GENZYME´S CSR DILEMMA: HOW TO PLAY ITS HANDS 1. INTRODUCTION Twenty years ago and earlier‚ with rare exceptions‚ the only corporate charity was a bit of gifting by the CEO‚ perhaps to the arts. Ten years ago‚ corporate philanthropy and volunteerism became popular as an a la carte add on. In these posts from the Clinton Global Initiative (CGI)‚ I am turning the spotlight on the avant garde of CSR: companies that make community and global problem-solving part of their business platform‚ thus
Premium Malaria Neglected diseases Project management
Case: Genzyme Corporation Problem: High equity financing company Genzyme has a tradition to be financed with equity. High equity ratio has advantages such as low agency costs related to debt‚ lower financial stress and more flexibility for management‚ which is especially crucial for start-up companies‚ such as in the early stage of Genzyme. However‚ besides losing the tax shield from debt‚ high equity financing leads to an increasingly diffused ownership‚ which would in turn causes problems such
Premium Stock market Information asymmetry Finance
CHAPTER 18 Investment Decisions: Ratios Test Questions 1.Income multipliers: a. are useful as a preliminary analysis tool to weed out obviously unacceptable investment opportunities. 2.The overall capitalization rate calculated on a potential acquisition: a. is the reciprocal of the net income multiplier. 3.The operating expense ratio: c. expresses operating expenses as a percent of effective gross income. 4.The equity dividend rate: b. expresses before-tax cash flow as a percent of the
Premium Mortgage Mortgage loan
INVESTMENT DECISION Tianfu Electronics Ltd is a midsized electronics manufacturer located in Chengdu‚ China. The company president is Dr. Wang Datong‚ a graduate from Tsinghua University‚ who founded the company 20 years ago. The company originally repaired radios and other household appliances. Over the years‚ the company expanded into manufacturing and is now a reputable manufacturer of various electronic items. Meng Xiaolan‚ a recent MBA graduate from Fudan University‚ has been hired
Premium Depreciation Cost Personal digital assistant
Chuck Jones aimed to have a new design decision process supported by data and surveys instead of a return or payoff on the investment approach. At first when he presented his idea‚ authorities requested poof and Mr. Jones was unable to show them proof. Then M. Jones started his process. 1. As a first step‚ he surveyed 15 "design-centric" companies‚ including BMW‚ Nike‚ and Nokia. To his surprise‚ few had a system for forecasting return on design 2. Mr. Jones needed to provide a new plan to focus
Premium Decision making
ENT4400 – SUMMARY + REFLECTION Case study: Genzyme‚ schilling‚ chapter 6 page 105-109 Summary of the case: Genzyme was founded in 1981‚ Sanofi purchased the company in 2011. They went public in 1986‚ raising 27 million dollars. Genzyme startet as a start up Company by scientists studying genetically inherited enzyme diseases. Their strategy didn’t focus on the “blockbuster drugs” like other biotechnology companies but drugs for rare diseases. To developing a drug‚ it takes 10-14 years at
Premium Pharmacology Pharmaceutical drug Biotechnology
Capital Investment Decision Strayer University Graduate Accounting Capstone ACC-599 September 28‚ 2013 Professor: Dr. Mary Johnson Abstract The Dodd-Frank Wall Street Reform and Consumer Protection Act‚ signed into legislation in July of 2010‚ by President Barack Obama‚ as a result of the financial crisis that began in 2008‚ which resulted in massive failure of large financial institutions‚ threatening the financial stability of the U.S.‚ as well as the global economy (Dodd‚ C.
Premium Net present value Capital budgeting Investment
Genzyme Corp. Genzyme Corporation operates as a biotechnology company worldwide. It focuses on rare genetic disease disorders‚ renal diseases‚ orthopedics‚ cancers‚ transplant and immune diseases‚ and diagnostic and predictive testing areas. Its leading drugs are Cerezyme‚ Fabrazyme‚ Myozyme‚ Aldurazyme‚ Elaprase‚ Renagel and Renvela‚ and many others. It has about 7‚000 employees. The current Chairman‚ President‚ & CEO is Henri A. Termeer. The company was founded in 1981 and is based in Cambridge
Premium Biogen Idec Biotechnology
from competition by focusing on orphan drugs. Also‚ the Orphan Drug Act provides 7 years of market exclusivity which virtually eliminates competition for Genzyme for at least a while. As an orphan drug‚ there is minimal threat of substitutes and potential entrants into the market‚ as explained above. Also‚ the nature of the drugs made by Genzyme are of a very critical nature; the drugs save lives of people with very rare genetic disorders. Considering these points‚ the bargaining power of customers
Premium Orphan drug Clinical trial Drug discovery
bonds for the short-term or the long-term depends on your investment goals and time frames‚ the quantity of jeopardy you are willing to take and your tax status. When considering a bond investment strategy‚ keep in mind the importance of diversification. As a universal rule‚ it’s by no means a good idea to put all your assets and all your risk in a single asset class or investment. You will want to expand the risks within your bond investments by creating a portfolio of a number of bonds‚ each with
Premium Investment Bond