1. Value chain analysis for : MERCK & Co. 1.1. Dominant business: In one sentence, give the name of your company’s dominant business (if your company has no dominant business, choose any major business). In one sentence, give the names of three activities your company performs along the dominant business’ value chain. In one sentence, give the names of two activities your company has outsourced 1.2. Brand (or model) within the dominant/major business: In one sentence, give the name one brand your analysis will focus on (if the brand has several models, then give the name of one model). In one sentence, give the name of the value your company seeks to create for the brand or model you will focus on. In two to three sentences, explain your answer with specifics 2. Performance analysis: 2.1. Financial performance: In one sentence, give the name of two financial indicators you have chosen to analyze your company’s financial performance. In three to five sentences, analyze your company’s financial performance based on the two indicators you have chosen 2.2. Strategic performance: In one sentence, give the name of one strategic indicator you have chosen to analyze your firm’s strategic performance. In three to five sentences, analyze your company’s strategic performance based on the indicator you have chosen 3. Competitive advantage analysis: Based on points 1 and 2 above, state, in one sentence, whether your company has achieved a competitive advantage for the brand or model you have chosen (e.g.: For its Corvette model, General Motors has achieved a competitive advantage). In one sentence, tell whether your company has excelled in creating the value the brand or model you have chosen was seeking (Example: In its efforts to seek differentiation for its Corvette, General Motors successfully excelled in quality and product innovation). In three to five sentences, explain the latter answer with specifics.

Ans:-

1.1 :- Merck and Co’s dominant business is procurement because of vertical integration in chemical products.

The three activities performed along dominant business value chain is manufacturing, outbound logistics and sales.

The company has outsourced sales and customer service.

1.2 :- Analysis will focus on one brand Vesotec, a path breaking drug developed by Merck. Comapny seeks to develop technological development through Vesotec. This drug can be used to cure high blood pressure, diabetic kidney disease, and heart failure.

2.1:- Two financial indicators would be current ratio and gross margin for Merck. The company has current ratio of 178% in 2016 with increasing trend since 2014. It means that company is in good financial position and it can pay back the debt.

The gross margin for company is 65% in 2016, which is all time high since 2013. It means that company is profitable and in good health.

2.2:- The strategic indicator is the company’s ability to do strategic allainces. Merck and Bayer have come into $2.1 billion global co-development and co-commercialization agreement focused on soluble guanylate cyclase, modulators as therapeutic treatments for cardiovascular disease. This strategic alliance combines both firm’s complementary resources and capabilities together to maximize product potential.

3:- The company has achieved competitive advantage in term of fighting cardiovascular disease. In 2010, Merck was recognized as top pharma partner by Boston Consulting Group. The collaborations has greatly helped Merck expand its research and development pipelines and fuels its growth. It’s organization culture, flexibility and experiences in forming partnership are hard for its competitors to imitate.

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