Bristol-Myers Squibb

Executive Summary

By: Abe Elkadri

&
Nicholas Savett

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.

Mission and Vision Evaluation:

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:
In 1989, Bristol-Myers and Squibb merged to create a global
leader in the health care industry and would become the secondlargest pharmaceutical enterprise.
In October, Bristol-Myers Squibb was recognized by science
careers as a 2015 Top 20 R&D Employer
Bristol-Myers Squibbs Opdivo received the Prix Galien USA
2015 award for Best Biotechnology Product
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:
Cancer cases are expected to surge 57% worldwide in the
next 20 years. BMS is known for deadly diseases cures.
Increase in population. This is straight forward, the more
people the more cases you will have.
Biopharmaceutical research is rapidly growing

Internal
Plavix Assessment:
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.
Employee morale is excellent. This gives a good vibe about
the company
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
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

BMS will need to consider development of new products

Acquire small businesses and open new branches overseas
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.

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. Bristol-Myers 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.

Implementation Plan (Cont)

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 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.

BMS Vietnam ready to kick off