Ciba Vision Cibavision: Overview of Research Paper

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But questions remain as to whether it can continue to thrive in the wake of the recent merger. The problem is not with the reported quality of its product, given that CIBA VISION has lead the industry in innovation and has a better consumer service record than its major competitors. But whenever a company engages in a merger, questions always arise about the ability of the companies to work together harmoniously, and to not lose their core strengths.

Once it was observed that if an economist were to predict every merger were to fail, he or she would be more likely to be right than wrong in most instances. Clashing organizational cultures, the ill will generated by letting people go, and resentment of the larger entity are all common. Additionally, the rate of return on the planned synergies does not always 'deliver.' The plan for Alcon is that the global eye care company will use CIBA VISION to leverage its current geographical presence, and gain traction in the one sphere of the market -- contact lenses -- where it was lacking before. Alcon stresses that it seeks to be a global leader in all spheres of eye care and CIBA VISION is a core component of its envisioned plan.

To continue to thrive, CIBA VISION must continue to innovate, and still retain its essential integrity within the context of Alcon's leadership.

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Alcon's formulation of its business strategy suggests it will allow CIBA VISION to retain its emphasis on R&D, as this is also a critical component of Alcon's essential values. Within the Alcon-Novartis-CIBA VISION empire, the company's management will be segmented on regional and national levels, with specialized sales forces and marketing personnel in each of the three different business segments. There will be one national, general structure in each of the 180 nations where Alcon is present (Chavers & Mota 2010). Complementary corporate cultures -- both companies specialize in eye care, have long had a global focus, and stress R&D -- suggest that the merger may prove beneficial. However, it remains an open question as to whether CIBA VISION can retain its character under the auspices of a single, unified Alcon......

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