The Mission of Merck

Current Mission Statement

The mission of Merck is to provide society with superior products and services by developing innovations and solutions that improve the quality of life and satisfy customer needs (5), and to provide employees with meaningful work and advancement opportunities (9), and investors with a superior rate of return (5).

1) Customer; 2) Products or services; 3) Markets; 4) Technology; 5) Concern for survival, profitability, growth; 6) Philosophy; 7) Self-concept; 8) Concern for public image; 9) Concern for employees

Mission Statement Revised

The mission of Merck is to provide drug wholesalers and retailers, hospitals, clinics, government, and healthcare providers (3) with superior products and services that improve human and animal health (1,2) by developing innovations and solutions with advanced technology that improve the quality of life and satisfy customer needs (4,5,7), and to provide employees with meaningful work and advancement opportunities (9), and investors with a superior rate of return (5). We strive to conduct business in an above and beyond ethical manor which contributes to our success (6,8).

1) Customer; 2) Products or services; 3) Markets; 4) Technology; 5) Concern for survival, profitability, growth; 6) Philosophy; 7) Self-concept; 8) Concern for public image; 9) Concern for employees

Overall Objective

To restructure its company, penetrate the vaccine, biologic, and emerging markets, and rebuild its reputation.

Strategies

Restructure and rebuild customer relationships through product, place, and promotion.

1. Product - Provide society with a new variety of quality product and services by:

i. Developing new products in existing and newly found markets.

ii. Restructure existing products and/or introduce new products through collaboration with acquisitions.

iii. (ADD)

2. Place - Acquire lost and new customers by

i. Emerging into new markets

ii. Expand existing product lines into new regions and markets

iii. Utilizing its newly formed structure to place its products more efficiently.

3. Promotion - Restructure and reposition products by

i. Offering products in newly found markets

ii. Restructure brand image with new acquisitions

iii. Restructure front end and back end promotions.

Company's Main Problem

Merck needs to reform its internal and external operations in order to meet its expected financial returns.

- Appeared in several court hearings due to a class-action lawsuit

- Declining revenue

- Lowest market cap in industry

Internal Audit - Strengths

* Finance and Accounting

- Profits steadily increased from 2006 to 2009

- Net income doubled in 2008

- Highest earning per share in industry

- Acquired the eighteenth largest pharmaceutical firm in the world Schering-Plough

* Marketing

- Merck lobbied various times for different healthcare reforms.

- Merck has a wide range of customers ranging from small consumers to hospitals.

- Well known pharmaceutical company with a strong brand image.

* Management

- Entered many joint venture agreements

- Through acquisitions Merck named 5 new division heads

* Productions and Operations

- Sells to numerous market lines

- Has a good number of products approved by the FDA

- Wide range of products

Internal Audit - Weaknesses

* Finance and Accounting

- Merck had a drop in revenue of about $347 million

- Lowest net income compared to competitors

- Lowest revenue compared to competitors

- Price to earnings is low compared to industry competitors

- Paid 750 million in liabilities for Vioxx

* Productions and Operations

- Delay on production of new product

* Management

- New acquisitions and management may not produce expected improvements

Internal Factor Evaluation (IFE) Matrix

Key Internal Factors Weights Ratings Weighted Score

Strengths

Profits steadily increased from 2006 to 2009

0.06 3 0.18

Net income doubled in 2008

0.06 3 0.18

Highest earning per share in industry

0.05 3 0.15

Acquired the eighteenth largest pharmaceutical firm in the world Schering-Plough 0.08 4 0.32

Merck lobbied various times for different healthcare reforms 0.08 4 0.32

Merck has a wide range of customers ranging from small consumers to hospitals 0.06 3 0.18

Well