Question

Xanadu, a U.S. manufacturer of pharmaceuticals, has acquired a firm in the same industry in Ireland. It plans to transfer one of its key managers from its plant in St. Louis to Ireland. What is the major threat to Xanadu's plan to transfer competencies from itself to the Irish firm?

a. The St. Louis manager may quit Xanadu in order to remain in St. Louis.
b. American pharmaceutical manufacturing techniques may not transfer to Ireland.
c. Irish managers will refuse to take direction from a foreign executive.
d. The cost of transferring U.S. managers overseas is usually not cost-effective.

Answer 1

The major threat to Xanadu's plan to transfer competencies from itself to the Irish firm is that American pharmaceutical manufacturing techniques may not transfer to Ireland due to differences in regulations, infrastructure, or market conditions.

Step-by-step explanation:

The major threat to Xanadu's plan to transfer competencies from itself to the Irish firm is b. American pharmaceutical manufacturing techniques may not transfer to Ireland.

When transferring competencies from one country to another, there can be challenges in adapting to different cultural, regulatory, and technological environments. In this case, the American pharmaceutical manufacturing techniques may not be applicable or effective in Ireland due to differences in regulations, infrastructure, or market conditions.

For example, different countries may have varying rules and regulations regarding the production and distribution of pharmaceutical products, and these differences can impact the transferability of manufacturing techniques. Additionally, factors such as differences in healthcare systems, market demands, and availability of resources can further complicate the transfer of competencies.