International Management

Introduction (150 words max.)

Due to the Covid-19 crisis, the French transnational pharmaceutical company Sanofi is seeking to form a strategic alliance in Asia. The aim is to expand its market and move closer to the epicenter in the event of a new pandemic from Asia. An alliance with the Indian government through the state-owned company Aurobindo seems to be a good idea. The Indian government is seeking to establish relationships to obtain more know-how and thus be able to react more quickly in the event of a new pandemic. A research and development alliance would allow India to gain more knowledge and reduce its research and development costs. For Sanofi, the production network, access to the Asian market and reduced research and development costs would be a great advantage.

Concept 1 (500 words max.)

The main objectives of this alliance are: access to the Asian market and the reduction of research and development costs.

India (through Aurobindo) already has some production infrastructure (but of dubious quality), as well as an inexpensive and qualified workforce. Moreover, Aurobindo is already well established on the Asian market. The increase in the standard of living, to which the arrival of the so-called "western" disease is added, makes this alliance a win-win situation for India. Indeed, its pharmaceutical companies do not know how to manufacture drugs against this type of disease. The arrival of knowledge is therefore essential. For Sanofi, it is also a win-win situation because by working together, research and development costs for new drugs will be lower. In addition, it allows them to establish contacts on the Indian market, and possibly on the Asian market.

One example is Novartis and Schering-Plough, who in 2003 jointly developed and marketed a new drug.

Concept 2 (500 words max.)

The main challenges and risks of this alliance are production quality, asymmetric learning and strengthening a competitor.

It is already known that the quality of drug production in India is not always optimal, to counter this it will be necessary to carry out quality controls if the production is done in India.

It is also necessary to clearly define the distribution of the costs and benefits of this alliance, so that neither partner internalizes the competences of the other while protecting its own. Moreover, an asymmetrical agreement would increase the risk of ending up with a company that sells similar drugs on the Asian market targeted by Sanofi.

For Asymmetrical Learning we can cite the example of the course: General foods and Ajinimoto

And for the reinforcement of a competitor we can cite the example of the court: Volkswagen JV with Shanghai Automotive

Concept 3 (500 words max.)

Cross-cultural communication issues can greatly influence the performance of the alliance. How to motivate employees from different cultures. For this a Cultural Synergy is essential, managers must act in line with the culture and not be in conflict.

Conclusion (150 words max.)

In an R&D alliance, the

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