METHODOLOGYThe objective of this paper is to study the impact of mergers and acquisitions on the organizational performance and decision making in the biotech industry. This paper will use a descriptive quantitative research approach using Securities and Exchange Commission filings. The target population for this study will be FIVE cases drawn from publicly traded American biotechnology companies that were involved in a merger or acquisition between 2000 and 2013. I will answer my research question by investigating the following sub-questions: What impact did the merger or acquisition have on an organizations market penetration, managerial efficiency, and rationalization of human capital?The first sub-question of this paper is what impact did the merger or acquisition in this case have on the firm’s market penetration and how does it compare to industry standards? This question will be assessed using firm value and market share data. Primary sources, such as a selected firms Securities and Exchange Commission annual and quarterly filings will be used as a source of data to assess firm value in regards to market capitalization and share price. Secondary resources such as the competitive landscape section of IBISWorld’s “Biotechnology in the US” industry report will be used to assess and compare company filings and industry standards.The second sub-question of this paper is what impact did the merger or acquisition in this case have on the firm’s managerial efficiency and how does it compare to industry standards? This question will be assessed by comparing the firm’s expenses and profitability before and after the merger or acquisition. Primary sources such as the company’s financial statements filed with Securities and Exchange Commission using the Generally Accepted Accounting Principles standards will be used to assess the firm’s expenses and profitability. Secondary sources such as the industry performance section of Jack Curran’s “Biotechnology in the US” industry report will be used to compare and contrast the selected firm’s efficiency with the industry standards.The third sub-question of this paper is what impact did the merger or acquisition have on the firm’s rationalization of human capital and how does it compare to industry standards? This question will be assessed using a comparison of the firms’ revenue and wages per employees before and after the merger or acquisition. Primary sources such as the company’s financial statements filed with Securities and Exchange Commission using the Generally Accepted Accounting Principles standards will be used to analyze the firms’ revenue and wages per employment before and after the merger or acquisition. Secondary sources such as the key statistics and industry data section of IBISWorld’s “Biotechnology in the US” industry report will be used to compare and contrast the selected firm’s rationalization of human capital with industry standards.
