Brand and River Blindness

Stake for Vagelos as CEO and for Merck as a company in deciding whether to invest in Dr. Campbell’s idea Although Dr. Campbell’s idea of a drug (Ivermectin) that could cure River blindness was a path-breaking opportunity for Merck, the company was faced with a number of ethical, financial and moral issues that forced its CEO to undergo deep thought and contemplation before investing in this idea. * Feasibility: There were concerns about the use of this drug on humans and the potential adverse side effects, if any. High Costs: The high costs associated with research and development coupled with the fact that the drug was to be used by lower income groups meant that it showed little or no economic promise. * Cannibalization: From a pure business standpoint, Merck worried that this drug could cannibalize profits from the animal version of the drug through the creation of possible black markets in the affected countries. Percentage of research budget that Merck should invest in drugs that will produce a substandard return on investment
As a company that produces drugs to cure diseases in both humans and animals, Merck operates in a complex dynamic that requires it to take decisions that may not lead to profitability. Further, its corporate philosophy always revolved around the fact that the company’s first priority was the safety of people and only then did profits follow. I, therefore, believe that Merck should invest a large amount ( ~80%) of its research budget even on drugs that will produce a substandard ROI, provided the drugs promise to fully cure diseases without harmful side effects and they are the first in the market to do so.
This could help them build a strong brand equity, goodwill and reputation in the long run thereby creating a foundation for profitability in future. For instance, I believe that Merck has a social responsibility and a moral obligation to invest heavily in the cure for River blindness. Merck’s explanation to a shareholder who might complain about a decision to invest in research on River blindness

Merck could use the following points to strengthen its decision to invest: * Improves image of the company: The decision will lead to a positive impression about the management and its commitment leading to high brand equity and good reputation, resulting in future profits. * Improves employee productivity: Working towards a philosophy that the company consistently stands for will motivate employees and lead to higher job satisfaction thereby increasing employee productivity and hence profits. Attracts support from investors and society: The decision could be a significant differentiating factor. This coupled with superior brand image could generate investor interest and support from the community. It could also be used as a marketing tool. Merck’s selection of drugs to invest in As stated earlier, Merck must strive to achieve a balance between profitability and corporate social responsibility.
The following criteria could be used to make decisions: * Definite and safe treatment: The drugs have a strong potential to result in safe treatment to life-threatening diseases, without harmful side effects. * First mover advantage: Merck must invest in drugs that give it a strong advantage to develop patents and move into market spaces that are unexplored by other drug companies. * Profitability: While it must remain true to its corporate philosophy, it must also target profitability to sustain itself and maintain its position in the industry in the long run.

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 15% with the discount code SUCCESS