Allergan South Africa's Merger: Contextual Leadership Sustaining Culture

Allergan South Africa's Merger: Contextual Leadership Sustaining Culture Description

In early 2016, the chief executive officer (CEO) of Allergan South Africa had been leading his team through changes resulting from a number of mergers over the past four years. Allergan Inc. (Allergan) had been the third-largest generic drug maker in the United States after it combined with Actavis plc in 2015, and the company was depicted as an example of "merger mania" in the pharmaceutical sector. Operating in 40 countries, Allergan had gone through a total of five mergers between 2012 and 2015-a period that had included a hostile takeover bid, cost cutting exercises, and, eventually, an acquisition. The CEO at Allergan South Africa had been working with his human resources director to build a "supertribe" culture in response to the changes. Now, faced with the challenge of yet another anticipated merger, some of the executive team had resigned, unwilling to go through the turmoil of more acquisitions. How could the CEO keep his people engaged at the regional division? What leadership style would enable him to effectively make the needed changes? Caren Scheepers and Deepa Sita are affiliated with University of Pretoria.

Case Description Allergan South Africa's Merger: Contextual Leadership Sustaining Culture

Strategic Managment Tools Used in Case Study Analysis of Allergan South Africa's Merger: Contextual Leadership Sustaining Culture

STEP 1. Problem Identification in Allergan South Africa's Merger: Contextual Leadership Sustaining Culture case study

STEP 2. External Environment Analysis - PESTEL / PEST / STEP Analysis of Allergan South Africa's Merger: Contextual Leadership Sustaining Culture case study

STEP 3. Industry Specific / Porter Five Forces Analysis of Allergan South Africa's Merger: Contextual Leadership Sustaining Culture case study

STEP 4. Evaluating Alternatives / SWOT Analysis of Allergan South Africa's Merger: Contextual Leadership Sustaining Culture case study

STEP 5. Porter Value Chain Analysis / VRIO / VRIN Analysis Allergan South Africa's Merger: Contextual Leadership Sustaining Culture case study

STEP 6. Recommendations Allergan South Africa's Merger: Contextual Leadership Sustaining Culture case study

STEP 7. Basis of Recommendations for Allergan South Africa's Merger: Contextual Leadership Sustaining Culture case study

Case Analysis of Allergan South Africa's Merger: Contextual Leadership Sustaining Culture

Allergan South Africa's Merger: Contextual Leadership Sustaining Culture is a Harvard Business (HBR) Case Study on Organizational Development , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Allergan South Africa's Merger: Contextual Leadership Sustaining Culture is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Allergan South Africa's Merger: Contextual Leadership Sustaining Culture case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Allergan South Africa's Merger: Contextual Leadership Sustaining Culture will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Allergan South Africa's Merger: Contextual Leadership Sustaining Culture case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Organizational Development, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Allergan South Africa's Merger: Contextual Leadership Sustaining Culture, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Allergan South Africa's Merger: Contextual Leadership Sustaining Culture case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Organizational Development Solutions

In the Texas Business School, Allergan South Africa's Merger: Contextual Leadership Sustaining Culture case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Allergan South Africa's Merger: Contextual Leadership Sustaining Culture

Step 1 – Problem Identification of Allergan South Africa's Merger: Contextual Leadership Sustaining Culture - Harvard Business School Case Study

The first step to solve HBR Allergan South Africa's Merger: Contextual Leadership Sustaining Culture case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Allergan South is facing right now. Even though the problem statement is essentially – “Organizational Development” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Allergan South, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Allergan South Africa's Merger: Contextual Leadership Sustaining Culture.

The external environment analysis of Allergan South Africa's Merger: Contextual Leadership Sustaining Culture will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Allergan South Africa's Merger: Contextual Leadership Sustaining Culture case study. PESTEL analysis of " Allergan South Africa's Merger: Contextual Leadership Sustaining Culture" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Allergan South Africa's Merger: Contextual Leadership Sustaining Culture macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Allergan South Africa's Merger: Contextual Leadership Sustaining Culture

To do comprehensive PESTEL analysis of case study – Allergan South Africa's Merger: Contextual Leadership Sustaining Culture , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Allergan South Africa's Merger: Contextual Leadership Sustaining Culture

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Policy Making Impact on Allergan South Africa's Merger: Contextual Leadership Sustaining Culture

Government policies have significant impact on the business environment of any country. The firm in “ Allergan South Africa's Merger: Contextual Leadership Sustaining Culture ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Allergan South is operating, firms are required to store customer data within the premises of the country. Allergan South needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Allergan South Africa's Merger: Contextual Leadership Sustaining Culture has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Allergan South in case study Allergan South Africa's Merger: Contextual Leadership Sustaining Culture" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Allergan South in case study “ Allergan South Africa's Merger: Contextual Leadership Sustaining Culture ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Allergan South in case study “ Allergan South Africa's Merger: Contextual Leadership Sustaining Culture ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Taxation & Regulation Impact on Allergan South Africa's Merger: Contextual Leadership Sustaining Culture

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Allergan South Africa's Merger: Contextual Leadership Sustaining Culture ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Allergan South can compete against other competitors.

Government Scheme & Subsidies Impact on Allergan South Africa's Merger: Contextual Leadership Sustaining Culture

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Allergan South Africa's Merger: Contextual Leadership Sustaining Culture case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System & Stability, and its Impact on Allergan South Africa's Merger: Contextual Leadership Sustaining Culture

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Allergan South needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Allergan South Africa's Merger: Contextual Leadership Sustaining Culture

Social Factors that Impact Allergan South Africa's Merger: Contextual Leadership Sustaining Culture

Technological Factors that Impact Allergan South Africa's Merger: Contextual Leadership Sustaining Culture

Environmental Factors that Impact Allergan South Africa's Merger: Contextual Leadership Sustaining Culture

Legal Factors that Impact Allergan South Africa's Merger: Contextual Leadership Sustaining Culture

Step 3 – Industry Specific Analysis

What is Porter Five Forces Analysis

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Allergan South Africa's Merger: Contextual Leadership Sustaining Culture case study. PESTEL analysis of " Allergan South Africa's Merger: Contextual Leadership Sustaining Culture" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

Step 4 – SWOT Analysis / Internal Environment Analysis

Step 5 – Porter Value Chain / VRIO / VRIN Analysis

Step 6 – Evaluating Alternatives & Recommendations

Step 7 – Basis for Recommendations

References :: Allergan South Africa's Merger: Contextual Leadership Sustaining Culture case study solution