Merck Sharpe & Dohme Case Summary Essay

1002 Words Nov 19th, 2013 5 Pages
MERCK SHARPE & DOHME
CASE SUMMARY QUESTIONS

1. Provide brief Background and Context

In 1996 Merc Sharp & Dohme (MSD), one of the top tier pharmaceutical firms in Argentina was undergoing fundamental changes in both its organizational structure as well as managerial philosophy. For over a year the company was under a new managing director who was leading the transformation of the company. The main goals at the time were to change the old hierarchical management system into a flatter and highly integrated structure where information could flow freely and individual managers would be able to make decisions on their own and be held accountable for them.

However as Argentina had only recently transformed its nationalist
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Human Resources Director Cristina Quinteiro had argued that MSD cannot hire the candidate in question as it would violate the company policy that was set forth and explained publically and also be unfair to other candidates that were better than him.

The Director of Sales Martin Rodriguez Hunter had a different view based on a sales perspective. He argued that sales would be increased by arround 5$ million annually if MSD products were to be introduced into the government formulary.

Silvia Ring the Manager of Training and Development was in doubt on how to proceed with the hiring process, however the case study did not provide further sequence of events.

The critical decision was whether to offer the son of a high-ranking official in the government's national health-care program a place in the company's highly competitive internship program even though the candidate did not meet the entry requirements. 4. What is/are the ethical issues?

The main ethical issue is whether or not a company should infringe ethical standards that were set forth in the chase for larger profits.

5. What else happened in the case that is relevant?

The competitive environment inside Argentina’s pharmaceutical industry is very important in this case. As detailed by the sales manager,

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