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Bayer ppt
- 1. Bayer Inc. Merging with Takeda Pharmaceutical Maureen, Mine, Alice, Tim & Tope
- 2. Over-view of Bayer & Takeda Bayer has its global office at Leverkusen Germany. The company comprise of over 302 consolidated companies in over 74 countries globally. Bayer mission is “Science For A Better Life.” Its valve is presented by the word LIFE “Leadership, Integrity, Flexibility and Efficiency. Takeda was established in June 1781 and incorporated in January 1925, with its headquarters in Japan. Has over 38,000 employee strength and over 260,784 shareholders Its business scope comprise R&D, production, distribution, marketing, export and importation of drugs
- 3. Over-view Of Germany Germany is a democratic country with multi-parties. The countries system of politics is in the constitution. Germany is the 3rd largest exporter and importer in the world. France, Netherlands and China are the top 3 trade partners. Getting license permits and credit may take a long period of time and getting loans have stiff procedures and these are major barriers to trading with Germany.
- 4. Over-View Of South Korea South Korea is officially known as Republic of Korea. Gained Independence in 1895. Has a mixed legal system, and the democratic republic consist of the executive, legislative and judicial branch Asia’s fourth largest economy with the largest GDP in the world. The economy is currently moving towards manufacturing and services. The country is a member of OECD, and it was ranked the world’s eighth largest exporter South Korea has a basic law concerning foreign investment which is FIPA (Foreign Investment Promotion Act) The country focuses on FTA (Free Trade Agreement).
- 5. Cultural Difference Germany South Korea Germans- 91.5%, Turkish 2.4% and 6.1 % other. South Korea- Korean English widely taught in junior high and high school Division of labor by gender in Germany , women are represented in all walks of life; both sexes have equal rights South Korea existence of male preference, huge gender gap in education institutions Homeland of protestant reformation, mostly protestant catholic dominated South Korea , majority opted to expressing no religious preference, largely protestant Christians, Buddhist catholic and other
- 6. Bayer Inc. Mode of Entry To Takeda Merger Justification for our entry mode Once worked with Bayer in 1907 South Korea culture model Takeda business culture Takeda most valuable assets.
- 7. Bayer Cost Of Investment The estimated cost of investment will be $36,000,000 as the company is worth $35,801,600 Breakeven Point Total fixed expenses Contribution margin % Therefore, using the following information as an annual estimation Total fixed cost 2,000,000 Sales capacity 7,000,000 Variable expenses 750,000 Contribution margin 89% Breakeven point= 2,000,000/89% = $2,247,191.
- 8. Pay Back Period year Cash flow ($) Net Invested Cash ($) 0 (36.000,000) 1 10,000,000 (26,000,000) 2 7,000,000 (19,000,000) 3 7,000,000 (12,000,000) 4 7,000,000 (5,000,000) 5 7,000,000
- 9. Investment Protection Strategy & Exit Mode Dedicate time and resources to obtain valid document of ownership Restrict access to files and documents to unauthorized individuals Create a strategic exit strategy for all agreement and investment Purchase a comprehensive insurance package that covers all aspects of business Implement stop loss on all stock in the event of price fall Exit through Initial Public Offer (IPO)