Essay about Alpes

2044 Words Jan 21st, 2012 9 Pages
Charles River Laboratories (CRL)

CRL was once the global market leader in the commercial production and supply of laboratory animal models for use in discovery and research and the development and testing of new pharmaceuticals. The company’s strategic growth objective was to grow its existing business by between 12% and 15% annually and its entire business by 20%. This plan left a strategic growth gap of 5% to 8% each year, resulting in CRL’s pursuit of growth opportunities in the form of joint ventures, technology licensing and strategic partnerships.

Key Issues

Primary: Should CRL invest up to $2 million to create a state of the art specific pathogen free (SPF) egg farm?
In order for Dennis to win over the Board of Directors,
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After nearly 50 years of operation, CRL has never successfully conducted business in Mexico.


With the advent of the North American Free Trade Agreement (NAFTA) in 1994, came the free flow of goods and services. Overall NAFTA had positive results for ALPES as they gained a competitive advantage with their existing locations. Vaccine producers increased production in Mexico, from which they supplied the US and Canada, while competition from imports failed to materialize. ALPES has experienced a large increase in demand thanks to this agreement.

The demand for SPF eggs has exceeded supply by between 5 and 10 percent. Since demand for SPF eggs is growing, InterVet and Anchor (large poultry vaccine manufacturers) invested several million in new plants near Mexico City. As more nations develop and the popularity of vaccines increases, so will demand.

US Department of Agriculture estimated that such bacteria caused more than 4 million illnesses and up to 3000 deaths each year. For that reason poultry had to be vaccinated against pathogens that were harmful to humans (salmonella and campylobacter). This movement toward safer eggs could have large benefits for CRL in the future.

Human vaccines are still produced in eggs, however contamination continues to be an issue for

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