Big Thinkers II

Managing integration

Decision making at Filscos is as unlikely to be fully integrated as the business structure itself. In addition, managers familiar with companies that have had both pharmaceutical and agricultural operations warn of the culture clash between the two.

As an example, F. Hoffmann-La Roche's pharmaceutical budget remains separate from its diagnostics budget despite the company's efforts to find areas of synergy between the businesses. Pharmaceutical projects and laboratories are divided according to therapeutic area. Each therapeutic area has a head, who reports to senior management. Senior management, rather than reviewing individual projects, determines instead what emphasis should be placed on each therapeutic area, considering factors from manufacturing, marketing and sales.