NovartisNovartis, a Swiss drug maker, is planning to purchase a majority stake in Zhejiang Tianyuan Bio-Pharmaceutical Company, a Chinese vaccine maker. Novartis has agreed to pay $125 million for the company that holds a 3% share of China's $1 billion vaccines market. The market for vaccines is growing 20% or more in developing nations of Asia, Africa, and Australasia. In the past, vaccine use has been limited to basic shots against diseases such as polio, tuberculosis, and measles, but as the economies of these countries grow, government and private healthcare spending focuses on preventing diseases such as hepatitis B, cholera and rotavirus, tetanus, and others. Some critics are against the acquisition, claiming that prices will increase. Novartis claims it is not interested
in raising prices but rather to expand Tianyuan's product offerings.Refer to Novartis. One thing Novarti plans to do is increase sales to governments and to the United Nations agencies because these are the typical buyers of vaccines to distribute in poor countries. Thus, the company is willing to give up short-term profits to increase market share for this company. In terms of the Boston Consulting Group's portfolio matrix, which basic strategy will Novartis be implementing?
A. hold
B. harvest
C. divest
D. build
E. divert
Answer: D
You might also like to view...
Tasks of the ______________________________ phase are to conduct post-implementation review and to perform systems maintenance
Fill in the blank(s) with correct word
Assume the indirect method is used to compute net cash flows from operating activities. For this item extracted from the financial statements-Increase in Prepaid Expenses-indicate the effect on net income in arriving at net cash flows from operating activities by choosing one of the following:
A) Add to net income to arrive at net cash flows from operating activities. B) Subtract from net income to arrive at net cash flows from operating activities. C) Not used to adjust net income to calculate net cash flows from operating activities.
Which of the following core dimensions developed by Hackman and Oldham considers perceived knowledge of results as its direct psychological effect?
A. Task identity B. Autonomy C. Feedback D. Skill variety
Linnea contracts to buy Harriette's farm for $300,000 and puts $20,000 down. Then Linnea learns she is allergic to hay and repudiates the contract. If Harriette can sell the farm one month later for $290,000, she may:
A) keep Linnea's $20,000. B) keep $10,000 of Linnea's down payment. C) not keep any of the down payment money. D) sue for specific performance.