Anda di halaman 1dari 3

Introduction

Abstract
Bristol-Meyers Squibb is one of the largest pharmaceutical companies in the world, with 28,000
employees and $15.9 billion in sales in 2014. As a leading pharmaceutical company, it has face a lot

of challenges and obstacles since its establishment in 1989. BMS, like the rest of the
pharmaceutical industry, is facing major challenges in the business environment. Some of these
include greater restrictions on access to physicians, increased pricing pressures from
governments and stricter regulatory guidelines.BMS launched a Productivity Transformation
initiative to enhance its competitiveness in order to address these challenges. The mission of the
organization is to provide innovative, high impact, cost effective learning solutions that meets the
business need.

The case explained about Bristol-Myers Squibb (BMS), a global

biopharmaceutical company that discovers and delivers medicine and it has to face stiff
competition from competitors or risk going back out of the business due to several reasons. The
leading and largest product of BMS, Plavix which is use for treatment of hypertension and
diabetic, faces a patent expiration. It is very difficult for BMS to be on par with the rest of its
competitors in the industry due to the continuing rise of its R&D costs apart from facing a rigid
competition from generic drug makers
Vision Statement
According to the case study, BMS does not publicly have available vision statement. After
detailed discussion and research, the researcher has decided to propose and effective vision
statement for BMS company that fits its image as one of the big dogs in the pharmaceutical
business.
Proposed
To make continuous improvement on producing an excellent pipeline of drugs and put greater
effort on fulfilling demand on serious unmet medical needs. We take a pledge to become a leader
in pharmaceutical industry while continue improving our drugs for the benefits off all
stakeholders.
Mission statement
To discover, develop and deliver innovative medicines that help patients prevail over serious
disease. BMS has more lengthy commitment statement as follows to our patients and

customers, employees, global communities, shareholders, environment and other stakeholders,


we promise to act on our belief that the priceless ingredient of our product is the integrity of its
maker. We seek transparency and dialogue with our stakeholders to improve our understanding
of their needs. We take our commitment to economic, social and environmental sustainability
seriously, and extend this expectation to our partners and suppliers
Original
To our patients and customers, employees, global communities, shareholders, environment and
other stakeholders, we promise to act on our belief that the priceless ingredient of our product is
the integrity of its maker. We seek transparency and dialogue with our stakeholders to improve
our understanding of their needs and become a world leader in pharmaceutical industry through
great research and development (RND) effort. We take our commitment to economic, social and
environmental sustainability seriously, and extend this expectation to our partners and suppliers.
Strategic Planning Matrix
Significance of Strategy 1: Pursuing a forward integration strategy by acquiring their
distributors.
Pursuing a forward integration strategy by acquiring their distributors (in this case McKesson
Corporation, Cardinal Health, Inc and Amerisource Bergen Corporation)
BMS can increase its revenues for the coming years. The present distributors have high profit
margins. BMS could profitably distribute its own products and price them more competitively by
integrating forward.
- BMS can also mark up some profit to lessen their high cost of R&D. Significance of Strategy 2:
Pursuing an extensive product development of biologic drugs, which are produced in living cells.
Due to strong performance of R&D and financial position of BMS, it is appropriate to pursue
this strategy. This is achievable by utilizing their strong financial performance.
- By pursuing this strategy, BMS can obtain a massive economic reward once they launch a new
compound that is widely accepted in the marketplace. This is the major source of BMSs hefty

profit margins. Recommendations and Justifications Based on the QSPM analysis, we


recommend that BMS should pursue the second alternative strategy. The difference between
biological drugs and normal prescription drugs is that biological drugs can search out the
diseased organs or cells that need to be treated. They are showing to have better long term
outcomes with fewer costly side effects. Studies show that this leads to quicker recovery time
and less additional treatments because they have fewer side effects. Biological drugs are
currently more costly but will become cheaper in the future as they are made in larger quantities.
S.W.O.T Analysis External Audit Internal Audit Grand Strategy Matrix WO Strategies WT
Strategies know-how