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Companies in Hong Kong

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Hong Kong comprises top positions among the countries in the Asian region in terms of the economic development, healthcare services’ provision, education, etc. Healthcare services in Hong Kong are delivered through private and public healthcare institutions with public healthcare sector comprising almost 95% of the healthcare system. The pharmaceutical industry in Hong Kong is one of the central industries in the economy, products of which are highly competitive on the regional and international markets. In the early 2000s, Hong Kong’s pharmaceutical industry growth rate has been relatively low. However, since 2004, the growth rate of the pharmaceutical industry has increased substantially and maintained its pattern until now. The rise of the volume of sales of the pharmaceutical products and the increase of prices for the pharmaceutical goods were major determinants of the pharmaceutical industry growth throughout the last decade. Even though around 80% of medicines in the pharmaceutical market are imported from other countries, still the industry remains its attractiveness for the foreign direct investments.

Currently, the legal regulatory framework of the pharmaceutical industry in Hong Kong includes numerous legislative acts and norms that define all aspects of the pharmaceutical companies’ operation. In addition, there are a lot of projects of the legislative acts that are widely discussed by the representatives of the pharmaceutical organizations, government bodies, and regulation authorities. A number of recently emerged issues in the regulatory framework are related to the classification of drugs and medicines, and their labelling. Moreover, a lot of changes are needed in the marketing and advertising spheres of the pharmaceutical industry of Hong Kong.

A lot of changes are taking place in the pharmaceutical industry of Hong Kong. Emerging issues that require immediate address from the empowered authorities are related to the financing issue of the industry, use of generics, pharmaceutical sales policies, compliance of the pharmaceutical organizations to the regulatory requirements, recent demographic trends, etc. These, as well as other changes are constantly affecting the operation of the pharmaceutical organizations in Hong Kong. Therefore, management of the pharmaceutical organizations is concerned about the implementation of numerous change programs and projects that would improve their situation on the market and help them to gain competitive advantage on the Therefore, the key goal of this research is to diagnose the contemporary management theories in order to determine how change management models and theories can improve the processes in change management that are currently taking place in the pharmaceutical industry in Hong Kong. Using structured interviews with representatives of the pharmaceutical organizations provides reflection of the potential hurdles and pitfalls in the implementation of the change model of Kotter.

Based on the results of the interviews, analysis of the literature and recent trends in the pharmaceutical industry of Hong Kong, the process of the change management in the pharmaceutical organizations was analyzed, including identification of the potential gaps and pitfalls. It was found that all pharmaceutical organizations in Hong Kong are constantly implementing numerous change programs or projects that are aimed at the increase of sales, improvement of their competitive position on the market, and enhancing their internal operations. Depending on the size of the pharmaceutical organization, management of the change program had minor differences in terms of the communication strategies, establishment of the change management teams, etc. Change management in all the companies maintains basic principles in order to secure its effectiveness. However, it was found that communication of the change at every stage of the change implementation constitutes a weak side of change management. Therefore, it is recommended to increase transparency in the course of change implementation and to improve communication tools that are used for the spread of information about the short term as well as long term outcomes of the implemented change programs.

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