Samuel Drugs

Topics: Management, Corporate title, Corporate governance Pages: 3 (816 words) Published: March 10, 2013
Samuel Drugs Case Analysis
A. The problem that Dr. Amita Joshi faces is how to deal with Rajesh Mishra’s betrayal of Samuel Drugs by forwarding his own selfish interests. B. One major factor that contributed to this problem was Joshi’s management style. Like Samuel Houston before her, she gave her underlings increasing autonomy with increasing success. The fact that Joshi had no idea what Mishra was up to also shows she didn’t monitor the employees to which she delegated authority. Giving employees such extensive autonomy and then fostering their growth is a major part of being a manager, something Joshi failed to do. Another major was how Samuel Drugs and its subsidiaries operated with one another. At the time Mishra was appointed as managing director of EPL, the subsidiaries maintained a large portion of their profits at the expense of Samuel Drugs. By appointing an ambitious person like Mishra and then giving him the responsibility to bid for the Indian government’s contract, this scenario should have been foreseeable. C.The first way to deal with this problem is to fire Mishra. Mishra operated under Joshi’s request to secure the bid on behalf of Samuel Drugs, and instead violated her trust and won most of the bid for EPL. Moreover, Mishra is not a properly groomed CEO. Removing him from the position would allow Joshi to appoint someone who she can trust and who knows how to carry the job. The negative with this would be leaving a gap in the EPL CEO position while looking for a new CEO. An interim CEO would have to be appointed while a search for/grooming of a new CEO is done. This could prove costly, time consuming, and would divert attention away from growing Samuel Drugs’ bottom line. This scenario also assumes that EPL is allowed to keep their contract.

A second way to deal with the problem is to dictate with an iron fist and cancel EPL’s profit-rights. Mishra and EPL would then be forced to work for the good of Samuel...
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