Global Strategy and Structure
MGT 408 Organ. Theory & Dev
February 25, 2014
Schering-Plough Global Strategy and Structure
The problems that Schering-Plough experienced with it global strategy and structure is that it took a multidomestic strategy that was over decentralized to the point that each of the heads of a international region had assumed total control of their operations (Jones, 2013, p.237). This left management at all levels within the corporate headquarters uniformed about the performance of each region. Leaving the corporation with major drug quality issues on their hands that the Food and Drug Administration was demanding that it overhaul is operations to increase and protect drug quality (Jones, 2013, p.237). Schering-Plough failed to manage how to disperse and designate obligation and power between supervisors at home and abroad so compelling control over an organization's worldwide operations were maintained. The culture issues had risen at different location outside the United States. In one case European managers who ran their own marketing and research operations ignored a promising antibiotic known as Zyvox simply because it had been developed in Kalamazoo, Michigan and not in their country (Simmons, 2003, para. 10). Corporate Headquarters allowed for the culture and shared values that control behavior to be developed by regional management with no institutional insight. These cultures become ingrained inside the employee behaviors allowing the organization to lose its competitive edge.
The first thing that Schering-Plough did is bring in a new CEO to turn the company around. The newly assigned CEO Fred Hassan had to implement a global strategy with a global matrix structure that did not the separate the regional groups eliminating the layers between the different country mangers and him (Jones, 2013, p.235). The CEO has made the right kinds of integration, control...
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