Case study-- Biopharma Inc.
Presented by:Prateek Mittal 2010PMM111 Yatendra Singh 2010PMM115 Himanshu Bhatt 2010PMM132
Main points
Problems faced in financial performance of biopharma Inc. Steep decline in profits. Very high costs at Germany and Japan plants. Stable demand across the globe. Company could no longer afford to have surplus capacity. Aims at having an efficient network. Cutting the costs is the top priority.
Background
Biopharma Inc. is a global manufacturer of the bulk chemicals used in pharmaceutical industry. Two patents- - highcal and relax. Chemicals used by companies internal pharmaceutical divisions and also sold to other drug manufacturers. Currently all plants are setup to be able to
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64.5 lacs is the cost incurred if : i. 12 Mexico to Europe ii. 5 (India)+ 3 (Mexico) to Japan 74.5 lacs is the cost incurred if : i. 5(India)+ 7 (Mexico) Europe ii. 8 Mexico to Japan In case of highcal minimum transportation cost is incurred if 5 units are transferred from India to Japan and 9+4 units are transferred to U.S from Mexico and Brazil respectively.
Cont..
Relax
R.M Euro pe Japa n Brazi l 55.2 Prd. 78 Tran s 3.6 Duti es Total R.M 58.5 Prd. 105
Highcal
Tran s 3 Duti es 0 Total 166. 5 44.5 2 62.3 41.5 26.4
4.01 140. 4(mx 9 c) 5.31( 93.9 ind- 6 mxc) 0 0 0 0 79.8 32.1 33.9 190. 4
36.3
49.5
2.85
18
22.5
1.5
2.52 (Indi a) 0 0 0
32.2
46.2 18 19.5 110. 5
1.4 0.6 0.6 3.4
25.2 18 10.8 64.8
37.7 22.5 15 90.4
1.4 1 0.6 5.05
India 13.5 Mexi 13.8 co U.S 76.5
4.65( 164. brz- 9 mxc)
Contd..
Total cost incurred (Rm, Prd, Trans, Duties)= $1077.14 million. Fixed cost i. Brazil 30 ii. Germany 45+13+2.8 iii. India 26 iv. Japan 5.8 v. Mexico 42 vi. U.S 31 Total cost incurred = $1272.4 millions.
Question 2.
How should Phil structure his global production network? Assume that the past is the reasonable indicator of the future in terms of exchange rates. Ans: The distribution would probably remain the same if the exchange rates
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Indexi = 0.053 - 0.095 Fi + 0.020 PHDi + 0.007 FPHDi + 0.0015 TENi
I am unable to answer this question because I don’t think I have enough information. This is asking for exact values and I don’t have the data to answer it. I maybe overlooking the answer but I am unable to figure this out.
LARGE Units sold (excluding specials) Units sold Units embroidered Units dyed Number of orders Number of shipments Number of invoices Sales dollars Acc. Bal. > 60 days 99.770 100.250 5.959 20.536 133 147 112 308.762 1
The prices of prescription drugs in the United States are by far the highest in the world. [1] On average, Europeans pay 40% less than Americans for the same medications. [2] Consumers have been resorting to several ways, sometimes putting themselves in harm’s way, to alleviate the burden of high prescription drug costs. Some buy their medications online or cross the borders to neighboring countries so they would be able to afford buying their needed medications. Others have resorted to the illegal act of selling their unused medications in online forums just to recover part of their expenses. Many factors contribute to the increased drug prices in the United States including research and
24. The total cost approach involves evaluating each possible PD system and identifying all the transportation
5.000,00 $ 7.500 151.250 20 35.000,00 $ 12.500 321.250 26 $ 58,20 $ 110.000,00 4.000 333.500 83 115,38
In this case for me one of the company's problem is the low income to their company which must solve the problem of management to have a good image of the company concerned. Cheap Pharma provides a way to reach them have a big income due to gradual collapse of their sales as a result desired by Mr. de Guzman and the other two board of directors agreed to buy shares of stocks of Green Med where it has the boost to help build a unique products that can provide big profits for their company.
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The principle products are neurosciences type, which its largest selling product currently is Zyprexa for the treatment of schizophrenia, “bipolar mania and bipolar maintenance.” Recently in 2004 it released Cymbalta,
In 2005, Phillip (Phil) Landgraf faced several glaring problems in the financial performance of his company, BioPharma, Inc. The firm had experienced a steep decline in profits and very high costs at its plants in Germany and Japan. Landgraf, the company 's president for worldwide operations, knew that demand for the company 's products was stable across the globe. As a result, the surplus capacity in his global production network looked like a luxury he could no longer afford.
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TABLE OF CONTENTSQuestion 1a ……………………………………………………………………………………………………………………….3b ……………………………………………………………………………………………………………………….3c ……………………………………………………………………………………………………………………....4Question 2 …………………………………………………………………………………………………………………………………5Question 3 …………………………………………………………………………………………………………………………………6Question 4 …………………………………………………………………………………………………………………………………6References …………………………………………………………………………………………………………………………………7QUESTION 1a.Calculate the cost of the activities for France.
Group President, Worldwide Biopharmaceuticals Businesses, 2006-2010 Led commercial businesses in Europe, Canada, Latin America, Africa and Middle East Regions, 2000-2006 Led Latin America and Canada