Case for Analysis: Schering-Plough Implement a New Global Strategy and Structure

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Case For Analysis: Schering-Plough Implement a New Global strategy and Structure Charafa Saliou 1- What kinds of problems was Schering-Plough experiencing with its global strategy and structure? The firm Schering-Plough was experiencing problems related to its global strategy and structure. The first goal of an organization consists in the company structure, which include the definitions of role of employees, the allocations of resources, the definition of relationships between teams, and the coordination of activities and tasks. The firm Schering-Plough has over time developed a multidomestic strategy by dividing its activities up into autonomous regions where each region or country tends to focus exclusively on its own territory. At each region are allocated the necessary resources, including functional resources, which makes this particular type of strategy, a costly structure. There is a tendency for each regional manager to exaggerate the financial resources needed to manage his teams, which could have created strong tensions between regions or with the headquarters. The comparison between regions may have justified the need to exercise more control in some regions in order to develop a better coordination of activities. With the diversities among the region of activities, geographical coordination by product becomes a source of tension. The competition for the allocation of resources between developing regions become a source of conflicts that draw the attention of the headquarter managers from real problems faced by the firm. The main problem is that because each region is fully autonomous and does not report immediately to top-management, problems related to their financial results has remained unsolved for a while, which create a major financial disruptions at higher level. So, Schering-Plough was facing those problems because it was being

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