Essay on The Globalization of Wyeth - 2592 Words

Executive Summary From 1997 to 2004, Wyeth went from being a multinational company to becoming a globalized company. The biggest shift? Their Information Technology department. They went from 22 people spread over the world to more than 1,800 people and half a billion dollars of the Wyeth budget. For many years Wyeth was a Laissez-Faire holding company with many locations throughout the world that did not interact or communication with each other. Over the next 8 years, with the help of the Information Technology department, Wyeth became a globalized pharmaceutical company with centralized information that created new efficiency in an increasingly competitive market. The end result was a positive one but it was not an easy road†¦show more content†¦Corporate Wyeth had very little knowledge about storage space or production levels at the various locations. The local firms never shared ideas for success with each other because there was little incentive or benefit to the individual lo cations. The laissez-faire, only concerned about the bottom dollar, holding company was going to need to establish formal control mechanisms to become better with global inventory. The next stage was to have Research and Development up and running. Wyeth being able to manage the product from origination is a valuable step to protecting margins, licensing agreements and global growth. This was a problem at the local level however for the individual managers. The local managers were mainly used to local activities. They would order and produce at local levels and there was an uneasy adjustment to get local managers to think on a global level. Last, but certainly not least, is the growth and expansion of information technology. To aid in the communication between locations and to gain understanding of processes on a global level, the Information Technology division was going to need to be a larger part of the company. Part of this growth was going to be the purchase of new technology and part was a reconfiguration of how products were offered and packaging was designed. Wyeth was already a multinational company so they understood there would be problems goingShow MoreRelatedOrganizational Structure in the Pharmaceuticals Industry Essay1210 Words   |  5 Pagestypes of differentiation within each company: horizontal differentiation, vertical differentiation, and spatial differentiation. This high level of differentiation results in a very complex organizational structure (Nelson amp; Quick, 2011). Globalization presents significant challenges to all organizations that operate in many different countries. 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