Drug firms in $41bn giant merger

Level 1: Knowledge
1a) Describe the following words or terms

• Merger


• Inorganic Growth


• Organic Growth


• Pharmaceutical Company

Level 2: Application
2a) I own 10,000 shares in Schering Plough. Calculate what I can expect to receive as a result of the merger.
2b) What type of growth strategy does this merger represent? Use your textbook and/or my notes construct a table showing the advantages and disadvantages of such a merger.

Level 3: Analysis
3) Use the information in this article to analyse the statement made by Merck Chairman and CEO Richard Clark, who said "We are creating a strong, global healthcare leader built for sustainable growth and success"

Level 4: Evaluation
4) Should I buy shares in the merged business? Justify your answer!

Note Level 1 – Level 4 are questions based on IB standards where

Level 1: Knowledge
Level 2: Application
Level 3: Analysis
Level 4: Evaluation

Words in bold (define, explain…) have a specific meaning in the IB Diploma Program (DP). The meanings are in Glossary of Command Terms Section of the IBO DP Business and Management Guide available at the OCC and from my website