BMGT2001 - International Business: MSD Case Study Report

This case study analyzes the international business operations of MSD, an Australian-based pharmaceutical company. The report examines MSD's business environment, ethical framework, and competitive landscape. It delves into the company's operational strategies, including manufacturing, supply chain management, quality compliance, and product development. The analysis incorporates a SWOT analysis to identify the company's strengths, weaknesses, opportunities, and threats. The study also explores MSD's competitive environment, corporate governance, and ethical considerations, highlighting its commitment to quality standards and stakeholder interests. The report concludes by summarizing MSD's operational and strategic considerations in the international business arena.

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MSD Pty Ltd
International Business

INTERNATIONAL BUSINESS- MSD 1
Executive summary
Merck Sharp & Dohme (MSD) is an Australian based organization established in 1952. The
company sells Pharmaceutical products and also operates in research and development. MSD
operates as a subsidiary of Merck & Co.
This report will analyze the company’s business environment and its ethical framework. In order
to analyze the company operational strategy, the report will include Swot analyze. The purpose
of the report is to evaluate the operational and strategic considerations of international business
with the case study of MSD.

INTERNATIONAL BUSINESS- MSD 2
Contents
1. Introduction..................................................................................................................................3
2. A case study of MSD Ltd............................................................................................................4
2.1 Business operations of MSD..................................................................................................4
2.2. Analysis of MSD’s competitive environment and corporate governance............................6
2.3. Swot analysis.........................................................................................................................8
3. Conclusion.................................................................................................................................10
4. Bibliography..............................................................................................................................11

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1. Introduction
MSD is the Australian based organization which operates as a pharmaceutical industry. The
company provides services and products for hair loss, elevated cholesterol, male pattern, and
osteoporosis hypertension and many other diseases (MSD Australia, 2018). Company’s vision is
to provide service through innovative medicines, vaccine and other health care products
(Bloomberg, 2019).
The report will cover the international business and operational strategy of the MSD Ltd. This
wills also asses the MSD’s company’s competitive environment, also how the company operates
with social legal and social norms and serves ethical framework. In addition, it will also provide
analysis of internal and external factors through the SWOT analysis.

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2. A case study of MSD Ltd
2.1 Business operations of MSD
In a competitive environment, many pharmaceutical companies are trying to maximize profits
through their operational strategies. Yet their efforts are complicated and increase the complexity
in the health care sector (Lakdawalla, 2018).
MSD has decades of experience as its working since 1952 in the pharmaceutical industry and
making effort and identify opportunities in order to improve efficiency and cost reduction in the
SCM and other operations. Form the past some decades, the company approximately saves
125mn children who have suffered from measles additionally provide solutions to 100mn people
who have suffered a mere fly bite. Apart from that, the company also served pharmaceutical and
biotech medical across the world (MSD, 2019).
The company operations work in six main stages:
2.1.1 Manufacturing
The company its manufacturing and production efficiency through lean manufacturing methods.
The company facilitates operations with external contractors, suppliers, and partners that make
up an integrated and interdependent international manufacture network. The company serves and
committed to delivering operations with the compliance and reliable supply to clients and
patients at the right time (MSD, 2019).
2.1.2. Supply chain management
MSD continues a related, adaptable store network to consider worldwide and nearby market
supply needs. Likewise draws in and put resources into the neighborhood and territorial

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organizations to empower market access. In the recent some time MSD achieves the better
planning as the director of the company displays a graph showing the 3 widely desperate curves,
which presents the forecast of the demand for a new medicine, the middle one for supply and the
bottom curve show the R&D department forecast (SCM, 2018).
2.1.3. Quality compliance and remediation
The company endures stick quality standards to ensure efficiency and safety wherever they are
manufactured. Its quality and safety standards and procedures are wide in the scope that involves
stringent standards and compliance education and training as well. The company also supports
the regulatory framework that helps to develop quality standards worldwide (MSD, 2019).
2.1.4. Product development and lifecycle strategy
MSD seeks to develop the capability to operate and provide services to a significant amount of
the world’s population. The company’s manufacturing division has many ambitious programs
that help to reduce the cost of production through lean and six sigma projects. These projects
increase efficiency and improve the supply chain and reduce supply shortage.
2.2. Analysis of MSD’s competitive environment and corporate governance
2.2.1. Competitive environment
There are many competitors of the company such as Quanterix, Alcon. Abbott, Allergan these
are the top pharmaceuticals. The company ranks with its CEO score with compare to its
competitors, Quanterix in on the lead. Quanterix utilized unique technology such as Simon HD 1
player analyzer which helps in running immunoassays using the Quanterix single molecule array,

INTERNATIONAL BUSINESS- MSD 6
or Simoa platform (Comparably , 2018). Apart from Quanterix, MSD is leading the way with its
other competitors.
2.2.2. Ethics and Corporate Governance
The board members of the company protect the interest of the most powerful stakeholders of the
company. The board of the company conducts meeting at least 6 times in a year and provide
strategic direction to the company. There are many policies for its employee and customers such
as human and labor rights, health, safety & environment, and other fair business policies (MSD,
2018).
There are several committees such as the audit committee who audit the company’s financial
reports and provide disclosure to shareholders. Compensation and benefits committee review the
performance and ensure that employees are rewarded fairly and also provide suggestions to
changes. Governance Committee review market trends that affect the business. Research
committee conducts research and works on the development of the pharmaceutical products.
The majority of the board director of the company is independent. The lead independent bard
director Leslie A. Brun serves the management on company important matters. All the board
directors have to follow the company’s global compliance program which is designed to
maintain an ethical framework.

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(MSD, 2018)
2.3. Swot analysis
Swot analysis is the tool to analyze and identify the company’s strength, weakness opportunities
and threats which are related to the country’s market competitors and other external factors
(Phadermrod, 2018).
Strength: The Company provides a wide range of pharmacy services and treatment. The
company also has an animal health division. MSD works as a subsidiary of Merck which leading
brand in the pharmaceutical industry. Provide better technology such as integrated Business
planning also company has clinical development program. The company utilizes lean and six

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sigma tools which help the company to increase efficiency in productivity and reduce cost.
(MSD, 2019)
Weakness: The law barriers affect the business performance of the company. The Australian
market is dominated as API, Symbiont Health; gaining more market share is a challenge for the
company. It is difficult for the company to implementing as it is costly and lengthy to implement.
One more weakness is a limited business market (MbaSk, 2018).
Opportunities: Awareness about healthcare in Australian and all over the world is increasing
continuously hence there is a large scope of development in the healthcare sector. It can strip
pharmaceutical resources which could help the organization in expanding its attention on center
business.
Threats: Improvements in pharmaceutical pricing scheme could create challenges and trouble
for the company. The limitations of the company may be hurt just because of PBS as it may
create a trade barrier between Australian and U.S. drug companies (MbaSk, 2018). And this will
be upsetting for the company as it works as a subsidiary. Stringent policies and against clinical

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trials and quality of medicines requires high measures from the organization and that leads to an
increase in the overall cost.

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3. Conclusion
MSD is the largest organization in Australia. The company operates as a subsidiary of Merck.
The company implemented lean and integrated manufacture and supply chain through six sigma
and Lean that helps the company to increase efficiency in its operations. MSD also maintain
safety and quality standards in order to provide a better quality of drugs. The company also
operates with a better ethical framework and compliance. Its majority of board members are
independent and the share the interest of the most powerful shareholders and they are responsible
to provide disclosure to them.

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4. Bibliography
Bloomberg, 2019. Company Overview of MSD Pharmaceuticals LLC. [Online]
Available at: https://www.bloomberg.com/research/stocks/private/snapshot.asp?
privcapId=145366926
Comparably , 2018. MSD Competitors. [Online]
Available at: https://www.comparably.com/companies/msd/competitors
Lakdawalla, D., 2018. Economics of the pharmaceutical industry.. Journal of Economic
Literature,, 56(2), pp. 397-449.
MbaSk, 2018. Australian Pharmaceutical Industries SWOT Analysis, Competitors & USP.
[Online]
Available at: https://www.mbaskool.com/brandguide/pharmaceuticals-and-healthcare/9985-
australian-pharmaceutical-industries.html
MSD Australia, 2018. About us. [Online]
Available at: https://www.msd-australia.com.au/aboutus/
MSD, 2018. CSR 2017/18. [Online]
Available at: https://www.msdresponsibility.com/ethics-transparency/corporate-governance/
MSD, 2019. Manufacturing & Supply chain. [Online]
Available at: https://www.msdresponsibility.com/access-to-health/manufacturing-supply-chain/
MSD, 2019. Our history. [Online]
Available at: https://www.msd-australia.com.au/aboutus/ourhistory/