Org Behaviou

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Table of Contents

1.0 Introduction 2
2.0 Initial Situation – Case Analysis 2
2.1 The History of Bristol-Myers Squibb (BMS) 2
2.2 Peter R. Dolan 3
2.3 What is Plavix? 3
2.4 Plavix Generic Drug Agreements 4
2.5 Dolan’s Fate 5
3.0 Questions and Answers 6
3.1 Q1) What principles of distributive Negotiation did Sherman use to gain his advantage? 6
3.2 Q2 ) Do you think Sherman behaved ethically? Why or why not? 7
3.3 Q3) What does this incident tell you about the role of deception in negotiation? 9
4.0 Conclusion 10

1.0 Introduction

All organisations form an integral part of the global village. Therefore organisations have become open systems due to deregulation, ever changing technology, lifestyle and demographics. In
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Justice Department was investigating the company’s March 2006 agreement with Canadian generic drug manufacturer Apotex. The agreement was intended to delay the Apotex’s release of an inexpensive generic version of Plavix.

Under the terms of Bristol-Myers’ ill-conceived agreement with Apotex, BMS offered Apotex $40 million to halt production of the generic Plavix until June 1, 2011. This date was five months before the Plavix patent was set to expire. Bristol-Myers also agreed not to release its own non-branded Plavix until six months after Apotex began to sell its generic version of the blood thinner. When asked to approve the agreement, the U.S. Federal Trade Commission (FTC) and state Attorneys General objected to these provisions. They labelled the Bristol-Myers concession anti-competitive because it assured that Apotex would be the sole market vendor of cheap, generic Plavix for at least six months. So, Bristol-Myers Squibb agreed to remove the anti-competitive provision from the contract. Nevertheless, the FTC began questioning Apotex regarding the revised agreement. During these questioning sessions, Apotex told the federal regulators that Bristol-Myers had given Apotex private assurance that it would not release a general version of Plavix to the market.

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