Solution 2 is a feasible solution, because the merge conversations already started and will be finished after some issues are clarified. By an investment in human resource management, there will be a positive culture of the new company, arised from both companies together. SB's strategy of 'designing a winning culture', called Simply Better Way, is regarded as one of the industry models of successfully instilling a culture of change.
The value of the merger, what have been the largest in the world in the pharmaceutical industry and would make the combination a number one player in its market. The merger will, combined with investment in HRM, give rise to the benefits of synergy. The merger will also increase economies of scale, which will reduce cost of development and production of drugs.
Due to the number one position in the market the new company will be able to shape the future rather than adopt the future. Also the better and more effective use of the R&D budget will give the new company competitive advantage.
So our choice recommendation will be solution two.
Visioning and creating future
Especially in the pharmaceutical industry there is a lot of uncertainty. However, pharmaceutical companies can anticipate actively towards the market. So, we can conclude that the basic level of uncertainty is ' Currently unknown, but knowable information', which means that pharmaceutical companies can analyze the market and try to fulfill the found needs of customers.
The residual uncertainty that SB is facing can be seen at the level of Alternate futures. In the pharmaceutical branch there are a lot of determining factors, such as R&D capital, amount of people that suffer from a desease, the influence of the government, the patents, etc., but the two factors that determine the uncertainty mostly are the research results and the medicine price.
SB's posture depends on the different area's within the branch. For SB invests lots of capital in the gen-technology and can be seen as playing a leadership role, its' posture is 'shape the future', but as it also follows the market to fulfill the customers needs by capturing opportunities and being flexible, its posture is 'adapt to the future'. Also can be said that SB never that the position of 'reserve the right to play'.
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