Reference no: EM132449170
Analytical Questions
1. Based on the case, what are the identified risks and rewards for Chris in terms of working with Nose-Clear?
2. What are the risks and rewards for Charlie in terms of working with Chris?
3. Below is a list of possible negotiable issues that can be used to structure a deal. Use these to create potential offerings for Charlie under each of the business structures (buyout, wholly owned subsidiary, joint venture, and buyer-supplier).
a) Be sure to articulate an ideal but realistic deal (your goal) and a minimally acceptable deal (your resistance point).
b) Are there any other issues that you could add to expand the pie?
c) Having looked at the different business structures, which one would you advocate and why?
d) Could you develop a hybrid structure for this partnership?
Negotiable issues (although each could potentially break down into sub-issues as well): -
- Ownership percentage of any jointly owned organization
- Royalties for sale of product
- Profit sharing on sale of product
- Licensing fee for services (marketing, clinical, and production)
- Pay for service
- Marketing support in terms of advertisement
- Branding support in terms of product
- Clinical tests on efficacy of product
- Production management of product
- Exclusivity in terms of markets and products, as well as subsequent deals
- Managerial control of the various business functions
- Introduction to key opinion leaders.
Discussion
Question 1: Given your choice of business deal, what information should you be looking for as the deal is executed in order to minimize your risk and maximize your return? Put differently, how will you identify whether your original business deal is optimal once you begin to work with Charlie?
Attachment:- Nose clear.rar