Merck's Culture

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“May 5, 2005. It was the darkest hour in the pharmaceutical giant's 114-year history. Merck was drowning in liability suits stemming from Vioxx, its $2.5 billion-a-year arthritis drug, which it had to pull from the market because of a link to heart attacks and strokes. Two other blockbusters worth a combined $7 billion in annual sales were facing patent expirations. And Merck's labs, which other companies once hailed as a bastion of scientific innovation, were crippled by a culture that buried good ideas under layers of bureaucracy. But in the morass, Clark saw opportunity (www.businessweek.com).” What are the values that dominate Merck's culture?

The values that do their dominate Merck’s culture before the company was under the guidelines of Richard Clark was that they didn’t let departments do their work on focus on their jobs. They also had a lack of communication throughout the organization. In addition, how does Richard Clark proceed in attempting to change the organizational culture? “The 35-year Merck veteran says he had "no clue" what his turnaround plan would be. What he did know: Getting back on track would take much more than a cosmetic restructuring or slash-and-burn layoffs. Clark had watched the company degenerate into a collection of fiefdoms more focused on advancing their own agendas than on getting the right drugs to patients. To revitalize drug development he'd need to get Merck's 60,000 employees--scientists, regulatory staff, and salespeople--to work together (www.businessweek.com).” The way that Richard Clark attempt to change the organizational culture was first by attack the lack of communication each departments was having. “Clark set out to blast open deeply blocked channels of communication.” Clark is also getting them to more together with each other on the task at hand. He also wanted to start focusing on more on the customers and their needs instead of making a profit or his worker just trying to meet the bottom line. “Clark...
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