Bristol Myers

  1. Describe BMS’ business environment (i.e. what industry is the company in? What kinds of products does it produce/sell?) What significant change and pressures were present?

BMS was the result of the merger between Bristol-Myers and Squib in 1989 resulting in the second largest pharmaceutical enterprise in the world operating in the health-care industry. BMS engages in the manufacturing of prescription pharmaceuticals in a number of therapeutic areas; it produces consistently pure medicines. It aims at discovering, developing and delivering innovative medicines, with the help of its research facilities based in Wallingford, Connecticut, capable of helping patients in prevailing over serious diseases. The company engages in innovative pharmaceutical research as well as development and it has redefined the science of the clinical study with the help of its hugely complex and groundbreaking clinical trials. It has also advanced HIV/AIDS research and community outreach programs in a number of Southern African countries.

The significant change and pressures that were present includes the commitment to double its earnings, sales and earnings per share. Having assured the investors, the company was under pressure to deliver on their promise but confronted millions of dollars in gaps between their actual operating results and the set targets. The management wanted one of its divisions, the U.S. Medicines Group, to help in making up the shortfalls by raising the company’s targets above the original set targets. In addition, the company was under pressure to enter into ROI agreement with its second largest wholesaler so as to record higher revenues which only led to the increase in costs to BMS from sales incentives. The company then changed to the Mega-Double which just significantly increased the pressure on its division to come up with ways of generating incremental earnings and sales.

  1. What are Bristol-Myers Squibb’s key values? How might these have affected its high performance pressures to meet the expectations of customers and shareholders?

The first key value is the pledge to the customers of excellence in whatever they produce and market. The pressure to deliver the safest, highest quality and most effective medicines and healthcare products by continually improving on their products through innovation and diligent research and development greatly affected its high performance pressures because they had to use any means possible to meet the expectation of the shareholders and customers. Another key value is their dedication to responsibly increase the shareholder value of the company based on strong finances, continued growth, innovations in research and development and productive collaborations. To deliver on the promise, the company engaged in more aggressive growth goals such as Double-Double and the Mega-Double which led to increased costs and buildup of excess wholesaler inventory thus affecting its high performance pressures to meet the expectations of the shareholders.

Other key values include providing fair compensation, fostering globally diverse workforce, providing safe and clean work environment and building and upholding the goodwill and trust. In addition, the company pledge conscientious citizenship and helping in constructive actions and worthwhile causes for a clean and healthy environment. This affected its high performance pressures to meet the expectations of customers and shareholders in that the company had to establish more aggressive growth goals so as to realize more incremental sales and earnings to deliver on the key values. However, this worsened their financial condition as they had increased costs to a point that might affect the credibility in the financial markets.

Get a 10 % discount on an order above $ 100
Use the following coupon code :