Pfizer,a Pharmaceutical Company,has Proposed an Acquisition of Allergan,another Pharmaceutical Company

question 2

Multiple Choice

Pfizer,a pharmaceutical company,has proposed an acquisition of Allergan,another pharmaceutical company.The combined firm is expected to be able to streamline operations by eliminating overlap,and thus reducing costs substantially.What type of synergies are the most likely reason behind this merger?

• A)economies of scale
• B)vertical integration
• C)economies of scope
• D)monopoly gains
• E)efficiency gains

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Definitions:

Manual Work

Physical or labor-intensive tasks performed by humans, not machines or automation.

Operations Management

The area of management concerned with designing and controlling the process of production and redesigning business operations.

Inputs

Refers to the resources used in the production process, including raw materials, labor, and capital, essential for the creation of goods or services.

Outputs

The final products, services, or results that come from processes or activities within systems or organizations.