Merck Sharp & Dohme Argentina, Inc.(msd)

Merck Sharp&Dohme Argentina, Inc.(MSD), is the regional subsidiary of the U.S-based pharmaceutical giant Merk&Co, Inc. Antonio Mosquera, the managing director of MSD who emphasized on ethics, took charge of MSD at a critical juncture in Argentina's history and planned to change the company's culture and professionalized the organization on a long-term basis.

Silvia Ring, MSD's director of development and training, was asked to come to Antonio Mosquera's office (managing director of MSD) and announce the names of 15 college students chosen to participate in MSD's inter program. She was informed that one of the candidates was the son of a high-ranking official in the government's national health care program, the single largest health care organization in the country. Hiring this candidate would bring to the company an excellent opportunity to increase sales that all of their drugs would be included in the government health care formulary. However, this candidate was ranked 16 in the list and below the cut. Silvia was unsure and fearful about what she should do and made a phone call to Mosquera for suggestion. To her surprise, Mosquera had gathered Cristina Quinteiro, the director of human resources and Martin Rodriguez Hunter, the director of sales to discuss about the recommendation. Cristina thought it was unfair to include the person while Martine said it was a good opportunity to make revenue and expansion.

2. Who are the key players involved in the case?

1) Antonio Mosquera: managing director of MSD now

2) Silvia Ring: MSD's director of development and training

3) Cristina Quinteiro: director of human resources of MSD

4) Martin Rodriguez Hunter: director of sales of MSD

5) One of the candidate: son of a high-ranking official in the government's national health care program

3. What are the main issues/allegations?

1) From the perspective of Mosquera, MSD suffered from many characteristics in phase of management, departments, employees, innovation and advancement, which blocked the efficiency of operating and reduced the attractiveness to the physicians or professionals, to some extent, impeded the company's future development.

2) There is an urgent requirement to transform the organization of MSD and rebuild top management team on a long-term basis.

3) The reorganization of the company should be guided by three goals: more integrated management structure, complete transparency, and empowerment. These goals are aimed for eliminating old hierarchical structure, enabling managers to take quick and decisive action, and making each business unit

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