Building the New Bosco-Zeta Pharma (B)

Abstract

Having just announced Bosco Pharmaceutical’s acquisition of Zeta AG (Zeta), the Bosco chairman is unsure whether to follow his instinct to merge the two firms using only internal resources, or whether he should accept the help of Deloitte Consulting. The Deloitte consultant advocated a complete overhaul of Bosco’s organizational structure, in over 100 countries, to accommodate Zeta, a company one-fifth Bosco’s size. But the chairman is uncertain whether Zeta’s worldwide product structure should be adopted by Bosco, or whether Zeta should be required to conform to Bosco’s more geographic management and operating structure. This merger would be the biggest in Bosco’s 110-year history, and the integration issues are not trivial. It is imperative to extract benefits from this merger--primarily the meshing of corporate cultures while simultaneously achieving ambitious cost savings.