This case is set after the 2007 US $2.5 billion acquisition by Nestlé of the Novartis Medical Nutrition business. The case focuses on the differing cultures of the existing Nestlé Health Care business and that of the unit it has purchased from Novartis. The two are being integrated under the leadership of Michel Gardet, who was previously leading the Novartis unit. So in spite of the fact that he is new to the Nestlé culture, Michel has to create a business that conforms, at least somewhat, to the Nestlé culture. The other significant issue he faces is how global the combined business should be. When part of Novartis, Michel’s business had a multi- local focus – do what is right for your local market – whereas the approach of Nestlé unit was much more global – roll out the new products around the world, for example. The case presents three specific issues on which Michel has to make a choice of which approach to use. He has to get it right, because although profitability is good, top line growth since the acquisition has not met the levels anticipated when the acquisition was made.
Learning Objective
To illustrate the challenges of acquisition integration on a global scale. To highlight the particular challenges facing a leader who comes from the acquired business, but has to make a success of a new organization operating in the culture of the acquirer. His direct reports come from both of the predecessor organizations, and different people have different expectations regarding the way the new business will operate.
Keywords
Acquisition Integration, General Management, Strategy
Settings
World/global
2007-2008
Available Languages
English
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