As a member of the Merck & Co., Inc.'s communication team, you have been asked by Ms. Wainwright, Vice...

 

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As a member of the Merck & Co., Inc.'s communication team, you have been asked by Ms. Wainwright, Vice President of Public Relations, to review her memorandum, to Mr. Gilmartin, CEO, Merck & Co., outlining her proposed plan to regain the public's trust and rebuild the firm's reputation within the pharmaceutical industry. The product associated with this case will include: Detailed feedback embedded in Ms. Wainwright's "draft" memorandum. More specifics are provided under the "case study" section below. Keep in mind that this product is to be made consistent with that expected of health services managers. It should be prepared for the benefit of Ms. Wainwright. You are expected to carefully read the case and Ms. Wainwright's memorandum before proceeding with the assignment. For Joan Wainwright, Vice President of Public Affairs, Merck & Co., Inc., "every day is a new day." This statement has emerged as the mantra of officials at Merck & Co., Inc. in their struggle to deal with the surprising recall of Vioxx® and its numerous consequences. Ever since the recall in September 2004, Merck has been the center of attention in the pharmaceutical industry. The company has lost considerable market share on Wall Street, in addition to declining sales and profit levels since the year 2000. Merck is facing a barrage of lawsuits and is the subject of two separate government investigations. With all these issues on the doorstep, Joan Wainwright, along with her communication team, must determine how Merck & Company can regain public trust and rebuild the firm's reputation once again as the "gold standard" in the pharmaceutical industry. You and your colleagues worked with Ms. Wainwright to develop the plan; however, she understands the importance of seeking feedback. It is expected that you consider providing Ms. Wainwright necessary feedback through comment boxes within the "draft" memorandum: 1. Evaluative feedback 2. Interpretive feedback 3. Supportive feedback 4. Probing feedback 5. Understanding feedback Case study Questions What are the critical issues in this case and who are the stakeholders? What stakeholders should Merck target first in its corporate response? What should be Merck's initial response? How should Merck handle the criminal investigation and lawsuits? Who should communicate Merck's message to the public? Should Merck retain an external firm to assist in creating an effective response? What role should such external counsel play? Should Merck work with the FDA on improving the drug approval process? If not, should Merck concentrate on changing its own research methods?

Answer rating: 100% (QA)

Critical Issues Recall of Vioxx and Its Consequences The primary issue is the recall of Vioxx and the resulting consequences including legal challenges declining market share and damage to Merck s rep View the full answer