The pharmaceutical company Merck's new drug Vioxx was a blockbuster, generating revenues of $2.5 billion a year by 2002 and growing fast. When allegations that the drug caused heart attacks and strokes began to appear in the medical community, and that Merck had suppressed evidence about Vioxx's dangerous side effects from early clinical trials, Merck announced the voluntary withdrawal of Vioxx from the market. In this example, Merck provides an example of what can happen if a company deviates from its

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In Strategy Highlight 1.2, the pharmaceutical company Merck provides an example of how values can drive strategic decision making, and what can happen if a company deviates from its core values. Organizational values serve as the guardrails put in place to keep the company on track when pursuing its vision and mission in its quest for competitive advantage.

The Pharmaceutical Company Merck's New Drug Vioxx Was a Blockbuster