Merck Sharp & Dohme Argentina, Inc. (A) Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Merck Sharp & Dohme Argentina, Inc. (A) Case Solution

New Value System:

The value system that Mosquera was trying to instill within the company was based on a flatter and integrated management structure which required much more transparency throughout the organization and was based on empowerment. A new structure required 12 directors that would report to managing director instead of giving the authoritative power in the hands of four individuals in order to break the silos. The company was divided into business units around the key activities. Each of the unit was required to perform multiple tasks that were independently performed by the silos. The company gave the managers more power and authority to take decisions and was expected to make informed decisions. Values were defined as the real abilities of the employees. Personal initiatives and innovation were made part of the company. Transparency was being actively promoted and full disclosure and free flow of communication between the departments were made the important part of the organization’s culture. Jobs and promotions would be provided on fair basis and ethics were made the foundation of the new culture which Mosquera was trying to incorporate in the company.

The new system implemented in the company is much more advanced than the previous system upon which the company was structured. The new system emphasized more on ethics which is the foundation of the successful businesses around the world and it can be beneficial in improving the overall efficiency of the employees. Resulting in the overall improvement in the performance of the company.

Question 3

Mosquera was handling the issue of internship very efficiently. He didn’t deviate from his policies that he was trying to instill the company’s structure. He gathered the managers who were most probably related to the issues and would had been affected by them. In order to ask them for their opinions in this matter, all the managers were provided with a free environment to propose their opinion on the intern issues without any hesitation. This reflects Mosqueras’s assessment strategy and his approach regarding the issue as he was trying to make the entire decision to be fair and transparent and under the ethical framework of the Merck Sharp & Dohme. He was trying to practice, what he was perching to his employees in order to establish the company’s foundation based on the transparency and ethics.

Question 4

If I was asked to make the decision regarding the hiring of the sixteenth candidate I would have refused to hire that employee because of the conflict of interest among the managers. Above all the company was restructured and was now based on the foundation of ethics and hiring a candidate by replacing a deserving internee or changing the policy of the company to hire an extra internee would be highly unethical and against the current policies and the structure of the company.

Mosquera, the director of the company had put great efforts in order to revive the traditional culture that was prevailing in the company and to change the mindset of the employees working in the organization. In place like Argentina, it was very difficult to incorporate the ethical practices but due to sincere dedication of Mosquera, he managed to change the culture of the company to a certain extend and one wrong move would have lead the company again towards the old path and all of the efforts made by him to improve the culture of the company would have been wasted. The employees and managers both would have lost the trust they had and the decision would’ve led the company towards the sabotage the company’s value system and as said by Quinterio “It is very important to do what we are said we are doing”. Because if the company will not abide by the policies it has established, the employees within the organization will start questioning the company’s policies and will start taking it for granted.

Conclusion

The decision to be made regarding the hiring of the 16^th candidate who is the son of a high ranking official in the government can increase the sales of the company and would be of unexpected advantage for the company. As through him they can ensure that all of their medicinal drugs would be a part of the government health care formulary but in order to appoint the 16^th candidate, the managing director has to deviate from his values that he was trying to inject in the company since his appointment. As per his policies and to maintain the transparency he gathered the concerned manager to have their opinion on this matter, which lead to the conflicts of interest. The company in order to maintain the discipline and the principle it is based on should disapprove the idea of appointing an additional internee as it will demotivate the employees and will be a major threat to the current structure that was built after the enormous efforts by Mosquera.............

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Merck Sharp & Dohme Argentina, Inc. (A) Harvard Case Solution & Analysis