Unit 3: Configuring Firms for International Business
In Assignment 3, you will analyze the case of Lundbeck Korea, one of the most promising subsidiaries of Lundbeck, a Danish based pharmaceutical firm. If you haven’t already done so, review the Assignment Tips and Requirements and the Note on Case Analysis (links are on the instructions page for this assignment).
The Vice President of Lundbeck, Michael Andersen, wants to create a reporting structure and management mix that would balance the local demands that Lundbeck Korea required for growth, with Lundbeck's overall strategy. This case introduces the dynamic tensions between taking advantage of local management expertise and executing a corporate strategy developed for an entire global group. In addition, it illustrates the importance of being sensitive to local management goals, while promoting a global corporate culture.
Completing this assignment will enable you to explore the tension between global integration and local responsiveness and help you understand how reporting structures can be used to balance the demands between corporate headquarters strategy and local integration.
To read the case, click the link below (will open in new window).
Lundbeck Korea: Managing an International Growth Engine
One-time permission to reproduce granted by Richard Ivey School of Business Foundation on Oct. 13, 2011. This permission will expire six months from Jan. 1, 2012.
Case Analysis Questions
The following questions are just a starting point that will help you organize your thoughts and better analyze the case. DO NOT simply answer these questions—rather, you must write a thorough case analysis as outlined in the "Assignment Tips and Requirements."
- 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 reflect a good balance between global integration and local responsiveness for Lundbeck?
- What is the value of having a regional division? Should Andersen separate Lundbeck Korea from Lundbeck Asia?
- Can you devise a win-win-win solution, one that meets Andersen’s needs and does not result in either Jun or Rajar leaving the company?
- To maximize the mark you receive on your case analysis report, ensure that it includes the sections listed below. Use a bold heading to identify each section in your paper. The approximate number of words recommended for each section is shown below in brackets.
- Executive summary (200 words): provides a coherent overview of the document it attempts to summarize. The executive summary, which should be writtenafter completing other sections of the case analysis report, must contain a brief statement of the core problem, pertinent details, and the recommendation.
- Problem statement (50 words): identifies the core problem or issue facing the decision-maker. What is she or he trying to solve? Do not confuse the problem with its underlying causes. Likewise, do not "change" the problem. For example, if the problem is deciding whether a firm should enter Mexico via a joint venture, do not argue that China would be an ideal country for the firm to enter.
- Analysis (600 words): identifies the underlying causes of the core problem. It should provide a well-balanced and detailed analysis of the situation by examining all relevant factors. Remember that unless you correctly identify the causes of a problem, it will be difficult to find a solution that "really" solves the problem!
- Discussion of alternatives (400 words): includes two feasible and mutually exclusive alternatives that can be utilized to solve the core problem. Do not discuss alternatives that the decision-maker has rejected or about which she or he is not enthusiastic. Discuss all important advantages and disadvantages of each alternative briefly.
- Recommendation (250 words): explicitly identifies your recommendation. Ensure that it is specific and feasible, and briefly explain your rationale for advocating a particular recommendation. Make sure as well that your recommendation is consistent with the rest of your report. Check to see if you have really addressed the core problem!
- Make sure to stay within the time frame of the case study. If the case study ends in 2000, your analysis should assume it is the year 2000.
- Write from the perspective of the decision maker in the case study.
- Create exhibits (charts, tables, diagrams, etc.) to support your analysis of the case study and highlight the conclusions to be drawn from the exhibits in the body of your report.
- Do not present the two alternatives in a table format, and avoid extensive use of bullet points.
- Your report should be analytic rather than descriptive. Do not simply repeat the case facts and exhibits of the case study in your report. Use them to justify your analysis and emphasize the points you are making.
- You must follow APA style for citations and referencing. TheOWL at Purduewebsiteprovides an overview of the American Psychological Association (APA) formatting and style guide.
- Read your report carefully to check for punctuation, spelling, and grammatical errors before submitting it for grading.
Maximizing your Mark