Genentech Innovation Summary

Business Growth by Acquisition
All companies share a common goal which is growth to increase revenue. To achieve the growth companies develop strategic plans on how to achieve growth. One way to grow is by organic growth. Organic growth is achieved by increasing output and increasing sales (investopedia). The other growth plan is through acquisitions. Acquisitions are when a company buy all or in part of another company (investopedia). Acquisitions are by far the fastest way for a company to grow. When a company acquires another company, it is important to understand how the acquired company operates and how the acquired company will have an impact.
Company Background
Genentech Inc,. is a biotechnology company located in California. Genentech

Genentech uses the pipeline concept to their innovation. Genentech has many projects in their pipeline at varies stages. There are many different forms of innovation a company may use. The type of innovation a company uses is dependent on their business industry and company goals.
One innovation form that makes Genentech stand out is their radical innovation approach as well as product innovation. Genentech focuses on addressing the unmet medical needs in the industry. Their purpose is to make new products (medications) to address those unmet needs, this is done by creating new products entirely and improving on what is currently in the market. An example of Genentech’s radical innovation is the creation of genetically engineered human insulin. Prior to the Genentech’s creation of the synthetic insulin people were dependent on insulin from animals

When a company goes through an acquisition the changes are planned, the changes are thought out and executed in a structured and timely fashion. When changes are planned it helps put people at ease. Communication of the changes is very important (Griffin, 2013).
Organizational Structure The company has to look at the current organizational structure of both companies. The company structure could change in relation to how the reporting structure design (Griffin, 2013). The company will look for over lapping job responsibility as well as job responsibility gaps.
Technology and Operations Technology is evolving at a rapid rate, putting technology change as a priority for many companies (Griffin, 2013). In addition many companies have adopted their own technology, software and equipment. When a company is acquired there is a possibility of change to the software and equipment. The reason for change is bases on cost. At the same time the cost to switch over a company to new software and equipment can be very costly and a company may choose not to change software or equipment but doing so over a period of time.