Case Scenario 1: Compliance, Inc

question 45

Multiple Choice

Case Scenario 1: Compliance, Inc.
Compliance, Inc., (CI) conducts clinical human and animal trials for the pharmaceutical and biotechnology industries. Revenues are split evenly between early and late drug development services. While the bulk of its business is conducted in Europe and the U.S. (10 and 17 subsidiaries, respectively) , CI also has subsidiaries in Africa, Latin America, Asia, and Australia. Historically CI operated under a multidomestic strategy, owing to the fact that the clinical testing industry was geographically fragmented to meet the diverse needs of the many strong local pharmaceutical companies and distinct regulatory environments. CI's organizational structure truly reflected the autonomous character of each country's businesses. Many of the country managers have been with CI for over a decade, and have a great deal of discretion over the activities of their home-market businesses. However, globalization of the regulatory environment (both global and local standards) , globalization of the biotechnology firms (increasing the geographic scope of their operations) , and tremendous consolidation in the pharmaceutical industry (reducing the number of pharmaceutical industry participants to only a handful of major global companies) caused CI to question its multidomestic strategy. Consequently, the firm has begun its transition to a transnational strategy.
-(Refer to Case Scenario 1) Given its change from a multidomestic strategy to a transnational strategy, Compliance Inc. should change its structure from ___________ to ___________.

• A) worldwide product divisional; combination
• B) worldwide geographic area; combination
• C) combination; worldwide product divisional structure
• D) worldwide geographic area; worldwide product divisional

---

Definitions:

AIDS-Related Illnesses

Health conditions that are either directly caused by or significantly related to the Human Immunodeficiency Virus (HIV) and its progression to Acquired Immune Deficiency Syndrome (AIDS).

Youthful Suicide

The act of self-inflicted death by individuals in their youth or adolescence.

Social Integration

The process by which individuals are incorporated into the social structure, fostering unity and a sense of belonging within society.

Suburban Campus Settings

Educational environments located in the suburban areas that often feature expansive layouts and are situated outside of major urban centers.