TEVA + ROSG = Strong Possibility ...Decent Sales Force at TEVA.
Teva Pharmaceutical USA to Combine Division Sales Forces
Case Type: organizational behavior.
Consulting Firm: ZS Associates final round job interview.
Industry Coverage: healthcare: pharmaceutical, biotech, life sciences; healthcare: hospital, medical.
Case Interview Question #00384: The client Teva Pharmaceutical USA is a wholly owned subsidiary of Petah Tikva, Israel based global pharmaceutical company Teva Pharmaceutical Industries Limited (NASDAQ: TEVA). Teva is the largest generic drug manufacturer in the world and one of the top 15 largest pharmaceutical companies Teva Pharmaceutical sales forceworldwide. Sales totalled $11.08 billion in 2008, $13.9 billion in 2009, and in $16.1 billion in 2010, of which a major portion was in Europe and North America.
Teva Pharmaceutical USA has two divisions: I. medical products division; II. drugs division. Each division has a separate sales force. Division I mainly manufactures medical devices and diagnostic test (like a blood sugar test); Division II manufactures pills or drugs or other treatment for diseases. Does it make sense for the client company to combine the two sales forces into a single sales force?
Additional Information: (to be provided after relevant questions)
Division I requires a sales force of 750 people. Division II requires a sales force of 500 people.
Each sales person is equally effective at selling. Each sales person makes a certain standard frequency of hospital visits each month to hospitals in their respective regions.
The doctors and health professionals targeted by the sales forces currently in place are in totally separate parts of the hospitals and do not come into contact with one another.
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