Lundbeck Korea: Managing an International Growth engine. Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Background

Lundbeck is an eminent and a well reputed central nervous system (CNS) pharmaceutical company located in Copenhagen, Denmark. It has expanded its business by opening its subsidiaries in most of the countries in Asia.The Korean subsidiary of Lundbeck has performed exceptionally in the past few years.

Therefore, looking at such outstanding results of the Korean subsidiary,MichaelAndersen, vice president of Lundbeck is of the view that if Korean subsidiary directly reports to him at Copenhagen, it could produce more fruitful results. Currently, the country manager of Korea, Jin-ho Jun (Jun)reports to the regional manager of Asia, Asif Rajar, and then Asif reports to the vice president of Lundbeck, Michael Andersen.

Context of Managers and Their Influence in the Company’s Operations.

Jun, the country manager of Korea is a highly-educated individual having a far-reaching experience of almost 15 years in CNS market in Korea. Jun has colossal skills and he has made it through working in different multinational pharmaceutical companies.Jun acts as a backbone for the Korean subsidiaries of Lundbeck, his contribution to the company is flabbergasted.

Asif Rajar, a Swiss citizen and an MBA, is currently in position of Asiaregional manager at Lundbeck. He is the key employee of LB because of his indispensable contribution in managing the regional operations of the company. His goal is to make the company’s operations cost effective and meet the customer’s needs as well as to eliminate every internal as well as external communication barrier. He has taken the company to the peak of success through its exceptional abilities.

The priorities must be set for all regional and local and headquarter managers. The local managers should effectively provide information about the local operations of the company in the form of reports on weekly basis to their respective country managers. They should also try to maintain the company operations cost effective.

The country managers are supposed to analyze those reports and provide feedback to the local managers. They should explore and avail all the opportunities within a country, which are profitable in the interest of the company.Moreover, they should report the regional manager related to the performance of the company effectively.

The regional manager should cater all the information obtained from different countries, analyze them and provide them with their relevant feedback as well as report to the vice president of the company.He should also try to understand the norms and practices about every country in its region, in order to eliminate contextual barriers while communicating with the country managers.He should be focused on the implementation of goals and vision set by the company. In short, the goals of all the managers should be align with the objectives and vision of the company.

The organizational mentality of Lundbeck

Lund beck had focused on specialization in CNS pharmaceutical area instead of going to a wide range of pharmaceutical and other health products. LB believes that if it specializes in a particular product line, it would be cost competitive and could be more profitable for the company. Lund beck has a small organizational hierarchy which enables it to make decisions very quickly as well as to implement any change very easily and effectively. This also helps in developing a strong communication system with no communication barriers. The company does this to maintain its local operations.

On the other hand, the company is also focused on global integration. It does effective advertising across the country, as well as bringing innovation in its products. The company invest almost 20% of its revenues to its research and development department to continuously adapt its products as per the customer’sneeds. This enhances the overall global integration of the company.

Lundbeck Korea Managing an International Growth engine Case Solution

Importance of regional division

Regional division is very important in a gigantic multinational organization. The regional manager ensures adherence to the company’s objectives all over the region. In order to make impeccable decisions a complete knowledge and understanding of the affairs of the business is essential.

In order to gain complete information of the business,effective communication is crucial. Understanding of the context of both the parties engaged in communication is a pre-requisite for effective business communication. Since,headquarter of a big multi-national company is heavily engaged in different business practices, therefore it does not have enough time to communicate effectively with different country managers.................

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