(MBA – Spring 2011)
Strategic Management Case Study
Executive Summary: 3 Current Vision 4 Current Mission 4 Values 5 Current Strategies: 6 Developed Vision 7 Developed Mission 7 Reason for new mission 8 SWOT Analysis 9 External opportunities: 9 External Threats: 10 Financial and Operating Performance Analysis 11 Close Competitors 11 Ratio Analysis 11 Key Industry Ratios 14 Operating Profit margin 14 Net Profit margin 14 Current Ratio 14 Return on Assets 15 Debt/Equity Ratio 15 Inventory Turnover Ratio 15 Revenue Growth 16 Market Share 16 Internal Strengths 16 Internal Weakness 20 External Factor Evaluation Matrix 21 Competitive Profile Matrix 23 Internal Factor Evaluation 24 Space Matrix 27 SWOT Matrix 29 Grand Strategy Matrix 31 Recommended Strategies 31 Recommended strategy No.1: 31 Recommended strategy No.2: 32 Projected Financial Statements 33 Projected Ratios 34 Company worth Analysis 34 Annual Objectives: 35 Strategic Review and Evaluation Procedures: 35 Bibliography: 36
Executive Summary:
Merck & Co. is a research driven pharmaceutical company involved in manufacturing of pharmaceuticals and drugs. Merck 's products are not limited to preventive and therapeutic vaccines. Merck merged with Schering-Plough in November of 2009 for $41billion. Merck is based in Whitehouse Station, New Jersey and has more than 110000 employees.
The company has a annual revenue of $45billion during the year ending December 2010. The increase in revenues was mainly due to the incremental sales resulting from the inclusion of the post-merger results of Schering-Plough products. The operating profit of the company was $1,653.0 million during FY2010, a decrease of 90% over 2009. The net profit was $859 million in FY2010, an increase of 93% over 2009.
Merck’s products include preventive and therapeutic vaccines sold by