Case ID: 910M12
Solution ID: 10272
Words: 2077
Price $ 45

Lundbeck Korea Managing an International Growth Engine

Case Solution

Lundbeck is a small-scale pharmaceutical company that targets the segment of central nervous system (CNS). Most of the companies revenues are derived from two of its major medicines: Lexapro and Exiba. The company derives most of its revenues from European and American territories. The company has targeted Asia only recently, but it is a high growth segment. Different markets in Asia report to one regional vice president, who is responsible for implementing the companies strategy in the Asian markets. The country manager of Korea is not happy with this organizational structure, as he believes that the Korean market is significantly different from the rest of Asia. The alternative approach is to permit the Korean country manager to pursue an independent strategy, and allow him to report directly to the head office. The proposed structure might be attractive because some the strategic conflicts that have arisen in the past might not have been handled by the regional vice president in the best interests on the company. It is believed that the company has been too strict in implementing its strategy without regards to the differences in various geographical markets. However, a mere change in the organization structure might not provide an adequate solution.  Executive Summary Problem Statement Analysis Recommendation and Implementation Plan Conclusion

Excel Calculations

Questions Covered

What type of organizational structure would best fit Lundbeck Korea? Why?

How do Anderson, Jun and Rajar each understand the situation? What are the strengths and weaknesses of their positions?

What are the opportunities and threats in either changing or staying on course?

How should any change (or decision not to change) be managed for the good of all parties?

What is the trade-off between local sensitivities and promoting a global corporate culture?