A pharmaceutical company is considering how best to supply the world market with vaccines used to immunise people against COVID-19. A manufacturing plant costs approximately A$10 billion to construct and requires a skilled workforce. The total value of the world market for this product over the next 5 years is estimated to be between A$3 trillion and A$5 trillion billion range. The trade barriers prevailing is substantially high in the industry. Should the firm favour centralised manufacturing or decentralised manufacturing? Discuss at least five factors that assist the firm to make this decision.
A pharmaceutical company is considering how best to supply the world market with vaccines used to immunise people against COVID-19. A manufacturing plant costs approximately A$10 billion to construct and requires a skilled workforce. The total value of the world market for this product over the next 5 years is estimated to be between A$3 trillion and A$5 trillion billion range. The trade barriers prevailing is substantially high in the industry. Should the firm favour centralised manufacturing or decentralised manufacturing? Discuss at least five factors that assist the firm to make this decision.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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