Professor Mark Shanley
UIC – Liautaud Graduate School of Management
Instructions: This exam covers the Morepen Laboratories Ltd. (MLL) Case that was distributed through Blackboard last week. Please answer all four questions (and all the parts of each question).
The exam will be graded comprehensively on a 100 hundred point scale (with points for each question listed in parentheses). Please support your answers where appropriate with case data or class materials. If you make some calculations, try to show your work where you can. Answers will be evaluated on the basis of: 1) responsiveness and completeness; 2) logic and coherence; and 3) support provided from case and class materials.
Questions for Morepen Labs Ltd. (MLL)
1. Evaluate MLL’s business strategy for loratadine. What is the strategy’s economic logic for obtaining a competitive advantage? Do the actions taken by MLL support the strategy and address industry conditions? (30)
2. Is MLL’s strategy for loratadine sustainable? What are the major threats to sustainability and how were they being anticipated by MLL? What were MLL’s commitments and how did they affect the strategy? (30)
3. The corporate strategy of MLL in the case entails diversification into ‘sunrise’ sectors. What approach(s) to corporate strategy is the firm employing? Evaluate the quality of this approach and of MLL’s overall diversification strategy? (20)
4. Analyze the financial position and performance of MLL. Can the business plans of MLL be supported by from a financial perspective? What can you say about MLL’s riskiness? What can you say about its performance relative to key competitors? (20)