Essay Available:
Pages:
4 pages/≈1100 words
Sources:
3
Style:
APA
Subject:
Management
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 19.44
Topic:
MBA 699 (5-1)
Essay Instructions:
MBA 699 Milestone Three Guidelines and Rubric
Scenario
You are a business development manager reporting to the vice president (VP) of business development at one of the largest life sciences organizations in the Midwest. The owners are ready to sell the organization and have identified a potential buyer.
You have been working with the strategic planning team to ensure that the acquisition process is as smooth as possible and all necessary documentation is in place. You have also been asked to recommend strategies to help lead the organization through the changes that will occur after the acquisition.
Last week, while planning was underway, your VP called a meeting to share that the potential buyer is showing signs of reluctance and the deal may not go through. It has been decided that you will research an alternative buyer and develop a contingency plan. This contingency plan is an important part of your strategy and your final acquisition report to the board of directors.
You and your team did preliminary research into competitors in the life sciences industry to identify alternative buyers. Based on the research, the VP has shortlisted a few alternative buyers. You have now been asked to choose and evaluate the best option from the list and create a report about this organization’s current situation.
You and your team have also been asked to formulate an acquisition road map that lays out the action steps and timelines necessary for the execution of the acquisition process.
Prompt
Alternative buyer research report: Recommend one potential buyer for the organization in the scenario from the alternative buyer options list provided and justify your choice. Visit the company’s website and research its market and financial situation.
Explain your recommendation by addressing the following selection (and rubric) criteria:
Current market: Describe the current market of the selected organization.
What types of products does this organization manufacture?
Who are its customers?
In which industry does it compete?
Financial situation: Analyze the organization’s financial situation, including revenue, expenses, and profitability.
Recent developments: Visit your selected organization’s website and review its news and announcements over the past year. What notable recent events has the organization experienced that might make it more or less attractive to your organization as a buyer? Explain your reasoning.
Buyer rationale: Justify why this potential buyer is the best option for the life sciences organization. Use data from your research to support your rationale.
Acquisition road map: Develop an acquisition road map as a tool for sharing the project with the strategic planning team and the guiding coalition.
Specifically, you must address the following criteria:
Acquisition-related tasks:
Describe the tasks and steps that have already been taken toward an acquisition since you were appointed to the strategic planning team.
Recommend the tasks and steps that would need to happen over the next one to two years to evaluate and complete an acquisition. For each task and step, provide estimates for how long it will take to accomplish it, the responsible parties, and any dependencies.
Gantt chart: Using the provided template, create a Gantt chart that visually illustrates the tasks and steps that you’ve indicated above. Cells A1, A2, H2, B3, C3, D3, E3, F3, G3, and H3 have instructional comments embedded that will assist you in completing the template. These comments are visible when you select these cells. To use the template, replace the bracketed text and Xs with the relevant information. (Note: You can copy the chart to include it in the road map document.) Your chart should include the following:
Indicate tasks and steps that have already been completed since you were appointed to the strategic planning team. For example, be sure to include guiding coalition, industry, and competitive research aspects.
Indicate "in process" tasks and steps that are currently being performed.
What to Submit
Submit a 4- to 6-page Word document (including relevant Gantt charts), using double spacing, 12-point Times New Roman font, and one-inch margins. Sources should be cited according to APA style. Consult the Shapiro Library APA Style Guide for more information on citations.
Essay Sample Content Preview:
Alternative Buyer Options
Student Name
Institutional Affiliation
Course Name & Code
Instructor Name
Date
Alternative Buyer Options
Current Market
This paper recommends Johnson & Johnson as the buyer for the acquisition plan. The multinational's global market operates in 60 countries and has 275 subsidiariesCITATION Joh \l 2057 (Johnson & Johnson, 2023). Johnson & Johnson has subdivided the market into two segments – innovative medicine and MedTech. Innovative medicine focuses on developing drugs for infectious diseases, neuroscience solutions, oncology, hypertension, and immunology. On the other hand, MedTech deals with technological solutions for diagnosis and treatment. Products focus on orthopedics, surgery, and electrophysiology CITATION Joh \l 2057 (Johnson & Johnson, 2023).
Customers include patients, healthcare organizations, and governments. Patients may purchase products in pharmacies. On the other hand, healthcare organizations and governments engage Johnson & Johnson directly for major purchases CITATION Joh \l 2057 (Johnson & Johnson, 2023). In terms of industry, Johnson & Johnson operates in the pharmaceutical and medical technology industries. Operations in the pharmaceutical industry are through the development and sale of drugs CITATION Joh \l 2057 (Johnson & Johnson, 2023). On the other hand, medical technology is used through the provision of equipment for disease diagnosis and treatment.
Financial Situation
Johnson & Johnson has recorded a steady gain in revenue over the past three years. Revenues have grown from $78,740m in 2021 to $79,990m in 2022 and $85,159m in 2023 CITATION Joh \l 2057 (Johnson & Johnson, 2023). In terms of expenses, selling, marketing, and administrative expenses account for the largest portion. The expense averages over $20,000 in the three years under review. The second largest expense comprises research and development expenses. The expenses are $15,000 on average. A common factor is that the aforementioned expenses have increased over the past three years. Further, the income statement indicates that the provision for income taxes increased sharply between 2021 and 2022. The provision was $1,377m in 2021, $2,989m in 2022 and $1,736m in 2023 CITATION Joh \l 2057 (Johnson & Johnson, 2023).
Gross profitability has been stable since the multinational posted $55,338m in 2021, $55,394m in 2022, and $58,606m in 2023. Notably, the value of net earnings has increased significantly over the past three years. The figure was $20,878m in 2021, declined to $17,941m in 2022, and rebounded to $35,153m in 2023 CITATION Joh \l 2057 (Johnson & Johnson, 2023). A similar trend is present for earnings per share since the figure was $7.81 in 2021, $6.73 in 2022, and $13.72 in 2023. In terms of assets, Johnson & Johnson has an asset base of $167,558m, with total shareholders' equity being $68,774m. Cash and cash equivalents have increased over the past three years. The...
Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now: