Hi,Please find below the article and questions to answer : Companies & Industries Post-Buyout, Genentechs DNA Is Dominant By Dermot Doherty and Rob Waters July 01, 2010 When Roche Holding executives held an investor-day briefing in New York in March, Morgan Stanley analyst Andrew Baum had a question that had nothing to do with new drugs, licensing deals, or health-care legislation. Did the Genentech team hide the ties of the Roche executives? he asked. Richard H. Scheller, a veteran scientist at Genentech, the Silicon Valley biotechnology powerhouse Roche took over last year for $46.8 billion, quipped that he doesnt own one. Turns out his Roche colleagues on the stage, led by Chief Executive Severin Schwan, didnt want him to look out of place so they ditched theirs. Id never seen them without suits and ties before, Baum said. To him, the informal attire reflected the willingness of Roche to be seen to bend toward Genentech, rather than the other way around. Genentechs impact on the Swiss drugmaker goes beyond the wardrobe of its executives. Unlike many acquired companies, the biotech leader is retaining its own culture even though its under new ownership. Roche has placed Genetech scientists in key jobs, such as head of drug development for the combined company. The U.S. operations of Basel, Switzerland-based Roche bore the brunt of job cuts following the merger, and Genentechs research structure has been adopted across the company. Meanwhile, at Genentechs base1 DNA Way in South San Franciscoemployees say not much has changed. Success ultimately equates into power, and thats exactly what we are seeing at Roche/Genentech, said Jörg de Vries-Hippen, chief investment officer for European equities at Allianz Global Investors in Frankfurt. Now that the full integration has taken place, its the Genentech guys being promoted and getting the key positions. Besides the billions it spent to buy Genentech, Roche has another reason to handle the biotech company carefully: its lucrative cancer drugs. Three of Genentechs cancer therapiesAvastin, MabThera (sold in the U.S. as Rituxan), and Herceptintogether logged sales of 17.6 billion Swiss francs ($15.36 billion) last year, topping the revenue for Roches 10 best-selling non-Genentech medicines. Genentech generated revenue per employee of $1.2 million in 2008, compared with $527,664 at its Swiss parent, according to data compiled by Bloomberg. Wall Street analysts now tie Roches future to Genentechs continued success. Roches long-term sales growth is better than its peers mainly due to a subsidiary thats been churning out its key blockbusters, while its own research unit hasnt been as productive, said Carri Duncan, an analyst at Macquarie Group in Zurich. It appears to be a case of, If you cant beat em, join em. Thats certainly true in Roches executive ranks. Genentechs Hal Barron, a 14-year veteran, is now head of Roche global development. Genentech CEO Ian Clark heads Roches North American commercial operations. Pat Yang, who joined Genentech in 2004, moved to Basel to run global manufacturing. Scheller took a seat on Roches 12-member executive committee. Roche CEO Schwan said the shakeup of research led to initial uncertainty, particularly in Basel. Also, for the first time ever in our history of acquisitions or mergers, global-management positions moved from Switzerland. Decision-making had in the past been concentrated at Roche headquarters. Roche also preserved many Genentech jobs. Parent Roche shut its Palo Alto (Calif.) facility and axed 500 of about 3,000 jobs at its Nutley (N.J.) site as part of a manufacturing shakeup. More cuts may be in store, said Karl-Heinz Koch, an analyst at Helvea in Zurich. Nutley is home to Roches labs for research and early development of compounds to treat cancer, viruses, and inflammation. Genentech labs are also targeting those same therapies, he said. Roche is changing how its own labs work after its scientists saw that Genentechs setup made more sense, CEO Schwan said. In the past, Roche maintained separate departments for laboratory research and early-stage drug testing in people. Now its adopted Genentechs practices of combining them. Schwan said that Roches concerns over losing Genentech staffers led to the integration being handled differently than previous acquisitions. If we look back a year ago, it was of utmost importance to keep the spirit and the culture of Genentech and to keep innovation thriving, he said. It was really, really important to retain people and to retain scientists. Roche distributed $375 million in payments to prevent defections, and none of the top scientists from Schellers research and early-development group left, even after the retention payments ended, Schwan said. In fact, staff fluctuation rates at Genentech are lower than they were before the purchase was announced, he said. One reason: Roche didnt tamper with Genentechs culture of research and innovation, which encourages employees to pursue their own projects and creates a workplace where jeans predominate, hierarchy is kept to a minimum, and scientists have easy access to top managers, said Mark Sliwkowski, a 19-year veteran there. Genentech has always had as an explicit goal being a great place to work, Clark said. I dont think that was such a conscious goal for Roche, and that may be one place where our culture can rub off a bit. The bottom line: Many analysts worried Genentech would lose talent and its innovative culture after its acquisition by Roche. Yet, so far, its thriving. With Eric Burg and Ellen Gibson Doherty is a reporter for Bloomberg News in Geneva. Waters is a reporter for Bloomberg News Question: Post-Buyout, Genentechs DNA is Dominant, Business week, July 5, 2010 (Weblink provided separately) Please answer these questions:Q#1: Identify: (a) the basic assumptions and values which underlie Genentechs culture, and (b) the characteristics which define organizational structure of Genentech. Q#2: Present your opinion as to whether Genentechs culture and structure are appropriate given the type of business and the goals they pursue? Why?Q#3: Frequently, the parent or 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 Genentechs (acquired co.) culture? Provide your arguments. Please I will appericate it if you can send me the answers tomorrow by 18:07(6:07pm). ThanksBest regards Owanaba