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Merk & Co Case (A) Study

1050 words - 5 pages

Argument for the Research

The decision to invest in research aimed at river blindness involves many internal and external stakeholders, namely Dr Roy Vagelos who's ultimatly responsible for the final decision, researchers at the lab (including Dr Campbell) who will have an opportunity to "make the world a better place" thru their research, the company executives and managers (including Gadson and his successor Horan) who's concerns ultimately lie in satisfying shareholders (and making their bonuses), the shareholders and creditors of the firm who are its main investors, issue-concerned society in general and that of the third world countries in particular ...view middle of the document...

g. corruption and third world government favoritism). Arguments for investing are supported by the ideal oriented research center and the rest of the stakeholders and include: MERCK's corporate philosophy is based on virtuous ethics: "Medicine is for the people and profits will follow"; The value proposition used to attract the "best and the brightest" scientists included financial incentive bust mostly focused on social and spiritual outcomes - the opportunity to alleviate human disease and suffering world-wide. As such refusing to pursue the a possible treatment of river blindness might create a feeling of Sinicism, be detrimental to morale, and result in employee turnover in an industry where scientists are a main value creating asset; MERCK has long been a pioneer in developing a antibiotics and has experienced manager who can identify productive research strategies; Thus they are in a good position to make the human version of the drug a scientific success. The cost of development of the human formulation would be much less than for developing a new compound since investments have already been made in the animal drug; The research would improve MERCK's knowledge in the field and a new drug with a more...

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