Running head: Executive Summary

Executive Summary:
Bristol-Myers Squibb
Nicholas Savett
BAM 479: Strategic Management
Professor Deborah Harvel-Jenkins
November 29, 2015

Executive Summary: Bristol-Myers Squibb

Executive Summary
Case Statement:
Bristol Myers Squibbs leading and largest product Plavix faced a patent expiration which
will open competition not only nationwide but worldwide from the generic drug companies.
Mission and Vision Evaluation:
The mission statement the Bristol-Myers Squibb has in place covers almost all aspects of
the mission statement evaluation matrix. The mission talks about what products they serve and
how they want to help people with their medical issues. It talks about the market it is going after
but I dont see much of how it ties in technology other than the science and testing it uses to
make its quality products. The mission is broken up into other smaller mission statements for
employees, customers, international business that can cover the other aspects of the evaluation
matrix. The only issue I see it that the mission statement is pretty long and with it being broken
up into other smaller portion it could be combined into one total mission statement for everyone.
The vision statement starts off with the groups of people that BMS is concerned about. 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 every product is the
integrity of its maker. We operate with effective governance and high standards of ethical
behaviour. 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.

Milestones:

Executive Summary: Bristol-Myers Squibb

1. In 1989, Bristol-Myers and Squibb merged to create a global leader in the health care industry
and would become the second-largest pharmaceutical enterprise.

2. In October, Bristol-Myers Squibb was recognized by Science Careers as

a 2015 Top 20 R&D Employer
3. Bristol-Myers Squibbs Opdivo received the Prix Galien USA 2015
Award for Best Biotechnology Product
4. For the seventh consecutive year, Bristol-Myers Squibb ranks among
the top 10 on Corporate Responsibility magazines list of the 100 Best
Corporate Citizens.
External Assessment:
1. Cancer cases are expected to surge 57% worldwide in the next 20
years. BMS is known for deadly diseases cures.
2. Increase in population. This is straight forward, the more people the
more cases you will have.
3. biopharmaceutical research is rapidly growing
Internal Assessment:
1. Plavix which is used to prevent blood clogs after a recent heart attack
is not only Bristol-Myers Squibbs top selling product but was the
bestselling drug in its market.
2. Employee morale is excellent. This gives a good vibe about the
company
3. A threat for Bristol-Myers Squibb is that May of 2012 the patent on
Plavix expired opening the production to generic drug companies to
product a similar drug but at a cheaper price since the research and
development was already done by BMS.
Industry Analysis:

Executive Summary: Bristol-Myers Squibb

With Bristol-Myers Squibb and all the other large pharmaceutical drug companies in the
market they do hold the bargaining power of the consumers. The reason they hold the power or
at least the power for so long is the patents that are place on the drugs they produce that last up to
20 years. When looking at Bristol-Myers Squibb that had Plavix that was a top selling drug not
only for Bristol-Myers Squibb but the top selling drug in that category. Once the patent expires
the companys power will shift to the consumer due to the generic drug companies coming in to
produce a similar product for lower price. With that being said, it is not easy to start
Pharmaceutical Company.
Financial Analysis:
Bristol Myers Squibb looks financially strong in gross profit margin at 76.27 with the industry
average being at 70.52. This shows that BMS is able to cover operating expenses and still be able
to make a profit and it is doing it better than the industry average. Another aspect that BMS is
financially strong is the current P/E ratio at 60.61 and the industry average only at 20.96. This
shows that the investors in BMS are willing to pay a little more per dollar for BMS than the
industry average. BMS holds strong relationships with its investors and stockholders
Competitive Strategies:
1. BMS will need to consider development of new products
2. Acquire small businesses and open new branches overseas
3. Effectiveness of market penetration.

Recommended Strategy:
For the recommended strategy, its best to combine the top two competitive strategies. When
combining the two, you are hitting two birds with one stone. The first bird is the fact that you
will have new products to sell worldwide. The second bird, is expanding the market overseas,
and that way we can sell both old and new products.

Executive Summary: Bristol-Myers Squibb

Ethical and Social Responsibility Dimensions of the Recommended Strategy:

When looking at the recommended strategy that is in place for Bristol-Myers Squibb it is
to create new products overseas that are not only going to bring in revenue for BMS, but it goes
along with the mission statement of creating useful and safe drugs for the consumers. BristolMyers Squibb needs to keep pushing the envelope of creating safe successfully drugs that are
around to fix or help the many different health conditions. BMS needs to be super careful of not
falling victims to work slavery. They need to be reasonable with their employees, if they are
going to last long there.
Implementation Plan:
Bristol-Myers Squibb needs to utilize the top R&D department in the industry to keep
developing new drugs to present to the FDA so production can begin. The Marketing team will
need to research and find the right target market and successful marketing strategies to
implement the new products. The financial team will make sure we have the funding and receive
the patents to keep moving forward. The management team will make sure the employees are
working together and appreciated to get the products successfully to the consumer. This strategy
will cost around 2.6 billion and with the EPS/EBIT analysis the debt financing looked to be the
way to go with numbers showing a 125.82 in a recession, 209.74 during a normal conditions, and
335.62 during a booming economy. The money will go towards R&D, Marketing, patents,
packaging, shipping, wages, and other miscellaneous expenses. If everyone department does
their part the strategic plan will be successful and with that Bristol-Myers Squibb will be able to
fill the gap from successful drugs like Plavix and keep moving forward to the future.
After the new product is finalized, now the finance/marketing/HR/BP will move attention
to starting a manufacturing plant for the new product overseas. The BP team will inquire about

Executive Summary: Bristol-Myers Squibb

the registration fees and costs then directly report it to finance. Finance then will create a bank
account and pay. Marketing team will have to find out what is the best location for the new plant.
HR will have to have acquire the needed talent, investigate what are the appropriate employee
benefits and also find volunteers from the headquarters in the U.S that are willing to go there on
a short assignment.