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15 Aug 2022, 06:25
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The vaccine Fluvax has been developed by the company DTI Biotechnology Inc. Currently the vaccine is manufactured at the company’s own facilities at Vaccitown located in a developed country. However, as in other towns in developed countries, the labor costs at Vaccitown are pretty high, making the vaccine unaffordable for many underdeveloped countries. In order to extend the market of Fluvax in underdeveloped countries, the management of DTI Biotechnology is searching for partners in underdeveloped countries, who can manufacture the vaccine on behalf of DTI at cheaper costs for the local market.
Which of the following, if true, most seriously raises doubt about the success of the plan of the management of DTI ?
A. There are numerous companies in underdeveloped countries, who are capable of manufacturing vaccines such as Fluvax.
B. Currently all of DTI’s operations are handled in-house by DTI’s own staff.
C. Manufacturing at a partner’s facility requires transfer of knowledge to the partner that bears the risk that the partner at some point may manufacture independently.
D. The partner cannot attract any expert staff from DTI who are currently involved in manufacturing of Fluvax, because the salaries in underdeveloped countries are much lower.
E. A competitor of DTI for another vaccine called Gardisol targeted at a different disease, is also searching for partners in underdeveloped countries to capture the market of Gardisol.
Which of the following, if true, most seriously raises doubt about the success of the plan of the management of DTI ?
A. There are numerous companies in underdeveloped countries, who are capable of manufacturing vaccines such as Fluvax.
B. Currently all of DTI’s operations are handled in-house by DTI’s own staff.
C. Manufacturing at a partner’s facility requires transfer of knowledge to the partner that bears the risk that the partner at some point may manufacture independently.
D. The partner cannot attract any expert staff from DTI who are currently involved in manufacturing of Fluvax, because the salaries in underdeveloped countries are much lower.
E. A competitor of DTI for another vaccine called Gardisol targeted at a different disease, is also searching for partners in underdeveloped countries to capture the market of Gardisol.
15 Aug 2022, 06:25
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Official Solution:
The vaccine Fluvax has been developed by the company DTI Biotechnology Inc. Currently the vaccine is manufactured at the company’s own facilities at Vaccitown located in a developed country. However, as in other towns in developed countries, the labor costs at Vaccitown are pretty high, making the vaccine unaffordable for many underdeveloped countries. In order to extend the market of Fluvax in underdeveloped countries, the management of DTI Biotechnology is searching for partners in underdeveloped countries, who can manufacture the vaccine on behalf of DTI at cheaper costs for the local market.
Which of the following, if true, most seriously raises doubt about the success of the plan of the management of DTI ?
A. There are numerous companies in underdeveloped countries, who are capable of manufacturing vaccines such as Fluvax.
B. Currently all of DTI’s operations are handled in-house by DTI’s own staff.
C. Manufacturing at a partner’s facility requires transfer of knowledge to the partner that bears the risk that the partner at some point may manufacture independently.
D. The partner cannot attract any expert staff from DTI who are currently involved in manufacturing of Fluvax, because the salaries in underdeveloped countries are much lower.
E. A competitor of DTI for another vaccine called Gardisol targeted at a different disease, is also searching for partners in underdeveloped countries to capture the market of Gardisol.
A. This option actually strengthens the plan of DTI, because DTI would be able to exploit the competition among the numerous manufacturers, possibly settling for a cheaper manufacturing cost.
B. The current strategy of staffing does not affect the success of DTI from partnering in underdeveloped countries.
C. CORRECT. If a partner starts manufacturing independently, then DTI will not be able to extend its market in underdeveloped countries. The partner will then market Fluvax as its own product.
D. This option is an advantage for DTI because this statement assures that in order to capture new markets in underdeveloped countries, the current market of DTI will not be adversely affected by migration of expert DTI staff to the partner.
E. This option is irrelevant for DTI’s plan because Gardisol’s success has no bearing on the success of Fluvax since Gardisol is targeted at a different disease. If DTI were searching for a partner for manufacturing Gardisol then this option would be relevant.
Answer: C
The vaccine Fluvax has been developed by the company DTI Biotechnology Inc. Currently the vaccine is manufactured at the company’s own facilities at Vaccitown located in a developed country. However, as in other towns in developed countries, the labor costs at Vaccitown are pretty high, making the vaccine unaffordable for many underdeveloped countries. In order to extend the market of Fluvax in underdeveloped countries, the management of DTI Biotechnology is searching for partners in underdeveloped countries, who can manufacture the vaccine on behalf of DTI at cheaper costs for the local market.
Which of the following, if true, most seriously raises doubt about the success of the plan of the management of DTI ?
A. There are numerous companies in underdeveloped countries, who are capable of manufacturing vaccines such as Fluvax.
B. Currently all of DTI’s operations are handled in-house by DTI’s own staff.
C. Manufacturing at a partner’s facility requires transfer of knowledge to the partner that bears the risk that the partner at some point may manufacture independently.
D. The partner cannot attract any expert staff from DTI who are currently involved in manufacturing of Fluvax, because the salaries in underdeveloped countries are much lower.
E. A competitor of DTI for another vaccine called Gardisol targeted at a different disease, is also searching for partners in underdeveloped countries to capture the market of Gardisol.
A. This option actually strengthens the plan of DTI, because DTI would be able to exploit the competition among the numerous manufacturers, possibly settling for a cheaper manufacturing cost.
B. The current strategy of staffing does not affect the success of DTI from partnering in underdeveloped countries.
C. CORRECT. If a partner starts manufacturing independently, then DTI will not be able to extend its market in underdeveloped countries. The partner will then market Fluvax as its own product.
D. This option is an advantage for DTI because this statement assures that in order to capture new markets in underdeveloped countries, the current market of DTI will not be adversely affected by migration of expert DTI staff to the partner.
E. This option is irrelevant for DTI’s plan because Gardisol’s success has no bearing on the success of Fluvax since Gardisol is targeted at a different disease. If DTI were searching for a partner for manufacturing Gardisol then this option would be relevant.
Answer: C
