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
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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
U.S. based companies hold rights to most of the world’s rights on new medicines and holds thousands of new products currently being developed. As of 2012, the industry helps support almost 3.4 million jobs in the U.S. economy. It is also one of the most heavily R&D based industries in the world. In the United States, the environment for pharmaceuticals is much friendlier than other countries around the world in terms of pricing ability and regulations. Both the Pharmaceutical and Biotechnology industries have experienced significant growth in the past year with year-over-year increases of 13.02% and 34.69% respectively. It is an even more striking when looking at the past five years considering both have beat out the S&P 500 with pharmaceuticals increasing an additional 31.44% and the biotechnology sector besting an astonishing 269.3% more return than the
Now look at your quotation sentence. Think of two points of commentary for your choices and write them below:
In order to make ethical decisions, it is helpful to think about several questions, including: 1) who will be impacted by the decision, 2) who will benefit from the decision, and 3) who will suffer from the decision.
The pharmaceutical industry is one of the most powerful and greedy industries in our country, with a goal to make as large a profit as possible, at the expense of the sick.
It has positive, and negative sides to the project. I know that it will bring eighty five thousands jobs according to the video on their website, and a billion dollars worth of wages. It will bring economic stability to thousands and that part of the pipeline
Prescription drug prices are on the rise in the United States. Currently, the United States does not implement a price control on prescription drugs. Every day the supply and demand for prescription drugs fluctuates. Pharmaceutical companies produce drugs that are necessary for survival. Therefore, it is necessary for research and development to continue in the United States. Those suffering the effects of exorbitant prices must do so until a generic form of a prescription drug is produced. Once approved by the FDA, new drugs will make their appearance on the market and patients will no longer suffer financially. Until then, it is necessary for pharmaceutical companies to price their drugs based on the idea of supply and demand. This produces the profit used to fund research. Price controls discourage innovation. If a price control were set in place, of course the price of prescription drugs would decrease. However, the development of new drugs decreases with it. Today’s generation would benefit from lower prices, while future generations would suffer from the loss of drug innovation.
The Pfizer case provides an introduction to external analysis. The case highlights the pharmaceutical industry, which has enjoyed extraordinary long-run profitability. The case also demonstrates how broad changes in broad environmental factors (i.e. demographics, technology, culture, etc.) have an impact on industry competition. The case is not especially complex, so it is not overwhelming as a first case.
prescription drugs, which will play a big role in the increase of profits for pharmaceutical
The pharmaceutical industry includes companies that research, develop, market or distribute generic and branded drugs. The industry expanded during the 1980’s and drugs to treat heart disease and AIDS were prominent. Consumer demand for nutritional supplements and alternative medicine increased during the 1990’s with the Internet facilitating direct purchases of drugs. Advertising for direct consumption of pharmaceutical drugs became more prominent; pharmaceutical companies were criticized for over medicating personality or social problems.
We need to consider a number of relevant information prior to making the decision. The information that needs to be considered is:
The first of these concerns would be the financial situation of Aurora Textiles as a whole. We have historically been a very strong company who has been seen as one of the premier companies in the textile industry. As of late we have posted less than stellar numbers though. In each of the last four years, we have posted negative net earnings. This is troubling and if this continues it could lead to us having to liquidate the company. With the current cash burn rate that we are on, our company will be bankrupt in 7.86 years. When evaluating the Zinser project we will look at this as the tentative cutoff date for when we can realize the cash flows for this project. Although we have been struggling financially and have an approaching timeline for turning the company around, we find that this only gives us more of an urgency to invest in the Zinser. First of all, when looking at the discounted payback period for the project, we have discounted back the cash flows for the project and found that the current payback period is 4.07 years. This is encouraging as it is well before the 7.86 year deadline we are on. Having a relatively small payback period is important to us because of the struggles we have had lately. Since this project fits our time horizon, we can look at what this project will do for our
Market failure appears when there is a failure in allocation of goods and services. When the market is unsuccessful, the government is called to intervene and correct the failure. Over the years, government participation in the pharmaceutical market has been more wide-ranging than any other good or service. With the government’s ability to regulate, mandate, inform, finance and provide, their intervention to overcome market failure can be beneficial for the economy. Market failure plays a significant role in today’s economy.
My third point will be about how GMO’s impact our food and that it will have a detrimental impact concerning the future of food. (Justice = Constitution (You cannot oppose me and uphold the Constitution))
This report provides an analytical strategic review of the global pharmaceutical industry; its origin, evolution,
B. Once the issue is placed on the ballot, we need to vote for legalizing casinos.