Abdul Haseeb - 5105Afwan Khalil - 5386

Faizan Haroon - 5222Fawad Aurangzeb - 5388

Nosherwan Shahid - 5542Syed Mohsin Ali Shah - 5349

Merck Magic

Case Study19/7/2010

Wall Street versus Merck

The case stresses on the flexibility and creativity of the employees, thus making sure they focus upon Human Relation & the Open System Model.

Whereas Wall Street analysts, analyze Merck’s effectiveness to Rational Goal.

Merck’s Organization Structure

Merck’s organizational follows a structure that is decentralized, and has low formalization. To maintain flexibility and creativity, Merck has to employ such characteristics.

Besides, work is taken care of through Project Based arrangement.

Key Factors

The tough competition in the pharmaceutical industry enabled, Merck, to develop new products.

Merck has outlined a long term objective, through which they expect to drive their profits. Decades and millions of dollars are invested before launching a new product.

Merck does not rely on just one or two products like their competitors, but bags thirteen major products in the market.

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Scientists and Researchers have been given freedom to work; Scientists are given a dual career plan track so that scientists can pass up the promotional ladder.

The project is headed by a leader, who convinces all the chain to accept proposals which allows everyone’s voice to be heard.

Merck’s Culture & Sustainablity

Merck follows a cultural mix of long term goal, innovation, risk taking and autonomy at the work place. Professionals, with the best talent are hired on merit, which gives them the edge to fight the tough times.

To sustain them, a high reward mechanism is allowed to give winning outcomes.