Day 4 consisted of a tour of the pharmaceutical manufacturing company, Andrómaco, a lunch filled with meat, and a trip to the ESMA museum. With a later start to the day then normal, we arrived at Andrómaco where we suited up head to toe in preparation to enter the factory. We were led by a manager who took us around to different parts of the factory that showed us different parts of the pharma process and showed us some of the different products that they made. 

The tour of the factory rose many questions the group had that regarded different factors that effected their processes such as government regulations or lack of efficiency. The answers to these questions lead us to understand some of the bigger problems facing Andrómaco in house, but also what challenges Argentina’s pharmaceutical industry faces as a whole. 

One of the biggest challenges that was emphasized on our tour was the need to increase efficiency and cut down on time. Our tour guide explained to us that when they are preparing their assembly line for a new product the switch over time in the past has been as high as 5 hours. New technology and worker drive have brought this time down to around 1.5-2 hours, however he said they aim to cut this down to only one hour within the next 3 or so months. One thing I find to be particularly interesting about their solution to this problem is that they have created a system that put the goals of the workers and goals to achieve in regard to efficiency on a board that they call something like a cultural board. By allowing the workers to see how much they are improving graphically, it motivates the workers to cut down on this transition period and be as efficient as possible. Other challenges that Andrómaco faces revolve around substitute products. Being that they are primarily in the dermatological pharma field, producing cremes, ointments, sunscreens, etc, their chances of competing with a substitute product is highly likely. However, similar to what our tour guide told us today it is all about the brand, and for a company such as Andrómaco who produces Hiploglós, a cream specialized for diaper rash, their brand gets them the sales. Sales of which they only profit 10% of because 30% of their products are given away as free samples to entice people to purchase them. 

When we look at the challenges being faced in the pharma industry it has become increasingly more competitive, especially in markets that target no prescription needed drugs. The prices of the drugs in their raw form also prove to be a challenge because most of the time these drugs are being imported internationally. Tied with cost, our tour discussed inflation as a huge challenge in the industry right now especially because if inflation is high and less people are buying the drugs then there are changes in demand and there is less money to be made my pharmaceutical manufactures. Another industry challenge that also has been becoming increasingly threatening is the governments involvement in regulation which has required pharmaceutical manufacturers to take steps toward change in both what they are producing and their products. While regulation may be changing, the standard that drugs are help to still do not necessarily meet the demanding regulations in other countries, such as the United states, and therefore they can not profit as much as they would like to. 

It is apparent that while these problems exist, companies are making continuous efforts to maintain their success. Andrómaco serves as an exemplary pharma and cosmetic manufacturer that has utilized their knowledge of organizational change to attempt to make reforms in their processes, and in turn is becoming increasingly more efficient.