A pharmaceutical giant acquires a manufacturer of rare specialty drugs to improve its falling share prices and invests all its wealth into the deal. Due to a deficit, it agrees to do a joint venture for the acquisition and involves a major automobile giant to fund the deal. After a rocky start, the companies now have a strong market position and generate good profits. Which of the following regarding the company's strategy is true?

Question

Quizplus · Accepted Answer

The company's strategy of acquiring a manufacturer of rare specialty drugs and involving a major automobile giant to fund the deal has helped the companies attain a strong market position and generate good profits. Thus, it is a winning strategy that has built competitive advantage and delivered performance. It is not mentioned that the strategy fails any of the three tests. Therefore, option C is the correct choice.

A Pharmaceutical Giant Acquires a Manufacturer of Rare Specialty Drugs