A Pharmaceutical Giant Acquires a Manufacturer of Rare Specialty Drugs

Multiple Choice

A pharmaceutical giant acquires a manufacturer of rare specialty drugs to improve its falling share prices and invests all its wealth into the deal. Due to a deficit, it agrees to do a joint venture for the acquisition and involves a major automobile giant to fund the deal. After a rocky start, the companies now have a strong market position and generate good profits. How would you characterize this company's strategy?

A) It fails the performance test.
B) It fails the competitive advantage and the fit tests.
C) It is a winning strategy.
D) It fails in all three tests.
E) It fails the fit test but passes the competitive advantage and performance tests.