Pfizer-Pharmacia Merger case
Phizer-Pharmacia Merger
Contents
Introduction 1
Analysis 2
Did Mr. McKinnell handle the Medicare situation and WARN memo in an ethical manner? 2
Pfizer as an ‘organizational citizen’ 2
Factors that should have been considered in Pfizer’s decision 3
Applications of the theories, models, and concepts of organizational behaviour to a place of work 3
Insights and recommendations 5
References 6
Introduction 1
Analysis 2
Did Mr. McKinnell handle the Medicare situation and WARN memo in an ethical manner? 2
Pfizer as an ‘organizational citizen’ 2
Factors that should have been considered in Pfizer’s decision 3
Applications of the theories, models, and concepts of organizational behaviour to a place of work 4
Insights and recommendations 5
References 5
Introduction
An announcement of the acquisition of Pharmacia, Corp by Pfizer stated that this would “bring together two young, strong, broad and complementary product portfolios, enhanced research and development pipelines and outstanding sales and marketing organizations” (Stamper, 2005). From a business perspective, the merger was expected to make Pfizer the world 's largest pharmaceutical company, would increase the company’s competitiveness, boost profit growth, and result in cost savings. It is obvious that this cost savings would come from reducing labor costs due to downsizing, and some employees would lose their jobs and their income. This would also lead to negative effects on the local businesses that provide products and services to these employees, and reduce the tax bases of the local communities. We do not know whether the overall outcome for the consumers wouldill be positive or not but we have to face the fact that many of the employees sait in fear of being let go.
Analysis
Mr. McKinnell acted as required by the law: an employer must give notice if there is to be a mass layoff of local jobs. When the merger was announced the memo was sent as required by the federal Worker
Contents
Introduction 1
Analysis 2
Did Mr. McKinnell handle the Medicare situation and WARN memo in an ethical manner? 2
Pfizer as an ‘organizational citizen’ 2
Factors that should have been considered in Pfizer’s decision 3
Applications of the theories, models, and concepts of organizational behaviour to a place of work 3
Insights and recommendations 5
References 6
Introduction 1
Analysis 2
Did Mr. McKinnell handle the Medicare situation and WARN memo in an ethical manner? 2
Pfizer as an ‘organizational citizen’ 2
Factors that should have been considered in Pfizer’s decision 3
Applications of the theories, models, and concepts of organizational behaviour to a place of work 4
Insights and recommendations 5
References 5
Introduction
An announcement of the acquisition of Pharmacia, Corp by Pfizer stated that this would “bring together two young, strong, broad and complementary product portfolios, enhanced research and development pipelines and outstanding sales and marketing organizations” (Stamper, 2005). From a business perspective, the merger was expected to make Pfizer the world 's largest pharmaceutical company, would increase the company’s competitiveness, boost profit growth, and result in cost savings. It is obvious that this cost savings would come from reducing labor costs due to downsizing, and some employees would lose their jobs and their income. This would also lead to negative effects on the local businesses that provide products and services to these employees, and reduce the tax bases of the local communities. We do not know whether the overall outcome for the consumers wouldill be positive or not but we have to face the fact that many of the employees sait in fear of being let go.
Analysis
Mr. McKinnell acted as required by the law: an employer must give notice if there is to be a mass layoff of local jobs. When the merger was announced the memo was sent as required by the federal Worker
References: Mediacorp Canada Inc. (2014). Canada’s Top 100 Employers. Retrieved October 17, 2014, from Canada’s Top 100 Employers web site: http://www.canadastop100.com/national/ Moihin, T. (2012, January 18). The Top 10 Trends in CSR for 2012. Forbes. Retrieved October 17, 2014, from Forbes web site: http://www.forbes.com/sites/forbesleadershipforum/2012/01/18/the-top-10-trends-in-csr-for-2012/ Mediacorp Canada Inc. (2014). Canada’s Top 100 Employers. Retrieved October 17, 2014, from Canada’s Top 100 Employers web site: http://www.canadastop100.com/national/Stamper, C. (2005). Pfizer-Pharmacia Merger. Copyright © The McGraw-Hill Companies, Inc.