QUESTION 
Government impact
 
How do you think government policy affects the pharmaceutical industry in your country? 
BPP Tutor Toolkit Copy

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PART A: THE BUSINESS ORGANISATION, ITS STAKEHOLDERS AND THE EXTERNAL ENVIRONMENT 
 
26
 
ANSWER 
Using the example of the UK. 
(a) 
The Government must authorise most new drugs (eg for safety before they can be sold). 
(b) 
The UK Government is a major purchaser of pharmaceuticals for the national health service, and 
so has significant buying power. 
(c) 
Health education policies affect consumer demand. 
(d) 
Funding of universities affects the science base for recruitment. 
(e) 
Employment practices, such as working hours, are influenced by EU employment directives. 
 
2.3 Influencing government 
Businesses are able to influence government policies in a number of ways. 
(a) 
They can employ 
lobbyists 
to put their case to individual ministers or civil servants. 
(b) 
They can give MPs 
non-executive directorships
, in the hope that the MP will take an interest in 
all legislation that affects them. 
(c) 
They can try to 
influence public opinion
, and hence the legislative agenda, by advertising. 
Of particular importance is the need to influence the decision-making processes of the European 
Commission. EU regulations, for practical purposes, take priority over national law. They are arrived at 
after a great deal of negotiation, and for this reason alone, are difficult to change. It is therefore much 
better to influence the 
drafting process
 
of new regulations than to try to get them changed once they 
have been implemented. 
The EU will have an increasing role in the conduct of