Bayer

- Ana Calderón Gutiérrez

- Clara Díaz Megido
- Carlos Aguirregomezcorta
- Pedro Concheso
- Alejandra Cabal Fernández

Business group-8A
30/10/2019
Index

·Introduction

·Specific environment

·Diversification

·Geographical scope

·Vertical integration

·SWOT Analysis

·Conclusions
Introduction. Bayer, a Life Science company
- Secondary sector: areas of health and agriculture.
- Leverkusen 1912, main headquarter.
- Founded in Wuppertal, Germany.
- Friedrich Bayer + Johann Friedrich Weskott “Friedr. Bayer et comp”
- Tincture seller.
- Thanks to aspirin in 1881 they turned up into an international firm.
- 1914-1988, production is reduced. First & second world wars + oil crisis.
- 2004, 3 new subgroups: 1. Bayer HealthCare
2. Bayer CropScience
3. Bayer Material Science

They cooperate with ONU’s environmental projects.

Corporate Structure
Number of
employees
MAIN COMPETITORS

STRATEGY

PORTER’S FIVE FORCES

Porter’s Five
Forces
MAIN COMPETITORS
● Most appreciated laboratory and best managed
● Best reputation in the sector
● Environmental care: Novartis
● Novartis from Switzerland
● Pfizer from USA
● 40% of the company of the “aspirin”
● Gives a good image
● Gives a good image example of adaptation
● Exclusivity (ex. Aspirin) vs. Generics
● Vertical integration: pharmaceutical, agricultural and
animal health
● Innovation => investing $ => 64% of the budget (ex.
snoring)
Diversification
Concept

Corporate strategy used by

firms in order to increase the
sales by introducing new
products.

It has to do with the level of

specialization with respect to
the products the firm offers.

There are two types:

·Unrelated
·Related
Ansoff Matrix
In order to understand Bayer’s corporate strategy, it is
necessary to recognise its primary industry.

Even though Bayer covers many fields, its main field is

human and veterinary pharmaceuticals and it is
well-known for its first-major product: the aspirin.
Related diversification
This firm started selling pharmaceuticals at
first, then Bayer increased the range of
products to other drugs. This type of
diversification does not imply a high level
of risk.
 Far from the products, Bayer used to
Unrelated offer to customers, Bayer amplified its
Diversification activities. In 2003, Bayer already
covered five 4 different fields:

·Pharmaceuticals:
Prescripted products
·Consumer Health:
Allergy, Analgesics, Cardiovascular Risk Prevention, Cough &
Cold, Dermatology, Foot Care, Gastrointestinals, Nutritionals and
Sun Car

·Crop Science:
Research on agricultural sustainability
·Animal Health:

Parasite control and prescription pharmaceuticals

for
Geographical
Scope
The Bayer Group is a multinacional with companies all around the world.

● Bayer Global headquarters,

logisticts and productions
centers are in Europe

● In 1881,Bayer transform into

a joint stock company

● Increase of the workforces

 BAYER AROUND THE WORLD

Bayer is a multinational company that produces and sells in nearly all the world:

NORTH
ASIA:
AMERICA::
EUROPE:
Market of the
All chemical business
Company base future
areas

11.5 billion in sales 14 billion in sales 8 billion in sales

SOUTH AMERICA: AFRICA:

affiliations:
One of the firsts AB Seeds Lts (Israel)
5.8 billion in sales Atlantic Breeders
S.A.R.L (Moroco)

-
SWOT analysis of the company
Vertical Integration
Concept

The firm whether controls or owes the

suppliers, distributors, and retailers in
order to reduce the costs.

·Backward Integration
The company expands towards the
manufacturing of its products
·Forward Integration
It has to do with the distribution and supply
of the products
Monsanto-Bayer
merger

In 2016, Monsanto, a firm

specialized on agricultural
biotechnology, was
acquired by Bayer.

Monsanto’s acquisition is
considered to be one of
their worst decisions:
Bayer’s reputation was
distorted with one of their
products because of the
amount of lawsuits filed
against it.
Conclusions
Bayer owns a lot of well-known products, such as:

Aspirin, Dr. Scholl’s, Atlantis, Advantage, Sirvanto…

Everyone is in contact with Bayer!

Bayer
- Ana Calderón Gutiérrez
- Clara Díaz Megido
- Carlos Aguirregomezcorta
- Pedro Concheso
- Alejandra Cabal Fernández

Business group-8A
30/10/2019