Description
please follow the case writing requirements and answer the questions from the case study.
1. answer the questions and indicate the page number from the case next to the answer
2. write in own words, do not copy and paste
3. calculate the number of financial ratios and analysis the performance and relationship of the company with related rations
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Explanation & Answer
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Running head: MERCK COMPANY - EVALUATION AND ANALYSIS
Merck Company - Evaluation and Analysis
Institution Affiliation
Date
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MERCK COMPANY - EVALUATION AND ANALYSIS
1. The company’s vision/mission and objectives
Merck & Co., Inc.’s mission is to discover, develop, manufacture and market a wide range of
products that would help save lives and improve the health of humans and animals (p. 692).
Merck’s vision is to expand its market share from one percent by tapping into the remaining
99 percent (p. 691). The company aims at making a difference in the lives of people globally by
developing new and innovative health products (p. 691).
One of Merck’s objective is to churn out blockbuster drugs that will help improve lives
and earn the company good revenue (p. 691). Another objective is to be able to compete
effectively and survive in the turbulent pharmaceutical industry (p. 691). A third objective is to
bring the best technologies and products into the company by reaching out to research institutes,
universities, and companies globally (p. 691).
2. Corporate strategy and business (or competitive) strategy
Merck’s corporate strategy up until the time of the case was to transform its business
portfolio through mergers and acquisitions (M&A). The M&A’s have helped it expand its range
of products; expand its market share and assets base. The $41-dollar merger with ScheringPlough (SP) added to Merck SP’s product portfolio and pipeline. The deal helped increase the
company’s sales thus resulting in an increase in its revenue (p. 692). The merger also made
Merck the second largest pharmaceutical company in terms of market share and fifth in terms of
market cap (p. 693). The company has also acquired smaller companies especially those that deal
in biotechnology (p. 695). The M&A’s will help Merck tap into advances in biotech and the
decoding of the human genome (p. 692).
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MERCK COMPANY - EVALUATION AND ANALYSIS
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Merck’s main business strategy is to invest in building strong competence of its internal
R&D division. This will help the company produce many blockbuster drugs. If the company is
able to outcompete its competitors in terms of innovation, it will also be able to significantly
exp...