Lundback Case Study

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Introduction Lundbeck was a danish global CNS pharmaceutical company. A research-intensive firm which strategy involved: specialization, speed, integration, and results. The firm specialized only in the CNS area, it used its small size as an advantage ,pursued a global goal and provided short and long-term value to its shareholders. The firm derived most of its revenues from European and American territories although Asia was an upcoming and promising market. The firm's reporting structure was organized by regional groups, among them: the Asian group under the leadership of Asif Rajar. Though in 2005, conflicting point of views between Asif Rajar and Lunbeck Korea's manager Jin-Ho Jun had Micheal Anderson , Lundbeck's vice-president, questioned the validity of this reporting structure. Jin-Ho Jun argued that the Korean market was different and that Rajar's decisions or opinions did not take this quality into account, thus holding back the market potential. He felt that strategies and policies that might apply to other regions might not be suited for Korea. He was dealing with ethnocentrism from the regional headquarter and asked for more flexibility. On the other hand, Rajar was hired to implant Lundbeck strategy in Asia, therefore, he expected receptivity form the region's subsidiaries. These opposed perceptions translated into many disagreements concerning the placement of marketing resources, Jun's car and finally the decision to launch the next-generation drug Lexapro. Anderson questioned if it should or not allow Lundbeck Korea to report directly to the headquarter. Recommendations On an IHRM point of view, both Rajar and Jun are important assets for the company. Their experience both in Asia and in the CNS market is valuable. Jun has proven to be one of a kind with the launching of Ebixa. Without is accurate knowledge of the Korean market, this

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