Page 14 - CIMA SCS Workbook November 2018 - Day 2 Tasks

CIMA NOVEMBER 2018 – STRATEGIC CASE STUDY

TASK

Prepare a briefing paper for Randal Edwards as requested (Time allowed: 60 minutes)

(Refer to the reference materials below)

Reference materials – newspaper article on PosterRend

Cronislavia has fined Cronland based pharmaceuticals firm PosterRend
C$350m after a court found it guilty of bribery.

The record penalty follows allegations that the drug giant paid out bribes to doctors and hospitals
in order to have their products promoted.

The court gave PosterRend's former head of Cronislavian operations, Gemima Puddlethwaite, a
suspended two-year prison sentence. Other PosterRend executives have also been given
suspended jail terms.

Cronislavian authorities started investigating PosterRend in the Spring of last year. It has since
become one of the biggest fraud scandals to hit the industry. The company was accused of having
made an estimated C$150m in illegal profits.

PosterRend said it had "published a statement of apology to the Cronislavian government and its
people".

"This has been a very disappointing episode for PosterRend and concluding our own investigation
into our Cronislavian business is important." said CEO Jo Gere.

30 KAPLAN PUBLISHING