Executive Summary
The analysis results show that Becton, Dickinson, and Company (BD) longer time in the health tools manufacturing industry gives the company a competitive advantage. Moreover, it has a diverse portfolio and a good corporate culture, which are unique strengths of the company. The analysis reveals that BD has focused more on maximizing its returns and neglected some important ethical considerations.
Regarding the external environmental analysis, it is in an industry that is expected to grow and, therefore, could leverage this opportunity to increase its sales. However, the fact that BD has operations in different regions where regulations are constantly changing could be a challenge. In the future, BD should set up legal departments to ensure that the laws of each region are well monitored and implement comprehensive risk management strategies.
Analysis
Strengths
BD is a well-known medical manufacturing and supply organization and thus is likely to be trusted by various stakeholders in several matters, including ethics. Over the years, it has also built a good reputation for supplying high-quality equipment, giving it a strong market position (Harvard Business School, 2012). The American multinational company has a diverse portfolio of products and a global reach, giving it a significant competitive advantage. According to Becton, Dickinson, and Company’s (n.d.) website, it has excellent internal policies and procedures guiding employees when making important decisions. This fact has been proved by a few cases in which BD has faced ethical complaints.
Weaknesses
In an effort to maximize the return on equity (ROE), front-line workers have been pressured to make more sales, resulting in a group of workers violating some regulatory compliances and ethical obligations. Some of the deals that the associates have formed with healthcare providers are known to lack transparency, raising an issue of corruption within the organization. The corporation is also experiencing challenges in its global operations, as departments have raised concerns about how hard it is for the same rules and cultures to be followed in units across different geographical regions (Harvard Business School, 2012). Moreover, the organization has been trying to remain ethical in these global outposts, which has disadvantaged it with competitors who use unethical means to boost sales.
Opportunities
The ever-changing laws and regulations have given BD an opportunity, as having rules and acts that prohibit unethical business methods and enforce corruption deals could put many of the company’s competitors at a disadvantage. Moreover, the medical equipment supply industry is expected to grow by 7% in the foreseeable future, increasing the likelihood of BD increasing its revenues (Kaye, 2020). BD has a firm brand name and could leverage it to diversify into new geographical locations and related businesses. BD has long prioritized ethics and could build an even better brand name by ensuring its employees follow the company’s code of conduct when acting.
Threats
BD is a global company with operations in many regions and different rules and policies. Therefore, medical equipment manufacturers and suppliers are constantly faced with the risk of changing laws, which forces the company to constantly change its strategies. Additionally, the probability of new entrants getting into the market and cutting into the company’s market share through unethical means and corruption is always high. BD may face the challenge of keeping clients acquired using unethical means in its effort to maintain clients. Such clients may require the associates to offer bribes to continue doing business with the organization.
Conclusions
Below are some rationales that were considered but rejected, as well as the justification for their rejection. One is the conclusion that BD should put profits before ethics. The rationale for rejecting this assertion was that while this tactic would result in short-term profits, it would eventually negatively impact the company. The rationale that BD should choose only to diversify geographically is a rationale that was rejected since it is equally essential for the company to diversify into new products. Another rejected rationale was that BD should cut its costs to increase profits. This was rejected because, despite short-term profits, it could result in poor quality products and services, affecting the company’s reputation and revenues in the long term.
Recommendations
The medical equipment manufacturer and supplier could take specific, measurable, actionable, and complete steps to achieve its goals and objectives. BD could ensure its global expansion is less risky by forming strategic partnerships with local suppliers, health institutions, and marketers. It should also implement clear and comprehensive risk management strategies to ensure it does not violate governmental rules and regulations in the US and abroad. Thirdly, BD has to invest in innovation and R&D to develop new products and work procedures that give the company a competitive advantage. Finally, BD should contact local suppliers and have them distribute the products on their behalf, thus preventing the company from dealing with corrupt governments and people.
Risks
While following the recommendations mentioned above, the company will face several risks. In forming strategic partnerships, the firm will risk its associates being asked for bribes by the organization’s representatives to finalize the deal. In ensuring that it follows ethics and governmental roles and policies, BD will risk losing the opportunity to work with good healthcare institutions represented by corrupt individuals. High R&D investments will put the company at risk of financial losses if the innovations do not meet the expected returns. Finally, a third party supplying its products could result in the company’s products being purchased less due to a poor marketing strategy by the third party.
References
Becton, Dickinson, and Company. (n.d.). About BD. Web.
Harvard Business School. (2012). Becton Dickinson: Ethics and business practices (Case No. 9-910-022). Boston, MA: Harvard Business School Publishing.
Membrillo-Hernández, J., Ramírez-Cadena, M., Mariajulia Martínez-Acosta, ez Jenifer Cruz-Gómez, Muñoz-Díaz, E., & Elizalde, H. (2019). Challenge-based learning: the importance of world-leading companies as training partners. International Journal on Interactive Design and Manufacturing (Ijidem), 13(3), 1103–1113. Web.