Pfizer-Pharmacia Merger

Topics: Problem solving, Drug discovery, Drug development Pages: 3 (764 words) Published: April 15, 2013
Problem statement:

Pfizer, Inc. announced the acquisition of the company Pharmacia, Corp. In the months leading up to the merging of the two companies, there were issues with the employees of Pharmacia. The announcement of 2.5 billion in cost savings as a result of the merging of the two companies, had staff worried because it would be in form of labor costs, which would potentially cause disclosure of local operations. Staff was concerned about their financial futures, loosing their income would not just affect their personal lives, and families but the community in general. A “trickle down effect”, would effect businesses that provide products, and services to the consumers, as well as the tax bases of local communities (Stamper, 2). The issue of having to potentially seek a financial bailout, and also possible bankruptcy of the city if Pfizer were to close down the operations of Pharmacia was a larger issue as well. The core mission of typical pharmaceutical company is drug discovery, clinical development, manufacturing, and sales and marketing. Before the merging of the company, the core mission of the company was met. Now the issue is, due to the merging of the companies, there was a loss of discovery, clinical development, and sales marketing.

Why did the problems occur?

The problem of staff being worried about their financial future, and the future of the company mainly aroused because of the 2.5 billion dollar in total cost savings that would be implemented as a result of merging the two companies. Emotions were a major concept that was overtaking the staff at Pharmacia, everyone was in a certain state of readiness at times, due to the uncertainty of jobs, and the uneasiness with staff members caused mainly from the distributed memo.

Misunderstanding of the memo, giving the impression that Pfizier was going to pull out of downtown Kalamazoo, was a “misunderstanding”. This caused uncertainty avoidance within the company, people felt...
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