Novartis Pharma: The Business Unit Model

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Case

Reference no. 9-101-030

Subject category: Finance, Accounting and Control

Authors: Srikant M Datar; Carin-Isabel Knoop; Cate Reavis

Published by: Harvard Business Publishing

Originally published in: 2001

Version: 20 May 2003

Length: 21 pages

Data source: Field research

Topics: Profit centers; Business units; Organizational structure; Public health; Recruitment; Cause marketing; Matrix organization; Restructuring; Barriers to entry; Decentralization; Multibranding; Executive selection; Problem solving; New product marketing

Share a link: https://casecent.re/p/41149

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Abstract

In June 2000, Novartis reorganized its pharmaceutical business to form global business units in oncology, transplantation, ophthalmology, and mature products. The remaining primary care products continued to be managed within global functions (eg, R&D and marketing). The new organization created a matrix structure and new roles and responsibilities for heads of business functions, CEOs of new business units, and country managers operating in over 100 countries.

Location:

Switzerland

Industry:

Pharmaceuticals

Size:

USD21 billion revenues, 70,000 employees

Other setting(s):

2000