Answer the following questions: (4 items x 10 points)

1. Which between Milton Friedman’s and Archie Carroll’s views on business

responsibility is being demonstrated in the given case? Explain your
chosen view.
 On the given scenario, it’s Milton Friedman’s point of view on business
responsibility. Since based on the Friedman, the primary social
responsibility of a business is to use its resources and engage only in
activities designed to increase profit so long as it stays within the rules of
open and free competition without deception or fraud. Back to the given
scenario, it was stated that Merck was thinking of whether to focus on one
research or to spend investments on the multiple lines. But as what it
stated in the scenario, Merck focuses on Keytruda, a cancer drug that uses
the immune system to fight tumors, rather than developing a range of
drugs. They choose profitability without deception or fraud, and focus on
Keytruda instead of investing in multiple research lines for gastric cancer
patients.
2. Who are the primary stakeholders of Merck based on the case study?
 Primary stakeholders of Merck based on the scenario are those who have
direct relationship with the company or business are the cancer patients,
the doctors, employees and those investors and lastly, roger pelmutter
because they are those have a direct relationship with Merck’s products
and company.
3. Who are the secondary stakeholders of Merck based on the case study?
 It’s the Trade Association, since it doesn’t matter to them if Merck will still
continue to develop medicines or drugs, since they can still earn and can
continue to trade. But unfortunately, the company change, and they only
allowed to trade one product which is the Keytruda.
4. How do the stakeholders of Merck influence the strategic decisions of the
company?
 Merck influence the strategic decisions of the company when they decide
to focus on one drug (Keytruda). They think focusing on one drug may
lesser their problems and cost making a research and development cost a
lot of money or millions. But for me it’s quite a good thing for them to focus
on one drug to improve it and make it more effective.