Gsk Case Study

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1. From Slaoui’s perspective, how should the integration of Sirtris be managed? How would Westphal and Dipp answer the same question? What is your opinion Acquisitions are an effective tool to implement deliberate corporate strategy. They allow firms to adjust its product market portfolio and in this case diversify within markets of Pharmaceuticals. Mergers and acquisitions can reduce financial risk, increase market share and utilize research and development if managed properly [1]. However it has become conventional for companies to over pay for targets and suffer post-acquisition disorder to later sell off the entity at a loss down the road. The most prominent example of this would be the AOL-Time Warner merger. However, if the acquisition is managed properly the transaction can dramatically alter the competitive landscape giving them a competitive advantage over their rivals. Lastly, effective acquisitions can increase growth in ways that would not be able to be completed organically. [1] Slaoui needs to manage the integration by addressing all constituents and aligning corporate cultures. Prior to acquisitions talks GSK made significant changes to their business model that will allow them to deliver long-term growth. The Discovery Performance Units (DPU’s) hase moved the company in the right direction which has reenergized integrative thinking. In addition the Drug Discovery Investment Board (DDIB) has been strategic in revamping the budget process. In order to maintain momentum, Slauis must incorporate Sirtris entrepreneurial spirit into GSK’s new but existing model. Slaoui’ Key focus on managing the integration should be on the following • Immediately integrate teams from people from both GSK and Sirtris to incorporate their entrepreneurial spirit • Integrate people and align incentives. Incentives should be the same for all members of the,

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