Analysis on Merck Essay

1276 Words Mar 26th, 2011 6 Pages
Analysis on Merck: Conflict and change

Assessment:
Merck is one of the biggest pharmaceutical companies in the world today. Although encountered with success, it still faces many problems today while trying to be the market leader competing against its competition. While being research and development driven company, Merck now has to go beyond R&D to stay competitive in the pharmaceutical industry. The main issue that seems to come up is that how far it can progress with the dual challenge of hitting peak annual financial performance while keeping the research pipeline full continued to weigh on senior management. Through the late 80s to early 90s, Merck was able to boast
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A drug development time may take on average over 15 years and expenditure R & D total costs of about $880 million. The length for and FDA application is at least 100,000 pages, which details the potential drug’s usage, production, formula and labeling.
Another issue is too much power is given to scientists in decision-making of candidate drugs. Also there were inadequacies and lack of communication between marketing and research. Merck’s marketing and research needed to realize that the making of the drug is not only the most important part in increasing sales, but it also included a strong advertising campaign that will satisfy the needs of the customers.
Actions:
Merck has initiated towards combining functional departments with a core cross-functional structure that focused on strategies and implementation. For instance, Ray Gilmartin established the Worldwide Business Strategy Teams (WBST) in 1995. The WBST, which consisted of 12 or 15 members from the US Human Health, marketing and MRL’s internal group, focused on managing, improving efforts and coordinating therapeutic franchises worldwide. Cross-functional groups can promote resources for category drugs, decide if marketable drug be evaluated in Phase V studies, look at possible impact sales and push for initiatives. If cross-functional groups are designed and perform correctly, then they will be

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