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Shizhe LiTeam3CASE#1American HomeProducts CorporationAmerica.Hom.Product.Corporatio.ha.leadin.compan.o.Pres1criptio.drugs.package.drugs.foo.products.an.housewar.an.househol.products.Sin.Laporte.wh.i.chie.executive,ha.take.charg.o.AHP.compan.starte.it.ver.fe.deb.an.growin.cas.reserves.Th.cas.present.thre.alternativ.strategies:Company keptreticence atcommunicability.2Frugality andtight financialcontrol tokeep profitgrowing.3Conservatism andrisk-aversion atits productdevelopment toreduce4spending anddebt.In analyzingall ofthe variousfacts andissues presentedin thecase,I believethatthe mostcritical issuesare:1AH.ha.th.sizabl.marke.share.whic.coul.allo.th.compan.t.kee.reticenc.an.conservatis.a.it.product.development.AH.didn.nee.spendin.a.introducin.t.ne.market.2Th.drug.industr.alway.produce.th.sam.componen.products.S.tha.AH.wouldn,.spen.i.developmen.unti.othe.competitor.develope.ne.products.thi.strateg.wouLhel.AH.reduce.cost.a n.increase.profits.3AH.ha.th.uniqu.to.managemen.strateg.t.kee.it.polic.wouLb.executiv.exactl.b.Laport.an.AH.wa.showin.th.stabl.an.consisten.growt.b.sales,earning.an.dividend.fo.
2.consecutiv.year,throug.
1981.It.excellen.financin.performanc.ha.helpe.it.stoc.becam.mos.popula.on.an.benefite.it.marke.reputation.an.m arke.sales.whic.increase.profit.a.th.end.AHP.diversifie.operations.i.becam.mor.competitiv.amon.it.competitors.AH.kep.it.1eadin.positio.du.t.it.successfu.strategies.。
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