Merck Case Analysis Essay - 605 Words

Stakeholder Analysis – Merck Identify Key Stakeholders In the pharmaceutical industry, there is much to consider and constantly change in order to continue profits. In order to continue profits, a main factor, as said by former Merck president George W Merck, is the people. Merck said, â€Å"We try to never forget that medicine is for the people†. The first group of stakeholders has to be the people, or the consumer. The consumer is actually using the product from Merck and Co. and ultimately determines the success of the business. The second group of stakeholders is the employees. Employees determine the performance of the company. The employees consist of the executives and the lower management. A third group is the research and†¦show more content†¦4,400 employees were laid of in 2006. When profitability of the company decreases, changes need to be made and employees do not want that change to be their position. Researchers and developers are interested that their product in successful for Me rck. They want to create a product that will help the consumer and the employees. The doctors are interested in a product that will benefit their patients. The pharmaceutical company the doctor uses needs to be trustworthy and reputable. If something goes wrong with what the doctor prescribed, the patients may eave the doctor. Lastly, the investors are interested in the success of the company because like I stated earlier, the investor wants a return on their investment. The investor is interested in how well the products sell and for what price they are selling and essentially wants to see profits. Identify and Discuss Specific Stakeholder Preferences The consumer would want Merck to invest in the safest and most beneficial product that will help their needs. The employees want to take the route that will better the company overall. If the company succeeds, they make more money and are ultimately more successful professionally and personally. The researchers and developers of the product want to take the route that creates new products because then they play a vital role in the creation process. Doctors will wants to see the safest and most efficient products on the market that will help the reputation of the doctor toShow MoreRelatedMerck/Medco Case Analysis Essay3123 Words   |  13 PagesCASE 5.1: MERCK ACQUISITION OF MEDCO Abstract          Corporate mergers and acquisitions (Mamp;A) have become popular across the globe during the last two decades due to globalization, liberalization, technological developments, and competitive business environment (Fisher amp; Siburg, 2009). The synergistic gains from Mamp;A may result from efficient management, economies of scale, profitable use of assets, exploitation of market power, and the use of complementary resources (MitchellRead MoreCase Analysis : The Case Of Dr. J. T, Merck, And Co.1535 Words   |  7 Pagesrisks and obstacles which includes country risk, culture risk, commercial risk and currency risk. Depending on the country a business is established, the risks vary in the type, occurrence and impact. Merck Sharp and Dohme Argentine, MSD, the subsidiary of a U.S based pharmaceutical company, Merck and Co., faced lots of such challenges. Antonio Mosquera faced a lot of country risks and obstacles. Country risk is the adverse effect on a company’s operations due the host country’s political, legalRead MoreMeck Executive Summary1599 Words   |  7 Pagespotential side effects relating to obesity. LAB approaches Merck amp; Co., Inc. (Merck) and asks the company to license Davanrik, as well as funding the clinical testing. Merck must decide whether or not to bid to license Davanrik and if so, at what price. Discussion Merck is facing patent expiration problem because most of its popular drugs are going to expire by 2002. Patent expiration will lead to a substantial loss of sales. Therefore, Merck must develop new compounds quickly to refresh its portfolioRead MoreEssay on Merck and Co., River Blindness1531 Words   |  7 PagesMerck and Co., River Blindness Ethical Case Analysis Lennard de Jong Excelsior College Author Note This paper was prepared for Business Ethics, Ethical Case Analysis, taught by Dr. Moser. Introduction and Situational Analysis The ethical dilemma in Merck and River Blindness is whether to pursue research that may or may result in profit, or to choose the safe option and go for profit rather than researching the drug. The drug could possibly lead to curing the deadly and detrimental diseaseRead MoreEssay about Case Memo: Merck Global Health and Access to Medicines604 Words   |  3 PagesCase Memo: Merck Global Health and Access to Medicines The topic, human rights responsibilities of the drug companies, which is always controversial, however, is almost sharply defined in a report by the UN Special Rapporteur on the right to health, submitted to the United Nations General Assembly in August 2008. 1 The ‘‘Human Rights Guidelines for Pharmaceutical Companies in relation to Access to Medicines’’ include responsibilities for transparency, management, monitoring and accountabilityRead MoreMerck Co1066 Words   |  5 PagesHow has Merck been able to achieve substantial returns to capital given the large costs and lengthy time to develop a new drug? Merck had a 14% increase in sales between 1997 and 1998 and 22% increase in sales from 1998 – 1999, and a 13% annual increase in earnings over the same period. Merck’s business strategy consists of two parts: (1) developing and marketing new drugs through internal research, and (2) developing partnerships with smaller biotechnology companies. Since 1995, Merck had launchedRead MoreMedco606 Words   |  3 PagesCase Analysis – Merck Medco Merck was a pharmaceutical manufacturer while Medco Cost Containment Services was a pharmacy benefit manager (PBM). On November 18th, 1993, Merck purchased Medco for $6.6 billion. Immediately after this merger, Medco operated as a subsidiary of Merck. This acquisition of Medco by Merck is a clear example of Merck expanding its organizational boundaries while adding value to Mercks operations at the same time. The advantages of Merck Medco combining together are thatRead MoreUnderstanding Financial Reports Essay1394 Words   |  6 Pagesmodule 2 case study I am to do the following understanding financial reports and continue to review the financial statements of Merck and Novartis to learn additional information. The emphasis of this Case is to review the income statement, balance sheet and computation of ratios. Review the financial statements for the companies and answer the following questions for the last reporting year: Balance Sheet †¢ What components of stockholders equity does each of the companies disclose? o Merck CompanyRead MoreMerck Swot Analysis1571 Words   |  7 PagesMerck SWOT Analysis MGT/521 July 25, 2012 Merck SWOT Analysis Company Overview Merck is the 2nd largest pharmaceutical company in world offering prescription medications, biologics, vaccines, animal health, and consumer care products. It generated 48 billion dollars in revenue in 2011 and has 40,000 employees. Research and development of proprietary medicines for global marketing is the core of the business. Recent acquisitions and transactions designed to take advantageRead MoreCase Analysis : Big Pharma1067 Words   |  5 PagesEthics in Big Pharma Introduction In 2004, Merck Pharmaceuticals underwent difficult times as the U.S Senate investigate the unethical practices of the company in distributing their once highly profitable pain relieving drug, Vioxx. From the investigation, the infamous CEO, Raymond Gilmartin â€Å"involuntarily† resigned after public documentation in relation to Vioxx was released, (Lyon and Ulmer, p. 355-356). Along with Gilmartin resignation, the company fiscal future was damaged as the $90 per share

Suicide in Bartleby and Life in the Iron Mills Essay

Suicide in Bartleby and Life in the Iron Mills Life in the Iron Mills and Bartleby are centered on characters who are alienated laborers, looking for means through which they cannot be deprived of their humanity. Hugh Wolfe and Bartleby are both workers who have been victimized by the capitalistic system. As Karl Marx explains, the capitalistic system exploits the laborer and thus robs the laborer of his humanity through alienating the laborer. Both Wolfe and Bartleby become victims of the system, for they are not only alienated and dehumanized. But in their struggle against the system, they take their own lives. Their suicides are representative of how far alienation reached into the lives of Bartleby and Wolfe and how far†¦show more content†¦I should have been quite regulated with his application, had he been cheerfully industrious. But he wrote on silently, palely, mechanically. (Melville 9). This nature of working disturbed the employer because he noticed the machine-like style of Bartlebys. Bartlebys lack of human qualities bothered the narrator, as he did later become concerned about Bartlebys condition and began to inquire of his past. It is evident that the alienation process has already begun to take hold on Bartleby, long before he took the scrivener position. He is doing work for which he is being paid for and refuses to do any favors. He knows that his labor is for sale and that he will do only what the lawyers money buys, and nothing more. Second, Bartleby makes it a point to explain that he would prefer not to do something, inserting the fact that he is the one deciding. Through his disobedience and his repeating the phrase I would prefer not to Bartleby was struggling to preserve his humanity. Bartleby refused to allow the lawyer to exploit his labor and his energy. The manner in which he was trying so hard to preserve his autonomy shows how he wished not to be further alienated from the work process, for he wanted control over exactly what task he did or did not perform. Later in the book we find Bartleby taking up residence at the office where he worked. When Bartlebys employer approached him about the fact that he was living in the office and asked him to leave the

Cna Code Of Ethics For Registered Nurses - 1611 Words

CNA Code of Ethics for Registered Nurses (2008) provides guidance in dealing with cases like this by explaining the core nursing values and responsibilities involved which are: a) providing safe, compassionate, competent and ethical care; b) promoting health and well-being; c) promoting and respecting informed decision-making, and d) Preserving dignity; e) maintaining confidentiality, f) promoting justice and g) being accountable. The first nursing value is always expected to be upheld in any case because it is their duty to provide care using appropriate safety precautions and preventing/minimizing all forms of violence (CNA, 2008). The collaboration of the nurses between the physician and Mr. C’s family has been evident since then. This therefore calls Mr. C’s nurses to be more compassionate about his situation and try to recognize where he is coming from as they build a trust-worthy relationship before judging him or jumping into conclusions like he does not want to live anymore. Even if he decides to withdraw from these potentially life-sustaining treatments, health care providers are still obliged to give him the care he need the best way they can up until the end of his life. The second nursing value, just like the first one, still calls nurses to still aim to promote or at least maintain Mr. C’s health and well-being to the highest possible level regardless of the path he had chosen for his life. This can be achieved by continuing to collaborate well with otherShow MoreRelatedCode of Ethics - Nursing1475 Words   |  6 Pageshandled by a single person—the nurse. In today’s society, nurses’ roles and responsibilities have drastically changed. Nurses are not only limited to a hospital setting where they are assessing patients, handing out medications or assisting doctors. Nurses are also a counselor, an agent of change and a patient’s advocate. Nurses can also be an educator in a classroom setting, during clinical practice of student nurses or through public presentations. In addition, nurses can also take up roles as partRead MoreCode of Ethics - Nursing1478 Words   |  6 Pageshandled by a single person—the nurse. In today’s society, nurses’ roles and responsibilities have drastically changed. Nurses are not only limited to a hospital setting where they are assessing patients, handing out medications or assisting doctors. Nurses are also a counselor, an agent of change and a patient’s advocate. Nurses can also be an educator in a classroom setting, during clinical practice of student nurses or through public presentations. In addition, nurses can also take up roles as partRead MoreConfidentiality in the Moral Community of Nursing700 Words   |  3 PagesConfidentiality in the Moral Community of Nursing Laabs (2008) stated that nurses require applied ethics to give moral direction while practicing. A moral community is a safe â€Å"place where community members are encouraged to bring ethical concerns to light and deal with these in a manner that promotes shared understanding and mutual respect†(Hardingham, 2004). In this paper I will tell you a story of an ethical conflict that I have encountered about breach of confidentiality, I will then go on toRead MoreThe Code of Ethics for Professional Nurses Essay1271 Words   |  6 PagesIntroduction The Code of Ethics for Registered Nurses is a document that details how a nurse in Manitoba is expected to act regarding ethical matters (College of Registered Nurses of Manitoba, [CRNM] 2006). Ethical principles are laid out with the assumption that nurses value and respect the individuality of people (Burkhardt, Nathaniel, and Walton, 2014). This paper will examine a case study and discuss the ethical principles, values and laws that pertain to the case. The stance that the nurse should takeRead MoreANA Code of Ethics Provision Five Review Essay869 Words   |  4 Pagesprovision five of the ANA code of ethics are as follows: section 5.1, which is moral self-respect, suggests that nurses must care for themselves as much as they care for their patients. Nurses must do their best to maintain professional respect to themselves in regards of their competence and moral character. Section 5.2, which is professional growth and maintenance of competence, suggests that nurses must contin ue to self and peer evaluate themselves throughout their careers. Nurses must continue to learnRead MoreA Reflection On Labeling Mental Illness1560 Words   |  7 Pagespractitioner and become a life-long learner. Somerville Keeling (2004) define critical reflection as â€Å"the capacity to uncover our assumptions about ourselves, other people, and the workplace† (p.42). The Saskatchewan Registered Nurses’ Association (SRNA) mandates that registered nurses practicing in the province, under the Standards and Foundation Competencies, must â€Å"engage in critical inquiry to inform clinical decision-making and establish therapeutic, caring, and culturally safe relationships withRead MoreEuthanasi Assisted Suicide And Euthanasia Essay2335 Words   |  10 Pages that is explicitly intended to end another person life† (p. 2) by a physician. Lastly, aid is dying is the request of a prescription for medication; provided by a physician, that patients can self-administ er to end ones life peacefully (American Nurses Association [ANA], 2013). For this intent of this paper, physician- assisted suicide and euthanasia will be used independently. The act of physician- assisted suicide, as of June 2016, is legal in the Netherlands, Belgium, Colombia, Luxembourg, SwitzerlandRead MoreQuestions On The Ethical Tension1415 Words   |  6 Pagespainful. She describes herself as traumatized and saying her mental goodbyes to her husband and children. She knew nobody could hear her and she was horrified. When the regained full motor sensory, she remembers the first words out of her mouth to the nurse, stating â€Å"I was awake, I felt everything.† Donna was left to deal with this medical malfunction on her own. Since the surgery, Donna has been diagnosed with post traumatic stress disorder (PTSD). It has changed her life in many ways. She has had toRead MoreThe Evolutions Of Social Media1585 Words   |  7 PagesThe evolutions in social media come with an increasing number of ways of socializing and connecting with others, which brings about challenges that were not faced previously. This is shown in the case scenario where a student nurse, Roxanne, receives a friend request on Facebook from her client, Ashley, who is recovering from depression and whom Roxanne has developed a therapeutic relationship with during clinical. Ashley appreciates Roxanne’s supportive care and hopes to attend nursing school. Roxanne’sRead MoreThe Problem Of Care Aids1374 Words   |  6 Pagesproviders and administration. Will they ignore this because they are low on staff? Is the care aid experiencing the results of poor staffing, which is leading to her irritable behavior? It is known that care facilities that maintain a high patient-to-nurse ratio, experience greater rates of employee burnout and/or job dissatisfaction (Schulz, Damkroger, Voltmer, Lowe, Driessen, Ward Wingenfeld, 2011). Subsequently, this burnout could lead to the irritability and lack of patience that the care aid exemplified

Indoor Water Supply Is Protected Catchment Areas - 2060 Words

Water Catchments Unique to Melbourne’s Water supply is it protected catchment areas, and is the key reason for very little treatment required (Melbourne Water 2014). Majority of the water feeding into the dams comes from the Yarra catchment regions, starting in the Great Dividing Ranges; figure 1.1 shows the regions for the catchments. The vast majority of the area is in protected National Parks. Yarra Catchment Regions The Yarra catchment is north and east of Melbourne and covers approximately 4,046 square kilometers. It is split into three regions Upper, Middle, Lower. It is home to more than one-third of Victoria’s population and native plant and animal species, (Melbourne Water 2014) there is a large variety of land use†¦show more content†¦Protected Catchment The protection of the catchment allow for a natural filtration system to occur before water enters reservoirs. This is important as â€Å"deeps soils acts like a sponges to hold rain water, the filter and slowly release into springs, stream, creek and river† (Melbourne Water 2014) that feed into to our dams. This is the factor that decreases that amount of treatment required for a clean drinkable water supply. Melbourne has 90,800 hectares National Park (protected) - majority of area is inaccessible for public, limited to low impact activities such as bush walking Water Catchments - Open Catchments While most of Melbourne’s catchments allow limited public access, a smaller proportion of our water comes from open catchments. These areas contain farmland, rural properties and state forests that are open to activities such as camping and four-wheel driving and small amounts of timber harvesting. The water from open catchments is put through a filtration treatment process, so it meets the same drinking water quality requirements as water from protected catchments. An open catchment is considered to be from area with no/ minimal protection. This mean that the water from these areas can be highly polluted and require extensive treatment. Farming land, recreational areas, run off from roads are all considered to be open catchment areas. Open water catchments in Melbourne’s water supply is compromised of: †¢ 56,300

Materialismin in A Raisin in the Sun by Lorraine Hansberry Free Essays

Money is like a double ended sword, as it makes life easier on one hand while at the same time most of the problems in many families all revolve around money. Raisin in the sun play was written by Hansberry which the center of all the issues they are facing hence the central motif in the story. The Younger family made up of five is living in a house fit for three as they try to gain middle-class acceptance in the community as they are a lower-class black family. We will write a custom essay sample on Materialismin in A Raisin in the Sun by Lorraine Hansberry or any similar topic only for you Order Now A $10,000 check is to arrive through the mail as insurance check Big Walter worked hard to attain and each family member has different opinions on how the check should be spent. Lena, Ruth, and Beneatha imagine money as a path towards their road out of poverty, but Walter sees money as the only way out of their current life to a better one. He has big dreams and fantasies of how the funds will heighten his social standing as well as acquire items which he currently can’t afford due to his low paying job as a chauffeur. In the begging of the play Walter hurriedly rushes in and asks â€Å"Did it come?† To which his mother replies â€Å"Can’t you give people a Christian greeting before you start asking about money?† This clearly shows that Walter does not care about anything else apart from the check they are about to receive. In act 1 scene two Lena argues with Walter whether money has become life this day as there used to be a time when people did consider freedom as life. Walter gets back to her saying that all along it has always been about money it’s just that people did not know about it. Walter tries to show the reader that money is the center of everything, having it one can be able to attain any social class they desire. However, this is not true as money is not always a guarantee happiness and success in life. There are many other things which money can never be able to buy them. Lena has always wanted a bigger house with a backyard and with the arrival of the check comes the chance for her to get her family a better house. This is seen as a way of climbing up the social class in the society. Even though Walter is not happy about the decision of buying the house let alone the neighborhood they will have to have into is a white only. He accuses his mother of killing his dream of opening a liquor store yet she is the one talking about dreaming big. However, Lena always has her son in mind and is willing to give him a chance as she hands him the remaining amount for him to pay Beneatha’s tuition fees and save the rest. Having big dreams and plans is always a way of life but when the limits of how big the goals should be are exceeded then a problem may arise within an individual especially if not given a chance to achieve those dreams. Lena is well aware of this as she advises her son that it is not worth holding onto anything be it money or ideas if in the end, it is going to destroy you. Chasing after money alone will make one lose out on many other essential aspects of life. With the hopes of opening a liquor store drowning after Bobo tells Walter that their alleged friend has swindled them, and the money is no more he angrily says, â€Å"Man, must trust you†¦Man, I put my life in your hands†¦man†. And with that, he is back to having only dreams only about a better future. Money has become an idol which everyone is worshiping or chasing after including children. Travis asks for 50 cents from Ruth before he heads to school which he is denied at first but later Walter hands him a one dollar bill. Children have also become obsessed with money in the society, and it is becoming a norm to pay them off with every little thing they do or help around in the homestead. This eventually leads to them growing with the belief that money is everything hence will always chase after it. All the money is gone and Walter being frustrated, Mama still says that there is something left to love about him and asks if they have cried for the Walter for what he must be going through and the experience he has passed through. Lena knows that money is not everything provided that the family is healthy and happy everything is okay. Karl Lindner is sent to the Youngers to acquire the house they had previously bought in a white neighborhood at a price even higher than the original price tag as the residents of Clybourne don’t have any relationship with the black family in order to move out because they have worked hard and will do anything to protect their dreams. However, Lana is against the idea of selling the house as she tells her Walter, â€Å"Son I come from five generations of people who was slaves and sharecroppers but ain’t nobody in my family never let nobody pay them no money that was a way of telling us we weren’t fit to walk the earth. We ain’t never been that poor. We ain’t never been that dead inside.† The white neighborhood believes that with money they can acquire anything even get the Youngers to sell their house simply because they do not want them living amongst them even if it means paying a higher price to buy the house. Despite all, in the end, a family is what comes first. Lena knows that it is the family is superior to money that is why she does not get mad when Walter misuses his entire father’s life work in a day by getting conned. Ruth feels the same way, and all she cares about is her family is happy. Willy who was supposed to be a friend to both Walter and Bobo decides to walk away with all their money in the name of going to get a license but never returns. Their friendship ceases to exist all for money. Many strong friendships and relationships come to an end with the cause being money. Everybody believes that money is everything and they can even sacrifice their friend’s dreams to get it. Walter is all about being great and climbing the social class in the society. He puts his dreams ahead of Beneatha’s dream of attending medical school and ends up losing all the money. She does not take this well in the beginning as she says; â€Å"Did you dream of yachts on Lake Michigan, Brother? Did you see yourself on that Great Day sitting down at the Conference Table, surrounded by all the mighty bald men in America? All halted, waiting, breathless, waiting for your pronouncements on the industry? Waiting for you Chairman of the Board, I look at you, and I see the final triumph of stupidity in the world!† Hansberry Central motif in the play is money as the whole plot revolves around the $10,000 check the Youngers receive after their father passed away. Money easily tears families apart if every member is always chasing it as conflicts are bound to happen. It is the root of evil in the society today as all bad things happening are mainly due to people’s thirst for money. Many innocent individuals have fallen victims even some end up dead if they try to stop someone from stealing or harming others for money. Immorality is on the rise and the number of youth engaging in prostitution and other immoral activities such as stealing for money has risen in the past the reason being everybody wants to get rich but no one is willing to work hard for it hence looks for an alternative method to getting it and this tends to be activities going against what is morally right. Conclusively, the author clearly shows that Walter does not care about anything else apart from the check they are about to receive. In addition, Money easily tears families apart if every member is always chasing it as conflicts are bound to happen. It is the root of evil in the society today as all bad things happening are mainly due to people’s thirst for money. How to cite Materialismin in A Raisin in the Sun by Lorraine Hansberry, Papers

What Action Should Ikea Take Regarding Rangan Export free essay sample

What long-term strategy would you suggest she take regarding IKEA’s continued operation in India? Should the company stay or should it ixi? (Discuss the impact of your decision and how you would manage it. ) * IKEA set up a list of ideas as of where they wanted their company to improve in. Included in this list was â€Å"working with suppliers† as well as â€Å"transport and distribution. †Ã‚  Greater monitoring, meetings at the place of production, and reports should be a mandatory concept that is stated within the contract between IKEA and the supplier. Independent monitoring is a critical element of an overall system of improving labor practices,   * Community initiative program to bring up the child issue publicly among suppliers * IKEA to theoretically have direct control over the situation; it will not have to adhere to the terms and provisions of Rugmark’s program and it will not have to rely on the accuracy of Rugmark’s certification 1. We will write a custom essay sample on What Action Should Ikea Take Regarding Rangan Export or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page if child labor is found taken place, supplier has to implement a corrective action plan. If corrective action is not implemented within the agreed time-frame, or if repeated violations occur, IKEA will terminate all business with the supplier concerned. 2. The corrective action plan shall take the child’s best interests into consideration, i. e. family and social situation and level of education. Care shall be taken not merely to move child labour from one supplier’s workplace to another, but to enable more viable and sustainable alternatives for the child’s development. 3. A complete solution must also address â€Å"the root causes such as debt, poverty, lack of access to education, disability and ill health. † * All suppliers are obliged to keep IKEA informed at all times about all places of production (including their sub-contractors). Any undisclosed production centres found would constitute a violation of this code of conduct. 1. IKEA has reserved the right to make unannounced visits at any time to all places of production (including their sub-contractors) for goods intended for supply to IKEA. The IKEA Group furthermore reserves the right to assign, at its sole discretion, an independent third party to conduct inspections in order to ensure compliance with â€Å"The IKEA Way on Preventing Child Labour†. * Providing assistance to talk to the children themselves about what they need. * Footwear factories have heavier machinery and use more dangerous raw material, including solvents that cause toxic air pollution. At overseas actories that produce Nike shoes, the company said, it would tighten air-quality controls to insure that the air breathed by workers meets the same standards enforced by the United States Occupational Safety and Health Administration at home. * Another disadvantage is that IKEA’s decision not to carry any Asian rugs may inadvertently encourage the purchase of more rugs produced by child labor as purchasers go to competitors without effective child labor policies. This may also give the impression that IKEA is hiding from the problem rather than attempting to contribute to its solution * Finally, this alternative does not prevent IKEA from being involved in another child labor scandal in another segment of the furniture/ home furnishings industry * The risk with such a response is that simply removing children from the workforce, and therefore taking away their income, may have predominantly negative consequences, possibly leading to the child becoming involved in more hazardous work than before.

Kelloggs Company Essay Example For Students

Kelloggs Company Essay Kellogg`s Company Objective: Our goal in composing a financial statement is to construct the mostcomprehensive, thorough document possible, in order to attract investors and toconfirm that we have taken the time to explore as many potential issues for yourbusiness as may arise. Summary of findings: Our level of cereal marketinginvestment early in 1998 was not sufficient in the face of extremely competitivemarket conditions. This situation hurt our volume performance for much of theyear and, combined with other issues in markets around the world, led to adecline in both sales and earnings. Nonetheless, we continue to have the utmostconfidence in the future of our grain-based businesses, and we are fullycommitted to return to both top-line and bottom-line growth. Appendix # 1-Market Research Description of firm and its management: Kelloggs products aremanufactured in 20 countries on 6 Continents and distributed in more than 160countries. Mr. Langbo has been employed by thesince 1956. H ewas named President and Chief Operating Officer in 1990 and became Chairman ofthe Board and Chief Executive Officer in 1992. In June of 1998, Mr. Carlos M. Gutierrez was named President and Chief Operating Officer. The competitiveenvironment: The Company has experienced intense competition for sales of all ofits principal products in its major markets, both domestically andinternationally. The Companys products compete with advertised and brandedproducts of a similar nature as well as unadvertised and private label products,which are typically distributed at lower prices, and generally with other foodproducts with different characteristics. Principal methods and factors forcompetition include new product introductions, product quality, composition, andnutritional value, price, advertising and promotion. Economic climate andoutlook: Although our 1998 business results were below our performanceexpectation, it was a year in which we put in place key elements of a strongerfoundation for future growth. This included investments in new productdevelopment and a complete overhaul of our corporate headquarters and NorthAmerican organizational st ructure. Should suitable investment opportunities ofworking capital needs arise that would require additional financing; managementbelieves that the Companys strong credit rating, balance sheet and earningshistory provide a base for obtaining additional financial resources atcompetitive rates and terms. Based on the expectation of cereal volume growth,and strong results from product innovation and the continued global rollout ofconvenience foods, management believes the Company is well positioned to deliversales and earnings growth for the full year of 2000. Litigation: The Company isnot a party to any pending legal proceedings, which, if decided adversely, wouldbe material to the Company on a consolidated basis, nor is any of the Companysproperties or subsidiaries subject to any such proceedings. Appendix #2-Financial Forecasts Financial overview: Kellogg Company manufactures andmarkets ready-to-eat cereal and other grain-based convenience food products,including toaster pastries, frozen waffles, cereal bars, and bagels throughoutthe world. Principal markets for these products include the United States andGreat Britain. Operations are managed via four major geographic areas, NorthAmerica, Europe, Asia-Pacific and Latin America-which is the basis of theCompanys reportable operating segment information. The Company leads the globalready-to-eat cereal category with an estimated 38% annualized share of worldwidevolume. Additionally, the Company is the North American market leader in thetoaster pastry, cereal/granola bar, frozen waffle and per-packaged bagelcategories. During 1998, the Company realized declines in earnings per shareboth with and without unusual items. The Company experienced significantcompetitive pressure combined with category softness in its major ready-to-eatcereal markets, to which it responded by accelerating investment in long-termgrowth strategies, in clouding product development, technology and efficiencyinitiatives. Short-term liquidity: Net cash provided by operating activities was$719.7 million during 1998, compared to $879.8 million in 1997, with thedecrease due principally to lower earnings and unfavorable working capitalmovements. The ratio of current assets to current liabilities was .9 at December31, 1998 and 1997. Capital structure and long-term solvency: Long-term debtconsists primarily of fixed rate issuances of U.S. and Euro Dollar Notes,including $900 million due in 2001, $500 million due in 2004, and $200 milliondue in 2005. The amount due in 2001 includes $400 million in Notes, whichprovide an option to holders to extend the obligation. For an additional fouryears at a predetermined interest rate of 5.63% plus the Companys then-currentcredit spread. The increase in operating margin for the quarter primarilyreflects manufacturing efficiencies in the U.S. business and reduced overheadspending as a result of streamlining initiatives in North American and corporateoperations. The year-to-date operating ma rgin was flat versus the prior year asincreased spending on promotional activities offset the benefits discussedabove. This level of spending is consistent with managements strategy to drivegrowth through increased marketing investment in the Companys establishedcereal markets, as well as supporting the accelerated introduction of newconvenience food products around the world. Market measures: The Company isexposed to certain market risks, which exist as a part of its ongoing businessoperations and uses derivative financial and commodity instruments, whereappropriate, to manage these risks. The Company, as a matter for policy, doesnot engage in trading or speculative transaction. Investment potential: We arepleased to report that the Kellogg Company dividend rose in 1998 for the 42ndconsecutive year, with an increase of 5 cents per share to $.92. In 1999Kelloggs is well positioned to deliver double-digit earnings per share growth(excluding restructuring and disposition-related charg es). We also continued ourprogram of purchasing Kellogg share, with 1998 purchases totaling $239.7million. It is currently offering 80,000 new stock options. Outlook, Summary,and Conclusions Outlook for performance, earnings projection: The Companysstreamlining initiatives will continue throughout 1999. The aforementionedoverhead activity analysis will be extended to Europe and Latin America duringthe first half of 1999. Management believes these initiatives will result in theelimination of several hundred-employee positions, requiring separation benefitcosts to be incurred. Since the number of employees affected, their jobfunctions, and their locations have not yet been identified. The costs that mayhave resulted are not known yet. Investment potential: We are pleased to reportthat the Kellogg Company dividend rose in 1998 for the 42nd consecutive year,with an increase of 5 cents per share to $.92. We also continued our program ofpurchasing Kellogg share, with 1998 purchases totali ng $239.7 million. Creditassessment: counter parties on derivative financial and commodity contractsexpose The Company to credit loss in the event of nonperformance. This creditloss is limited to the cost for replacing these contracts at current marketrates. Management believes that the probability of such loss is remote. Summaryand conclusion: The seeking out, training, and retention of a diverse, highlytalented workforce is central to Kellogg Companys commitment to be aresults-oriented organization ready for the challenges for the future andfocused on creating value for you, our shareowners. .ue1ce1a0ce4ee10a8867d7c3b0522c4d4 , .ue1ce1a0ce4ee10a8867d7c3b0522c4d4 .postImageUrl , .ue1ce1a0ce4ee10a8867d7c3b0522c4d4 .centered-text-area { min-height: 80px; position: relative; } .ue1ce1a0ce4ee10a8867d7c3b0522c4d4 , .ue1ce1a0ce4ee10a8867d7c3b0522c4d4:hover , .ue1ce1a0ce4ee10a8867d7c3b0522c4d4:visited , .ue1ce1a0ce4ee10a8867d7c3b0522c4d4:active { border:0!important; } .ue1ce1a0ce4ee10a8867d7c3b0522c4d4 .clearfix:after { content: ""; display: table; clear: both; } .ue1ce1a0ce4ee10a8867d7c3b0522c4d4 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .ue1ce1a0ce4ee10a8867d7c3b0522c4d4:active , .ue1ce1a0ce4ee10a8867d7c3b0522c4d4:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .ue1ce1a0ce4ee10a8867d7c3b0522c4d4 .centered-text-area { width: 100%; position: relative ; } .ue1ce1a0ce4ee10a8867d7c3b0522c4d4 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .ue1ce1a0ce4ee10a8867d7c3b0522c4d4 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .ue1ce1a0ce4ee10a8867d7c3b0522c4d4 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .ue1ce1a0ce4ee10a8867d7c3b0522c4d4:hover .ctaButton { background-color: #34495E!important; } .ue1ce1a0ce4ee10a8867d7c3b0522c4d4 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .ue1ce1a0ce4ee10a8867d7c3b0522c4d4 .ue1ce1a0ce4ee10a8867d7c3b0522c4d4-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .ue1ce1a0ce4ee10a8867d7c3b0522c4d4:after { content: ""; display: block; clear: both; } READ: A Banjo Player's Journey EssayMarketing