The Evolving Finance Function

The pay department provided a wide betray of financial services to them. * The forecasting & analytics department was merged with the finance department. * enlisting in the finance department were higher than the some other departments, which consisted of Mambas from good B- schools in USA. * There was no rigidity the finance department was constantly re-structured. Pre-conditions that enabled Mercers finance group to develop its capabilities * The company was constantly rated amongst the best in the U. S. A. They had a vision to grow, which was evident from their financial figures.Exhibit 1 * To cater to the growth they organize several alliances, in the form of Joint Ventures, which led to an increase in their market capitalisation. In order to maintain and increase their market capitalization in the future they felt the need to come up with a model which bear help them to effectively analyses the returns on their investments in future. * They face up immense competition fro m the local players in generic drugs and to maintain an moulding over them they came up with this model. * As they focused on Innovation, they had huge R&D expenditure which kept Increasing year after year.They did non have a suitable model to classify the expenditure as capital or revenue, nor could they ascertain the profitability from a given growth or venture. * Owing to the currency fluctuations and to manage their foreign exchange hedge castles, they came up with a suitable long term revenue hedging model. * They came up a long way under the effective leaders of Ms. Judy Lent, who kept taking Annihilative In carrying out various tasks remote her domain. Her Job Included 25% assignments and 75% Initiative. * Her effective decision making also played an Important role In eloping Merck develop its capabilities.Can other companies develop standardized capabilities? * Merck had a highly effective but knotty model and improper execution of which could lead to a total chaos. * Their say-so was Research and Development, which was ten earlier AT tenet pronto TTY. I en same need not De ten case wilting toner companies. * Therefore, if Merck did, other companies too can come up with a similar model. All it needs is being systematic and have efficient leadership. However, organizations can come up with their knowledge models capitalizing on their own strengths and catering to their own needs.