Free Essay

Merck Case Study

In: Business and Management

Submitted By rsmith16
Words 2141
Pages 9
Merck & Costa Rica
Case Study

Rory S Smith
Ethics in Global Environment
State University of New York
Empire State College

Introduction Companies globally are often times scrutinize for their business practices. They face strong opposition and public humiliation when they conduct their business in an unethical way. When companies operate globally, they must ensure they are operating in a socially responsible manner. Being socially responsible is not just giving back to the local community but to be aware of any unforeseen threats that may affect the business. Many countries around the world do not have strict laws governing the preservation of their natural resources. Global companies see this to their advantage to reap the natural resources and leaving back not an ounce of guilt, for a country’s social and economic instability caused by their actions. Industries like manufacturing, pharmaceutical and oil refinery, many corporations contribute to the injustice of violating human rights and the environment. As the business world and economy evolves into a free market enterprise, many corporations continue to demonstrate poor business practices and it is becoming difficult to hold them liable for their actions. Many corporations are also being very silent about their unjust business practices and have many ways to cover up any reported abuse. Countries that experience environmental violations, should impose strict regulatory policies so that companies cannot cover up their abuse to the general public but reprimanded for not preventing them. In the Merck case study, it is evident that biodiversity has evolved to be a growing industry. However, due to rainforest being destroyed around the world, supply is scarce for many corporations like that of Merck to conduct their research initiatives. As such, countries like Costa Rica whose resources are rich in biodiversity will seek to prevent the destruction of their rainforest. Merck did a great job in offering an incentive to use the Costa Rican natural resources. It shows that the corporation was just not eager to make a profit but to give back to the community. The issue with this case is that the citizens were not informed on the decision between Merck and INBIO. INBIO, a private organization did its job in offering to protect the rainforest by contributing the funding paid by Merck, to the preservation of the rainforest but failed to properly communicate their decision to the general public.
Costa Rica Rain Forest Costa Rica rainforest is home to many species of different kind and host an ample amount of natural plants and herbs. The rainforest plays a significant role in the preservation of extinct species and also contributes to clean air in the environment. Rainforest coverage in Costa Rica accounts for 51% of the country’s landmass (, 2012). Costa Rica over the last couple years have lost approximately 0.8% of its rainforest coverage (, 2012).The rainforest is also home to many indigenous people.
Case Study Questions
From an ethical point of view who owns the species located in a forest? Who should benefit from the commercialization? The indigenous people of Costa Rica consist of eight different ethnic backgrounds (, 2013). They live deep in the rainforest and population stems to approximately 104,143 people in 2013 (, 2013). Such a number accumulates to 2.4 of the national population (, 2013). Lot of the indigenous people reside in protected residency and villages while others are scattered throughout the rainforest. They utilize the herbs and different plant species for natural usage whether it be health or medical related (Travel Costa Rica, 2014).In having a understanding of the rainforest characteristics and features, it is fair to say from an ethical standpoint the people of the rainforest should have some legal obligation and ownership over the rainforest. It is their territory and their community environment. It is immensely unethical to destroy a person’s community especially when it is all they have and the resources in it is all they use. The government should also have a legal ownership for the land so they can stop international corporations that reap the benefits of the rainforest. Government should also provide legal support and understanding for the indigenous people rights. Indigenous people in Costa Rica have long been threaten for their lands and natural resources to be taken away (Travel Costa Rica.Nu, 2014).It is the government’s duties to instill protective rights and enforce those rights for this class of people. The Indigenous community rely heavily on agriculture and if their resources are destroyed they have nothing .They are not as educated as the general population of Costa Rica to understand certain legal actions or movements (Travel Costa Rica, 2014). Therefore, if commercialization should exist there is an urgency for the government to intervene and educate these people on the level in which they can understand. They should be able to benefit from any commercialization without any undue hazard that may prevent the social well-being of their dwellings. Commercialization can stem from economic and political reasoning, but it should demonstrate a level of responsibility for the rights of many.
Do pharmaceutical companies have any ethical obligation to share profits with the country in which they find a plant that leads them to create a profitable drug? Biodiversity can be a significant business driver for many economies and the pharmaceutical industry can greatly benefit from this. However, in order to have a sustainable business, efforts should be placed on implementing stringent policies that outline biodiversity and its relationship with the government of any country. Pharmaceutical companies have an ethical obligation to share any profit with the country they find any plant that may lead to a profitable drug. Many countries are blessed with natural resources than others and often times these countries may in fact be underdeveloped nations whose economy needs a driving force. If companies wish to extract plants for medical research they should initiate to offer a profit or a percentage to the government. Pharmaceutical companies that reap the benefits of natural resources in a country and causes a negative impact on the economic and social welfare of the community should be penalized. It can also cause a political turmoil amongst different classes in a country for the failure of the government to protect the country’s right. Offering a percentage to the government can assist in other vital areas of development the country needs improvement on such as road and infrastructure, providing suitable health facilities, proper housing development and most importantly preservation of the country’s national park. In an article by the guardian which addressed the sustainability of biodiversity business, it stated that all companies affect the ecosystems in some way (The Guardian, 2010).These companies are dependent on functioning ecosystems to remain in business (The Guardian, 2010). In order to remain in business, the article outlined a policy that was introduced by Nagoya ( It provided insights from a business stance on public policy and the impact it has on biodiversity and the ecosystem (The guardian, 2010).If pharmaceutical companies perform better business practices they not only preserve the eco system. But can also assist in the development of drugs that can fight diseases and the economic boost provided to many countries by paying a percentage of their profitable earnings. While there are certain rules and regulations governing the preservation of the environment such as the Convention on Biological Diversity; which is a multilateral environmental agreement launched at the 1992 United Nations Conference on Environment and Development in Rio de Janeiro ( There are not much laws that requires pharmaceutical companies to pay a country for their natural resources, so laws must be enacted to encourage this.
Do you think that the agreement between Merck and INBio was ethically justifiable? What is different about the case of Merck and INBio is that both organizations had a vision and they establish a mutual agreement which in fact benefits them both. Inbio, was primary focused on conservation, while Merck was focused on researching biodiversity. The agreement between the two was justifiable, there was no illegal business practices that took place and both organization did what they deem was ethically justifiable. Merck paid for the resources and INbio in turns used that money to assist with the preservation of parks. While it may seem unjust that the general public was not informed or included on the decision. There are many factors which could have caused this not to happen. Some of which can be lack of understanding in the legal stance on the issue, involvement of too much groups can create confusion and chaos to come to a business agreement. In the end the agreement has benefited Costa Rica in many ways.
It has provided the country to receive a large portion of sum from commercialization, which can assist with the up keeping of its park, which means less money for the government to spend. It also provides a sense of education, whereas Costa Rican scientists are influence to research herbs and plants to treat local disease that may plague the community. A 2014 article by global compiled a list of top 10 criminal activities by companies (Global, 2014). The article provided examples with companies such as Bayer, Gap, and Glencore just to name a few , that do not provide adequate working conditions, obtain corporate seizures of indigenous lands, and contaminate the environment (Global Exchange.Org, 2014). Amnesty International outlined how Chevron Corporation fuel has done poor business activities that affects the well-being of the Ecuadorian citizens. The company has destroyed Indigenous communities by cutting down the amazon rainforest in search of petroleum resources (AmnestyUSA.Org, 2015).Any ancestral lands and natural resources used by citizens in the country is gone and the government is doing very little to amend the issue. (AmnestyUSA.Org, 2015). With looking at these cases, it is once again reasonable to say that the Merck and Inbio agreement may not have been done in the best way possible to please everyone. However, it was done in a way where it did not destroy the living habitat of indigenous people.
The Merck case study exemplified the importance for firms to be ethical in their business practices, and the need to communicate effectively any issue. Corporations must ensure they are actively working on endorsing a good fair trade and should pressure companies that violate the human and environmental rights. Companies should be held accountable for their unjust business practices in failure to preserve the natural resources of the environment, and destroying the lives of many people who rely on these resources. The government can play a significant role in this movement by instilling strict regulatory laws that govern international corporations to use their resources and fines for those that do not follow the guidelines. The government should also protect its people and its habitat by educating them on their rights and legal stance. Corporations like that of Merck should also be aware of their business and offer to pay for a country’s natural resources, especially if it is used for research and development of a profitable resource. In the end, being ethical is the best way for a company to stay in business. As hard as it may seem, it offers a preventive strategy for corporations not to be accuse of abusing environmental rights. It further eliminates any poor business partnerships and enhances ethical values which will be appreciated by the general public.


Griffith, J. (n.d.). Biodiversity should be a top priority for businesses. Retrieved April 10, 2015, from

Mongabay, R. (n.d.). Costa Rica Forest Information and Data. Retrieved April 10, 2015, from

Indigenous Peoples in Costa Rica. (n.d.). Retrieved April 10, 2015, from

Global Exchange Top Ten Corporate Criminals List | Global Exchange. (n.d.). Retrieved April 10, 2015, from

International, A. (n.d.). Chevron Corp. Retrieved April 10, 2015, from

Global Biodiversity Outlook 4 - reports on status and trends of biodiversity and actions in support of further implementation of the Convention Read More. (n.d.). Retrieved April 10, 2015, from

People, F. (n.d.). Costa Rica: Indigenous peoples suffer violent attacks for demanding recognition of their land rights. Retrieved April 10, 2015, from

Marzulla, R. (n.d.). The Biodiversity Treaty Challenges Intellectual Property Rights. Retrieved April 10, 2015, from


Similar Documents

Premium Essay

Merck Case Study

...Case Study: Merck Acquisition of Medco Professor Daniel Weiss FI561 January 23, 2011 DeVry University Case Study: Merck Acquisition of Medco Abstract The purpose of this case study is to determine whether it would be beneficial to merge Merck Corporation with Medco Containment Services Incorporated. The merger and acquisition between the world’s largest drug manufacturer and the largest prescription benefits management company (PBM) and marketer of mail order medicines in the United States would result in a successful campaign to take over the drug industry if handled appropriately. As Chairman and CEO of Merck Corporation, I have to consider all sides of the arguments, financially, marketing and cultural wise and come to a conclusion as to whether this merger would be a good idea for the company. Like any other investment and merger, there are risks, and I have to decide what would be best in the interest of this company. The details as to whether the decision to acquire or not acquire Medco will be described in this paper. Along with data that helps make that final decision. There are a few things one must take into account before making a decision. You have to look at the long term run, whether or not the merger and acquisition will be successful. You also have to take synergy into account; it is the most important reason why there are a lot of mergers and acquisitions. Synergy would be when two companies join forces to create additional value and cut......

Words: 2468 - Pages: 10

Free Essay

Case Study Merck Acquisition

...Case FIN561: Mergers and Acquisitions You decide: Merck Acquition of Medco Vikash Sharma In July 1993, Merck & Co., the largest pharmaceutical company in the world at that time, acquired Medco Containment Services for $6.6 billion. Medco was the largest prescription benefits management company. With the drug industry experiencing the effects of managed care, pharmaceutical companies had to adapt to new means of distribution. Merck realized that the decisions of what treatments and what drugs should be used in patients’ care were increasingly being influenced by the managed care environment rather than by physicians. In the world of managed care, it was no longer sufficient to market just to physicians. The successful pharmaceutical companies of the future would be companies that were able to adapt to the changed distribution system. This was a very strategic move my Merck and this vertical integration was a move that all its competitors were also targeting. In 1994 SmithKline acquired DPS for $2.2B and later that year Eli Lily acquired PCS for $4.1B. In order to understand why Merck acquired Medco, which was a pharmacy benefits management (PBM) company, we need to look at the role of this so-called PBM’s. These PBM’s have several functions * Process Pharmacy claims i.e. check for eligibility when an order is placed at the retail store, check for copayment etc * Set up Pharmacy benefit, which is to apply PBM codes to what drugs are covered under a......

Words: 973 - Pages: 4

Premium Essay

Ethics Case Study: Merck

...Merck 1. What products has Merck developed and introduced recently? On the Merck website they have developed a product pipeline. This is a very helpful tool for those who want to follow their progress. This pipeline allows for people to see what phase each developing medication is in. These phases include phase II, phase III, and under review. The pipeline also shows the medication category, therapeutic area, and whether or not the medication has advanced. According to the product pipeline medications that Merck have developed that are recently under review are Zerbaxa, Omarigliptin, Grazoprevir/Elbasvir, Bridion, and Keytruda. Two of these medications have been introduced and moved forward including Grazoprevir and Keytruda. Medications included on the phase III list include Verubecestat, Anacetrapib, Keytruda, Letermovir, Ertugliflozin, Omarigliptin, Zerbaxa, and Doravirine. Medications included on the product pipeline list for phase II include Relbactam, Keytruda, Vericiguat, and Grazoprevir. 2. What role does research play in Merck's success? How...

Words: 471 - Pages: 2

Premium Essay

Strategy Case Studies

...beginning of the 21st century, its CEO/ Chairman, Yang-Ho Cho undertook various transformation initiatives - for instance, improving service quality and safety standards, technology integration, upgrading pilot training, better business focus; putting in place a professional management team, improving corporate image through sponsorship marketing, etc. He gave a new corporate direction in the form of '10,10,10' goal. However, Korean Air is held up by a slew of challenges. Among which are inefficiencies of - Chaebol system of management, possible clash of its cargo business with its own shipping company, limited focus on the domestic market and growing competition from LCCs. How would Korean Air manage growth as a family-owned conglomerate? The case offers enriching scope for analysing a family business’s turnaround strategies, with all the legacy costs involved. Pedagogical Objectives • To discuss the (operational) dynamics of Korean Chaebols - their influence/ effects on the country’s industrial sector and the economy as a whole • To analyse how family-owned businesses manage the transition phase - from a supplier-driven economy to a demanddriven economy • To identify all the possible reasons for Korean Air ’s turbulent times and assessing whether they are controllable or not • To critically evaluate Korean Air ’s transformation efforts - in terms of growth, productivity and cost cuts, especially the efficacy of '10,10,10' goal in a family-run business • To identify various......

Words: 71150 - Pages: 285

Premium Essay

Merck and Lab Pharmaceuticals Case Study

...Business description In 2000 Merck is a successful pharmaceutical company with a handful of drugs developed internally as well as in joint-ventures. Its success however linked to the exclusivity rights of its patents, which makes its investors concerned about the close expiration (2002) of several patents of its blockbusters, which would dry out future revenues. The long-term viability of the company depends thus on the ability to refresh its portfolio of patent-protected drugs in order to counterbalance the loss of sales resulting from the generics. The large financial capacity of Merck & Co enables the company to buy rights to test, manufacture and market compounds which were generated by smaller companies which lack the capital or want to avoid the risk; in case the FDA is successfully completed Merck & Co. profits by having bought the patent at a cheap price. In this context a young pharma company, LAB Pharmaceuticals has approached Merck offering them to license one of their compounds called Davanrik. The company is in an uncomfortable financial situation and hesitates to launch the testing of this promising Davanrik, a drug whose use could be dual for weight and depression problems. Davanrik has already successfully completed the preclinical testing and has to complete the approval phases 1 to 3 and the final FDA approval. LAB proposed to Merck to be in charge of the approval of Davanrik, its manufacture and its marketing and would in exchange pay to LAB an initial fee,...

Words: 1029 - Pages: 5

Free Essay

Role of Power

...contemporary organizational issue you find intriguing. Use one field site or example for the entire paper. Also, be explicit about the level issue. For example, if you are using the concept of personality then it is an individual level issue. A list of concepts and their related levels is provided in a separate document. Focus of paper-related requirements: Outline: Submit a formal outline for your paper, complete with references. The purpose of the outline is to help you organize your content, which also results in increased clarity, improved logic, and better structure of the paper. There may be adjustments from this document to your final paper, but at this stage the paper should not require major revisions. Final Paper: Use a case study format for the structure of your paper. Identify and analyze issues using course concepts, and propose recommendations for the organization you are focusing on. Use of course concepts 1. Use a minimum of 8 concepts for the paper. Include a list of the concepts you used at the beginning of the paper. 2. Briefly define each concept you use within the text (a paragraph or two). 3. For each concept, write a diagnosis at one level (e.g., the person level). For example, you might write “The employee misses work frequently due to stress from conflict with her supervisor.” Note, stress and conflict would require definitions.) 4. For each concept, write a solution or solutions. Identify the level(s) you addressed in......

Words: 594 - Pages: 3

Premium Essay


...Calendar Overall for Case-Study Presentation & Mid-Term Exam – MGT 4760 (Strategic Management) Sem 1, 2012/2013 Sec 8 (M-W) No. | Week | Topics | Class Day | Date | Schedule | Details | | 1 | Chapter 1: The Nature of Strategic Management | 1- Mon 2- Wed | 10/912/9 | | | | 2 | Chapter 2: The Business Vision and Mission | 3- Mon 4- Wed | 17/919/9 | | | | 3 | Chapter 3: The External Assessment | 5- Mon 6- Wed | 24/926/9 | | | | 4 | Chapter 4: The Internal Assessment | 7- Mon 8- Wed | 1/103/10 | Quiz 1 (Chapter 1.2.3) | | | 5 | Chapter 4: The Internal Assessment | 9- Mon 10- Wed | 8/1010/10 | | | | 6 | Chapter 5: Strategies in Action | 11- Mon 12- Wed | 15/1017/10 | | | | | BREAK(22/10 – 28/10) | 13- Mon 14- Wed | 22/1024/10 | | | | 7 | Chapter 5: Strategies in Action | 15- Mon 16- Wed | 29/1031/10 | Case Presentation Session 1Case Presentation Session 2 | Group 1:L: Lia Hilaliah (Case Study 3)Group 2:L: Mas Syairah bte Mohamad (Case Study 5) | | 8 | Chapter 6: Strategy Analysis and Choice | 17- Mon 18- Wed | 5/117/11 | | (Mid-Term Exam 7/11 Wednesday)Seminar Room 1.1 | | 9 | Chapter 6: Strategy Analysis and Choice | 19- Mon 20- Wed | 12/1114/11 | Case Presentation Session 3Case Presentation Session 4 | Group 3:L: Mohamed Sheikh (Case Study 9) Group 4:L: Izzati Nor binti Salleh (Case Study 14) | | 10 | Chapter 7: Implementing Strategies: Management and......

Words: 418 - Pages: 2

Premium Essay

Ob, Arctic Minings Consultants, Case Study

...ARCTIC MINING CONSULTANTS Case Synopsis Arctic Mining Consultants is a mining company that deals with mineral exploration. In this case study, the project given is staking 15 claims in Eagle Lake, Alaska. The project Manager was Tom Parker, who has a wide experience and specialized knowledge in all nontechnical aspects of mineral exploration. He is a geological field technician and field coordinator for Arctic Mining Consultants. He assigned his previous field assistants John Talbot, Greg Boyce and Brian Millar to help him complete the project. The job required them to stake at least 7 lengths each day in order to be completed on time. However, the whole team has became very tense and agitated, especially Tom Parker, as the deadline was just around the corner and there’s still many to be finished within the limited time. The problem became worse with the way Tom managed and treated his team. The only motivation to the team was the $300 bonuses promised by the company when the job is done on time, otherwise, they might wished to give up already. This happened because working as a field assistant and in long-working hours only giving them low wages, which is considered unreasonable compared to what they have to do. During the eight hard days, everything had actually proved the strengths and weaknesses of each of the team members, including Tom. Case analysis symptoms 1) What symptom(s) exist in this case to suggest that something has gone wrong? The symptom(s) to......

Words: 2346 - Pages: 10

Premium Essay

Case Study Sample

...Running head: CASE STUDY XYZ Case Study XYZ: An Examination of Project Procurement Management Practices Group 12 John Doe Jane Smith Bobbie Sue University of Maryland University College Project Procurement Management, Semester XXXX, Section XXXX Professor Stephen R. Guth MMMM DD, YYYY [No Abstract or Introduction required for this assignment] The Inception Phase Rating Scale: 5—Excellent, 4—Very Good, 3—Good, 2—Poor, 1—Very Poor |Project Management Area |Inception Phase | |Scope Management | | |Time Management | | |Cost Management | | |Quality Management | | |Human Resource Management | | |Communication Management | | |Risk Management | | |Procurement Management | ...

Words: 804 - Pages: 4

Premium Essay

Organizations Conflicts

...policy. 2) Employee conditions: a. Lack of motivation  b. Compensate for low wages by over indulgence of free food allowance c. High turnover rate due to availability of high application rates. d. Employees are mostly college and high school students e. Lack of respect for managers. f. No incentive to increase motivation. In the case study Perfect Pizzeria, the area supervisor has many problems that need his attention. The largest appears to be the organization. In this case study I will assume that the area supervisor has the authority to affect change within his organization (i.e. he is the franchise owner). Being in an area with few job opportunities should give him the perfect opportunity to recruit bright, ambitious, and motivated people to staff his pizzerias. How can the area supervisor change his organization to achieve a more fluid corporate culture? I think this change can be achieved by human resource changes, structure changes, motivational changes, and reward for good performance as well as accountability for poor performance. Each one of these areas will require a change from the corporate level. For the sake of my case study I am going to assume that the area supervisor (franchise owner) can lobby to achieve this change within the organization. The first area to look...

Words: 445 - Pages: 2

Free Essay

Why Financial Intermediaries Exist

...letters in industry or for a class, knowing your purpose and audience will help determine what information to include. Generally, business letters follow a particular format, although your instructor or company may require you to use alternative formats. This guide provides writers with an introduction to writing business letters. Case Studies: This guide examines case studies, a form of qualitative descriptive research that is used to look at individuals, a small group of participants, or a group as a whole. Researchers collect data about participants using participant and direct observations, interviews, protocols, tests, examinations of records, and collections of writing samples. Starting with a definition of the case study, the guide moves to a brief history of this research method. Using several well documented case studies, the guide then looks at applications and methods including data collection and analysis. A discussion of ways to handle validity, reliability, and generalizability follows, with special attention to case studies as they are applied to composition studies. Finally, this guide examines the strengths and weaknesses of case studies. Desktop Publishing: Desktop publishing is the process of laying out and designing pages with your desktop computer. With software programs such as PageMaker and Quark Xpress, you can assemble anything from a one-page document to a...

Words: 795 - Pages: 4

Premium Essay

Brussels and Bradshaw

...Brussels and Bradshaw In response to the case study, Brussels and Bradshaw is a well-established financial institution that offers their clients competitive and innovative solutions for their community and work environments. The banking institution offers a summer internship to bright and driven individuals. The internship includes 14 weeks of very intense training and long hours. Interns are paid $20,000 for the contract. During the screening process, out of all the possible candidates Audrey Locke was selected. Audrey has some experience as an assistant, assurance analyst and financial planning analyst. Brussels and Bradshaw is operating in more than 25 countries globally; this case study takes place in Toronto. Many behavioral issues in the Brussels and Bradshaw institution are unprofessional and stressful. Job stress is defined as feeling one’s capabilities, resources, or needs that do not match the demands or requirements of the job (Hitt, Miller, & Colella, 2011 p. 249). Working 70 and 80 hours per week or possibly 120 hours will put a major burden on anyone, especially someone new to the working environment. Audrey is excited with her internship and very eager to learn. She is assigned a mentor and buddy by the business development manager, Kelly Richards. Kelly has 10 years of experience. Although associates consider her human resources, Kelly’s job is strictly administrative. Audrey is never introduced to her mentor and her buddy, Christine Page is......

Words: 509 - Pages: 3

Premium Essay

Coach Purses

...Business case studies determine and define the primary issues that a company faces in the modern world market. A well designed business case study can provide a detailed contextual analysis of limited conditions and their horizontal relationships to other entities. In the case of Coach, they are an international clothing accessory company with a reputation of making pristinely handcrafted items with unique designs and a label that represents over seventy years of craftsmanship. In order to fully understand Coach’s business model, empirical data must be collected and analyzed to include the historical and current financial statistics, an in-depth analysis of the company overall, an analysis of the company’s business model, and finally current issues and future forecast that affect the longevity of the enterprise. By studying the history of Coach, both investors and those with an interest in the company can gain insight into key factors that motivate company decisions. Background/History The history of Coach starts in 1941 in a small family run leather workshop with six primary artisans in Manhattan that had skills passed down from generation to generation. It was not long until leather good become sought after for their high quality and workmanship. Through the guidance of the longtime and current CEO, Lew Frankfort, Coach expanded their business from just 6 million dollars 30 years ago to current sales exceeding 3.6 billion dollars. (Coach, 2012) From 1941 to present, the...

Words: 1026 - Pages: 5

Premium Essay

Muller Case Study

...Case Studies and Exercises Lecture 2. The Rise of Multinational Companies Case: MUELLER: China Bound? (A), (B) and (C). (308-358-1, 308-359-1 and 308-360-1). Discussion Questions: 1. What are the primary ownership advantages of Mueller? 2. What are the major ways in which Mueller could serve the China market? 3. What are their primary advantages and disadvantages?? 4. If Mueller decided to invest in China, what would be the main functions of its subsidiary? 5. How could the risks involved in the FDI to China be managed? Lecture 3. The Myth of the Global Company Case: Lafarge: From a French Cement Company to a Global Leader (304-019-1) Discussion Questions: 1. What are the main characteristics of Lafarge’s internationalisation strategy and competitive competences and how do these differ from those of other cement companies such as Cemex and Holcim? 2. What were the assumptions underlying Lafarge's strategy and how justified were these? 3. To what extent is Lafarge a French company with foreign operations, as distinct from a global MNC, and how is it likely to develop as a MNC? 4. What are the implications of Lafarge’s growth for the internationalisation of other French firms? Lecture 4. Competing Capitalisms in the 21st Century Case: Messier's Reign at Vivendi Universal (9-405-063) Discussion Questions: 1. What was Messier's strategy in transforming CGE into Vivendi, what assumptions was it based on and how justified were these? 2. What does this transformation reveal about......

Words: 961 - Pages: 4

Free Essay

Research Case Study: Vodafone's Youth Market

...Research Case Study: Vodafone's Youth Market | | INTRODUCTION This case study will explain how the highly competitive telecommunications market lead Vodafone to set up an on-going 'panel' of respondents to give them a greater understanding of the youth market. THE CLIENT Vodafone is probably the biggest success story of the telecommunications market, becoming a household name with a penetration of 29% (TNS Telecoms panel Q3 2001) of the mobile phone market. Vodafone's media and planning agency, OMD UK plays an important strategic role in terms of researching the commercial market. THE CHALLENGE Operating in such a highly competitive industry meant that Vodafone had to look at new ways of researching how it could best profit from the hugely competitive youth market. The youth market is defined as anyone aged between 16-24 years old. Currently 90% of all 16-24 year olds own a mobile phone in the UK, amounting to 6.1m people in the UK. THE SOLUTION OMD UK, along with 2CV Research, recruited a panel of volunteers who receive monthly questionnaires over a long-term period in order to build up a profile of habits, attitudes and opinions of the young Vodafone user. The panel is made up of 200 respondents, all of whom must have an email address and a mobile phone (this is 85% of the youth market), and is maintained by 2CV. Questions sent out every month cover a whole range of areas, not just telecommunications. The idea is to build a very comprehensive picture of...

Words: 841 - Pages: 4