Merck Sharp & Dohme Argentina, Inc. (A) Case Study Report

Merck Sharp & Dohme Argentina, Inc. (A)
Case Study Report
Submitted by:
1

Abstract
This report examines Merck Sharp & Dohme Argentina, Inc. (A), in abbreviated form it is
known as MSD. The focus of this report is on the company's Marketing and Operation
strategy. By revealing the difficulties that Merck Sharp & Argentina, Inc. (A) has
encountered and how it came out of it, it tried to identify the problem and make relevant
suggestions for the challenge it face.
And applied to a local New Zealand’s company "Douglas", both of them are involved in
same Pharmaceutical sector and have almost the same business model. Both of these
company has very strong ethics and work culture. It will try to provide an unbiased advice by
combining MSD’s strengths and weaknesses.
2

Table of Contents
1. Abstract
2. Introduction
3. Background Information
4. Situation Analysis
3.1 Marketing strategy
3.2 Operation strategy
3.3 Financial analysis
3.4 Competitive Analysis
3.5 Strategic Analysis
4. Recommendations for MSD
5. Recommendations for ‘Douglas’
5.2 Suggestions
5.2.1 Marketing strategy
5.2.2 Operation strategy
6. Conclusion
References
3

1. Introduction
Merck Sharp & Dohme Argentina, Inc. (A) was founded in 1891, is a subsidiary of Merck &
Co., Inc., Kenilworth, NJ, USA. MSD transform itself from an old style business to a
progressive and forward looking company due to the initiative taken by it management.
Management took the initiative of changing the existing structure of its organisation to
disintegrate the decision making process and give more power to every employees of
company and be more open in receiving input from all level of employees. Instead of rigid
hierarchy, which was prevailed, more flexible system adopted, where decision making not
remain confined to higher authority of company. MSD were functioning as a pyramid-shaped
organisation and decision were taken and relationship maintained vertical structure, where
nobody know who is doing what. Complete lack of cross coordination with little sharing of
information. Employees were not supposed to do any kind of innovation without the
permission of higher management. No openness, no innovative thing was prevailing due to
discouragement of higher authority. (Thepharmaletter.com, 2019) Any advancement in
organisation was based on personal relationship developed over the years, no merit to talent
and innovative ideas were given, company was plagued with nepotism. Managers lacked
professional education and innovative ideas due to prevailing work culture.
In above background company took strong and bold initiative to reforms the work culture
under its new leadership appointed for the same purpose to take this task on urgent basis.
After taking charge as Managing director of MSD, her initial research found a few things and
felt that the new business environment in Argentina warranted a more competitive presence
there and sought to bring it subsidiary upto the same standards expected in other countries.
To compare and implement a few things of same nature as in MSD, this report selected the
company "Douglas Pharmaceuticals Limited" as a local pharmaceutical company in New
Zealand for this research project to provide advice on its development strategy. Douhglas
pharmaceutical products are produced in New Zealand and Haiti in a modern technology and
marketed across many country factory certified by the New Zealand government. It is a
globally promoted company.
4