Essay on You Decide- Medco and Merck Merger
Recommendations are being prepared to be present to the board of directors regarding Merck’s acquisition of Medco. I have gathered information form several key employees within the organization in order to determine whether the merger will be profitable and allow the company continued growth. This analysis will include supporting calculations regarding the two companies becoming one. |
Ladies and gentlemen I have been given the task of providing my recommendations as to our company (Merck), acquiring Medco. An evaluation of both companies will be …show more content…
Throughout the course of analyzing the two companies, I will share not only the benefits for the individual companies but I will also explore the benefits for external stakeholders and how the potential merger would affect them.
I began this analysis by talking with several of our company’s key department heads, giving each the opportunity to voice their concerns about the overall success or failure of the potential merger.
First we begin with the (COO) chief operating officer, whose concern is regarding synergy and integration of the two organizations. Not knowing whether the two companies can co-exist operationally, he argued that the decision to merge could actually be quite an expensive failure. Merging two or more companies together requires a certain degree of standardization. Because of each companies operational workflow would ultimately be different it will be necessary to create one standard that will be able to accommodate both organizations, post-merger. Synergy is the other area of concern. Pharmaceutical mergers are very popular, which makes this a very competitive industry. With Merck being the largest manufacturer of pharmaceuticals and Medco being the industry leader in marketing of mail order pharmaceuticals, the union of these two companies will definitely create a