Team sectional paper 4: After the acquisition it is vital for the company to create an organizational structure that will enable the company to implement the firm’s strategy and integrate the subsidiary in the group.
As the number one pharmaceutical company in the world, Pfizer have a lot of experienced in acquiring and integrated new companies in their structure. The organizational structure that there are using is the most common type of organizational control system. This system, the responsibility center control is a system where firms “first identify fundamental responsibility centers, as geographical region or product groups. Once the centers are identified, the firm then evaluates each on the basis of how effectively it meets it strategic goals. Thus a unique control system is developed for each responsibility center. These systems are tailored to meet local accounting and reporting requirements, the local competitive environment, and others circumstances.” (Griffin & Putsay, 2010)
After acquiring Wyeth, a major pharmaceutical company for 68 billions of dollar in 2009, Pfizer had to modify it organizational structure in order to integrate Wyeth activities in it portfolios. So Pfizer’s New Organizational Structure is a balanced and decentralized structure that “seeks to integrate its disease priority areas, combined research operations and diverse business units.” (Mahesh, 2009)
The company has been split into two organizations for the research side, The Pharmatherapeutics and the Biotherapeutics. “On the business operations side, the company will be divided into 9 business units: Primary care, Specialty care & Vaccines, Emerging markets, Oncology, Established products, Animal health, Capsugel, Consumer health and, Nutritional health. Each of these business units will be led by a Chief Scientific Officer responsible for globally managing their products, right from its inception to post sales profit-loss-exclusivity management. This