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04-Activity-3-STRAMA

The document discusses Merck's alignment with Milton Friedman's profit maximization principle through its focus on the cancer treatment Keytruda, while also acknowledging Archie Carroll's broader Corporate Social Responsibility model. It identifies primary stakeholders, including patients, healthcare providers, and investors, who directly influence Merck's strategic decisions, particularly in research and development. Secondary stakeholders, such as competitors and investors, also play a role, albeit indirectly, in shaping the company's priorities.

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3 views

04-Activity-3-STRAMA

The document discusses Merck's alignment with Milton Friedman's profit maximization principle through its focus on the cancer treatment Keytruda, while also acknowledging Archie Carroll's broader Corporate Social Responsibility model. It identifies primary stakeholders, including patients, healthcare providers, and investors, who directly influence Merck's strategic decisions, particularly in research and development. Secondary stakeholders, such as competitors and investors, also play a role, albeit indirectly, in shaping the company's priorities.

Uploaded by

samantha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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04 Activity 3

Members:
Basilio, Erica Januaryn
Hipolito, Justine Ivan
Linchoco, Jen Samantha
Ong, Sophia Marie
Veras, Fujiko Myra

Merck
1. Which between Milton Friedman’s and Archie Carroll’s views on business
responsibility is being demonstrated in the given case? Explain your chosen view.
Milton Friedman believed that a business's primary duty is to maximize profits for
shareholders, while maintaining legal and ethical boundaries. Merck, a pharmaceutical
company, has shifted its focus to Keytruda, a profitable cancer treatment, demonstrating
its dedication to enhancing shareholder value through a high-revenue product. This aligns
with Friedman's principle of profit maximization, as Merck's increased funding for
Keytruda demonstrates its dedication to enhancing shareholder value. However, Archie
Carroll's model of Corporate Social Responsibility emphasizes a broader responsibility,
allowing Merck to invest in various drugs to address various health issues.

2. Who are the primary stakeholders of Merck based on the case study?
The primary stakeholders of Merck, include patients and healthcare providers,
employees and researchers, investors and shareholders, regulatory agencies, and
business partners and suppliers. Patients who rely on Keytruda for cancer treatment,
along with the doctors who prescribe it, are directly affected by Merck’s research and
development decisions. Investors and shareholders are also significant stakeholders, as
their financial support and expectations influence Merck’s decision to focus heavily on
Keytruda. Merck’s business partners and suppliers contribute to the company’s
operations by providing essential materials, clinical trial support, and distribution
networks. These stakeholders collectively shape Merck’s strategic direction, particularly
in research, development, and regulatory compliance.

3. Who are the secondary stakeholders of Merck based on the case study?
The secondary stakeholders of Merck in case study are the investors and their
competitors because they don't have direct involvement in the pharmaceutical
manufacturer.
4. How do the stakeholders of Merck influence the strategic decisions of the
company?
Stakeholders play a significant role in shaping the strategic decisions of Merck,
especially in its focus on Keytruda, a groundbreaking cancer drug. Both primary and
secondary stakeholders influence how the company allocates resources and sets its
priorities. Understanding these stakeholders' roles is crucial in analyzing the company's
strategy. Primary stakeholders such as patients, healthcare professionals, employees,
and investors have a direct impact on Merck’s decision-making process. Patients and
healthcare professionals drive the demand for innovative and effective treatments,
encouraging Merck to concentrate on cancer therapies. The feedback and results from
clinical trials also influence the company’s decisions on which cancers to target and how
to improve Keytruda. Employees, particularly the expanded oncology team, are
instrumental in conducting research and clinical trials. Their expertise and dedication
directly affect the success of the drug. Regulatory agencies determine whether Keytruda
is approved for various indications, ensuring the drug meets safety and efficacy
standards. Advocacy groups and patient organizations influence public perception and
can pressure Merck to maintain ethical practices while developing affordable and
accessible treatments.

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