Description
The third-generation leader of CFR Pharmaceuticals had been successful in executing a strategy of consolidating pharmaceutical firms across Latin America. As part of the company’s expansion strategy, the CEO explored opportunities to develop multiple sources of growth and expand CFR Pharmaceutical’s footprint in emerging markets; to do this, he found a company in South Africa, Adcock Ingram, to acquire. The combined company would offer CFR product synergy and diversification, improved manufacturing and distribution capabilities and a unique emerging market footprint in 23 countries. In the process of making an offer of approximately US$1.2 billion to acquire the company, the CEO faced increased interest in Adcock from other potential acquirers. He also encountered a series of difficulties when an Adcock shareholder resisted the acquisition, but CFR maintained the consistent support of the Adcock Ingram board.
Learning Objective
·Understand how individual stakeholders may influence strategy execution. ·Gain insight on the importance of understanding and managing the interests of all stakeholders within a political context. ·Consider the effects of organizational culture in family enterprises.The case combines the studies of stakeholder management, strategic decision making and strategy implementation while emphasizing the principles of organizational behaviour and behavioural economics.