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 proves to be successful as they have a strong market position and generate good profits. Therefore, the strategy passes the performance test. Additionally, the company's acquisition of a manufacturer of rare specialty drugs improves their competitiveness in the pharmaceutical industry, indicating that it passes the competitive advantage test. The involvement of a major automobile giant to fund the acquisition may seem unrelated or unfit initially, but successful results in the end prove that it did not hinder the company's success. Therefore, the strategy passes the fit test as well. Hence, option C is the correct answer.

A Pharmaceutical Giant Acquires a Manufacturer of Rare Specialty Drugs