AdNike Pharmaceuticals: A Foreign CEO in China
(7 pages of text)
In 2012, the incoming general manager for AdNike Pharmaceutical’s operations in China faced a major challenge. AdNike was a leading global pharmaceutical company that had been in China for over 40 years. However, its performance in the country had been worse than expected. In the most recent half-decade of its operations in China, AdNike faced a changing regulatory environment that was becoming more challenging to navigate. Also, local competitors were making significant inroads into AdNike’s business. The new leader was charged with reinvigorating the company so it could achieve the growth and performance that was originally intended. Despite being new to China and not speaking any Mandarin, he had to determine a new strategic direction for AdNike while balancing the needs of external and internal stakeholders.
This case is intended for use in a strategy or general management course at the graduate or undergraduate level. It highlights issues of leadership, strategy, and the role of a general manager or chief executive officer in a large organization. After completing the case, students should be able to
- Discuss strategies for building trust in a culturally different business environment;
- Understand market challenges and opportunities in the context of growing a business;
- Evaluate a company’s strengths, weaknesses, opportunities, and threats as part of strategic planning; and
- Appreciate the precarious balance that a leader of a large organization has to strike between external (competitors, regulators, and government) and internal (employees, board, and managers) stakeholders.
Health Care Services
China, Large, 2012
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