Daiichi Sankyo's Acquisition of Ranbaxy Cultural Issues in Integrating Business Models and Organisations
By Wee Beng Geok, Geraldine Chen & Ivy Buche
|Publisher Ref No: ||ABCC-2011-006 ||Pub/Rev Date: ||2011 |
|Industry: ||Pharmaceuticals ||Case Length: ||26 pages |
|Teaching Note Ref: ||ABCC-2011-006(TN) ||Teaching Note: ||13 pages |
|Organisation: ||Daiichi Sankyo, Ranbaxy ||Period Covered: ||2008 - 2011 |
|Country: ||Japan, India ||Level: ||Undergraduate/ |
|Publisher: ||The Asian Business Case Centre, Nanyang Technological University
When Daiichi Sankyo, an established Japanese pharmaceutical firm, acquired the majority stake in Ranbaxy, India's largest generic drug company, it signalled a move into uncharted territory. Daiichi Sankyo was the first Japanese innovator drug company to acquire the majority share in a global generic drug manufacturer and exporter. In doing so, it had entered into the generic drug business, which operated on very different premises from the large multinational firms that dominated the global pharmaceutical industry.
Furthermore Daiichi Sankyo was acquiring another Asian company, which had emerged from very different national cultural roots and corporate history. This presented a new dimension in the management of change arising from a major acquisition initiative. The case examines the rationale for the acquisition; its immediate aftermath and the cross-cultural challenges ahead for the leadership of both companies as they work to implement a new hybrid business model.
Merger & Acquisition; Cross-cultural issues; Emerging markets; Hybrid business model
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