Professional Development Article Essay Example | Topics and Well Written Essays - 1250 words

Professional Development Article - Essay Example udit, this externally-driven auditing system looks at total enterprise value related to the sales volumes of high-profiting pharmaceutical companies and measures their process and product innovations based on how the auditing committee believes each firm should be molding their corporate strategies. Contained in the article are many pharmaceutical companies and their profitability achieved for 2007-2008, their innovation focus, accounting, and how each firm has positioned itself for growth or loss in the face of how each firm chooses to market its products or its research and development efforts. The fundamental purpose of the Pharma Industry Audit is to ask the question, â€Å"Do you create shareholder value (with your strategies and tactics) or do you destroy it?† (Trombetta, 55). The Pharma Industry audit is much more unique than other well-known, independent auditing firms as it deals with much more than simple accounting issues and financial numbers. The critical issue in this article is that many companies are not addressing the macroeconomic factors that cause potential problems for producing shareholder value, therefore they are using improper business strategy and require the need of external auditing to help them see the larger picture in terms of strategic philosophy. Some of these companies, essentially, fail to view how their markets perceive their performance and dismiss these macroeconomic factors in favor of their own business strategy, which can strip shareholders of return on investment. Critical Factor #1 – The current global recession tends to cloud long-term business strategy when pharmaceutical companies either hold onto their existing business strategies or fail to generate better strategic concepts to improve shareholder value. These are the macroeconomic factors that strongly influence whether pharmaceutical companies are maximizing their market presence either through failure to diversify their holdings or improve their research and