COMPANY NAME: Merck & Co., Inc.
1) What are the most important 1-2 general environment factors to be considered for the industry and what is their effect (positive-negative-neutral)? What is your evidence for the importance of these factors?
2) What are the most important 1-2 of the five industry forces affecting the industry and what is their effect (high-moderate-low)? What is your evidence for the importance of these forces? Is the industry attractive for new entrants AND for incumbents? Why?
3) List two major strategic group competitors and briefly predict the significant future action(s) of each competitor. What is your evidence for their importance?
4) What are the most important 1-2 of the eight value chain areas for the company? What is your evidence for their importance? Are they superior, inferior or neutral vs. each of the two major competitors and why (be specific but concise)?
5) Discuss the most significant financial factor(s) (be specific, calculating and presenting in a line chart the most important ratios in the profitability, leverage and/or activity areas compared to your two strategic group competitors or the industry) and non-financial factor(s) (leadership, culture, ethics/social responsibility) for the company? What is your evidence for their importance?
6) INTEGRATE the SWOT analysis: discuss how one major strength pursues one opportunity and limits one threat and how one major weakness limits one opportunity and enhances one threat.
7) Using your analysis above, briefly state what you believe to be the company’s 1-2 major core competencies (if any) and assess their ability to create a sustainable competitive advantage by explaining each of the VRIO criteria for each competency. Be sure to state the results of your VRIO analysis (i.e. competitive disadvantage, competitive parity, temporary competitive advantage or sustainable competitive advantage).
8) In light of your analysis above, what are the company’s current strategy types (i.e. type of business level, corporate level, cooperative and international strategies the company is pursuing)? What is your evidence for your assessment? Do they fit with your analysis above? Why or why not?
9) Briefly, based on your above analysis, what is the firm’s main problem and what is your suggested solution? Which 1-2 7S implementation factors are most important? Why?
10) Finally, based on your analysis, create two questions for our class discussion.