Adcock Ingram: Decisions and Motives That Steer Acquisitions

Author :

Charlene Lew

Pages :

17

Product Type :

Case

Reference # :

9B10C008

Teaching Note :

8B10C08

Institute:

Ivey Publishing

Setting:

South Africa, Large

Year:

2009

Keywords:

Interpersonal Skills; Personal Values; Acquisition Strategy; Behaviours of effective negotiation, General Management/Strategy, Organizational Behaviour/Leadership, International, Manufacturing

Summary/Abstract:

The case sketches the story of a charismatic and ambitious young business leader who, through value-adding commercial transactions, has helped set a South African pharmaceutical company, Adcock Ingram, on a trajectory of growth. The case reader meets up with him in May 2009 when he faces lack of closure and an ambiguous outcome to an offer to acquire a smaller pharmaceutical company. The case demonstrates the power of relationships, where the ambitions of different parties around the negotiations table and the incentives that shape their alliances can make or break a strategic business deal. As opposed to presenting a strategic decision-point for class discussion, the case presents students with an opportunity to analyze an unfavourable outcome of a business deal, and build a concept of behavioural requirements of success in business transactions. The case has been designed for class discussion and analysis of factors of leadership that underpin or influence acquisitions. As opposed to an analysis of the commercial rationale of an acquisition, it focuses on the behavioural components of leadership decision-making and their effect on business results. The case can provide a platform for the discussion of motives, interpersonal skills and relationships, and business activities in acquisitions.