According to the first class‚ the power point showed that the pharmaceutical industry is the most profitable industry. Based on the Porter’s five forces model‚ there are convincing explanation why the pharmaceutical industry has big profitability. For the threat of new entrants perspective‚ it is high. The pharmaceutical industry has a big barrier to prevent newcomers to enter this industry such as R&D costs‚ patents limitation‚ the long length of clinical time‚ the percentage of FDA to approve drug
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organisations long term strategy and the behaviour of the Markets‚ and its competitors. Horizontal expansion as well as other forms‚ can occur in a number of methods‚ this includes firm spending its own profits to expand its business or by acquisitions and mergers with companies operating in the same stage of the vertical production chain. This can be in the same market or in markets in other countries for example the takeover of O2 by a Spanish company called Telephonica. This strategy of expansion
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QUESTIONS AND ANSWERS 1. Evaluate the internal and external environment and analyze major obstacles to making this merger successful. To answer satisfactorily this question‚ students must prepare‚ at a minimum‚ the weaknesses (internal) and threats (external) parts of a SWOT analysis. Students‚ based on their educational and professional background‚ may create many obstacles‚ but the major strategic issues are outlined below: Internal Obstacles a) Culture--Started in 1983‚ America
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Vodafone will unlikely be allowed‚ from an antitrust perspective‚ to merge with Mannesmann after the acquisition of Orange; Vodafone already has a market share in the UK of 35%; including the Mannesmann-‐Orange merger it would add up to 53%. In addition‚ the shares of the Investment Fund is locked-‐up for
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stagnating and challenging for Carlsberg‚ especially due to the financial instability in the world markets. When investigating this‚ there have been used internal and external analyses. Due to Carlsberg’s current strategy concerning growth and expansion‚ merger theory has been taken into account as well. The Western and Northern European market is a market where Carlsberg faces great challenges and it is therefore important for them to maintain market share. One objective in Carlsberg’s strategy is to lower
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of growth of the company would transpire outside of India. In 1975‚ Mittal Steel began expanding across national borders by creating and building a steel making plant in Indonesia (Hill‚ 2011). Mittal Steel expanded into different nations through mergers
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When do vertical mergers create value? This paper studies the market reaction to vertical mergers and explores the many rationales for vertical integration proposed in the industrial organization literature. Abnormal returns for vertical merger announcements are positive until the late 1990s‚ and turn negative afterward. Acquirers suffer most of the losses. We find support for the most fundamental insight in the industrial organization literature‚ namely‚ that vertical mergers generate the greatest
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Final Paper: Option 1 MHA 612 Financial & Managerial Accounting Executive Summary The Report describes a proposal for the group of 20 of doctors with regard to the creating a hospital. Due to the 500‚000 population of the city $100 million dollars would actually be a great start. Because the facility would be located 30 miles from the downtown area it would allow the facility to attract patients without being crowded. On the downside this affects its financial position
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obtaining full control of its brewery business by acquiring Orkla’s 40% shareholding in Carlsberg in 2004. In 2008 Carlsberg and Heineken acquired the English brewery Scottish & Newcastle as a part of their internationalization process. This acquisition was by far‚ the largest transaction in the Carlsberg history. All Scottish & Newcastle activities
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activities besides recording transaction for business and readying financial statements which include computing costs and the efficient gains from new technologies that businesses use. Accountants participate in game plans for consolidations and acquisitions‚ quality management‚ creating and using information to track financial change‚ tax strategy‚ and management benefits for people with heathcare. (http://www.careers-in-accounting.com/ac.htm) There are many different types of accountants. There
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