Allergan South Africa's Merger: Contextual Leadership Sustaining Culture
(7 pages of text)
In early 2016, the chief executive officer (CEO) of Allergan South Africa had been leading his team through changes resulting from a number of mergers over the past four years. Allergan Inc. (Allergan) had been the third-largest generic drug maker in the United States after it combined with Actavis plc in 2015, and the company was depicted as an example of “merger mania” in the pharmaceutical sector. Operating in 40 countries, Allergan had gone through a total of five mergers between 2012 and 2015—a period that had included a hostile takeover bid, cost cutting exercises, and, eventually, an acquisition. The CEO at Allergan South Africa had been working with his human resources director to build a “supertribe” culture in response to the changes. Now, faced with the challenge of yet another anticipated merger, some of the executive team had resigned, unwilling to go through the turmoil of more acquisitions. How could the CEO keep his people engaged at the regional division? What leadership style would enable him to effectively make the needed changes?
The case can be used in an undergraduate or master’s business program in courses on organizational development, leadership, change management, and strategy execution. Using this case will help students to
- gain insight into internationalization and country managers’ challenges;
- obtain an understanding of key success factors in antecedents, integration processes, and consequences of acquisitions; and
- comprehend contingency theories in leadership studies—for example, the use of contextual leadership intelligence at different stages of change processes.
Health Care Services
South Africa, Large, 2016
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