Shareholder value is the main goal of the company

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can gain enough finances to fund all development projects. Shareholder value is the main goal of the company since if such value is increased the possibility of attracting more shareholders is high leading to more ventures and developments in the entire company. The strategies put in place are aiming at reducing costs of operation and maximize profits which can be used in more expansion activities and paying shareholders attractive returns. The strategies put in place by the firm are appropriate since they offer an opportunity for the firm to expand its operation. The core strategy is to attain increased sales at a reduced price. Resources channeled into operations keeps the company in a better position in the entire strategic groups since it is in a position to increase operations.
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3 Identify and explain the forces that have shaped the company and defined its current place in the marketplace. Determine and discuss whether the firm faces more challenges than opportunities in its market There are various factors which influence success in any organization. Valeant Pharmaceuticals International, INC has been influenced by political, economic, social, environmental and legal factor. Various governments have put in place various regulatory requirements which require the company to spend a lot of time and resources. Valeant Pharmaceuticals International, INC operates in countries like America, Canada, and Britain and governments have set tough regulatory measures .Failure to comply with the set government regulation the company risks attracting civil penalties, product recall, and warning letters. Also the company is always subject to U.S. federal and state health care marketing and fraud and abuse regulations which prevent the company from any unlawful activities such as engaging in fraud. The pharmaceutical industry is regulated by the government when it comes to price control thus Valeant Pharmaceuticals International; INC cannot attach prices higher than the set government price line. The prices offered by the company are fair and thus why the company is competing effectively on the market since it is eyeing on reduced productions costs. Environmental factors also influence the company since it has to comply with all environmental factors set by different countries of operations. The company is not aware of any future changes which may take place regarding environmental protection. Thus the company
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4 keeps on investing what is happening in the environmental world something which may result in massive cost if regulation does not favor company operations. Some of the economic factors affecting the company include massive trade union activities from employees in countries like America. The company has maintained positive relationships with employees, and it has not experienced any workers to strike or go slow. The company market position has been highly influencing by continued employee management efforts. Business cycles also influence the company since sales are not continues due to fluctuations in incomes and economic cycles (Valeant, 2014). Social factors play a key role in
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  • Fall '19
  • multinational company, Valeant Pharmaceuticals International

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