Homework Help is Here – Start Your Trial Now!
Business
Management
How will the change in structure affect the relative power of the different functions? Give reasons How does the establishment of HMOS affect the resource dependence and power of Kanke Pharma? What can be done to manage this dependence?

How will the change in structure affect the relative power of the different functions? Give reasons How does the establishment of HMOS affect the resource dependence and power of Kanke Pharma? What can be done to manage this dependence?

Understanding Business
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
See similar textbooks
icon
Related questions
Question
Q2: Kanke Pharma, a large well-established pharmaceutical company, made its name by pioneering innovative new drugs. Intense competition from other companies in the pharmaceutical industry, plus increasing government pressure to reduce the price of drugs, has put pressure on the company to reduce costs and speed up product development. In addition, the emergence of large health maintenance organizations (HMOS) and other large buyers of drugs has made marketing drugs much more difficult. To respond to these pressures, the organization has decided to create cross-functional teams composed of people from R&D, marketing, finance, and top management to respond to the new situation. a. How will the change in structure affect the relative power of the different functions? Give reasons b. How does the establishment of HMOS affect the resource dependence and power of Kanke Pharma? What can be done to manage this dependence?
Transcribed Image Text:Q2: Kanke Pharma, a large well-established pharmaceutical company, made its name by pioneering innovative new drugs. Intense competition from other companies in the pharmaceutical industry, plus increasing government pressure to reduce the price of drugs, has put pressure on the company to reduce costs and speed up product development. In addition, the emergence of large health maintenance organizations (HMOS) and other large buyers of drugs has made marketing drugs much more difficult. To respond to these pressures, the organization has decided to create cross-functional teams composed of people from R&D, marketing, finance, and top management to respond to the new situation. a. How will the change in structure affect the relative power of the different functions? Give reasons b. How does the establishment of HMOS affect the resource dependence and power of Kanke Pharma? What can be done to manage this dependence?
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Understanding Business
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
Management (14th Edition)
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract…
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
Management Information Systems: Managing The Digi…
Management Information Systems: Managing The Digi…
Management
ISBN:
9780135191798
Author:
Kenneth C. Laudon, Jane P. Laudon
Publisher:
PEARSON
Business Essentials (12th Edition) (What's New in…
Business Essentials (12th Edition) (What's New in…
Management
ISBN:
9780134728391
Author:
Ronald J. Ebert, Ricky W. Griffin
Publisher:
PEARSON
Fundamentals of Management (10th Edition)
Fundamentals of Management (10th Edition)
Management
ISBN:
9780134237473
Author:
Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:
PEARSON
SEE MORE TEXTBOOKS