Case Study: Best Pharmacy Ever’s Acquisition of Emrosu

Shiva first opened her pharmacy, Best Pharmacy Ever (BPE), in 1995 and over the years has successfully developed a business of five local pharmacies all within a 20-mile radius of each other. Each pharmacy provides prescriptions, health and beauty products and pharmacy services including health advice, blood pressure checks and more recently consultations and vaccinations. The company has a flat structure with each branch manager reporting directly to Shiva who manages the business on a day-to-day basis. As a local pharmacist, Shiva prides herself on her reputation for providing a personal service to all her customers and over the years has been able to successfully maintain a family culture. More recently Shiva has been presented with an opportunity to further grow the business, as her son who has gradually become more involved in the organisation and provided investment, proposes the acquisition of Emrosu a national chain of pharmacies which will increase the size of BPE to 100 stores. Emrosu also has an internet pharmacy allowing customers to request their medicines online and either have them delivered or collect them in person. Emrosu has a typical hierarchical structure headed by a Board of Directors. Due to its size, Emrosu is supported by a functional head office including sales & marketing, purchasing, finance and a small people team, in addition to a separate warehouse and distribution team. As she contemplates this acquisition, Shiva looks to tap into your knowledge of the people profession to gain some insight into what she believes are the key factors to be considered.

She has asked you to provide written answers to the following nine questions.

Q1. Examine two key external factors likely to impact on BPE’s acquisition of Emrosu. (AC 1.1)

Q2. Discuss two business goals that BPE might set once the acquisition has been completed, explaining the reasons why it is important that they plan to achieve these. (AC 1.2)

Q3. Discuss: a) the products and services that BPE and Emrosu deliver and b) their main customers. (AC 1.3)

Q4. Review the range of technology that could be available to the people professionals working at BPE and Emrosu and how these could be utilised to improve working practices and collaboration after the acquisition. (AC 1.4)

Q5. Define what is meant by ‘organisational culture’ and why it will be important to foster an appropriate and effective workplace culture in BPE after the acquisition. (AC 2.1)

Q6. Explain how organisations function as whole systems and how the work and actions of the people professionals at BPE, after the acquisition, could impact the organisation. (AC 2.2)

Q7. Explain the main reasons why it is important that any changes made following the acquisition are planned and effectively managed. (AC 3.1)

Q8. Consider the importance and role that the people professionals in BPE and Emrosu could play during the changes. (AC 3.2)

Q9. Discuss how the changes could impact people working at BPE and Emrosu. (AC 3.3)

Business Culture Answers: Experts Answer on Above Business Culture Case

Two key external factors impacting acquisition
The two key external factors include regulatory environment and market competition. Regulatory factors such as compliance with Healthcare laws and market competition factors such as high competition in pharmacy chains and online pharmacies have all necessitated the need for acquisition.
Two business goals after acquisition
The two goals include integration of services by aligning BPW and Emrosu operations and secondly, it is to expand the digital pharmacy by leveraging the online platform of Emrosu.
Products, services and customers
The products or services include the prescriptions, health advice, vaccination etc whereas the customer includes the local community patients and health conscious customers.
Technology for people professionals
HRIS systems for the purpose of streamlining payroll, record and compliance and analytic software to manage the workforce performance.
Organisational culture
After the acquisition, the culture should be customer focused and a highly collaborative and inclusive culture that integrates well with Emrosu.
Organisation as whole systems
The functional department of both BPE and Emrosu needs interconnection, as the efficiency between the functional departments of each organisation contribute towards better service quality, efficiency and positive outcome.
Importance of planning change
Change management can be efficiently introduced through proper planning, as it helps in reducing resistance from employees, ensures staff retention and better delivery of customer service without any issues.
Role of people professionals during change
They have to play an important role by communicating transparently with each other, supporting workforce training and development, and ensuring fair policies.
Impact of changes on people
The positive impact will be better career opportunity and wider network whereas the negative impact could be uncertainty or redundancies. 

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