Financial Analysis



Financial Analysis- Merck & Co

Introduction

Current situation of the economy are forcing many companies to reconsider their “lifestyle”. Typically, the main causes of adjustment can be either low efficiency or high value of the financial aspects. In this paper, we will focus on the Merck & Co Financial analysis in order to make an investment decision in this company.

Discussion

Overview -Merck & Co

Merck & Co Inc (Merck Sharp & Dohme or MSD) is one of the largest pharmaceutical companies in the world. The company headquarters is located in Whitehouse Station, New Jersey. Merck & Co Inc came in existence in 1891 as the U.S. subsidiary of German company known as Merck KGaA. Today, it is one of the seven largest pharmaceutical companies in the world, both by market capitalization and revenue. Merck & Co. or MSD express itself as “a global pharmaceutical company that focused on research” along with this they develops, manufactures and markets a wide range of innovative products in order to improve human and animal health (Merck & Co Annual Report, 2011).

Financial Leadership Profile

The Chief executive officer of Merck & Co Kenneth Frazier who was appointed as CEO in 2011, whereas Peter N. Kellogg is the Chief Financial Officer (CFO) who was appointed as CFO in 2007. The CFO and CEO of Merck & Co are well beyond the true concept of these two terms. The CFO and CEO of Merck & Co have and had played many important roles within an organization, those roles that are essential to the financial health of a growing organization.

Kenneth, before coming to Merck, he was working with the Philadelphia law firm. After that he joined Merck in 1991 as a general counsel and secretary of the Astra Merck Group with the designation of vice president. On this post, he used to deal with risky strategy when conducting with lawsuits over the painkiller Vioxx. This strategy paid a lot to Kenneth in setting most of the U.S lawsuit and hence resulted in the tilted of CEO of tomorrow.

The reason for this was his consideration towards the knowledge of finance and business which mostly found in the successful CFO which ultimately helps the management concretely and hence linked the operational and financial performance of the organization. As projects required significant quantitative and qualitative analysis, for example the budget process, review activities on maximizing returns and risk analysis and mitigation. Kenneth always double checked the activities in order to avoid any mistakes and uncertainly in the project.

As far as Peter N. Kellogg (CFO) has his own style of leadership which has ensued in to the success of the company. He has always done the compliance with the strategic choices or, if necessary, influence choices for compliance with financial means realistic. His strong involvement in strategic planning and objectives for example, developing an acquisition strategy to support growth or sale of part or all activities, research funding or access to public procurement. Moreover, his leadership style which was effective management controls and ...