Question: In 2 0 1 3 , Phillip ( Phil ) Landgraf faced several glaring problems in the financial performance of his company, BioPharma, Inc. The

In 2013, Phillip (Phil) Landgraf faced several glaring
problems in the financial performance of his company,
BioPharma, Inc. The firm had experienced a steep
decline in profits and high costs at its plants in Germany
and Japan. Landgraf, the companys president for worldwide
operations, knew that demand for the companys
products was stable across the globe. As a result, the surplus
capacity in his global production network looked
like a luxury he could no longer afford.

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