Merck a Company Analysis

Multinational companies have the capability of extending their services as well as their product distribution to any part of the world regardless of the industry that they are involved with. Additionally, Multinational companies enjoy the privilege of having a wide range of market share in the global trade. As for Merck, the existence of such a company in the world exchange of products and finance has had a great effect on the part for their gross and profit share in the business industry (Discover Merck , 2012).
As a pharmaceutical company, Merck has amassed as one of the top suppliers of medicine to many parts of the world amongst both the rich and poverty-stricken countries. However, although most multinational companies enjoy the benefits of being infamous on worldwide scales, there is still numerous times when such business organizations encounter several issues relating to business operational activities. The constant attendance of the company facilitators is often focused on the way the entire business system is being managed. While it is not publicized in the media, global companies perhaps encounter far more issues than perceived.
There are numerous and restrictive rules and regulations pertaining to national laws and external affairs of which multinational companies need to conform to. Aside from that, the company management must also always consider cultural ethics if they would like to be accepted worldwide (Discover Merck , 2012). As a business organization that is constantly connected with external appointment on international trade, there is a constant requirement for a specific system that must be followed to be able to get along with the international business system.

For these reasons, the management operations of such companies should be intact and systematically arranged. As portrayed by numerous multinational companies from all over the globe, the management team is the most essential part of the organization. The systematic scheduling of all the activities of the business organization would be the main source of confidence of the whole business entity, which in turn would also determine the possible profit gains of the said business organization. Because of these factors, it would be simply reasonable to say that managing a multinational oriented company is not an easy task.
It is a complex approach to business operation that involves a lot of effort to be able to keep the company rules as well as company objectives intact amidst all the external challenges that that company has to meet. The responsibilities that the management team of multinational companies has to meet could refer to marketing strategy planning, production schedules and distribution processes. Everything in such business processes should be closely attended to. Additionally, there are certain contracts and legal forms that are signed by the company once they agree to become a member of the International Trade.
Through the legal documents, the company is then held liable to handle the responsibilities that they have sworn to fulfill under International Trade policies. Among policy, is being able to meet the company standard that it promises the international partners in the business industry as they have signed the contract of trade. To be able to meet the confirmed responsibilities the management team is then empowered to perform at their best to be able to ensure the company of a continuous and progressive company operation (Discover Merck , 2012). Company Background
The Merck Company started in 1668. It is the oldest Pharmaceutical Company that has ever produced and distributed medicine in the human society. Frederick Jacob Merck, the founder of the company, had observed the need for medical production during the times when Merck was established. The aim of helping everyone else in attaining good health is an important factor of human growth and advancement. This became a realization to Merck during the 1600’s. Their first years of functioning in society were purely based upon the primitive ways of medical assistance to the one’s needing it.
Mainly, the origins of the Merck Company handled herbal medicine production and development. Upon the arrival of the year 1827, Heinrich Emmanuel Merck, a predecessor of the founder initiated a major change on the company. The immediate shift of the company’s focus from herbal medicine production towards a more industrially oriented production began. The research and development section of the company continued to innovate on the systematic approach of the company in producing medicines as well as with the technological processes that they utilized.
Through these innovative processes, they aimed to continuously cater to the needs of the society as the time advanced to a more industrial-centered community (Hawthorne, 2005). As the company merged with a more profit-oriented aim, Merck innovated the system of management that it utilizes for daily business operations. As Emmanuel Merck took over the pharmacy, he founded the business partnership E. Merck to be able to ensure the companies assured existence in the International trade.
The management system then became much broader and the responsibilities of the management section of the company grew even more complex as they had to learn to deal with external affairs to market their products. As far as production and distribution were concerned, the company fared well until the war years arrived (Hawthorne, 2005). When World War I started, the external relationships of the company began to deteriorate. During this era, the management team was strenuously challenged on how to reach other parts of the world for their supply of medicine.
There was also a massive need for multi-tasking as the war resulted to mane afflicted civilians and soldiers as well who dreadfully needed medical attention, a fate that would prove to be beneficial to the company growth (Hawthorne, 2005). Due to these events, distribution and production was further enhanced during those years. Although there were several times when the company failed in bringing their medicines to the ones needing them, the supplying operations continued to grow amidst all the challenges of getting through all the military bases situated in almost half of the area of the world.
To be able to enhance the management system of the company, a Board of Directors was formed n 1920. The responsible team of authorities was designated to ensure that the company was able to survive the challenges of the war and would be able to perform their social responsibilities amidst the changes that were happening in the global society (Hawthorne, 2005). By the year 1953, E . Merck Stock Corporation was then spun off from E . Merck OHG. In the year 1970, the company reopened its doors for further progress in the Merck management set up.
The shareholders of the company then decided to change the legal make up of the organization. The stock corporation was then dissolved and the company merged down to an independent company. In 1995, the company had a chance to be in the public listing of multinational companies in operation within the international trade systems. Today, the company remains to have the recognition of being the oldest pharmaceutical and chemical company ever to exist in society. Hence, they are indeed a great source of research materials regarding the oldest developments in the field of medicine.
Merck stands as a foundation of information for institutional education in relation with chemistry and pharmaceuticals (Hawthorne, 2005). There are three major roles of the company with regards education today (Vagelos & Galambos, 2004). An institution for the development of an international company based on family ownership For business institutions, the company remains to be a source of information in how is it possible to turn a family-owned business into a successful multinational organization that serves a wide range of market scope.
The knowledge that could be gained from the experience of Merck both in the International and local appointments would equip the new emerging global entrepreneurs of the skills that they need to be able to struggle with the challenges of International trade. Having been challenged through the test of time and circumstances, the company remains to be source of inspiration especially for those who aspire in becoming known worldwide through the field of business industry (Vagelos & Galambos, 2004).
A place of Dialog between the past and future Being a pioneer in pharmaceuticals and business systems as well, the company is capable of providing researchers with ample information regarding the past towards the present business system that existed within the pages of human history. Through this, Merck’s involvement in research developments has been regarded well as a great source of essential business and medical development information’s (Vagelos & Galambos, 2004).
A link between the natural sciences and historical sciences As a foundation of historical development of both the sciences and the humanities, the company serves as an agent of historical accounts Through the years of the company’s existence, it could be noted that Merck is capable of providing the researchers of the essential information that they need to relate the development of the sciences with regards the developmental years of the human history (Vagelos & Galambos, 2004).
With the three major roles that the company plays in the human society today in the field of research and development areas , it could be noted that the company has not only become a historical organization Moreover , it has also been a source of essential information , which could be utilized in the progress of science , business and global trade (Vagelos & Galambos, 2004). Organizational Structure for Business Operations To be able to meet the needs of the consumers and the clients of the company, as well as the interests of the company itself, the following policy board for the company’s board of directors has been created 1.
Select , and set compensation for , the Chief Executive Officer approve the selection and compensation of senior management evaluate the performances of the CEO and senior management periodically review plans for management succession and assess the soundness of the organizational structure 2. Encourage the long-term success of the Company by exercising sound and independent business judgment with respect to significant strategic and operational issues , including major capital expenditures diversifications , acquisitions , divestitures and new ventures 3.
Safeguard the corporate assets by periodically reviewing the financial affairs and policies of the Company and overseeing the Company ‘s financial reporting process and internal controls 4. Oversee the Company ‘s risk assessment process and ensure that the Company has appropriate procedures in place to manage risks and handle crises 5. Ensure the Company ‘s compliance with applicable laws and regulations 6. Be sensitive to the public and political environment , taking into account the responsibility of the Company to its shareholders employees , customers , and society 7.
At least annually , evaluate the effectiveness of the Board as a body the Audit Committee , Committee on Corporate Governance , and Compensation and Benefits Committee 8. Determine the structure , composition , and responsibilities of the committees of the Board 9. Remain knowledgeable about Company affairs and developments through regular attendance at Board and Board committee meetings and review of meeting materials in advance of those meetings 10. Remain knowledgeable about stockholder views and concerns through direct communications from stockholders and attendance at annual stockholder meetings 11.
Meet no less frequently than three times each year in executive session to allow full and candid discussion among Board members on matters of importance to the Company , and 12. Become exposed to a variety of perspectives on matters of importance to the Company through access to members of senior management and consultation with independent advisors.
If closely examined, the policy that has been listed above directly pertains to personal relationship between the management and the employees of the company. The people performance and the executive officer enhancement is directly focused upon by the company management The policies could be considered rightful enough for its purpose , however it could be noted that because of the fact that it is more centralized and based upon the enhancement of internal relations it could be foreseen that there could be some problems that would be possible to occur within the proposed system of management.
The problems are then expected to be acquainted with chain management system issues Being a large company , it is necessary that the management responsibilities be separately delegated to different heads who would be able to directly see to the performance of the employees from the different branches of the company . As the delegation is applied constant communication with the head officers of the main branch should as well be implied.
Further suggestions more would be discussed on the paragraphs that would follow. On the fourth part, a closer look on the managerial issue of Merck shall be observed and examined as to how he said issues directly affect the operational activities of the organization Decision Making and Group Behavior As mentioned in the first part of this research, multinational companies also deal with problems that usually affect their operational activities as a business organization.
As for Merck, most of the problems of the company were focused upon the supply and chain management systems that they used from the time that they have emerged in business up to the present (Merck History, 2012). Normally, as the company grows, the management system also develops. For a pharmaceutical company such as Merck, most of the focus operation is usually shifted upon the research needs of the organization. Hence, designated management teams also closely monitor the production. However, because of being naturally large in nature, Merck was subjected to personal involvement issues by the owners of the company.
Although there were delegated managers that would attend to the major needs of different branches of the company in an International basis, it could not be denied that there is still a certain need for company owner or facilitators ‘ involvement. Ever since the company has been re-routed from a service-oriented organization towards a profit oriented business entity, the management system has been reshuffled (Merck History, 2012). The assurance of existence that the company endows to its social connection has been shifted to becoming focused on the financial assets and developments of the company.
As a result, the supply and distribution has been less attended to. Actually, this fact could not be seen directly if the success stories of the company would be focused on. However, the flaws behind success usually determine the company’s strength within the industry that they are involved in. What then should be done to avoid the existence of such issues? Meeting the Challenges of Organization To be able to discuss the proposed solutions clearly, a tabled format of problem solution template shall be introduced herein.
The problems of management shall be subdivided into three major branches of concern and then the suggested solutions shall be listed and explained along with the Problem or Issues (MERCK CO , INC . BY-LAWS, 2012). To be solved Stakeholders Involved Suggested Solutions Supply Chain Issues: The consumers and the employees that are involved in production and development responsibilities the company managers should constantly address the chain of supply of products. This complies with the company responsibility to provide what the human society needs.
The ability of the company to pursue their aims of gaining profit and providing best service and quality medicine and medical supplies to the ones who need it should be well balanced. By doing so, the management tries to engage itself in consumer and employee relationship enhancement Management Issues Company Owners and Branch Head: officers located at certain areas of responsibility of the company and local employees of the organization as the company system changes, it would be expected that the company management system changes as well.
As a result, the chain of information should be well explained to every branch managers and head officers for clear application. At times, this solution involves cultural knowledge of the main branch with regards their area locations. By being deeply briefed on the cultural preferences of the local employees, the main management could settle for alternative management structures to be applied on different cultural branches of the company Marketing Operations Consumers and the Company profit oriented goals. The marketing systems of the company should get along well with the main objectives of the company.
Hence , the ability of the company to adjust well with the changes of their objectives as well as with their marketing approaches would determine their future success in the global industry of business The tabulated presentation of the solutions in this has been clearly examined with regards its practicality of application in the system of Merck ‘s operational activities . Upon application, it is expected that the management system as well as the chain supply of the company would be well enhanced and would further equip the company of the primary skills they need to remain in the industry in longer years more that would come (MERCK CO , INC . BY-LAWS, 2012).
Recommendations and Conclusion Although the most important details regarding the issues have been outlined, it is still recommended that further studies be performed to clarify the deeper problems of the pharmaceutical company, Merck. With an aim to continuously enhance the knowledge of the public with regards, the company basics and company operations as well as their responsibilities towards the human society, the business enthusiasts would surely gain useful training from the experience of the owners of Merck.
As a result, it could be noted that the expectation of producing more prepared and organized entrepreneurial approach would be possible in the future. Merck in its own way is already successful. However, it could take still other progressive procedures especially when it comes to its performance of its responsibilities towards society. Another suggestion would be to focus on the `people-centered-service ‘ than that of the profit oriented goals of the company. By doing so, the company could do away with dealing with financially related cases that they once faced before.
It is clearly examined and shown through this research that multinational companies are experiencing both the extremes of the advantages and disadvantages of business ownership. It could then be noted that there is a great need for such type of companies to formulate possible solutions for foreseen or expected problems that are to arise in the future. By having alternative process of solving the problems, the companies are assured of their constant existence in the international business industries. As for the case of Merck, it could be observed how a formerly family owned company began its journey towards being known worldwide.
It has also been discussed on how the changing society gradually changes the objectives and the priorities of business companies the used to exist for the sake of service, which at present already exist to comply with the market competition for profit and market share. As the suggested solutions are listed within this research, it could be observed that most of the alternative ways of further equipping the company for growth is mainly directed t the interests of local employees of the company and the consumers of the products offered by Merck, which are basically medicines and therapeutic gadgets.

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