In 1991, Warner-Lambert Company, a firm involved in three core businesses - ethical pharmaceuticals, non-prescription health care products, and confectionery -- has just completed its most successful year ever. However, Mel Goodes, the new CEO, is worried that the current organizational structure is inconsistent with an increasingly global business environment. The key issue in the case is how to shift a classic multi-domestic, country-oriented firm to a more responsive, tighter linked global structure. This should lead to a discussion of the pros and cons of running a business on a global versus local basis. The issue becomes quite complex with Warner-Lambert because of the differences between its three core businesses.
The case is designed to address the issue of globalization and organizational structure. The case allows the "global versus local" issue to be examined in a large, multi-divisional firm