Essay About Main Products And Family Enterprise Management

Family Enterprise Management – Merck Pharmaceutical Problem
[pic 1]ENSI509 – FAMILY ENTERPRISE MANAGEMENTBalancing Family andBusiness Needs atGROUP MEMBER:Robert, Sandy, Annie, Pat, Lisa[pic 2]Outline1. Case introduction2. Key dilemma3. Alternative Options4. Proposed solution[pic 3]Introduction Oldest pharmaceutical and chemical company in the world Founded in 1668 Went through difficult times but now it operates in 54 countries with 168 companies and 53production facilities. Main products:Generic drugsEthicalsConsumer Health Care Liquid CrystalsPigmentsLife Science and Analytics[pic 4]Market Position and Limitations(2005)Sales (€bn)Net MarginRate of $1.25/1€ Merck5.84 11% Schering5.04 12% Bayer25.925% Novartis25.7620%• Narrower product range than competitors• Distribution network is not strong enough in the U.S. Market[pic 5]Financial PositionSales = 5.84 €bnBalance Cash = 1.3 €bn Public Others2%Debt level = 0.945 €bnShareholder loans = 0.27 €bn Not in the best rating positionPossible transaction amount: €1.5bn – €2bnRate of $1.25/1€ Investors