Marion Laboratories – Executive Summary
Marion Laboratories Inc. is a pharmaceutical company with selected segments in the health care and related fields. The strongest issue in this case is to decide whether Marion should keep or sell its subsidiary Kalo Laboratories Inc. to reach their main goal of company ?fairly rapid? growth. Marion has to evaluate the risks of maintaining or getting rid of Kalo, considering what they will now have to measure to successfully benefit form future profits and sales.
Marion?s corporate mission is to ?achieve a position of market leadership through marketing and distribution of consumable and personal products (?),? to achieve a ?long-term profitable growth through management of high risk relative to the external environment,? and to ?achieve a professional, performance-oriented working environment that stimulates integrity, entrepreneurial spirit, productivity and social responsibility.? In addition, they set a specific sales goal of $250 million with no time frame that should be attained to satisfy the stockholder expectations.
In 1979, Marion was divided into two separate groups: the pharmaceutical and the health product group. Marion?s subsidiary, Kalo, encountered in the health products group, operates in a ?specialty agricultural chemical market? that works on a cyclical environment: ?because Kalo did not have a well diversified product line
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