Business Essay Example: Pfizer's Hostile Warner-Lambert Takeover

The corporate world is characterized by business mergers as well as acquisitions. Nevertheless, caution has to be taken when coming up with the mergers to make sure that the profitability of businesses is not compromised (Li, 2010). There is a need for setting a working plan that is centered on the cultures of the business. However, all these activities have to be done within the provisions of the law.

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The hostile takeover battle between Pfizer Warner and Lambert Co offered a platform for forming a precise merger and acquisition. The chance for consolidation between the two drug making companies is a robust plan that is supposed to put an end to the unending competition that has predominantly existed for a long time (Li, 2010). Since Pfizer has always been hunting for making new drugs and competing for the success of its said impotence pill, the merger will offer great grounds for adding cholesterol pill Lipitor to the medicine cabinet.

The merger between Pfizer and Lambert is a viable approach especially if the two companies uphold the need for upholding the required corporate culture. The facts that led the withdrawal of the previous deal before Pfizer came in remain vague but probably there could be some monetary problems. However, the AHP group was compensated for the damage caused by the deal gone sour. The Warner-Lambert merge created the world's largest pharmaceutical farm, and up to date, their sales are overwhelming. The merger meant that the shares of the company were on 61:39 ratio and thus the mother company had to forego most of the leadership positions since they had no control of the enterprise. At the same time, Pfizer has greater control of the market. While Warner is known for its three unique products, Pfizer has 6 of them. This shows the strength that they pose in the market. The newly formed partnership was vital in that the two companies would combine their strengths and outdo the competitors. On the same note, Pfizer is known for its ability to produce drugs that can counter cardiovascular diseases. Their next focus is the CNS, and thus benefits of the merger cannot be ignored.

According to the analysis of Warner-Lambert, Pfizer will achieve tremendous results if the merger succeeds (Gong & Gu, 2010). The projected growth is estimated to be 25% per year. However, the merger has to consider the most fundamental aspects that enable consolidated companies to succeed. Additionally, the two companies should seek to analyze the factors that might fail the company. Retaining employees should be strategically done to avoid any possible loss of skillful employees during the merger (Gong & Gu, 2010). It should be noted that mergers and acquisition results into various challenges that are mostly linked to employee retention, corporate culture, adopting working models and ensuring that intense curse snag does not affect the consolidation process.

The merger should be analyzed to avoid any convolutions that might result in future challenges. According to Khayati and Janghorban (2012), there exists a procedure that has to be followed in the performance of application consolidation. Steps such as discovering & assessing archiving, cleansing, transforming & delivering and managing & optimizing are involved. Pfizer and Lambert are two drug companies which can merge and maximize their strengths as a way of solving the weaknesses portrayed in their approaches. The enterprise must focus on a variety of factors to be considered before making such applications. The positive part about consolidation is that it acts as an oversight to the security standards and measures while minimizing the cost of production. Business mergers are unavoidable in modern-day business. All that has to be done is ensuring the ethical standards are met while negotiating the deal. Hostility should never play any role as shown above.

References

Khayati, G. R., & Janghorban, K. (2012). An investigation on the application of process control agents in the preparation and consolidation behavior of nanocrystalline silver by a mechanochemical method. Advanced Powder Technology, 23(6), 808-813.

Gong, Z., & Gu, X. (2010, August). Pac: Pattern-driven application consolidation for efficient cloud computing. In Modeling, Analysis & Simulation of Computer and Telecommunication Systems (MASCOTS), 2010 IEEE International Symposium on (pp. 24-33).

Li, Y. (2010). The case analysis of the scandal of Enron. International Journal of Business and Management, 5(10), 37.