Becton Dickson Swot

Becton Dickson (A): Corporate Strategy

Becton Dickenson is a supplier of medical products and diagnostic systems to hospitals, laboratories, and pharmacies. The company was poised to expand into global markets. With the new appointment of Ray Gilmartin as the president of the company they were ready to expand into the global market.

Strategic Organizational Goals

* Address emerging or unmet worldwide clinical market needs with unique or differentiated medical devices or diagnostic systems based on proprietary products or process technology, and which build on existing business and distribution strengths.

* Ability to respond efficiently and innovatively to economy and technology changes in order to compete.

* Gradually accelerate our rate of sales to 15% a year, grow earnings per share at a rate of 15%, and increase return on equity to 20% or higher.

Strengths

* Strong Distribution Channels - supplied products to hospitals, physicians' offices, clinical laboratories, and pharmacies in U.S and international markets.

* Adaptability - the ability to respond and adapt to demographic, political, and economic changes in order to remain competitive.

* Innovative - Equipped with a large arsenal of experts in medicine, biology, and other fields that are needed to remain competitive in the medical supply industry.

* Product Differentiation - BD is able to gain a competitive advantage in the medical supply industry by providing superior products at reasonable prices in order to influence the public's demand for high-quality medical supplies.

* Technology - allocation of new technology to remain competitive or provide a competitive edge in the industry.

* Globalization - effectively introduce proven products into less developed international markets and become top providers or establish dominance.

* Top Management Talent - managerially sophisticated executives.

* Culture - culture of valued ideas, leadership, and expertise.

* Brand recognition - has developed a great reputation over the years leading to a loyal customer base.

Weakness

* Weak Manufacturing - Manufacturing units are unable to respond quickly to changing market conditions. Manufacturing units have no specific long-term strategy.

* Human Resource - The history of poor performance appraisals, lack of management training and development, and a weak recruitment system created a weak managerial infrastructure.

* Process constraints - Upper management approval needed in order to implement strategic objectives hinders individual business unit decision making.

* "Top down" management structure - Hindered the autonomy and decision making of the individual business unit managers.

* Poor Implementation of transactional management - Lead to frustrated teams, led by U.S division managers, who compete against each other for marketing and engineering resources in order to meet budgetary goals.

* BDRC - There is a clear disconnect between R&D and the business units. R&D stated that divisions were not taking full advantage of their resources while; the business units could not communicate their product needs to the R&D department.

Opportunities

* Partnerships - Partner with governments or insurance companies, domestic and foreign, which have large influence over potential new consumer base.

* ISO 9000 (Quality and Management Standards) - Establish a system, either internally or externally, to monitor performance outcomes such as customer satisfaction, quality and efficiency.

* Acquisitions- Building a strong