The mini-case is relating to Genzyme and Relational Investors: Science and Business Collide. You will want to read the case before proceeding.
Mini-Case #1: Genzyme … Science and Business Collide
Summary: This case is a classic agency issue case. Agency issues arise when there is a separation of ownership and management. The separation can cause all sorts of issues. For example, have you ever slacked off at work when the boss was not looking? How about played on your cell phone when you should have been working?
This is something that my research focuses on a lot.
For example, here I find that agency issues can affect innovation in pharmaceutical companies: https://www.researchgate.net/publication/330811221_Institutional_Investors_and_Medical_Innovation
Here, I find that agency issues are important in the workplace:
Answer the following questions in complete sentences. Each question will be in the context of the case but will require additional research. Here you will want to search for institutional investors, activist investors, or corporate takeovers. After writing your answers, respond to two other students. Reference the case and any other resource you choose. Make sure to cite; all responses are checked for plagiarism.
- Explain in short sentences the optimal future business as imagined by a. Termeer and b. Relational Investors.
- Entrepreneurs generally start out thinking they can save the world. However, they quickly realize that they need other people’s money to accomplish their goals (which may not always align with their goals). In the context of the case, explain how outside investors can help (hint: look at the papers cited above) and how they can hurt a business.
- Suppose Termeer was to ignore the proposals made by Icahn and other institutional investors. List and explain at least two courses of action that Icahn would most likely take.
- Suppose Termeer was to ignore the proposals made by Icahn and other institutional investors. List and explain at least two things that Termeer can do to prevent a corporate takeover.
- (Your opinion) What course of action would you take to both avoid a public battle with Relational Investors?
Respond to at least two other posts.