The firm is planning on receiving a regulatory permission to sell its product in
ID: 425794 • Letter: T
Question
The firm is planning on receiving a regulatory permission to sell its product in different regulated markets. The details are presented in Table 1. The marketing department conducted research and summarized the cost and duration of processing the application, the odds of a positive outcome, and the sales opportunities. Deciding what market the firm should enter is based on the potential profit generated over a 24-month period.
You need to decide which market the firm should start the regulatory approval process.
Carefully read the grading criteria on the LP5.2/Problem 1 Assignment Rubric to ensure you understand how this problem will be graded.
Table 1: Summary of Marker Research
Agency Name
Processing Fee
Average Processing time (months)
Approval
Chance
Annual Sales per market
USA
FDA
248 K
5
0.8
$1,000,000 per month
EU
MDD
300 K
1
0.85
$700,000 per month
China
CFDA
82K
3
0.9
$660,000 per month
Japan
PMDA
320K
12
0.9
$250,000 per month
India
CDSCO
47K
5
0.95
$470,00 per month
Please give the explanation.
Agency Name
Processing Fee
Average Processing time (months)
Approval
Chance
Annual Sales per market
USA
FDA
248 K
5
0.8
$1,000,000 per month
EU
MDD
300 K
1
0.85
$700,000 per month
China
CFDA
82K
3
0.9
$660,000 per month
Japan
PMDA
320K
12
0.9
$250,000 per month
India
CDSCO
47K
5
0.95
$470,00 per month
Explanation / Answer
Answer:
The rating we have selected as 1 to 5 ( 1 being lowest and 5 being highest)
The table is calculated with rating for each column / category. Then in last, the rating are summed up for each country in the last column.
The highest rating value in last column is the top priority country and lowest value in last column is lowest priority.
The table is build as below
India and China : So based on the overall rating analysis, the India and China gets the highest rating of 15, thus both are the market where the entry should be planned.
Japan is lowest in rating
Country Agency Name Processing Fee Average Processing time (months) Approval Chance Annual Sales per market Total Rating (in $K) (in months) (in Probability) (in $ ) Value Rating Value Rating Value Rating Value Rating USA FDA 248 K 3 5 3 0.80 2 $1,000,000 per month 5 13 EU MDD 300 K 2 1 5 0.85 3 $700,000 per month 4 14 China CFDA 82K 4 3 4 0.90 4 $660,000 per month 3 15 Japan PMDA 320K 1 12 1 0.90 4 $250,000 per month 1 7 India CDSCO 47K 5 5 3 0.95 5 $470,000 per month 2 15Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.