Question

1. What priorities will the local, regional, and headquarters managers have? How will their backgrounds and positions in the company influence their concerns?What type of organizational mentality does Lundbeck have? Why has this mentality developed? Does it

2. Which functional areas in Lundebeck’s value chain require global integration, and which require local responsiveness? Do you believe Lunbeck’s reporting structures balance these requirements?
3. What is the value of having a regional division? Should Andersen separate Lundbeck Korea from Lundbeck Asia?
4. Can you devise a win-win-win solution, one which meets Andersen’s needs and does not result in either Jun or Rajar leaving the company?
5. Do you believe that this case raises substantial ethical questions? If so, what are they and how would you handle these questions?

Answer 1

> The priorities that local, regional and headquarters managers have are the following :-

• Transfer knowledge to the subsidiaries.
• Create mechanisms for accountability.
• Manages the transition ​​​for licensing agreements to wholly owned.
• Manages to share knowledges or informations with other managers.
• Consistently manage diverse locations, while growing the region.
• Effectively manages costs.

The backgrounds and positions in the company influence their concerns. Mainly influence the opinion leaders in Korea. It creates new sources of revenue for Korea. Fits with the local business practices. Implements Lundbeck's strategy.

> The organizational mentality of Lundbeck.

Lundbeck had focused on specialization in CNS pharmaceutical area of going to a wide range of pharmaceutical and other health products. Lundbeck believes that if it specializes in a particular product line, it would be cist competitive and could be more profitable for the company. The company is also focused on global integration. It does effective advertising across the country, as well as bringing innovation in its products.

> The functional areas in Lundbeck's value chain which require global integration and local responsiveness are the following:

• Production
• Pricing
• Marketing
• Sales and promotion
• Product mix
• Product testing
• Research and development
• Government relations

Yes, the lundbeck's reporting structures balance these requirements. By keeping control over its production, it allows it to control reliability and quality.

> By understanding the case study of Lundbeck, we can say that Andersen should not separate Lundbeck Korea from Lundbeck Asia. Although the Korean pharmaceutical market has its own culture and aggressively grows, Lundbeck Korea is still a very small percentage of Lundbeck's corporation revenues. The Asian division can also provide better support to the South Korean unit than the company headquarters if the organizational process and communication become better structured.

> Understanding of the matter of both the parties engaged in communication is a pre- requisite for effective business communication. This is just a sample partial case solution.