Questions Based On The University Ciba Geigy ( Cg ) Case
1796 WordsFeb 20, 20178 Pages
3. The following questions are based on the HBS Ciba-Geigy (CG) case.
a) Based on your assessment, identify the central problem facing CG.
b) Identify as exhaustively the pros and cons for launching Fevex. In your assessment, do not forget to consider the impact of the environmental variables (economy, political-legal, etc.).
c) Based on your assessment of the pros and cons and the environment, would you recommend for or against launching Fevex? Justify your answer with a detailed explanation.
d) Even if you recommended against the launch of Fevex, identify and discuss each of the following:
i. What target market do you suggest that CG should pursue for Fevex in Nigeria? ii. What product strategy do you suggest that CG should use for…show more content…
Ethical, policy and commercial considerations had to be taken care of significantly while making the decision. Going by history, a greater percentage of Ciba-Geigy 's sales came from the pharmaceutical divisions. The previous year in 1982 pharma division contributed to a whole 30% of the entire group’s sales with a revenue base of 4.1 billion Swiss francs making it the second-largest pharmaceutical firm in the whole globe. Pharma operated majorly in four areas namely analgesics and antirheumatics (23% of sales) not excluding Voltaren, cardiovascular products (30%) with the inclusion of beta blockers, drugs for treating epilepsy and antidepressants (15%) and antibiotics together with other drugs. Pharma also included OTC drugs, a contact lens business, and a servipharm division specifically operating to meet the demands of the developing countries. Even though the pharmaceutical industry had been highly profitable and contributed about 40% OF Ciba-Geigy’s revenues in profit, there were some trends, which were worrying. The government had attempted to reduce a cost of healthcare thus; pressure to lower costs was mounting on industrialized countries. There were restrictions to introduce new products, and price control became stricter while limiting the freedom of doctors to prescribe medications. Patent controls were becoming reduced, and the pharmaceutical industry was becoming increasingly criticized. These trends later made the industry to