When supply is of public interest: Roche & Tamiflu The case focuses on the chall

Question

When supply is of public interest: Roche & Tamiflu The case focuses on the challenges of Roche maintaining a supply network for a global influenza pandemic response initiative based on its antiviral drug Tamiflu. The Roche group is a 40 billion CHF company consisting of a pharmaceutical division and a diagnostic division. The company's antiviral drug Tamiflu dominates the market for prevention and treatment of seasonal influenza (flu). Tamiflu, however, could also play an important role in responding to the first wave of a pandemic caused by a particularly harmful strain of the influenza virus A. Tamiflu was designed to be effective against any strain of Type A or B influenza. Thus, there was the potential to establish a preparedness plan based on creating a stockpile of the drug in conjunction with an appropriate plan for distribution to the affected population. The use of Tamiflu in such a crisis would allow the world to respond immediately, rather than having to wait for development of a vaccine which had limitations in its effectiveness and the drug had been endorsed by the WHO as a first line of defense. The case focuses on the challenges of Roche maintaining a supply network for a global pandemic response initiative. Managing supply is particularly challenging for three reasons. First, demand for stockpile quantities is spiky and uncertain, and governments placing orders expect lead times to be short. Second, lead times for increasing capacity are long, as are lead times for drug production and encapsulation. Last, media coverage and press releases made by governments and other stakeholders increase the stakes, as negative media coverage may damage Roche's reputation with consumers, leading to lower sales levels for its products. Assignment Questions:

4. How can Roche keep their supply network alive? Should it?

5. If you could change the behavior of one of the stakeholders in the case, who would it be? How could the behavior change and with what intended effect?

Explanation / Answer

4-IN MY OPINION ROCHE COULD MAINTAIN A STOCK OF A QUARTER SALES IN STOCK TO MEET CONTIGENGIENES.ROCHE CAN KEEP ITS SUPPLY NETWORKS IN BOTH FORMAL & INFORMAL WAYS. FORMAL WAYS IS DIRECT SALES, GOVERMENT ORDERS AND HOSPITAL CONTACTS.ITS HAS TO REVIVE BOTH NETWORKAS AS BRAND IMAGE & GOODWILLOF COMPANY IS AT STAKE SO ITS SHOULD NEVER COMPROMISE ON BOTH.

5- I WOULD LIKE TO CHANGE MEDIA & PUBLIC OPINION.AS THEY BOTH ARE ESSENTIAL FOR BRAND BUILDING & SALES. IF PUBLIC SUPPORTS THE BRAND THEN ONLY TAMOFLU WILL BE SOLD WHERE AS IF MEDIA DON'T RECCONGINSE ITS EFFORTS FOR INFLUEZNA CONTROL ITS WILL NOT GAVE GOOD NAME HENCE IMAGE TO ITS READERS WHO ARE ULTIMATE DECISION MAKERS IN THIS CASE.

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