If a firm keeps on offering drugs at a reduced price

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particular segment is effectively addressed. If a firm keeps on offering drugs at a reduced price the quality is likely to be compromised exposing the community to more danger. The company used horizontal integration to serve more markets segments in all target markets with the aim of offering quality at a reduced cost. The company wanted to attain high bargaining power as a result of increased customer satisfaction and not increasing prices so that profits margins may increase. The element of raising prices was made to ensure that operations took place in an effective manner without any interruptions .It is better to offer quality products at an increased price rather than offering low- quality products at the same price over and over again yet the company is committed to delivering quality products to all customers. Based on your awareness of the firm and the issue raised in this assignment, what must the firm do to improve its performance and long-term sustainability? As appropriate, refer to strategic management theory and the evidence from the case to support your assessment . To improve performance Valeant should ensure that all employees in the company are highly motivated and given an opportunity to evaluate the viability of the set strategy. Also, the company needs to work on how to attain specialization. The company can pick up all well- performing products and capitalize on its production. Specialization will reduce the increased competition got from generic drugs producing companies. Continued evaluation and monitoring is another way of ensuring success is achieved. Continuous monitoring and evaluation keep the company in the right track since all deviations from the set objectives can easily be noted and the right action put in place to ensure all set objectives are achieved. The management of the
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8 company should also display signs of change and how change will impact both the company employees. Failure to demonstrate to the employee why expansion strategies are important then resistance is likely to be experienced in the entire company. Valeant outlines that the company is not in a position to manage business is large complexes .Thus, Management of growth is another way of supporting activities of the company. The management should work on how to manage all new acquisition and pump in more resources until they stabilize and conduct operations in a normal way. All acquisitions effective and on a timely manners. Research and development should always be dedicated to the development of new and competitive products in the market. Valeant is not in position to develop competitive products which are not subject to patents. The company has been experiencing decline in product prices and volumes as a result of third party distribution systems .Therefore through research the company will be in a position to determine the right distribution channels.
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  • Fall '19
  • multinational company, Valeant Pharmaceuticals International

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