Merck Case Study
| Merck & Company Inc. | Case 1 | |
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Introduction of the Company
Merck was established in 1891 to improve human and animal health through the development of innovative products. Merck currently has two reportable segments, the Pharmaceutical Segment and the Vaccines and Infectious Diseases Segment. Merck sells products through several channels including wholesalers, retailers, hospitals, clinics, government and managed health services providers. In the 1980’s the Merck was very successful in producing 10 major new drugs and had a very healthy pipeline. In later years, Merck has entered into joint ventures with many other pharmaceutical companies in order to expand its pipeline. In the last several years Merck has experienced a decline in revue do to several of their exclusive drugs going off-patent.
Merck is currently the eighth largest pharmaceutical firm in the world. In 2009, Merck plans to further expand through a merger with Schering-Plough. This will make Merck the second largest pharmaceutical company in the world.
Mission Statement Analysis
“The mission of Merck is to provide society with superior products and services by developing innovation and solutions that improve the quality of life and satisfy customer needs, and to provide employees with meaningful work and advancement opportunities, and investors with a superior rate of return.”
Merck’s mission statement touches on many of the key factors that a mission statement should embody. The mission statement mentions providing society with superior products. In the pharmaceutical industry, Merck’s customers are anyone in society that may benefit from one of its products. The mission statement focuses on the people their business may affect including customers, investors and employees. Although Merck is a well known company, the mission statement does not describe the nature of the business in which they operate. As the statement mentions their business os to improve the
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Introduction of the Company
Merck was established in 1891 to improve human and animal health through the development of innovative products. Merck currently has two reportable segments, the Pharmaceutical Segment and the Vaccines and Infectious Diseases Segment. Merck sells products through several channels including wholesalers, retailers, hospitals, clinics, government and managed health services providers. In the 1980’s the Merck was very successful in producing 10 major new drugs and had a very healthy pipeline. In later years, Merck has entered into joint ventures with many other pharmaceutical companies in order to expand its pipeline. In the last several years Merck has experienced a decline in revue do to several of their exclusive drugs going off-patent.
Merck is currently the eighth largest pharmaceutical firm in the world. In 2009, Merck plans to further expand through a merger with Schering-Plough. This will make Merck the second largest pharmaceutical company in the world.
Mission Statement Analysis
“The mission of Merck is to provide society with superior products and services by developing innovation and solutions that improve the quality of life and satisfy customer needs, and to provide employees with meaningful work and advancement opportunities, and investors with a superior rate of return.”
Merck’s mission statement touches on many of the key factors that a mission statement should embody. The mission statement mentions providing society with superior products. In the pharmaceutical industry, Merck’s customers are anyone in society that may benefit from one of its products. The mission statement focuses on the people their business may affect including customers, investors and employees. Although Merck is a well known company, the mission statement does not describe the nature of the business in which they operate. As the statement mentions their business os to improve the
References: David, Fred R. Strategic Management Concepts and Cases. 13th ed. Print Merck. (2008). Form 10-K for the fiscal year ended December, 2008. Retrieved from http://www.sec.gov/edgar.shtm Merck. (2011). Form 10-K for the fiscal year ended December, 2011. Retrieved from http://www.sec.gov/edgar.shtm www.Merck.com Pfizer. (2008). Form 10-K for the fiscal year ended December, 2008. Retrieved from http://www.sec.gov/edgar.shtm Glasko Smith Klein. (2008). Form 10-K for the fiscal year ended December, 2008. Retrieved from http://www.sec.gov/edgar.shtm Appendix 1: A Summary of Key Financial Ratios