Michael Zouroudis
Cornerstone pupil in the University of Organization Administration
College or university of Central Florida
October 12-15, 1999
Stand of Articles
Section
Introduction/Executive Summary. a few
Background.. four
Marketing
Product/Service6
Place/Distribution.. several
Promotion/Advertising. almost eight
Management /Human Resources
Teaching and Development9
Compensation and Rewards. on the lookout for
Labor relations.. 10
Finance
Profitability and Cash Flow. 10
Liquidity12
Leverage/Capital Management. 13
Conclusion.. 13
References.. 13
Introduction and Executive Overview
This file consists of an overall business review for the Pharmacuetical organization Bristol-Myers
Squibb. Though by no means an entire summary with their 1998 business dealings or stragety, it will
offer a nice review of three of the very component and fundmentally appear aspects of any kind of business, allow
alone a Fortune 500 business.
This document starts by in the Marketing part of Bristol-Myers Squibb. First covered is the most
important framework of any company, its item. Inside is usually information on how they will distribute all their
item, and in which they spread it to. Finally, we see how they showcase their item, and which in turn ways
it is advertised.
Management is the up coming topic of discussion. What type of management does Bristol-Myers Squibb
conduct? The record talks about compensation given to all their employees, and how the average
employee is rewarded to get acheving the unaverage degree of excellence.
Finally, the doc focuses on Fund. It reveals Bristol-Myers Squibb profits, that debts, just how much
funds is invested in the company, and basically the direction which the Company is definitely headed.
Once more, this file is not nearly an entire breakdown of Bristol-Myers Squibbs 1998 organization
transactions. All this file is aiming for is to offer an idea from the extreme intricacy of the business
community, understand(at least a little more) the approach and competition between businesses, and maybe
to clear up a few how much time and effort goes into these kinds of a giant of any company such as this. Enjoy.
Record
Bristol-Myers
In 1887 Bill McLaren Bristol and John Ripley Myers decided to drain $5, 500 into a screwing up drug
manufacturing firm called the Clinton Pharmaceutical Company, situated in Clinton, New York. The
company was officially integrated on 12 , 13, 1887, with Bill Bristol because president and John
Myers while vice president.
In-may 1898 emerged a new name: Bristol, Myers Company (a hyphen replaced the original intervalle after
Myerss loss of life in 1899 when the business became a corporation).
The postwar depressive disorder prompted Bristol-Myers to jettison its honest drug business and spend itself
entirely to its expertise: its two big those who win and twelve or so assorted toiletries, antiseptics and coughing
syrups. Company hq was established in Manhattan, wherever it has continued to be ever since. And
having shifted straight into the client products market, Bristol-Myers started advertising its products
directly to the public.
In 1924, major profits topped $1 million initially in Bristol-Myers history. The companys
products had been on sale in 26 countries. At this point, the shares held by David Myerss heirs became
available for sale, triggering a series of goes that switched Bristol-Myers into a publicly held company
listed on the New York Stock Exchange in 1929.
In 43, Bristol-Myers bought Cheplin Natural Labs, and quickly created the discipline of antibiotics.
During the war, Bristol-Myers was a main distributor of penicillin and other types of antibiotics. By
end of the warfare, it was very clear that penicillin and other antibiotics represented a great immense opportunity for the
company. Cheplin was renamed Bristol Laboratories, and Frederic N. Schwartz was placed in charge of computer.
In 1957 Schwartz was appointed leader and ceo of Bristol-Myers when Holly
Bristol chose to shed some of his former responsibilities and become leader of the plank.
Reviewing the companys circumstance and prospects, Schwartz and then treasurer Gavin K. MacBain later
Schwartzs heir as CEO decided that Bristol-Myers will need to embark on a plan of purchasing
well-managed smaller companies. The two management first significant move in that direction was to acquire
Clairol.
Within a dozens of or so years after Clairol joined the company, a number of other acquisitions followed
including the ones from Drackett, Mead Johnson, Zimmer and Westwood.
In 1986 the organization opened a state-of-the-art analysis complex in Wallingford, Connecticut, designed to
house much more than 800 scientists and support staff.
In January 1994 Charles A. Heimbold, Jr., was elected ceo. In 1995 Heimbold likewise
became chairman.
Squibb
In 1856 Edward Brown Squibb founded a pharmaceutical company in Brooklyn, Nyc, dedicated
to the development of regularly pure drugs, like azure and chloroform.
In 1905 the company was sold to Lowell M. Palmer and Theodore Weicker, and the company started to be
designed. That same year, property was acquired at Fresh Brunswick, Nj, for establishment of an
ether creation plant.
In 1938 the Squibb Start for Medical Research began.
In 1944 Squibb exposed the largest penicillin production flower in the world: Building 59 in New
Brunswick, Nj-new jersey.
In 1971 Squibb Corporation founded worldwide headquarters and expanded facilities to get the Squibb
Institute in Princeton, New Jersey.
The Merger
In 1989 Bristol-Myers merged with Squibb, buying them to $12. six billion us dollars. This merger
developed global leader in the health care market. The combination created what was then the realms
second-largest pharmaceutical enterprise.
In 1990 the Bristol-Myers Squibb Pharmaceutic Research Company was established with headquarters in
Princeton.
Marketing
Product/Service
Bristol-Myers Squibb provides solutions for people looking for Health items. Although Drugs
are their best grossing merchandise, the break down can be seen because:
Medicines
Beauty Care
Nutritionals
Medical Gadgets
Bristol-Myers Squibb performs most of their revenue in Medications, approximately 69% of the revenues
or perhaps $12. 7 billion. That they specialize in primarily six types of perscription drugs, that are:
Cardiovascular- Pravachol, Capoten, Monopril
Anti-cancer- Taxol, Paraplatin, Vepesid
Anti-infective-Zerit, Cefzil, Amikin
Central nervous system- Buspar, Serzone, Stadol NS
Analgesics- Execedrin, Bufferin
Other- Comtrex(cold reliever), Dovonex(psoriasis), Keri(moisturizing body lotion)
Beauty Proper care is another element of Bristol-Myers Squibb. In 1998, Their Beauty Care department made
$2. 3 billion, or 12% of their total revenue. Some items that are made by Bristol-Myers Squibb are:
Clariol- Daily Defense, Herbal Fact
Matrix Essentials-Salon Selective
Nutritionals are Bristol-Myers Squibbs third largest section. This subsidary of Bristol-Myers Squibb
comprises 10% of their gross income, or $1. 86 billion.
Mead Johnson Nutritionals-Viactiv, Enfamil
Medical Devices is their previous category. This division of the corporation accounts for 9% of their gross annual
salary, or $1. 6 billion.
Zimmer- Orthopaedics
ConvaTec- Ostomy attention
Place/Distribution
Bristol-Myers Squibb can be an international business, with their community headquarters found in New York
New York. The headquarters for the companys segments will be Listed the following:
Medicines community headquarters- Princeton, New Jeresy
Beauty Care- Stamford, Connecticut
Nutritionals- Evansville, Indinana
Medical Devices- Warsaw, Indiana and Skillman, New Jeresy
Bristol-Myers Squibb manufactures products for forty-three significant worldwide places with a space on the floor
of roughly 12, 950, 1000 square feet. Forty-one are held by Bristol-Myers Squibb and two happen to be leased.
The geographic location of the company is as comes after:
Beauty Medical
Medicines Treatment Nutritionals Equipment Total
–
United States 8 two 2 three or more 15
Europe, Mid East and Africa 9 one particular 1 you 12
Different Western Hemisphere 7 1 2 10
Pacific your five 1 six
– – – – –
Total 29 5 6 four 43
More than a decade ago, worldwide sales accounted for $18. 3 billion, a 9% increase over 1997. Household sales
represented 61% of total sales at $11. one particular billion. Foreign sales a new 39% reveal of total sales attracting
in $7. two billion.
GEOGRAPHIC AREAS Net Sales Earnings Before Income taxes
–
1998 1997 1996 1998 1997 1996
– – –
United States $12, 527 $11, 014 bucks 9, 661 $3, 278 $2, seven hundred $2, 512
Europe, Mid-East and
The african continent 4, 873 4, 653 4, 520 1, 139 1, 109 988
Various other Western Hemisphere 1, 749 1, 586 1, 307 223 225 145
Pacific cycles 1, 457 1, 636 1, 563 2 52 69
Inter-area eliminations (2, 322) (2, 188) (1, 986) (76) 40 fifty nine
–
Net sales and earnings
before income taxes $18, 284 $16, 701 $15, 065 4, 566 4, 126 3, 773
======= ======= =======
Exceptional Charge (800)
Different 502 356 240
Profits before income taxes $4, 268 $4, 482 $4, 013
Promotion/Advertising
The pharmaceutical companies the medical devices segments of Bristol-Myers Squibb will be promoted about
a national and international level in medical journals and directly to the medical profession. Also used
is a direct-to-consumer promoting for a number of its products. Most other items made by
Bristol-Myers Squibb are marketed on:
Tv set
Radio
Print out media
Home window and in-store displays
Buyer offers
None of the segments is solely based mostly on one buyer, or a handful of customers, so that the loss of a
client should not have a material adverse effect upon the segment.
Management/Human Resources
Bristol-Myers Squibb pertains to a centralized/pyramid management. A Board of Chairmen choose the
officers in the company to serve out a term. The company can be headed by a CEO, and then a CFO, and
so on. Given personnel are placed in person aspects of the organization and are devote charge of the
partitions, only to answer to their superiors. Their international subsidaries will be maintained simply by appointed
personnel who also control their very own subsidary, although also reply to a superior.
Training and Development
Schooling programs are conducted in house and externally throughout Bristol-Myers Squibb. Applications
that are taught internally deal with competency, development, and training and opinions. Management
programs taught internally are:
Management Orientation-offers support, assistance, information, and opportunities to network and share to new managers.
Key Manager/Executive Integration-helps the transition into leadership jobs
Global Leadership Development Program-Programs that support managers enhance their effectiveness in meeting global challenges
Administration Forums-facilitated by senior management to encourage information writing and creative problem solving throughout divisional and functional restrictions
External teaching is also motivated at Bristol-Myers Squibb. Tuition Reimbursement applications are
effective for all eligible workers, providing about 100% off the cost of the school or classes attended.
Compensation and Advantages
Creative thinking is encouraged at Bristol-Myers Squibb. The business spends $1. 6 billion dollars on research
and development annually to try to discover new medicines. Bonuses will be awarded annually(and even
quarterly in some instances) to employees who also go beyond anticipations. Stock options are given to every
employee with the company through their program entitled TeamShare, although in the event that performance levels are
high, investment become higher. Gross annual raises are also given to each employee, once more the amount
raised in the employees salary all depends upon their functionality. Once a year, the Presidents Merit
has to the worker who has attained the highest degree of excellence inside the company. One
exceptional employee, nominated by their administrator, is given a performance review by the organization to
compare with other employees inside the same circumstance. The winner of the prize receives a cash prize.
Labor Relations
Bristol-Myers Squibb features good labor relation. Although all benefits for employees are merely for
non-unionized workers, the company causes it to be so that zero union has a need to come about. Some
programs passed for employees are:
Competitive wages to companies
Total annual bonuses
Annual raises
TeamShare program-allows workers the option of purchasing stoks through the company
Though no exceptional labor laws and regulations are applied in the organization, Bristol-Myers Squibb does expect their
employees to keep up the highest quality level that is feasible. Annual efficiency reviews are executed
on most of their workers, and on-the-job training has to those who need the extra support.
Finance
Success and Cashflow
In 1998, Bristol-Myers Squibb recorded sales of $18. a few billion, regarding $1. a few billion a lot more than 1997.
Bristol-Myers Squibb finished with a gross earnings of $4. 3 billion. At the end of 1998, the companys
market value surpassed $133 billion dollars, making Bristol-Myers Squibb one of the top 15 publicly traded
companies around the world in terms of market value.
FIVE-YEAR FINANCIAL OVERVIEW
OPERATING BENEFITS
(in millions, except every share amounts)
1998 97 1996 95 1994
%0
Business Reviews
