International Management Report: Analysis of Cross-Cultural Leadership

This report analyzes the complexities of international management, focusing on leadership within global organizations and the impact of cultural differences. It examines dimensions of organizational leadership, emphasizing cross-cultural leadership challenges. The report uses the case of Daiichi Sankyo's acquisition of Ranbaxy to illustrate the difficulties of post-acquisition integration, highlighting issues stemming from differing corporate cultures and the failure to understand the Indian unit. The analysis covers the influence of culture on leadership styles, the challenges of leading globally, and the financial and operational consequences of these challenges. The report also references academic sources to support its findings. The study highlights the importance of understanding cultural nuances and adapting leadership approaches to ensure the success of global business ventures.

Running Head: INTERNATIONAL MANAGEMENT
INTERNATIONAL MANAGEMENT
Name of the Student
Name of the University
Author Note:

Impact in organisational culture Post-acquisition integration
 The post-acquisition integration made Daiichi Sanko as the first Japanese drug maker
to be engaged in all four primary pharmaceuticals fields that includes new
Prescription Drugs, Generics, Over the Counter and vaccines.
 After developing the resolving strategy, Daiichi Sankyo fired the current CEO of the
company and replaced it by forming a working committee to design and implement a
new global quality organisation at Ranbaxy led by Daiichi Sankyo's former quality
control officer from the US subsidiaries.
 Acquiring and maintaining all the loop holes and faults the Japanese company was
unsuccessful on clearing things and fixing the issues with Ranbaxy resulting in the
third quarter of financial year 20081, Daiichi Sankyo booked the valuation loss of
USD$3.9 billion because of one-time write-down of goodwill pertaining to the
investment in Ranbaxy. For the fiscal year.
 Followed by more issues reporting as human hair found in a tablet, oil spots on tablets
and toilet facilities without running water2. Over the year, Daiichi Sankyo was unable
to turn the Indian unit into a new growth engine because of lack of understanding the
corporate culture of Ranbaxy.
 Post –acquisitions integrations was real challenge for Daiichi and Sankyo which also
reflected for the high turnover rate at Executive level of Ranbaxy starting from the
position of CEO and MD first Atul Sobti after his resignation cames Arun Sawheny
1 Marschall U, e, "Long-term opioid therapy for chronic non-cancer pain in Germany. – PubMed
NCBI.". in Ncbi.nlm.nih.gov, , 2020,
2Nagasaki, "Cause–effect analysis on Fukushima accident reports – What did McMaster undergraduate students
learn?", in Journal of Nuclear Science and Technology, vol. 53, 2015, 756-765.

then the resignation of the president and CFO of Ranbaxy Mr. Omesh Sethi was
encountered3.
Impact in national culture Post-acquisition integration
 On the other hand, the impact of the post-acquisition integration impacted the national
culture also. In the first decade of 2000, significant innovators in pharmaceutical firms
acquired generic pharmaceutical companies to improve their sales, retain market
share, promote their drugs and commercialize them effectively and cost-effectively4.
 Within three months of the acquisition the US Food and Drug Administration (FDA)
issued two warning letters to Ranbaxy and announced a ban on more than 30 generic
drugs sold by Ranbaxy in the nationality of the United States.
 February 2009 the FDA had halted reviews of all the drug applications submitted by
Ranbaxy due to the manufacturing laps on the plant of Ranbaxy in India5.
 Post accusations of ear ended 31 March, 2009 the company reported in USD$8.6
billion revenue with net income of USD$0.47 billion. Although net income rose to
USD$0.78 billion in 2010, this was below the pre acquisitions net income of
USD$0.97 billion.
 The post-acquisition financial statements of the companies concerned were a
disappointment and that Daiichi is doing its best to support the acquisition work. Over
the year, Daiichi Sankyo was unable to turn the Indian unit into a new growth engine
because of lack of understanding the corporate culture of Ranbaxy.
3 Verhetsel, A, T Vanelslander, & M Balliauw, "Maritime world cities: development of the global
maritime management network.".in International Journal of Shipping and Transport Logistics, 8, 2016,
294.
4 Verhetsel, T Vanelslander & M Balliauw, "Maritime world cities: development of the global maritime
management network", in International Journal of Shipping and Transport Logistics, vol. 8, 2016, 294.
5Nakamura, "Mutation-Based Therapeutic Strategies for Duchenne Muscular Dystrophy: From Genetic
Diagnosis to Therapy", in , , 2020.

Reference
Marschall U, e, "Long-term opioid therapy for chronic non-cancer pain in Germany. –
PubMed NCBI.". in Ncbi.nlm.nih.gov, , 2020,
<https://www.ncbi.nlm.nih.gov/pubmed/26492066> [accessed 11 April 2020].
Nagasaki, S, "Cause–effect analysis on Fukushima accident reports – What did McMaster
undergraduate students learn?.". in Journal of Nuclear Science and Technology, 53,
2015, 756-765.
Nakamura, A, "Mutation-Based Therapeutic Strategies for Duchenne Muscular Dystrophy:
From Genetic Diagnosis to Therapy.".in 2020.
Verhetsel, A, T Vanelslander, & M Balliauw, "Maritime world cities: development of the
global maritime management network.".in International Journal of Shipping and
Transport Logistics, 8, 2016, 294.