China Friendly Case

China Friendly Case - CHINA FRIENDLY PHARMACIES, Inc. (CFP)...

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CHINA FRIENDLY PHARMACIES, Inc. (CFP) CASE China Friendly Pharmacies, Inc. (CFP), a small pharmaceutical firm based in Beijing, China, was currently gaining its strong foothold in the Chinese pharmaceutical trading business at the end of 2006. Its brand name CFP started to be accepted by the market. The firm, was organized into the pharmacy’s products (degenerative medicines) and groceries with a number of reliable suppliers. Mr. Richard Chen, the V.P. for Marketing, was confronted with the following major concerns of whether he should propose: (1) the close down of the chains of groceries which generated 50% of the firm’s sales; (2) the backward acquisition of a joint-venture manufacturing firm which produced degenerative medicines at a P/E (price/earning) multiple of 6 times; and (3) an international market expansion for pharmaceutical division to some ASEAN countries costing some $ 800,000. Figure 1 – Organization Chart of China Friendly Pharmacies, Inc. If the price was right, under Mr. Chen, there was going to be one more division, the degenerative medicine manufacturing division. He accompanied Mr. K. P. Tan several times in the negotiation process with American Degenerative Pharmaceutical, Inc. (ADP).
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China Friendly Case - CHINA FRIENDLY PHARMACIES, Inc. (CFP)...

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