Case: The Swiss pharmaceutical global corporation Hoffman-La Roche has made a major breakthrough in the relief of a serious disabling disease that affects 3 percent of the world's population. Its new product, Tigason, is the first product that effectively controls severe cases of psoriasis and dyskeratoses, skin disorders that cause severe flaking of the skin. Sufferers from this disease frequently retreat from society because of the fear of rejection, thus losing their families and jobs. Tigason does not cure the disease, but it causes the symptoms to disappear.
There is one potential problem. Because of the risk of damage to unborn babies, women should not take the drug for one year before conception or during pregnancy. Hoffman-La Roche is well aware of the potential for harm to the company if the product is misused. It has seen the problems of another Swiss firm, Nestle. After much discussion, the company has decided the product is too important to keep off the market. It is, after all, the product that gives the greatest relief to sufferers.
The marketing department is asked to formulate a strategy for disseminating product information and controlling Tigason's use.
1. As the marketing manager, what do you recommend?
2. Why is an exporter who is to be paid in six months in a foreign currency worried about fluctuating foreign exchange rates?