Lack of clear hq understanding of the situation in

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Lack of clear HQ understanding of the situation in Indonesia or a strategy for it o Intense pressure What do you think about HQ? o Lack of urgency (the Plans were submitted in January, no approval in February with meeting offered for April) o Failure to (alternatively) offer greater local autonomy for decisions o Failure to communicate a clear signal profit or sales emphasis? o Afafdsa Merger challenges o Bases on the global combination of Ciba-Geigy and Sandoz Dissident minority shareholder
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Slow (or missing) government approvals Duplicate offices and resources Eriksson proceeded to merger operations without approvals A bigger picture view o Another issue is the spotty and untimely direction provided by corporate during a time of crisis – why? o From case page 6 (bottom) – Novartis Indonesia sales = US $54.8 million (at $1 afadfgaf Top line plan – Pharma o Increase market share o Market shakeout o Shift in drug needs as country gets richer o Local research and development o Faddjkj Bottom line plan – RM o Improve profitability Profit focus using current market dominance (90%) Fadafd Alternative strategies o Hold prices low, build goodwill o Expand through acquisition o Use low cost Indian subcontractors o Exit market
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