U.S English)
ASSIGNMENT: After reading the case, prepare two pages in which you recommend to Merck what it should do with the health management business in the future. Consider: What was the rationale for PBMs? Does Medco fit with Merck’s strategy? What are the advantages and disadvantages of the merger? What does Medco bring to Merck, and what does Medco get from Merck? Why is vertical integration so attractive a strategic option in this industry?
Recommendations?
(Do not describe too much about the history; 1-2 sentences would be good enough)
Critical thinking is a key
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