RECOMMENDATIONS TO BRISTOL-MYERS Squibb 5
Recommendationsto Bristol-Myers Squibb
Section1: Restatement of the Research
Themain question that this paper aimed at answering was whether it ispossible for Bristol-Myers Squibb Company to rise against itsweaknesses in controlling and internal planning to become a marketleader in a world of rapidly advancing healthcare services. As noted,the research aims at examining the environment within which thecompany is operating, as well as its internal capabilities so as toidentify aspects in the two environments that have been standing inthe way of its competitiveness. Such comprehensive examination wouldalso allow for the identification of proper procedures and strategiesthat would enhance its strengths while eliminating its weaknesses,taking charge of its opportunities and facing its threats in thefuture to increase its profitability and sustainability in both thelong-term and the short-term. The research was based on thehypothesis that the multiple and recurrent voluntary recalls thatBristol-Myers Squibb has been experiencing may be linked to poorproduct development and ineffective controlling.
Section2: Recommendations Based on SWOT
Theimportance of carrying out a SWOT analysis revolves around enablingthe company to take charge of its operations by eliminating itsweaknesses, enhancing its strengths and exploiting its opportunitieswhile ensuring that the threats do not slow it down. The key weaknessof the company is in its controlling aspect, which has a bearing onthe quality of customer service and the quality of products offeredto consumers. It is worth noting that the success of any business isbased on the capacity of the company to enhance its reputation andtrust among its consumers so as to breed customer loyalty and cementits market. This may be rendered impossible in instances where thecontrolling function of the company is jeopardized or deficient. Inenhancing its competitiveness, it is imperative that the company revsup its marketing especially in emergent economies. The threat ofsubstitutes is real and has the capacity to eat into the company’sprofitability and sustainability in the long-term. This can bechallenged by ensuring that the company ventures into other marketsbefore these competitors get into them. This will ensure that thecompany establishes its networks in the markets and its brand,thereby increasing its reach.
Onthe same note, it has been earlier noted that the company facesimmense threat from the numerous drug recalls that it is forced toexecute. These have a bearing on its reputation in the market in thelong-term and may eat into the customer loyalty that it has builtover time. In essence, it is imperative that the company investsimmensely in research and development to ensure that mistakespertaining to the quality of the medications are eliminatedcompletely. Given the urgency of the matter, establishing thenecessary team within a fortnight and placing a two-week deadlinewould be imperative. As much as this may seem far-fetched, it is anecessary step or effort towards salvaging the company’sreputation. Such research and development would also examine the sideeffects of the medications so that the company is not caught bysurprise by lawsuits and other legal elements.
Further,it is imperative that the company diversifies its operations to otherfields rather than concentrating primarily on diseases that are yetto be fully explored. Such changes would be effected within a periodof 6 months and one year and will involve the collaboration of marketresearchers, and marketers to determine the drugs that would belikely to have the highest demand. Of course, this is the market inwhich it has carved its niche. Diversification into other productswould come in handy in enhancing its adaptability and ability toventure into other market in the future. As much as such markets maybe crowded already, it is worth noting that the name that the companyhas established for itself in the market would essentially work inits favor and give it a platform for launching into the market.
Inaddition, it is noted that the company has been extremely challengedwith regard to making appropriate supply chains. This is especiallyconsidering that it particularly concentrates on using third partiesin the market. Such supply chains have been seen as having adevastating effect on the popularity of the company in such marketsas the third parties would be the face that the consumer sees ratherthan that of BMS. In essence, it is imperative that the companyundertakes a complete overhaul of these systems especially in theemergent markets through establishing divisions in such markets andrequiring that the third parties affiliated to the company have thecompany’s logos and trademark so as to ensure that the popularityof the company, as well as long-term profitability andcompetitiveness are safeguarded. As much as there may be contractsalready drawn with regard to this matter, these third parties wouldhave to be informed about these changes within one month. Any thirdparty that would still want to be an affiliate of the company wouldbe given an additional month to make the changes. Failure to do thiswould result in termination of the contract within the two months.This directive would be supervised by the marketing department, whichwould also make recommendations pertaining to the necessity ofimplementing such a rule in particular countries.
Lastly,the company needs to streamline its employee base so as to ensurethat there is no conflict or overlap of responsibilities as this iswhat results in loosening of controls. This can be done by the humanresource department within a period of 3 months, where it willundertake a re-examination of the varied positions in the company andtheir subsequent responsibilities. These would then be sent to allemployees, with clear structures of command being established.
Inconclusion, it is evident that the company has quite immensechallenges with regard to its planning and control capabilities.These have resulted in numerous and recurrent recalls in the recentpast, which, undoubtedly threatens the company’s bottom-line withregard to profitability and sustainability in the long-term andshort-term. Indeed, such recalls would have a negative effect on thecustomer loyalty and the reputation of the company at large. Theresearch methodology used in compiling this paper was qualitativemethod, with data being derived from databases such as onlinearticles, journal articles, court cases, corporate and publicrecords, and cooperation’s websites and so forth. The researchshowed that the company had loopholes in its controlling and productdevelopment, which resulted in the multiple and recurrent voluntaryrecalls that it has been experiencing. In essence, the company needsto reinvent its research and development strategies to ensure thatthere is enhanced quality of the products. Further, it needs to hirea third party that would have an oversight over the production,packaging and distribution to ensure a reduction in tampering withthe company’s packaging. In my opinion, the company is still in agood position for reinventing itself and enhancing itscompetitiveness through covering these loopholes. Given what is atstake and the immense financial capabilities that it controls, Ithink that it would be imperative that reinvents itself within theshortest time possible to salvage its position in the market.