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TEVA case study In this presentation, we’ll analyze the strategy of the multinational TEVA which is a globalcompany specialized in the pharmaceutical sector. We’ll discuss here concerning the critical successfactors related to the given industry. Then we’ll resume the reasons why Teva should develop seriesacquisitions, this with an international point of view. Then, we’ll compare the two strategiesdeveloped by Mylan and Allergan and list their differences. To pursue, we’ll go through theinternationalization strategy followed by the multinational in order to give recommendations. Justafter, we’ll draw up a financial analysis with some key financial indicators. This analysis helped us togive some conclusions prior the acquisition of Allergan’s generic business. Finally, let’s assess theacquisition of Allergan’s generic business based on three factors which are suitability, acceptabilityand feasibility. For the last part, we’ll focus on the AI strategy related to TEVA, we’ll give ouropinions and why we recommend to do this or that, to see things accordingly. 1) What are the critical success factors in the industry? This part discusses the critical success factors in the multinational pharmaceutical company calledTEVA, which is an Israel-based company now considered as the world’s largest. They expanded their position by becoming more diversified with the acquisition of new markets allover the world since some years. However, we can already noticed that this newness in theorganization has lead to some disappointing performance at the beginning. With some figures, TEVAdefinitely looks as a big organization, it’s the fifth largest pharmaceutical company in the world. Theyare present in more than 120 countries, and when we think about generic medicines only they are thefirst one in the world. When the business started they have as an opportunity, the emerging market of USA and Europe forgeneric medicines. After some acquisitions from these two strategic parts of the globe, TEVA quicklygained their premium position. They became really competitive on the market thanks to a dualapproach of aggressive acquisition of competitor generic companies and diversifying the companyinto over-the-counter medicines. They also took advantage of their joint venture passed with Procterand Gamble. Moreover, they employed high qualified employees by hiring them from their own competitors. “Weare welcoming many of Cephalon’s talented employees into the Teva family. The combination of our
two winning teams will position Teva to create maximum value for our patients and customers.’Theiradvantage is a perfectly controlled pricing policy since the least profitable products are eliminated,while price increases have been applied for others.TEVA also controls its production costs since thecompany achieves economies of scale by reducing costs by 1.5 to 1.5 percent. Their spending oninnovation is optimal and focuses on high-value generic products. Besides, the company is gradually