Brendan Greene Cam McDonough Anthony Pagano Brooke Rudden

COMPANY DESCRIPTION

• Name of Company: Novartis • Location: Headquartered in Basel, Switzerland • Company Annual Revenue: 57 billion • Number of Employees: 127,000 • Type of Business: Healthcare Solutions

PURPOSE OF NOVARTIS • Novartis is a multinational pharmaceutical

company that is a worldwide leader in Pharmaceuticals both surgical and generic, Vaccines, Diagnostics and OTC’s .

• Founded in 1996 • Merger of two Swiss companies (Ciba-Geigy and

Sandoz). • Strive to be a World-Wide Leader in healthcare

solutions.

SALES • Novartis’ world wide success is mainly because of its

ability so succeed in the sales of their products. • In each of the major divisions of their business

strategy they continue to strive in sales on a yearly basis. (Pharmaceuticals both surgical and generic, Vaccines, Diagnostics and OTC’s )

• The healthcare opportunity that Novartis provides is constantly changing to adapt to the needs of the patients across the globe.

• Their ability to do so in a timely manner is why they have such success in the product sales sector of their company.

Operations • Novartis recognizes the need that their customers/

patients have for its products and therefore put a strong focus in its warehouses and supply chains to have a consistent supply of their medicines on hand and ready to be shipped.

• Being in the healthcare business means constantly staying up-to-date on all medicines and machinery and so they have a high investment in their own Research & Development division.

Branch Goals • Reach every customer/ patient in your

region, increasing patients. • Improving…

o Ethical Matters o Research & Development o Employee Satisfaction

Company Goals • Working to improve upon the year before

until ultimately every patient’s needs are met.

• Monopolizing in the healthcare & solutions industry throughout Western Europe.

Labor Laws In Ireland • Minimum Notice and Terms of Employment

Act of 1973 • Organization of Working Time Act of 1997 • Unfair Dismissals Act of 1977 • The Employment Equality Act 1998 • Protection of Young Persons (Employment)

Act of 1996

Labor Laws Cont. • Worker Protection (Regular Part-Time

Employees) Act of 1991

• Maternity Leave

• Parental Leave

Political and Economic Considerations

• National Recovery Plan and IMF • 2014 Action Plan for Jobs • U.S. and the International Fund for Ireland

Diversity • White 95%, Asian 1.3%, mixed 1.1%, other

1.6% • Equal Opportunity Employer • Open up recruiting to the rest of Europe

Geographic Considerations

• Current Novartis locations: o Belgium, Austria, Germany, Spain, Portugal,

France, Austria, Hungary, Norway, Denmark, Greece, Poland, Sweden, Switzerland, and the United Kingdom

• Monopoly • Access to other Novartis locations in Europe

Tax Considerations • Corporation Tax

o Trading Income is 12.5% oNon-trading Income is 25%

• Tax Relief for first 3 years

Cultural Considerations • Language barriers and slang • Punctuality • Corporate Social Responsibility

United Nations Global Compact

• Ten principles • “The Global Compact asks companies to

embrace universal principles and to partner with the United Nations.” o Human Rights o Labor o Environment o Anti-Corruption

Responsible Business Practices

• Caring for our people • Community engagement • Protecting the environment • Responsible R&D • Ethics, governance and compliance • Reducing risk and ensuring continuity • Responsible procurement

Caring for our people • Living Wage • Be Healthy

Responsible R&D • Target diseases in need • Critics and questions are welcome

Ethics, governance & compliance

• Code of Conduct • Culture

o Integrity o Lead by example

• Ensure accurate information is sent to professionals, patients and consumers

Foreign Direct Investment • Entry Strategy • Funding • Foreign Exchange • Staffing

Success For Business Plan • Key performance indicators

o Expanding Access to Healthcare oDoing Business Responsibly

Expanding Access to Healthcare

• Total patients reached – 1,215 • Patients reaches through access to

programs – 103.6 • Value of access to programs – USD 2,126

Expanding Access to Healthcare

• Control & Eliminate Diseases o Expand access to Coartem and Coartem

Dispersible o Fight against Malaria o Expand disease awareness in Africa

Expanding Access to Healthcare

• Pioneer New Business Approaches oHealth education across Kenya, India,

Indodnesia, and Vietnam oDonate products to cataract surgeries oWork with ministries of health and hospitals

Expanding Access to Healthcare

• Finding New Treatments o Phase II clinical studies for malaria oHealth authority approvals o Treat adults with malaria with fewer

tablets o Research for vaccines and medicines

Doing Business Responsibly

• Full-time equivalent positions – 135,696 • Resignation, separations, hiring's – 8%, 4%,

18% • Percentage of women in management –

38% • Lost-time injury and illness rate – 0.12 • Total operational waste not recycled –

138,000 t

Doing Business Responsibly

• Employee diversity and Inclusion • Water Savings Program • Integrity & Compliance

Brendan Greene

Cam McDonough

Anthony Pagano

Brooke Rudden

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Executive Summary: Novartis is a multinational pharmaceutical company involved in surgical and generic pharmaceuticals, vaccines, diagnostics, and over-the-counters (OTC’s). The following is our plan to expand our business to Dublin, Ireland. In order to be successful in our expansion, there are many things we must consider and take a deeper look into. The first of these is to understand what Novartis is about and what values they hold their branches to. Novartis is the worldwide leader for healthcare solutions and hopes to eventually become a monopoly in the industry. Novartis wants to help as many people as possible by having the best treatments for as many diseases as they can help cure. When looking at Novartis as a company it is important to look at their sales and operations. Novartis’ sales come from around the world varying in where treatments are needed most. They focus a lot of their profits into operations surrounding research and development in order to continue to discover new treatment and increase their sales every year. They focus their operations on ethics and excellence, making sure that their company keeps their highly respected reputation. In order to keep up this reputation, Novartis is constantly setting gals to improve the company worldwide. Goals to improve include increase in patients globally, research and development, ethical matters, and employee satisfaction. We are hoping to take these goals into our new division in Dublin, Ireland. We want to expand to Ireland because it is an area with a lot of opportunity for Novartis. By opening a new, large branch in a large city we can hope that it will help support future sales and profits for the company. We want to be able to expand Novartis in order to support its need to become a monopoly in the healthcare solutions market. By entering this new city, we will reach a whole new group of patients. We will be able to use this new area to our advantage by tapping into the knowledge and resources that are surrounding the area. This will help our business as a whole expand. In order to be successful in a new country it is important to consider international business issues. No matter where you open a new division, there is always going to be cultural, economic, legal, political, geographic, workforce, and diversity issues to consider. Laws are different in every country, especially when it comes to the workforce. Important laws in Ireland to take into consideration include laws surrounding employee terminations, working time, dismissal acts, and employment equality. Novartis is very compliant with laws in new countries when they relate to their employees. Novartis strives to make a positive work environment for all of their employees in every location. They never discriminate when hiring employees and always follow regulations regarding work time for their employees. Every employee is treated equally and that will continue in our division in Ireland while abiding to their laws. Ireland was a strategic location because of its geographic location, its lack of healthcare solutions, and its economic and political considerations. Ireland shows a lot of promise in its recovery since the financial crisis in 2008. We are hoping by entering the market now we will be able to profit off of this recovery. The government is very active in getting the Irish economy back on its feet. We hope that they will encourage our entry into their country since it will bring a lot of jobs and profits. Opening a division at this time would benefit both parties, as we want to be able to gain the trust and loyalty of the government we will have to be dealing with. This is a very important to the success of our expansion. Novartis has very specific policies and processes that need to be carried over to our division in Ireland. The most important of the values that Novartis holds is surrounded around the people who are affected by the services. This includes both patients and employees. Novartis believes that if you treat employees with care, they will perform better. This is very important for a company who strives to help as many people as possible. If their employees want to work hard for them, they will have more success in the future. Novartis also wants to reach as many patients as possible. This is not possible without investing a lot of their money into research and development. Novartis is continuously trying to find new treatment that will help patients around the world. By entering Ireland we hope to be able to reach everyone as well as learn more from this new group of patients. When entering a new country it is important to look at the financial plan for our foreign direct investment. This includes having a very specific entry strategy. We have an outline of which people we want to be setting up the division and where we hope things will be within a year. We also need to focus on how we are going fund this new division. Since Novartis is a worldwide, successful company, we do not see funding to be an issue. We need to have a specific foreign exchange plan that will tie together how important our international business is. Since Novartis is also established in many countries around the world, foreign exchange is something they are use to dealing with, but with a new country we need to make sure we do not miss anything. We also need to consider how we will be staffing our new division while still abiding to our goal of keeping a diverse workforce who will work hard to keep up with Novartis Standards.

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Following Novartis standards, we can easily measure how successful our business plan is. Comparing the metrics of our division in Ireland with the metrics of Novartis as a whole, we will easily by able to see how successful we are and what improvements to make along the way.

COMPANY DESCRIPTION

Name of Company: Novartis Location: Headquartered in Basel, Switzerland Company Annual Revenue: 57 billion Number of Employees: 127,000 Type of Business: Healthcare Solutions Purpose of Business:

Novartis is a multinational pharmaceutical company that is a worldwide leader in Pharmaceuticals both surgical and generic, Vaccines, Diagnostics and OTC’s. Novartis was founded in 1996 by the combining of two Swiss medical companies at the time, Ciba-Geigy and Sandoz and strive to be a worldwide leader in healthcare solutions that better the health of people and societies across the globe. Novartis is a publicly traded company that employs over 127,000 employees across the globe. They offer products that include newly advanced medicines, eye-care, cost-reduced pharmaceuticals, preventative vaccines, state of the art machinery and animal treating medicines. Novartis is a company that strives to improve health in across the globe by researching and developing innovative medicines and machinery. Their company business model aims to achieve success in their industry by conducting business in a responsible and ethical manner. “We apply our expertise in science and innovation to society’s biggest health challenges. We take our role in improving health seriously and focus on areas where we can lead and make a significant impact.” (Joe Jimenez, CEO)

While producing medicine that effects more then a billion people each year, Novartis’ outlook on ruling their industry ventures to have an effect on the other six billion people that populate the Earth. Everyone has health needs and therefore they all need to be reached. “The combination of responsible business and a focus on science is what drives us, and is the core of our corporate responsibility efforts. We take this responsibility very seriously – because it’s the right thing to do for society and the right thing to do for our business.” (Juergen Brokatzky-Geiger, Global Head) Sales: Novartis’ worldwide success is mainly because of its ability so succeed in the sales of their products. In each of the major divisions of their business strategy they continue to strive in sales on a yearly basis. “Novartis is recognized worldwide for offering innovative patent-protected medicines to patients and physicians. As a global leader in eye care, Alcon develops and manufactures innovative medicines and devices to serve the full life cycle of eye care needs. Alcon offers the broadest spectrum of surgical, pharmaceutical and vision care products to treat many eye diseases and conditions. Novartis is a leader in providing products to fight vaccine-preventable viral and bacterial diseases and to help prevent transfusion-related transmission of HIV and other viruses. Sandoz is a global leader in the rapidly growing generics industry, delivering affordable, high-quality medicines to patients worldwide. Animal Health focuses on the well being of companion animals and on the health and productivity of farm animals. Over-the-Counter (OTC) is a leader in offering products designed for self-care and the prevention of common medical conditions and ailments, to help people take care of themselves and their families to live healthy lives.” (http://www.novartis.com/products/index.shtml) The healthcare opportunity that Novartis provides is constantly changing to adapt to the needs of the patients across the globe. Their ability to do so in a timely manner is why they have such success in the product sales sector of their company.

Operations: Novartis preaches two main factors in its operations, ethics and excellence. The first matter of ethics for them is taking care of their employees, always being good to the people who work for their company. They provide a safe, clean and healthy work environment, an appropriate wage to live on and many opportunities to improve their careers and climb the corporate ladder. Novartis does not discriminate against race, sex, religion or background when hiring or promoting. Because of their global position, they consider themselves a part of all the communities in which they work in and therefore actively contribute and help aid those communities. In terms of the product operations, Novartis recognizes the need that their

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customers/ patients have for its products and therefore put a strong focus in its warehouses and supply chains to have a consistent supply of their medicines on hand and ready to be shipped. Being in the healthcare business means constantly staying up-to-date on all medicines and machinery and so they have a high investment in their own Research & Development division.1 Goals: As a company, Novartis has many goals that they work to achieve. Among them are working to have a larger impact than the year before on a yearly basis until they ultimately can impact everyone in some way. In order to reach these new patients Novartis must cross some barriers that stand in the way. Because they are a goal-oriented business they will work hard to overcome the conflicting barriers such as limited healthcare personal and diagnostic and treatment options that are available. The way that Novartis will conquer these barriers is to have the stakeholders become more involved in their actions they need to take.

Other then each of these goals that could be viewed as a direct branch goal, Novartis also has one major goal that as a company they are striving to improve upon. That goal is to expand and ultimately become a monopoly in the healthcare & solutions industry. Throughout this paper you will see how our business plan strategizes to expand the current dynamic of Novartis and help create that global power necessary to complete some of the branch goals such as being able to reach out and help nurse everyone in that region. For our unit specifically, our goal will be to create that monopoly in a new region of Ireland. We want to expand to Dublin to effectively spread and help aid another region of Western Europe. Outcomes: Our hope is that within the first few years of our arrival in the new community of Dublin, Ireland our healthcare & solutions products will be at a high demand. If all goes as planned we should be running successfully after the first few years and our supply on hand will begin to dwindle as demand rises. This is when we will implement our expansion not only in smaller production centers but also in other divisions. Implementing the new divisions of Novartis, such as state-of-the-art machinery and advanced OTC’s will take off as our business strategy is already well underway of the expansion stage. Supplying these new divisions of medicines and machinery will in time also create a higher demand and need a larger supply itself, which is where our final stage of monopolizing throughout Ireland will enter in play. The eventual

1 Hill, Charles W. L. International Business: Competing in the Global Marketplace. New York: McGraw-Hill Irwin, 2013. Print.

Novartis Goals to Improve

Increase in PatientsGlobally

Research & Development

Ethical Matters

Employee Satisfaction

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30

10

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outcome for our company is to monopolize in Ireland before we begin our run across Western Europe until our company goal of reaching every patient is accomplished. Development: Our strategy in development is to first branch out to Dublin, Ireland where our main production center will be located. The first branch will be our largest in the country as it is our starting point and will eventually be our main branch when the full implementation of our project is set in place. Once we have our feet down and making an impact on the community in Dublin we will begin expanding throughout Ireland in locations specifically designed to touch every demographic point in Ireland were our monopoly plan will effectively be in play. The process will take about five to ten years until completion. Our hope is that within the first two or three years the main production center will be making resources to its maximum ability. The next step will be to begin the expansion process where more divisions of Novartis’ vast healthcare & solution will begin to spread and reach out to the majority of the population in Ireland. The follow-up process would be to do so throughout Western Europe until the monopoly is complete. Total Parent Company Organization Chart:

The chart above shows the current parent company dynamic for Novartis. The CEO Joe Jimenez began his duties as Chief Executive Officer in 2010. Jimenez oversees the CFO, Human Resources and General Counsel. Each of those departments has their own subdivisions, which include Internal Auditor, Communications Head, Corporate Strategy, Responsibility and Group Q&A. All of these subdivisions also report to the Chief Compliance Officer. These divisions are stationed at the main headquarters in Basil, Switzerland. In addition to the front office, each division of the company also has a Chief Officer. The divisions include NIBR, Pharmaceuticals, Sandoz, Vaccines, Alcon, OTC’s and Animal Health. The difference with these Chief Officers and the front office is these are overseeing all of the products that effect our sales. All of our divisions are located in each of our production centers but each production center may not include every division. Some of the centers have just one or two of the products in store as they are either lower in demand in that area or a center may specialize in that specific division of our product.

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Our business unit strategy is to add an additional Controller & CFO to look over the branch in Ireland’s Pharmaceuticals, Vaccines and Animal Health divisions. Ultimately, we would like to spread across Ireland creating a monopoly throughout Western Europe and eventually the entire world. The CFO of this division is going to start out as overseeing the new production center in Dublin and eventually in charge of the whole country’s operations. Business Unit Organization: International Business Issues: Labor Law Issues When considering this business venture for our company, we needed to consider the various potential issues we may run into along the way. By understanding the potential issues that may arise during this process, we are able mitigate, if not eliminate the risks involved entirely. One of the most apparent issues that we will run into deals with the legal system of Ireland and the various barriers set in place by the government regarding labor laws. In order to understand the legal system and its presence in the labor markets, we needed to examine multiple labor acts involved in the Irish government that had been instituted in years past. One of the first labor laws we looked at was the Minimum Notice and Terms of Employment Act of 1973. This labor law act that was instituted in 1973 states that “An employer shall, in order to terminate the contract of employment of an employee who has been in his continuous service for a period of thirteen weeks or more, give to that employee a minimum period of notice calculated in accordance with the [following] provisions” (Labor Protection Statutes2). Some of the provisions include various time periods of grace periods that are allotted to employees that are going to be fired. For example, if an employee has been with the company for less than two years, they are given one week to collect themselves before they are legally forced to leave the company and stop working there. On the other hand, if an employee has been working there for more than five years but less than ten years, they are granted a four week long grace period. This law prevents the employees from being thrown onto the street without being given any time to collect themselves and find time to look for another place of employment.

Next, our company business unit considered the Organization of Working Time Act of 1997. This act examines the particular time periods in which we as a company can and cannot force our employees to work during the year. For example, the act states that we are to award at least 11 hours of rest time during each 24 hour period during any particular day. Another statute of the labor act stated that we may not work our employees for more than 4.5 hours without giving them at least a 15 minute break. Other aspects of the labor act stem from various days during the year in which we may not force our employees to work. These days include various holidays and religious days throughout the year. In addition to these public holidays, each employee is permitted to take a leave of absence for eight percent of their work days during the year.

2 Labor Protection Statutes (n.d.). In Irish Statute Book. Retrieved April 29, 2014

President of Operations in

Director of Product Development

Director of Finance

Corporate Social Responsibility

Director Marketing Director Director of Sales

Pharma Vaccines Animal Health

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This number usually results in about four additional weeks of leave for the employee (Labor Protection Statutes1).

Another labor law we discussed as a business unit concerned the Unfair Dismissals Act of 1977. Under this labor law, we are not able to fire one of our future employees in Ireland for any number of reasons. First, we are not able to fire an employee based on their religious background, race, or political opinions. In addition, Novartis will not be able to fire an employee in an effort to prevent them from forcing legal action upon our company as a whole. This aspect means that we are unable to fire an employee should they decide to sue us in some manner over a matter that occurred in the workplace. We are legally bound to keep the employee dealing with the legal action as someone listed as a member of the company. If we are found guilty of violating the Unfair Dismissals Act of 1977, we are liable to pay the subject any type of compensation that is decided by the court system (Labor Protection Statutes3).

In addition to the idea of an employee being granted compensation as a result of being unfairly dismissed from a company, one may be considered for reinstatement into the company. The employee’s salary and particular job title will return to what it was previous to temporary dismissal. We must consider all possibilities and outcomes when considering the reasoning behind why we may be letting someone go from our company if we are to enter the Ireland market.

The Employment Equality Act 1998 works hand and hand with the previously discussed statute of Unfair Dismissals Act of 1977. The Employment Equality Act states that an employer is not permitted to discriminate against an employee for a number of categories. Some of various categories include gender, marital status, age, sexual orientation, religious background, age, disability, and race. The basic premise of this particular Irish statute is to ensure that the company taking the right steps to create an environment that is discrimination free (Labor Protection Statutes 2).

The next labor act to consider is the Protection of Young Persons (Employment) Act of 1996. This act states that Novartis will not be able to employ children at our Ireland site. However, we may pursue employment of an individual 14 or older if they meet a few guidelines. First, the child must not be permitted to work during the time in which he or she should be attending school. In addition, the child is not permitted to work more than 7 hours, and no more than 35 hours in one week’s time. Also, the work in which the child may be doing for the company must not be harmful or dangerous to the child’s wellbeing. Finally, the child must not be working for a period of at least 21 days during the course of the child’s summer holiday break (Labor Protection Statutes 2).

Next, the Worker Protection (Regular Part-Time Employees) Act of 1991 discusses the treatment of part time employees in the workplace. The labor act states that despite the part time nature of some employees at companies, they are to be treated in the same manner as that of the full time employees that are with the company at any particular time. Many times in the work place, companies and management do not treat their part time employees in the same manner as the company’s fulltime employees. This act covers all employees that may be working under contract with the company, any internships, and anyone who had become a part of the company through an employment agency or temp agency (Labor Protection Statutes 2). Another labor law in which our business unit needs to consider stems from the subject of maternity leave in the workplace. In the country of Ireland, maternity leaves are granted to those that have become pregnant during the time in which they are employed. In addition, the mandate states that “Since 1 March 2007, you are entitled to 26 weeks’ maternity leave together with 16 weeks additional unpaid maternity leave” (Maternity Leave). As a company we need to understand the fact that we cannot discriminate against younger women in the workplace. This age group of women is likely to become pregnant at some point and will not be able to work for a long period of time. We need to understand our capital resources and ensure that we are able to pay for this company inconvenience.

In addition to the idea of a mandated allowance of maternity leave, the Parental Leave Act 1998 addresses the same concept. This mandate states that a parent, man or woman, is permitted to 18 weeks of parental leave. As far as age is concerned, we need to understand the boundaries of the mandate. For example, if the child is healthy, then the parent is allowed parental leave up until the child turns eight years old. However, if the child suffers from any type of long-term illness or disability, the age limit spikes to sixteen years of age. Finally, if the child has been adopted and is between the ages of six and eight, then the

3 Labor Protection Statutes (n.d.). In Irish Statute Book. Retrieved April 29, 2014

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leave will be extended to two years after the date of the adoption. The mandate also states that one is not entitled to pay from his or her employer during the time in which they spend away from the workplace, no matter how short the time period in which the employee has decided to leave for (Parental Leave4). Economic and Political Considerations The next category of potential international issues we felt we needed to examine was the looming economic issues in Ireland. In the past, Ireland suffered the effects of the global financial crisis between the years of 2007 and 2010. In response to this crisis, Ireland’s government had launched a National Recovery Plan. This new government plan which was “implemented after the government nationalized several banks and accepted a $90 billion European Union–International Monetary Fund rescue package, aims to get the economy back on a solid footing by 2015” (Ireland5). In addition, in February 2013 Ireland had decided to make an agreement with the European Central Bank in an effort to redesign loans and remedy the debt that had been introduced to the country when Anglo Irish Bank was nationalized in 2009. The National Recovery Plan enabled our business unit to see Ireland as a realistic business opportunity. With the backing of the powerful International Monetary Fund to bail Ireland out of their deficit by 2015, we felt that we needed to take this opportunity to expand our company into Ireland. Ireland has shown signs of immense economic potential since its survival of the global financial crisis in 2008. In addition to the signs of economic improvement that Ireland has shown in years after the financial crisis, Ireland is also a member of multiple International Organizations. These various organizations include the United Nations, Organization for Security and Cooperation in Europe, Organization for Economic Cooperation and Development, International Monetary Fund, World Bank, and World Trade Organization, and NATO. In February 2013, Ireland reached agreement with the European Central Bank to restructure loans and ease the debt burden incurred when Anglo Irish Bank was nationalized in 2009 (U.S. Relations with Ireland6). These organizations in which Ireland belongs to grant the country even further economic security should something similar to the global financial crisis of 2008 occur again. As previously discussed, Ireland and the European Union received nearly $90 billion in recovery funds in 2013. The more organizations Ireland is involved in, the less likely that a financial crisis will have a severe impact on the economic state of the country.

Another key economic indicator in Ireland that our business unit had considered was the 2014 Action Plan for Jobs. In this plan, the government is attempting to restructure the economy and furthermore improve its recovery efforts from the global financial crisis that occurred from 2007 to 2010. One of the key components of the Action Plan for Jobs steams from the idea of “hav[ing] 100,000 more people in work by 2016” (Action Plan for Jobs7). With more people being employed in the country, more people will be permitted to contribute to the country’s overall GDP, which has been steadily improving every year. In addition, the “government has set out an objective to create a positive environment to support business start-ups and growth, drive exports, and facilitate job creation and retention by the enterprise sector” (Action Plan for Jobs6). With the back-up of the government, if Novartis were to start a new branch in Ireland, the government would provide assistance to the progression of the company during the early stages of development in the new market.

The government in Ireland has taken this plan and utilized it as an opportunity to express is dissatisfaction with the current economic state of Ireland. Members of the Plan for Jobs 2014 expressed their opinions by stating that “while significant progress has been made, unemployment and emigration remain unacceptably high and this Action Plan for Jobs 2014 reaffirms the Government’s commitment to addressing these challenges as a matter of urgency” (Action Plan for Jobs6). Some of the individual goals of the committee on the board of this operation is to increase competition and productivity in the Irish economy by the end of the progression of the plan. This will be done through supporting entrepreneurship, innovation, internationalization, skills enhancement and access to finance throughout all industries and sectors in Ireland. In addition to the Irish Government providing support to businesses in Ireland with the 2014 Action Plan for Jobs, we examined the support in which the economic powerhouse the United States was

4 Parental Leave (n.d.). In Citizen's Information Public Service Information. Retrieved April 29, 2014 5 Ireland (n.d.). In 2014 Index of Economic Freedom. Retrieved April 29, 2014 6 U.S. Relations With Ireland (n.d.). In U.S. Department of State. Retrieved April 29, 2014 7 Action Plan for Jobs (n.d.). In Forfas.ie. Retrieved April 29, 2014

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involved with the Irish market. With the United States possessing one the most powerful and influential economic systems in the world, we felt that the United States’ backing of the Irish had significant economic impacts on the state Ireland. The United States has developed a fund known as the International Fund for Ireland, or IFI which had been created in 1986. This fund grants “funding for projects to generate cross-community engagement and economic opportunity in Northern Ireland (the United Kingdom) and the border counties of Ireland” (U.S. Relations with Ireland8). Since its inception in 1986, the United States Government has implemented more than $500 million USD. This amount contributes to over half of the funding in the IFI’s history, with the rest stemming from the European Union. As far as the workforce is considered, there is not very much diversity in the country of Ireland. Approximately 95% of the entire population is white. As an equal opportunity employer, we need to consider the various challenges involved in finding qualified candidates in the smaller pools of ethnic groups in the Dublin area. One of the main reasons for our company success stems from our ability to recruit people from different backgrounds and ethnicities. However, this works best in situations in which the pool of workers is much larger and much more diverse. Here in the United States we are not as challenged in the diversity department. We have ethnicities and backgrounds from all around the world. In addition, we need to realize that we are not able to change our policy on recruiting and hiring once we enter a new area of the world that happens to be the complete opposite of diverse. Geographic Considerations Before venturing into Ireland, our business unit needed to consider the geographic location of the potential business opportunity. With Ireland being situated in Western Europe, we had realized that the potential monetary benefits would prove to be immense. Novartis already occupies most countries in Western Europe, as well as all of Europe for that matter. Novartis currently has locations in Belgium, Austria, Germany, Spain, Portugal, France, Austria, Hungary, Norway, Denmark, Greece, Poland, Sweden, Switzerland, and the United Kingdom. By pursuing Ireland, an economically stable and growing entity, our company would be able to almost create a monopoly over the industry in Europe. With the immense amount of stations that our companies have in Europe, as well as the rest of the world, we are able to obtain an incredible position of power.

Ireland is one of the last markets we have yet to enter into in the European market. In addition to the idea of creating a monopoly in the industry, Novartis will be able to gain quick access to the rest of its sites in Europe. For example, should management want to take a business trip to the Dublin site, they could plan a trip that would incorporate the rest of the global European sites into the itinerary. With this close proximity to the rest of the European sites, Novartis will not need to make a trip to a remote location in the world in order to check up on a site that had recently been founded. Tax Considerations One of the other international business issues we examined during our research was the idea of any financial regulations involved in setting up our business in Ireland. First, we need to understand that there are going to be some various barriers to entry and costs involved with starting this new branch in Dublin. First, we looked at the various tax laws that would important to our type of business. Since we are a company, we are liable to taxed under the corporation tax. Under this expense, we are required to pay 12.5% of our trading income to the government of Ireland. The income known as “trading income” can be identified as any income in which we receive from conducting everyday business with our potential customers. In addition to the trading income we receive during business operations, we are also required to pay 25% in taxes to the government for our non-trading income. Non-trading income can be identified as any type of income that we receive from discounts, interest, foreign income, patent royalties, miscellaneous income, and rental income from land and buildings in the State (Setting up A Business9). In addition to the various taxes imposed upon our company during operations, we may be entitled to tax relief for the first three years of operations. The company tax mandates state that new companies that start in Ireland are permitted up to three years of tax exemptions in order to encourage new companies to

8 U.S. Relations With Ireland (n.d.). In U.S. Department of State. Retrieved April 29, 2014 9 Setting Up A Business (n.d.). In Citizen's Information Public Service Information. Retrieved April 29, 2014

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start in Ireland. In addition, this tax relief will allow us to get our feet wet in the area and get ourselves established in the industry in that particular part of the world (Corporation Tax Basis of Charge10). Cultural Considerations

The next area of international issues that arose during our planning for this new site in Ireland was the various culture differences that we are going to need to take into consideration. First, we need to consider the language barrier. Despite the fact that Irish residents mainly speak English, we need to understand the various differences in our versions of English. For example, Irish residents utilize very different forms of slang in order to communicate with each other. Although the words are in English, we need to realize that they are almost in another language if we do not realize that they will not make any sense to us in conversation. In order to combat this barrier, we plan to hire a cultural expert in the area of Dublin in order to educate our management team on the various language barriers that will occur when conducting business.

In addition to the minor language barriers involved in conducting business in Ireland, we need to consider the idea of punctuality. Being late is heavily regarded as impolite and extremely rude. We need to make sure that we plan our transportation means ahead of time and consider the various options should something go wrong with our flight or ride. Dublin in particular is considered to be extremely congested with traffic. Despite the notion of our business unit potentially being late during our endeavors, we need to provide the leeway and opportunity for our Irish clients to be late.

The next cultural consideration we discussed as a business team dealt with the idea of corporate social responsibility. In recent years, the corporate social responsibility movement has begun to take over Ireland and continues to gain more and more momentum as each year passes. We need to incorporate this into our business model and ensure that we are conscious of the environment surrounding us and the impact we have on social welfare in the city of Dublin and the surrounding area. As we previously discussed the various legal barriers of entry into the country of Ireland, we need to realize the importance of going above and beyond. By incorporating the idea of corporate social responsibility into our business model, we can achieve a new level of respect and admiration from the members of our customer base. In addition, through word of mouth in the customer pipeline, we will be able to achieve a new and larger customer base. One of the main concerns of the company is the bottom line and by incorporating a sense of responsibility in the area, we will be able to achieve an even greater revenue source than we ever have before. (Business Etiquitte11) Policies, Processes & Practices:

Novartis was one of the first to sign the United Nations Global Compact, which is a principle-based framework for businesses involved that asks the signatories to “embrace universal principles and to partner with the United Nations” (http://www.unglobalcompact.org/). Signees are asked to support principles in areas such as human rights, labor, environment and anti-corruption. Novartis expands on these and introduce their own business practices that reflect the core values of the standards. Many of these business practices are what we hope to bring with us to Ireland. They have proven to be extremely effective and we believe can be the cornerstones of the subsidiary we hope to establish. The most important to us, especially in the early stages of starting a subsidiary, are caring for our people, responsible R&D, and ethics, governance and compliance. Novartis is an established international pharmaceutical business that is extremely successful based on their policies and processes, but also how they care for their employees. For example, in 2005, Novartis was one of the first international companies to develop and implement the payment of a living wage to all of their associates, customizable to regional differences. Novartis wanted to establish a methodology to calculate living wage levels in countries where they were in operation, a difficult task given the economic and overall living variations among countries in the world today. Every year, Novartis reviews the salaries of all associates and adjust the ones that fall below the living wage level. 17 salaries were adjusted in the year 2011 alone. The introduction of the “Be Healthy” campaign also has contributed to the well being of the employee. Be Healthy is a 100% voluntary company-wide health and well-being initiative, encouraging participants to exercise regularly, choose healthy food, and participate in free screenings to

10 Corporation Tax Basis of Charge (n.d.). In Revenue: Irish Tax and Customs. Retrieved April 29, 2014 11 Business Etiquitte (n.d.). In Passport to Trade: A Bridge to Success. Retrieved April 29, 2014

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learn about blood pressure and cholesterol levels. It also offers support for people nursing an illness or condition. Novartis also believes in diversity and inclusion in their organization. Their people in the company should reflect the diversity in the markets around the world. Employees come from a wide variety of backgrounds and cultures, helping Novartis to better understand the different wants, needs, and thought process of their vast market. Lastly, providing a safe workplace is a strong commitment at Novartis, in particular reducing accidents. The training programs and targets are implemented to get the company to their goal of a completely accident-free environment for all of their associates. The ideal culture embodies key concepts, such as continuous improvement, adaptability, involvement and accountability, and problem solving. These factors make up the internal focus that Novartis has on their associates. In addition to caring for their own people, a responsible R&D department is another very important business practice that we hope to institute. As we know, R&D is a crucial area and one of high importance in the healthcare industry. More than $50 billion each year is put towards research and development, and Novartis has contributed more than $8 billion in one year in their history. Novartis has a specific plan and targets diseases where there is serious need. They focus on diseases that are plaguing developing countries, rather than the more common diseases and problems that already have numerous resources being put towards them. Novartis also recognizes that many people may question their ethics, particularly in areas like stem cell research, but they welcome any and all debates from informed stakeholders. They know they have nothing to hide and they want those that have a say in the Novartis brand to feel free to speak their mind.

As for ethics, governance and compliance, this area begins and ends with the Novartis Code of Conduct, which reflects the company’s commitment to meet the expectations of their stockholders as a responsible corporate citizen. It also contains the fundamental rules of business ethics and conduct. Aware that their associates may encounter conflicts during their daily business activities, sections in the code, like the “when in doubt” sections, offer support and guidance to make the right decisions. The culture at Novartis is one based on integrity, where managers lead by example, ethical considerations are reflected through business objectives/incentives, and employees are properly trained. Novartis also feels a strong need to provide accurate information about their products to healthcare professionals, patients, and consumers through their marketing practices, with top priority being to accurately reflect patient benefit and risk profile, while being ethical and in good taste at all times. Bribery is explicitly prohibited inside and outside of the company, and Novartis also finds data privacy to be very important. An increasing problem in the industry, all consumers and professionals expect protection and the company pays close attention to all privacy laws and regulations in all of the countries that they are present in. All of these areas make up the criteria to Novartis’ ethics, governance and compliance business practices. METRICS REPORT:

Business metrics will be an integral part of our success in Ireland. Key performance indicators for Novartis are broken into two categories: Expanding access to healthcare and doing business responsibly. The three criteria for expanding access to healthcare in 2013 include control and eliminate diseases, pioneer new business approaches, and find new treatments. Doing business responsibly includes a variety of targets such as Lost Time Injury and Illness rate, “Be Healthy,” living wage, water use, and hazardous waste efficiency, integrity and compliance, and stakeholder engagement. Allow me to elaborate on expanding access to healthcare, more specifically controlling and eliminating disease. Our targets in 2013 were to “Continue to expand access to Coartem and Coartem Dispersible through new channels driven by the private sector in select malaria-endemic countries, and to intensify efforts to build a multi-stakeholder initiative to work towards the elimination of leprosy” (Novartis, 2014) (http://www.novartis.com/corporate-responsibility/metrics-and-reporting/target-and-results.shtml). The result of the year was as follows: “Access to lower priced Coartem and Coartem Dispersible was improved through wider availability in the private sector of nine malaria-endemic countries, benefiting the emerging middle class population, and consensus reached on the way forward to eliminate leprosy, following an expert meeting convened by the Novartis Foundation in Geneva” (Novartis, 2014) (http://www.novartis.com/corporate-responsibility/metrics-and-reporting/target-and-results.shtml). TABLE12

12 http://www.novartis.com/corporate-responsibility/metrics-and-reporting/kpi-table.shtml

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TARGETS AND RESULTS 201313

13 http://www.novartis.com/corporate-responsibility/metrics-and-reporting/target-and-results.shtml

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BALANCE SHEET14

Foreign Direct Investment: Entry Strategy: Our entry strategy into Dublin is designed to create a successful business and as soon as our company begins to spread, implement new locations and include new divisions of our product. We feel this plan will give us the best opportunity to succeed because we will literally be building on our success. A lot of companies fail in the expansion process because they begin expanding before success is evident. Our plan takes our success upon entering a new demographic and allows it to build until demand exceeds supply and that is where we will begin to implement new locations. These new locations will merge in some of the other divisions that aren’t included in our Dublin production center. The Dublin center is going to specialize in pharmaceuticals, vaccines and animal health. Applying our other divisions will open up opportunity for success because our name will already be spreading at a rapid pace. Funding: To fund our FDI in our establishment in Ireland, we will dig into our assets, more specifically our cash, which we have over eight billion dollars of. We have had many significant purchases in the recent

14 http://www.novartis.com/downloads/investors/reports/novartis-annual-report-2012-en.pdf

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years of intangible assets, which led to a drastic increase in our overall assets. Our cash flow is strong and substantial, so we are not concerned at all with the funding of our FDI. Foreign Exchange Plan:

When considering foreign exchange with our new division in Ireland, the most important currency changes would be between the US dollar and the Irish Euro. Since a lot of Novartis business is in already surrounding Europe, there will not be a problem having to deal with currency rates. However, since Ireland is the closest land in Europe to the US, it is important to consider the exchange rates between the USD and the IEP (Irish Pound). Below is a chart that brakes down the conversion factors between the two currencies. As you can see in the chart below, 1 IEP is equal to 1.76 USD and in reverse, 1 USD is equal to 0.57 IEP. It is very important for the future of our business to keep up with these continuously changing foreign exchange rates if we want business to run smoothly in our new division.

Staffing: As far as staffing is concerned, our business unit team has developed a plan as to how we plan to satisfy the requirements. When breaking down the company employees into numbers, we plan to have approximately 150 employees at the Dublin site. We feel that with Ireland’s struggles with unemployment, we will not find an issue with finding qualified individuals who happen to be unemployed. Many times qualified individuals will not be employed simply because there is just not enough available jobs in the market. We plan to dip into the talented area of Dublin for our new site. Educated individuals have historically flocked to the capitals and major cities in various countries. When breaking down what we are going to need in Ireland as far as specific positions are concerned, we have developed a well thought out entry level plan. Our business unit plans to have a president of operations in Ireland. This position will be utilized to oversee the overall operations in the country of Ireland and to amend any potential issues that may come up during the process. Next, we will incorporate five directors that will work closely under the watchful eye of the director of operations. The first director will be responsible for the product development. This position will overlook the development of products of Pharma, Vaccines, and Animal Health product divisions. Under these various divisions we plan to have a number of production workers that will create and produce our high end pharmaceutical products and vaccines. We have decided to implement these first three product divisions in Ireland at first. However, after we have established a notable presence in Ireland and have developed a steady source of solid revenue, we plan to start to incorporate the various other divisions of products at Novartis. One of the next directors we have decided to incorporate into our business plan as a company is a director of corporate social responsibility. As previously discussed, the importance of having a corporate social responsibility

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presence Ireland is vital to the development and success of the company. Finally, we will institute directors of finance, marketing, sales that will control the everyday activities of each department. Success for the International Business Plan:

Success will be measured by looking at the key performance indicators for Novartis. Novartis strives to expand access to healthcare and do business responsibly. They set goals and strive to achieve more every year. They have clear markers on how to measure this success that have worked well in the past. Novartis has been very successful in the past year, accomplishing many of its targets. They have set new targets for the 2014-year in hopes of improving their company further. We hope to bring this success into Ireland and continue to improve the company as a whole by making Ireland a strong development for the company. Our business plan would be considered successful if the numbers we receive for all the categories Novartis looks at are at par or better than what they average for the company world wide.

Novartis has ways of measuring their success by looking at key performance indicators. Measuring how they can expand access to healthcare includes looking at total patients reached with Novartis products, patients reached through access to healthcare programs, and the value of access to healthcare programs. Each of these categories is measured in millions and gives Novartis an easy way to see how successfully they are being at expanding their healthcare options. We hope to be able to implement these same strategies in Ireland so that we can stay parallel with the way Novartis runs things worldwide. Novartis puts a lot of emphasis on setting goals every year and making sure they tell the public how successful they are at reaching those targets.

When looking to expand their access to healthcare they look at three specific categories. They look at how they can control and eliminate diseases, pioneer new business approaches, and find new treatments. In order to continue to strive towards controlling and eliminating diseases, Novartis was able to achieve their targets by gaining “access to lower prices Coartem and Coartem dispersible through wider availability in the private sector of nine malaria-endemic countries, benefiting the emerging middle class population”. They also held an expert meeting to reach a consensus on the way forward to eliminate leprosy. Novartis has a lot of plans for the future in order to continue to control and eliminate diseases. They want to “expand access to Coartem and Coartem Dispersible through new private sector channels in at least five additional malaria endemic countries by 2015, match up to 3 million malaria treatments by 2015 through the Power of One partnership with Malaria No More, and obtain health authority approvals and WHO prequalification for a new formulation of Coartem to treat adults with malaria with fewer tablets”. The reduced pill burden is expected to improve adherence to treatment and possibly improve clinical effectiveness. Novartis wants to launch the new formulation in at least five countries in 2014, and another 10 countries in 2015. They also plan to engage at least 50 National Malaria Control Program managers and malaria experts in continuous exchange of learning and best practices via the online community in 2014. They also wish to expand disease awareness activities to reach over 60,000 children in sub-Saharan Africa in 2014. In 2014, they will support the training of over 15,000 community and facility-based health workers in sub-Saharan Africa to improve malaria case management. By 2014 Novartis wants to anchor the electronic Tool to Improve Quality of Healthcare (e-TIQH) in Tanzanian health policy, as the supportive supervision tool to optimize overall quality of primary care, leveraging improved malaria management. These targets are all easily measured on the basis of if they accomplish their goals or not.

In order to pioneer new business approaches in 2013, Novartis initiated direct distribution to about 25% of India Arogya Parivar network, expanded Kenya program to 20 cells, covering a population of 1.4 million, and increased portfolio to 14 medicines, covering four additional disease areas. They also “expanded Vietnam program to 10 cells, covering a population of 1.2 million and pilot launched in Indonesia”. Their future goals for pioneering new business includes providing health education to 12 million people through at least 300,000 community education meetings in rural communities across Kenya, India, Indonesia and Vietnam by 2016. Novartis wants to work with the “Ministry of Health and the Lusaka University Teaching Hospital in Zambia to reach healthcare workers in 20 clinics and communities in 50 schools with an Rheumatic Heart Disease (RHD) awareness campaign and screen at least 3,000 children for RHD and train 50 healthcare workers in RHD diagnosis and treatment in Zambia by 2016”. Novartis want to donate products to more than 1,500 medical missions between 2014-2016, to enable more than 80,000 cataract surgeries to be performed among underserved populations. They also want to donate medicines to more than 15,000 patients who cannot afford their medication through Alcon’s Patient Assistance Program in the US each year between 2014-2016. In 2014 the Novartis Patient Assistance Foundation, Inc. plans to provide free medications worth an estimated USD 500 million to about 70,000 US patients who are

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experiencing financial hardship. Between 2014-2016, they plan to provide medications worth over USD 1.5 billion to about 170,000 patients. By being able to work with local ministries of health and hospitals, they can support the setup of clinical study sites for investigative trials in China and for bioequivalence and ethnic sensitivity studies at least four African countries and Brazil. We will train healthcare workers in each of the sites in good clinical and good laboratory practices. Last, we will make “USD 5 million per year available for trainings and health systems improvement in the developing world, with focus on Africa. Support scientific capacity building through hands-on trainings of 500 scientists and clinicians per year and through targeted equipment transfers to universities and hospitals in the developing world; focus areas include drug discovery and clinical development-related topics, including pharmacology, clinical trials, epidemiology, regulatory sciences and volcanology”. By taking these business approaches and applying them to the business in Ireland, we will ensure a successfully transition.

In 2013, Novartis was able to increase their success in finding new treatments. Their Phase II clinical studies with KAE609 demonstrated rapid parasite clearance for both types of malaria (vivax and falciparum). They also found that the long half life of the drug supports a once-daily oral dosing regimen. Their Clinical Proof-of-Concept study with KAF156 achieved a positive outcome. New malaria target was identified with potential to treat multiple stages of the malaria life cycle, including liver-stage infections of plasmodium vivax. Novartis also Entered agreement with an Indian biopharmaceutical company (BioE) to deliver affordable vaccines against typhoid and paratyphoid fever. Future targets for finding new treatments include continuing “Phase II clinical testing with KAE609 in combination, and identify other partner compound opportunities to be combined with KAE609 for further and complementary drug product profiles”. Novartis wants to obtain health authority approvals and WHO prequalification for a new formulation of Coartem to treat adults with malaria with fewer tablets and make the new formulation available in at least five countries in 2014, and another ten countries in 2015. Between 2014 and 2016, we hope to invest at least USD 35 million per year into research for vaccines and medicines targeted at diseases that disproportionately affect populations in the developing world. Diseases include, malaria, Dengue fever, diarrhea, Chagas Disease, Leishmaniasis and African Sleeping Sickness. Novartis is successful because it keeps striving to find new treatments and stay ahead of any competition. Opening a headquarters in Ireland will ensure that our research and development for new treatments will continue and be more successful in the future.

The second key performance indicator for Novartis is doing business responsibly. They measure the success of doing business responsibly by looking at different numbers such as full-time equivalent positions, resignation, separations, hiring (as a percentage of associates). They also look at the percentage of women in management and on the board of directors to ensure that they are staying diverse. In order to continue to diversity they keep tract of the number of associate nationalities. They also keep up with the lost-time injury and illness rate measured per 200,000 hours worked. They also measure total recordable case rate per 200,000 hours worked, transportation-related injuries leading to lost time, and contact water use measured in million m3. In order to show the public their emphasis on safety they measure their energy use on site and purchased. They also look at total operational waste not recycled, both hazardous and non-hazardous. They also keep records about cases of misconduct reported and substantiated along with dismissal and resignations related to misconduct. In addition they look at the number of supplies posing an elevated risk under responsible procurement and supplies with active follow up and supplies who are audited. When entering Ireland, we need to keep in mind all of these measurements, which will help us indicate if we are to be successful or not. We can compare the numbers shown by Novartis Company wide and the numbers we get in Ireland to see if we are at par with what is acceptable for Novartis as a company.

Similar to expanding access to healthcare, Novartis also sets goals for how they want to do business responsibly. This helps make sure that this involves a lot of different measurements ranging from lost time due to injury to stakeholder shareholder. When looking at lost time injury and illness rate (LTIR) they are targeting to include Third Party Personnel (TPP) in LTIR and achieve a Group performance of 0.14 or less. They want to reduce Serious Injury and Fatality cases by 10% vs. baseline number of cases in 2013 in medium term (2014-2016). This is measured by looking at per 200,000 hours worked. When looking at the total recordable case rate (TRCR), Novartis plans to include TPP in TRCR and achieve a group performance of 0.46 or less. This is measured by per 200,000 hours worked as well.

Novartis puts a big emphasis on diversity and inclusion. In 2013, there was a slight decline in the score for the D&I category to 69%, with Alcon integration and a new question likely impacting the score. There is a slight decline in employee engagement scores to 79% showing resilience among associates. Overall there was a slight decline in the Inclusion Index to 65%. One key area of decline was the level of

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involvement in decision-making (61% in 2013 vs. 70% in 2011). Factors affecting decline include additional 5 questions from 9 to 14 questions in Index. As part of the Organizational Talent Review process, gender and local talents in emerging markets are reported and tracked. Efforts are ongoing to implement scorecards in all divisions, including Pharmaceuticals, Alcon and Sandoz, which measure gender and local representation in leadership as well as succession pipeline. In the future they plan to maintain or grow Inclusion Index score from 65% in 2015 GES (to maintain or increase score of 65). Maintain or grow Employee Engagement scores from 79% in the 2015 Global Employee Survey (e.g. female employee engagement),

In 2013 Novartis conducted a Water Savings program at its 10 manufacturing sites with highest water footprint located in water scarce areas, such as in India, Southern California, Texas and Turkey. The program included the detailed analysis of water flows in a water audit, the evaluation of water savings potentials and a commitment to reduction of the site’s water footprint. Water savings projects identified are being implemented with savings between 10 and 20%. Water footprint is determined as water lost and water output for treatment is monitored at all Novartis sites worldwide. Water scarcity is evaluated for all Novartis manufacturing locations using the Global Water Tool of the World Business Council for Sustainable Development and scarcity indicators of the World Resources Institute. They will continue the water savings program in 2014 and apply experience of potential water savings identified in 10 additional manufacturing locations.

Integrity and compliance is an important part to Novartis as a company. In 2013 the Code of Conduct reminder campaign rolled out globally. Novartis implements an annual compliance e-Training curriculum for all Divisions worldwide that addresses key policy updates, identified risks, and legal requirements. “In 2013 eight e-training courses were rolled out: Anti-Bribery, Misconduct Reporting (BPO), Responsible Records Keeping, Adverse Event Reporting, Responsible Procurement, Social Media for Private Use, and the annual Code of Conduct and certification”. The Code of Conduct and certification was completed by 113,092 Novartis associates. In the year to come, Novartis plans for each operating unit to implement an annual assessment of top risks in marketing and sales, and design and execute a mitigation plan. They want to strengthen misconduct prevention by conducting regular cross-functional meetings between Internal Audit, BPO, Corporate Security and Integrity & Compliance to review misconduct case statistics and identify root-causes. All Integrity & Compliance Officers have a development discussion with their manager and have a development plan in place. Since integrity and compliance is such an important part for Novartis is it important to bring this to Ireland and make sure that it is up to the Novartis standards.

Government relations and lobbying is a very important part of international business that Novartis takes very seriously. In 2013 Novartis engaged various stakeholders in multiple countries to maintain patient access to cancer diagnostics. They also engaged “government and other stakeholders to shape high-quality biosimilars approval pathways. Supported legislative proposals avoiding unsafe use of medicines based on economic considerations. Supported the creation of top up options to provide cataract patients with wider treatment choices. Supported existing orphan drug legislation, which is enabling access to treatment for patients with rare diseases. Supported fast-track procedure established to allow negotiation and commercialization for innovative drugs and orphan drugs within 100 days”. Novartis also educated political stakeholders on Novartis commitment to patient access to medicines via Patient Assistance Programs. The Development of a Novartis Patient Academy supported patient empowerment and strengthened their participation in the Healthcare System discussions. They participated in panels and public events in EU, US and other countries to share Novartis commitment and activities relating to access to medicines in developing and emerging markets. In the future Novartis plans to provide a report on key public policy engagement and Novartis positions. Their goals are to help healthcare systems to become more effective in improving patient outcomes, protect IP as a fundamental enabler for innovation, enable access of patients to high quality Biosimilars, ensure quality and ethical conduct in interactions with political stakeholders, provide guidance for interactions with Public Officials and advocacy activities, and train on Novartis stance on key issues of public policy. These policies and procedures are very important to keep in mind when expanding to Ireland. We want to make sure that we not only abide by the Irish government, but also make sure that we are keeping up with Novartis standards.

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