Bristolmyers Squibb

This essay has a total of 1960 words and 16 pages.

bristolmyers squibb
























Prepared by:
Michael Zouroudis
Cornerstone student in the College of Business Administration
University of Central Florida
October 15, 1999
Table of Contents

Section

Introduction/Executive Summary................................................................................................................3
Background..................................................................................................................................................4
Marketing
Product/Service..................................................................................................................6
Place/Distribution..............................................................................................................7
Promotion/Advertising.......................................................................................................8
Management /Human Resources
Training and Development................................................................................................9
Compensation and Rewards..............................................................................................9
Labor relations.................................................................................................................10
Finance
Profitability and Cash Flow..............................................................................................10
Liquidity...........................................................................................................................12
Leverage/Capital Management........................................................................................13
Conclusion...................................................................................................................................13
References...................................................................................................................................14

Introduction and Executive Summary

This document consists of an overall business review for the Pharmacuetical company Bristol-Myers

Squibb. Although by no means a complete summary of their 1998 business dealings or stragety, it does

give a nice overview of three of the most component and fundmentally sound aspects of any business, let

alone a Fortune 500 business.


This document starts by covering the Marketing aspect of Bristol-Myers Squibb. First covered is the most
important structure of any company; its product. Inside is information on how they distribute their

product, and where they distribute it to. Finally, we see how they promote their product, and which ways

it is advertised.


Management is the next topic of discussion. What style of management does Bristol-Myers Squibb

conduct? The document talks about compensation given to their employees, and how the average

employee is rewarded for acheving the unaverage level of excellence.


Finally, the document focuses on Finance. It shows Bristol-Myers Squibb profits, it debts, how much

money is invested in the company, and basically the direction that the Company is headed.


Once again, this document is not nearly a complete breakdown of Bristol-Myers Squibb's 1998 business

transactions. All this document is aiming for is to give an idea of the extreme complexity of the business

world, understand(at least a little more) the strategy and competitiveness between companies, and maybe

to enlighten a few on how much time and effort goes into such a giant of a company like this. Enjoy.










History

Bristol-Myers

In 1887 William McLaren Bristol and John Ripley Myers decided to sink $5,000 into a failing drug
manufacturing firm called the Clinton Pharmaceutical Company, located in Clinton, New York. The
company was officially incorporated on December 13, 1887, with William Bristol as president and John
Myers as vice president.


In May 1898 came a new name: Bristol, Myers Company (a hyphen replaced the original comma after
Myers's death in 1899 when the company became a corporation).

The postwar depression prompted Bristol-Myers to jettison its ethical drug business and "devote itself
entirely to its specialties": its two big winners and a dozen or so assorted toiletries, antiseptics and cough
syrups. Company headquarters was established in Manhattan, where it has remained ever since. And
having shifted squarely into the consumer products arena, Bristol-Myers began advertising its products
directly to the public.


In 1924, gross profits topped $1 million for the first time in Bristol-Myers history. The company's
products were on sale in 26 countries. At this point, the shares held by John Myers's heirs became
available for sale, triggering a series of moves that turned Bristol-Myers into a publicly held company,
listed on the New York Stock Exchange in 1929.


In 1943, Bristol-Myers bought Cheplin Biological Labs, and quickly entered into the field of antibiotics.
During the war, Bristol-Myers was a major distributor of penicillin and other types of antibiotics. By the
end of the war, it was clear that penicillin and other antibiotics represented an immense opportunity for the
company. Cheplin was renamed Bristol Laboratories, and Frederic N. Schwartz was put in charge of it.


In 1957 Schwartz was appointed president and chief executive officer of Bristol-Myers when Henry
Bristol chose to shed some of his former responsibilities and become chairman of the board.


Reviewing the company's situation and prospects, Schwartz and then treasurer Gavin K. MacBain -- later
Schwartz's successor as CEO -- decided that Bristol-Myers should embark on a program of acquiring
well-managed smaller companies. The two executives' first major move in that direction was to acquire
Clairol.


Within a dozen or so years after Clairol joined the company, a number of other acquisitions followed,
including those of Drackett, Mead Johnson, Zimmer and Westwood.


In 1986 the company opened a state-of-the-art research complex in Wallingford, Connecticut, designed to
house more than 800 scientists and support staff.


In January 1994 Charles A. Heimbold, Jr., was elected chief executive officer. In 1995 Heimbold also
became chairman.


Squibb

In 1856 Edward Robinson Squibb founded a pharmaceutical company in Brooklyn, New York, dedicated
to the production of consistently pure medicines, like ether and chloroform.


In 1905 the company was sold to Lowell M. Palmer and Theodore Weicker, and the company became
incorporated. That same year, land was purchased at New Brunswick, New Jersey, for establishment of an
ether production plant.


In 1938 the Squibb Institute for Medical Research was established.


In 1944 Squibb opened the largest penicillin production plant in the world: Building 59 in New
Brunswick, New Jersey.


In 1971 Squibb Corporation established worldwide headquarters and expanded facilities for the Squibb
Institute in Princeton, New Jersey.

The Merger


In 1989 Bristol-Myers merged with Squibb, buying them out for $12.7 billion dollars. This merger
created a global leader in the health care industry. The merger created what was then the world's
second-largest pharmaceutical enterprise.


In 1990 the Bristol-Myers Squibb Pharmaceutical Research Institute was established with headquarters in
Princeton.
Marketing
Product/Service
Bristol-Myers Squibb provides services for people in need of Health products. Although Pharmaceuticals
are their top grossing product, the breakdown can be seen as:
Medicines
Beauty Care
Nutritionals
Medical Devices
Bristol-Myers Squibb performs most of their sales in Medicines, approximately 69% of the gross income,
or $12.7 billion. They specialize in mainly six types of perscription drugs, which are:
Cardiovascular- Pravachol, Capoten, Monopril
Anti-cancer- Taxol, Paraplatin, Vepesid
Anti-infective-Zerit, Cefzil, Amikin
Central nerv

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