Post-Buyout, Genentech's DNA is Dominant, Bloomberg BusinessWeek,

July 5, 2010, pp. 17-18. OUTLINE FOR ANSWER TO THE QUESTIONS Q#1: Identify: (a) the basic assumptions and values which underlie Genentech's culture, and (b) the characteristics which define organizational structure of Genentech. (a) culture involves: Informal workplace, casual attire with jeans, no tie, etc.; research and innovation is the driving force; strong support to ensure that Genentech remains a great place to work; employees have the freedom and discretion to pursue their own research projects; employees are geared for success. (b) Structure involves: The minimum degree of bureaucracy, fewer layers of hierarchy, direct and easy access of the researchers to the top management, decentralized decision making style where the researchers have the freedom and discretion to pursue their own research agenda. Q#2: Present your opinion as to whether Genentech's culture and structure are appropriate given the type of business and the goals they pursue? Why? Genentech is in the business of research and innovation; it also has the explicit goal to ensure that it is a great place to work. The culture which is characterized by research and innovation as the primary driving force with little emphasis on attire and employees with the freedom and discretion to pursue their own research projects (also a part of the structure) is appropriate for achieving success. The structural attributes which include less bureaucracy, quick access of the researchers to the top management for fast problem solving, decentralized decision making style allowed for the researchers, are all very appropriate to achieve success given what they do. Q#3: Frequently, the parent/acquiring company imposes its own culture on the acquired company. Is it appropriate for Roche (parent co.) to do it the opposite way, i.e., change its own culture based on Genentech's (acquired co.) culture? Provide your arguments. Roche is a quick learner to understand that the culture and the decentralized structure at Genentech is more appropriate for the company which is in pharmaceutical industry, and where innovation is the key to survival. Just by looking at the sales (total sales from three of Genentech's drugs were higher than the total sales of top 10 of Roche's non-Genentech drugs), it is evident that Genentech was doing something very right--which basically are their innovation oriented culture and structure. Therefore, I believe, it was an appropriate move by Roche to slowly change the culture to incorporate the attributes of Genentech culture and change the structure in a similar way, say, by combining the laboratory research and early-stage drug testing (which used to be separate).