Running Head: MERGER IN GLAXO-WELLCOME
1
Merger in Glaxo-Wellcome
Victor Saliba
Dr. Ken Brumfield
BMAL 504 –B03 LUO
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What did Glaxo-Welcome do? What should they have done?
Glaxo started a successful bid to control Wellcome in January 1995 to make it the biggest
pharmaceutical company in the world. Glaxo had succeeded in taking over by March of the same
year. "Under the best of circumstances, the uncertainty caused by takeovers disrupted the
operation of an organization". (Jick & Peirpel, 2010, p.348). Efforts are being make procurement
an easy process, the attitude of the employee should be checked. Wellcome Hellas, the Israeli
division of the pharmaceutical, and Ofra Sherman wsa the General Manger through agreement
with Promedico. During the merger period. Ofra spent most of her moment talking to Wellcome
Hellas and Promedico officials along with her business network contacts to know as much as
possible about welcome events and Glaxo. “Sherman did not have the answers to any of the
questions which she knew she would have to face shortly. As the merger unfolded, would she
and her team be fired? Kept on? Within Glaxo? Within Promedico?” (Jick & Peirpel, 2010,
p.348). Only with the complete agreement of the board of directors and staff of the target
company can it be suitable. Consequently, this type of acquisition is said to be a simple feature of
mutual consent and common agreement."And that is a major reason why the goals and the
measures for evaluating the success of proposed mergers should be defined before mergers are
consummated". (Dafny, &Lee, .2015). CTS Was the Israeli distributor of Glaxo and it was
uncertain whether Glaxo would merge or eliminate the two Israeli branches. "Galaxo had set
June 1 as the deadline for finalizing the reorganization plans in the different countries". (Jick &
Peirpel, 2010, p.356).
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Did Ofra Sherman do the right thing?
Sherman has not given the feeling that she has done everything in line with the current
scenario. I empathize with her, though, because I'm not sure how much she can do.” If only she
knew what Galxo and Wellcome were planning for her and her team"? (Jick & Peirpel, 2010,
p.355).Specifically, there has been an unresolved problem in the meantime, and the team is
looking forward to working and working. When one moves with so many factors and fears job
security. ”Ofra Sherman no longer had a clear, long-term agenda and that her short-term agenda
was focused primarily on the organization. (Jick & Peirpel, 2010, p.356). Glaxo's executive
communication was poor to non-existent with his fresh Israeli division. It left the team manager
in a confusing state."Merger-specific efficiencies refer to benefits or cost savings that could not
reasonably be achieved without the merger (e.g., with the assistance of a consultant, a change in
management, or through other types of relationships, such as affiliations or joint ventures)"
(Dafny, &Lee, .2015).
She's on the correct track attempting to ask the correct questions and seek advice and try to
get the flow of communication. I would suggest to keep her employees open and honest and
provide as much data as possible.”Sherma had told her team to gother as much information about
Glaxo’s operations in Israel as possible”. ( Jick & Peirpel, 2010, p.355). The reason for that to
get everyone in the same page is the reason behind taking such a choice. In this way, it could
very well rest between each other within some communication category. Glaxo developed an
unconscious opposition by not communicating with Isreal's foreign division, which is why Ofra
and her peers at Wellcome Hellas were psychologically threatened. Glaxo should have
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communicated with Ofra, even if only to say that a plan was not completed. This would have
given a comfort level and removed a psychological resistance.
What was Ofra Sherman’s predicament? How did she get into it?
What is going to happen is one of Ofra's predicaments.But some of her issues go with assigning
job to her executives and revealing the team's managerial sincerity. Sherman confusing whether
to transfer her team to Glaxo or stay with her present business, she seems to be in a strange
predicament. As I said earlier, she's really in a tough spot as her current company doesn't want
her to meet them, but selling her team early as they're a highly good group could be in the best
interest. “Should she confront the Promedico management and tell them she was planning to take
her team to Glaxo”. (Jick & Peirpel, 2010, p.355). Once again, the entire predicament could have
been avoided with communication and a plan from both companies outlining what they intend to
do, rather than leaving the employees in confusing. In a fight between various businesses and
personalities, Ofra Sherman discovers herself. Ofra is a Wellcome Israel manager, but she and
her team make up the Israeli-owned Promedico pharmaceutical and diagnostics division." In
mergers and acquisitions, the concept of ‘national culture’ is used as a metaphor or flexible tool
through which managers can work out frustrations and develop new identities". (Moore, F.2019).
Ofra's general manager also produced threats that eluded a tough transition, and her boss in
Greece told her not to do anything until his express permission had been granted. “She know that
whatever she told them would get back to the Promedico MD”. (Jick & Peirpel, 2010, p.354).
She is experiencing a lot of stress, feeling betrayed by two businesses, an uncertain future and
caught between two bosses jockeying for supremacy. She's not alone, though.
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How do you evaluate her actions as described in the case?
It is worth noting after going through the case that Ofra is doing the best in her abilities.
Actually, she has to face this kind of scenario for the very first time. My evaluation is simply
because this Sherman is doing her best in view of the current situation, which doesn't understand
what's going on. Sherman is a very good leader because in her current company she has been
working hard and her team respect her. With Glaxo, she may well be on her way to leading her
team.” Her office sometimes seemed like a whirlwind, with four or five people doing different
thing at the same time”. (Jick & Peirpel, 2010, p.353). Hopefully the data flows down to
Sherman so she can handle the shift better."We believe that clear specification of cognizable
efficiencies with explicit accountability for their achievement is a key input to a “good” merger.
Such plans are a reflection of good management and create the context for execution of sound
strategy".(Dafny,&Lee,.2015).Once the data reaches Sherman with the management skills she
has, I have no doubt that she will promote the shift and that her team will be better for it. In a
very unpredictable scenario, Sherman did an outstanding job of maintaining her team motivated.
“I am leaving you with a gift—peace of mind and heart. And the peace I give is a gift the world
cannot give. So don’t be troubled or afraid". (John 14:27, NIV). God provides us peace and he
wants us not to be scared. Ofra try, provide this peace. To help change recipients as a leader. The
bottom line of an effective development plan can be business mergers.
References
Dafny, L. S., & Lee, T. H. (2015). The good merger. The New England Journal of Medicine,
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372(22), 2077-2079. doi:http://dx.doi.org.ezproxy.liberty.edu/10.1056/NEJMp1502338
Jick, T., & Peiperl, M. (2010). Managing Change: Cases and Concepts. McGraw-Hill Education
(3rd ed.).
Moore, F. (2019). ‘National culture’ as an integrating agent in the post-acquisition organization.
The International Journal of Human Resource Management, 1-24.
doi:10.1080/09585192.2019.1602550
P. (2011). BibleGateway. Retrieved August 16, 2019, from
MERGER IN GLAXO-WELLCOME 7
References
Jick, T., & Peiperl, M. (2010). Managing Change: Cases and Concepts. McGraw-Hill Education
(3rd ed.).
Park, K. M., & Gould, A. M. (2017). The overlooked influence of personality, idiosyncrasy and
eccentricity in corporate mergers and acquisitions. Journal of Management History, 23(1), 7-
31. doi:10.1108/JMH-09-2016-0056
P. (2011). BibleGateway. Retrieved August 16, 2019, from
Robert,Dees . 2013. Resillent Leaders .MBS Dirct
Replay
I agree that peoples' tendencies to be bias relate to self-awareness. As children, we do not
categorize people by race, religion, financial status, etc.; however, as adults we are prone to
falling into this evil way of thinking and stereotyping people because we lose self-awareness.
One interesting study showed that the more diverse of a workplace we work at, the less bias we
will be (Hammond, 2019). I find this ironic as the environment we are in as children, going to
public schools, interacting with all different types of children at recess, lunch, etc. does seem to
lessen our tendencies of stereotyping.
Aside from analyzing why stereotyping occurs, most importantly, we need to find ways to
combat it. One research article proposed five methods for eliminating bias including the
MERGER IN GLAXO-WELLCOME 8
following: establishing awareness of the problem, developing an all-inclusive culture, offering
diversity oriented training, improving clarity of promotional and earnings information, and
researching how to resolve discrimination within the company (Morgan, 2018). I know that as
Christians, we are supposed to extend God's love to everyone regardless of their race, religion,
etc. By implementing strategies to increase diversity and decrease prejudice, we can better reflect
God's character of agape love.
I enjoyed reading your discussion thread. I 100% agree with the fact that any kind of bias could
relate directly to self-awareness. Many people are so quick to say they are not being bias whether
it is based on race, age, gender, and the other characteristics you listed. I feel as though, in order
to realize this within yourself, you cannot go into defense mode when it's brought to your
attention. You have to sit back and take a look at the bigger picture. How am I acting towards this
certain person? Are they different compared to the ones I favor? Do I treat them differently than I
treat the others, even if I didn't mean to? Self-awareness is important in a team oriented job or
field and it is a necessity. As it states in chapter 4 of the text, managers could be a huge help
when educating employees and peers about stereotypes as well as "how they can influence our
behavior and decision making" (Kinicki Fugate, 2018, 132).
The bible says “Do not be conformed to this world, but be transformed by the renewal of your
mind” (Romans 12:2).
Being self-aware and paying attention to what you say and do around certain groups of people
could be beneficial to your company’s diversity as well as make those around you more
comfortable.
Thank you for taking the time to point this out.
Thank you for your post on attitude and job satisfaction. You touched on some key areas
directly related to contributing factors to job satisfaction by employees, and one of these stood
out: the attitude of the manager. A proactive personality is someone that is fairly unconstrained
by situations and is one that has the ability to affect change in his or her environment (Kinicki &
Fugate, 2018). Both a proactive employee and a proactive manager are the best and most
effective combination to yield productivity and create job satisfaction and organizational
commitment (Kinicki & Fugate, 2018). Studies have shown that a manager’s ability to perform a
job function, even if he or she does not do so on a daily basis, implies that managers with both
technical abilities and proactive personalities produce the best results in employee behavior and
engagement as they lead by example (Rich, 1997). Proactive managers have teams that perform
at higher standards, as they reduce “fire-fighting” activities by thinking several steps ahead and
manage both their own time and, in turn, the time of their team, effectively (Shell, 2003).
The Bible has many pieces of wisdom relating to both employment and management of
people. One of the essential components of being an effective leader is clear communication of
MERGER IN GLAXO-WELLCOME 9
the plan at hand. Habakkuk 2:2b states, “Write the vision, and make it plain on tablets, that he
may run who reads it” (New King James Version).
Ronald, Thank you for posting what you have done about our paper, your post is very
knowledgeable, adding fresh data and how you explained the Yinscape-Yangsearch merger, And
if you clarify the two companies ' history, an organization's analysis of strengths, weaknesses,
possibilities and threats would take place. "The chairman and CEO is determined that the new
company will succeed. Having just surfaced from months of grinding financial and due diligence
negotiations, he sees his main challenge as beginning to develop a vision and strategy for the
new company”. (Jick & Peiperl.2010, p113). Change in any organisation when we have a vision
to help a business change in the future with a fresh path ahead of making the change. ”You can’t
understand a system unless you try to change it,” Lewin said.
When vision is efficient, it's not just about how you get to the end of the route, but again
focusing on the relationships you've developed along the way. These types of links are known to
be remote from our entrants between employees and clients. “A generative image is introduced
or surfaces that provides new and compelling alternatives for thinking and acting” (Kramer, R.
2016). When the merge are don Following the conference, problems arise to concentrate on
beginning from the communication of the new strategic goal, conveying the new-captured vision,
asking for a new community corporate and management culture, developing a fresh management
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framework, overcoming leadership problems in heavy units. ”With a vision and opportunity
comes one other key element , tenacity , influencers must be dogged and dedicated , willing to
make their case as strongly as possible , personally modelling the behaviours they are
promoting , and being flexible and politically astute wherever needed. (Jick & Peiperl.2010,
p118).
Whenever the organization changes, they always take the time to be in the right place and to
develop the vision and achieve their goals for both companies.
References
Jick, T., & Peiperl, M. (2010). Managing Change: Cases and Concepts. McGraw-Hill Education
(3rd ed.).
Kramer, R. (2016). Dialogic organization development: The theory and practice of
transformational Change Dialogic organization development: The theory and practice of
transformational change, edited by BusheGervase R. and MarshakRobert J. 2015. 436 pages,
hardback. oakland, CA: Berrett-koehler. Academy of Management Learning & Education,
15(3), 639-643. doi:10.5465/amle.2016.0207
Martin, D. R., Ankel, F., Hemphill, R. R., Heron, S., Khandelwal, S., Merritt, C.,Santen, S. A.
(2018;2017;). Creating a vision for education leadership. The Western Journal of Emergency
Medicine, 19(1), 165-168. doi:10.5811/westjem.2017.11.35301
MERGER IN GLAXO-WELLCOME 11
Susan. I enjoy what you did in your dissection and I agree with the history of two Yinscape &
Yangsearch companies operating in distinct locations on the same consumer internet
technologies, But merging both businesses is helpful for both when searching for the correct
vision, focusing on the growth of state-of - the-art products and having an extremely creative
culture. ”Another reason vision have become so important is because, with increasing turbulence
in organization, people are seeking some sort of anchor or certainty as a mooring “. (Jick &
Peiperl.2010, p113). Also here arises the need to have distinct units from previous organisations,
work on the suspicion of staff, and mix the compensation for management and incentive
schemes. As Bible, Habakkuk 2:2b states, “Write the vision, and make it plain on tablets, that he
may run who reads it”.
Management and staff have to make a heartfelt contribution and segment the vision of the
organization. Employees will feel honoured to put an effort into this new organisation after a
fruitful merger.” Looks for ways to improve, augment, or future develop the vision by carefully
observing changes inside and outside the organization”. (Jick & Peiperl.2010, p113).
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As you talk about communication, the nature of effective communication that adds to the
growth of social relationships and the community, and staff feel their meaning and role in
achieving all objectives of the organisation. "Also summarize the benefits of leaders in
organizations who are focused on the future, which includes achieving better performance
outcomes both individually and as organizations".( Martin, D. R., Ankel, F., Hemphill, R. R.,
Heron, S., Khandelwal, S., Merritt, C., Santen, S. A.2018;2017).
Finally, it is worth noting that it will take time for staff to regulate this merger because it will
not occur immediately. Considering the communication lines to be open and genuine, there
remains a huge need, to achieve successful merge at both companies
.
References
Jick, T., & Peiperl, M. (2010). Managing Change: Cases and Concepts. McGraw-Hill Education
(3rd ed.).
Martin, D. R., Ankel, F., Hemphill, R. R., Heron, S., Khandelwal, S., Merritt, C.,Santen, S. A.
(2018;2017;). Creating a vision for education leadership. The Western Journal of Emergency
Medicine, 19(1), 165-168. doi:10.5811/westjem.2017.11.35301
