(500 words for each case)

Case 3: Glenmark is an Indian-based multinational pharmaceutical company with approximately $30 billion in sales annually. In the 2021 Annual Report, the Indian company indicated $5.94 billion dedicated to research and development (R&D). Moreover, the pharmaceutical company spent $10.19 billion in marketing and sales in 2021. R\&D and marketing expenses represent a large portion of their total fixed costs with more than $16 billion! With this amount injected, Glenmark creates a barrier to entry for other firms that are considering whether to enter the pharmaceutical market or not. It is only by going global through a large distribution network will Glenmark be able to benefit from economies of scale. By going global, Glenmark will target more customers and spread their fixed costs better. This also explains why multinational company has such high marketing costs. 1. Explain whether the capital expenditures by the company is justified and be able to increase market share in future? 2. Is there any suggestions you would like to give to make its fixed costs better? Case 4: Uber maintains a fleet of over 20,000 vehicles in 27 different metropolitan areas worldwide. Car sharing has become an increasingly popular way for urbanites to access a car when they need one without having to deal with the headaches of parking, maintenance, and insurance/ registration fees. Each individual Uber has a "home" parking spot that it must be returned to after every use, and these parking stations are broadly distributed so that no Uber member is ever too far from a car. Uber's fixed costs reside at the local level: for every new parking station they open, they need to pay the upfront fixed cost to buy a car and rent a parking spot in that neighborhood. Uber members benefit from network effects, because as Uber expands there are more and more cities and campuses where uber members can access vehicles. However, Uber's fixed costs will expand proportionally to the number of rental locations that they offer. Uber can expand effectively, but its fixed costs are not easy to scale. 1. Suggest to the management how to manage such fixed costs together with the business