The company has complied with all government

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The company has complied with all government regulation, and it is ready to conduct activities in various parts of the world without any limitation. There is massive competition from other companies in the industry. Generic pharmaceutical is posing a huge competition for the company due to effective management of patents. The company is not in a position to undertake acquisitions effectively. The success rate of new acquisitions is low; therefore subjecting the company to risks of failure if all expansion strategies fail to materialize as they are planned. The element of tax in the foreign nation is another area of risk facing the company. Different countries have different tax policies, and profitability may vary depending on the existing tax policies.
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6 Identify and explain the organizational architecture that Valeant has adopted. Explain how this structure has contributed to its strategy and operational performance. Valeant has adopted a Team-based Organizational Structure which gives all employees an opportunity to contribute to running the organization. Employees are treated effectively, and the company has no record concerning employee strikes or go-slows. The company has implemented all labor-related regulation and thus why the company has been in operation for quite a period. Proper employment terms have made it possible for the company to employ close to 16,800 employees as at 31 st Dec 2014(Valeant, 2014). With the right number of employees in place, the company is in a position to deliver business on core geographies and therapeutic classes and attain high sales with minimum expenses in place. Operation performance of the company is fair because it is recording profits while at the same time it can also fund most of the expansion activities. Through Team-based Organizational Structure the company can integrate all suppliers and coordinate efforts with all inventory personnel to ensure smooth production takes place effectively. The production activities take place as a result of effective coordination made by all parties to ensure the main business strategy is achieved. Based on your reading of the company’s documents and the issue of raising prices relative to volume, did Valeant act in a socially irresponsible manner, or were its actions consistent with what the theory suggests a firm should do to sustain its market segment? Did it use horizontal integration to increase its bargaining power, and therefore had more power to raise prices and profits? Discuss. In the real-life situation if the price of production is high, then the price of the output product is expected to remain high so as operations may continue. Valeant acted ethically because lowering the prices would lead to decreased operations resulting in a shortage of drugs
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7 which is more dangerous compared to high priced drugs. Sustaining a market means that the firms should be in a position to supply drugs at all times and ensure that the demand in that particular segment is effectively addressed. If a firm keeps on offering drugs at a reduced price
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  • Fall '19
  • multinational company, Valeant Pharmaceuticals International

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