Read the ARTICLE

And answer the questions that follow. If you are having trouble viewing the article on-line, you can refer to a hard copy. The reference is: BusinessWeek , October 12, 1998 page 78: "Merck Takes Some Growth Pills"

There are two parts to this examination. In Part I you have a choice of questions to answer. You must answer all of Part II. You can elect to submit your answers electronically or you may submit the exam in class. Remember that you will have to do some outside research to address the issues raised by the questions in this exam.

Part I:

Answer three (3) of the questions below. Be sure to answer all parts of the questions you choose.

1. (a) What is the difference between "business policy" and "strategic management?" (b) Briefly describe the parts of the strategic management process. (c) In your opinion, in what stage of the process do you see Merck currently in? What specific problems are associated with this for Merck? Discuss.

 

2. (a) How would you "define the business" of Merck? (b) Develop three hypothetical specific objectives for Merck. (c) What is the difference between a mission statement and specific objectives?

 

3. (a) Develop a TOWS analysis for Merck as you see them now. (b) Identify the environment's greatest threat and Merck's greatest weakness.

 

4. (a) What is the difference between business-level strategies and corporate-level strategies? (b) Where do the functional-level strategies fit in? (c) Identify the business level strategies developed by Porter. (d) Which business-level strategy would you recommend for Merck?

Part II:

Answer all parts of the question:

1. Which three financial ratios would be most appropriate given the facts of the current case at Merck?
2. Evaluate Merck's performance in terms of these ratios?
3. What other information would be helpful in the analysis of these ratios?