2.0 Initial Situation – Case Analysis2
2.1 The History of Bristol-Myers Squibb (BMS)2
2.2 Peter R. Dolan3
2.3 What is Plavix?3
2.4 Plavix Generic Drug Agreements4
2.5 Dolan’s Fate5
3.0 Questions and Answers6
3.1 Q1) What principles of distributive Negotiation did Sherman use to gain his advantage?6 3.2 Q2 ) Do you think Sherman behaved ethically? Why or why not?7 3.3 Q3) What does this incident tell you about the role of deception in negotiation?9 4.0 Conclusion10
All organisations form an integral part of the global village. Therefore organisations have become open systems due to deregulation, ever changing technology, lifestyle and demographics. In order to be triumphant in today’s dynamic environment organisations need to focus on the environment it operates in and have to react swiftly to the changes that occur by developing negotiation strategies to stay ahead of competition. Strategy is embedded in any organisations planning process and without strategy the organisation will become a candidate for acquisitions or would become extinct.
In this report we have analysed the case of “DAVID OUT-NEGOTIATIONG GOLIATH: APOTEX AND BRISTOL-MYERS SQUIBB”, which is based on a real world scenario about the survival of two giants of the pharmaceutical industry at stake.
Our main objective is to analyse the main conflicts and negotiation issues which have arisen during the negotiation process between the two giants and also to look at how their internal objectives have driven them to the final result. Therefore, we present some more external information about the relevant case to get a better background knowledge, and also we have analysed the main issues by answering the questions which have been brought up in the case.
2.0 Initial Situation – Case Analysis
2.1 The History of Bristol-Myers Squibb (BMS)
In early 1887, William McLaren Bristol and John Ripley Myers invested $5,000 into a failing drug manufacturing firm located in Clinton, New York. The company was officially incorporated on December 13, 1887, and in May 1898 changed its name to the Bristol, Myers Company. According to the records Bristol-Myers merged with Squibb in 1989 and created a global leader in the health care industry as “Bristol-Myers Squibb (BMS)”. By this merger it created the world’s second-largest pharmaceutical enterprise. (http://www.awpagesociety.com/images/uploads/Case_FINAL3.pdf - Accessed on 21, March 2011)
Today, Bristol-Myers Squibb has become one of the leading worldwide provider of anti-cancer therapies as well as a leader in the discovery and development of innovative treatments to fight heart disease, stroke, and infectious diseases including HIV/AIDS. (http://www.awpagesociety.com/images/uploads/Case_FINAL3.pdf - Accessed on 21, March 2011)
2.2 Peter R. Dolan
Peter R. Dolan has received his BA from Tufts University in 1978, and his MBA from Dartmouth College in 1980. He began his career at General Foods from 1983–1987, but by 1988 had transferred to BMS as Vice-President of Marketing.
Dolan was named CEO in February 2001 and made Chairman of the Board in 2002. He was infamous within the company for setting “Big Hairy Audacious Goals”, such as his 2001 promise to double BMS revenues within five years. He regretted about that particular statement, as 2002 sales totalled came down from $18.1 billion, which was 1% of a decrease from 2000. (http://www.awpagesociety.com/images/uploads/Case_FINAL3.pdf - Accessed on 21, March 2011) 2.3 What is Plavix?
Plavix was a FDA-approved anti-platelet daily medication that reduces the risk of heart attack. Plavix was brought to market through a partnership between Bristol-Myers Squibb and French drug maker Sanofi-Aventis, the world’s third largest pharmaceutical company and the largest in Europe. Plavix 2005 global sales were $5.9-billion, up more than 15% from 2004.According to Pharmaceutical Business...