Organizational Learning and the Case of the 'Simply Better' Merger
Abstract Category: Other Categories
Course / Degree: n/a
Institution / University: Harvard University, United States
Published in: 1994
In the annals of history, the decade of the 1980s is recorded as the golden age of mergers and acquisitions. More than 31,000 consolidations recorded between 1980 and 1989 shared a collective value that exceeded $1.3 trillion.
This is the case study of the merger of two healthcare companies. Philadelphia-based SmithKline Beckman Corporation and London-based Beecham, PLC consolidated on July 26, 1989 to form SmithKline Beecham, PLC, the first multibillion dollar transnational merger of pharmaceutical equals.
With data from interviews, observation, public and private documents, this inquiry analyzes the unprecedented undertaking through the framework of 'organizational learning' a revisited 1930s management concept that has been identified today as a nove source of competitive advantage for the 1990s and beyond.
The data reveal that key senior leaders who anticipated a shifting world-wide healthcare market shaped this unique merger by selecting and implementing a variety of learning strategies throughout the new entity from the executive suite to the shop floor. By preparing those who strategized it, assisting those who designed it, and enabling those who laid the conceptual and operational foundations of the new corporate culture, organizational learning drove the creation of a new global enterprise that has realized business synergies and financial targets to successfully compete among world-class healthcare providers. SmithKlineBeecham commemorated its fifth anniversary and first succession of senior leaders in 1994.
To date, the effectiveness of this unique undertaking from both a financial and human perspective demonstrates the critical value of learning for consolidation, and sets an exemplary precedent for organizations both for-profit and non-profit that will confront this kind of activity in the future.
Thesis Keywords/Search Tags:
global, merger, pharmaceuticals, organizational learning
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Submission Details: Thesis Abstract submitted by Linda S. Myers from United States on 04-Oct-2006 09:00.
Abstract has been viewed 2328 times (since 7 Mar 2010).
Linda S. Myers Contact Details: Email: Linda_Myers@post.harvard.edu
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