Global Strategy and Structure Essay

665 Words May 9th, 2014 3 Pages
Global Strategy and Structure
Eddie Montanez
MGT 408 Organ. Theory & Dev
February 25, 2014












Schering-Plough Global Strategy and Structure
The problems that Schering-Plough experienced with it global strategy and structure is that it took a multidomestic strategy that was over decentralized to the point that each of the heads of a international region had assumed total control of their operations (Jones, 2013, p.237). This left management at all levels within the corporate headquarters uniformed about the performance of each region. Leaving the corporation with major drug quality issues on their hands that the Food and Drug Administration was demanding that it overhaul is operations to increase and
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The global strategy has allowed for a centralized decision-making with more control over functional activities. CEO has also implemented a mechanistic structure approach that has each of the international division report directly to him or a top-management team member (Jones, 2013, p238). This offers adequate control and coordination and rapid response to unsatisfactory performance at an international division. The new global structure has worked so well that the corporation has expanded its range of products in each international division, that sales and profits increased so much that by 2010 it becomes part of Merck a major competitor in the pharmaceutical business.
The changes with the organizational strategy and culture play a major part in ever organization. Although not to the extreme of Schering-Plough the organization that I am employed has seen a lack in new strategy and culture change. This is due in part to the consistent rotation of the top-management that must rotate to other positions every three years. This coupled with the age of the civilian workforce does not allow for the successful transfer of organizational knowledge and culture. Allowing for the work force to revert back to doing things the easy way as the organization continues to function but not effectively just enough to get by. The organization also has communication failures at all levels which has made the organization more of a reactionary workplace vice being proactive to…