Bristol- Myers- Squibb

Jessica Dodd

Mr. David J. Lampi

Principles of Management BUS-125

June 30, 2015

Bristol-Myers-Squibb Company

Bristol-Myers-Squibb is located at headcourters is located at 345 Park Avenue, New York City, New York 10010. Their Chief executive officer is Mr. Lamberto Andreotti. The approximate number of employees are 25,000. Bristol-Myers-Squibb mission is to be the preeminent global diversified health and personal care Company. Bristol-Myers seeks to achieve success in the global marketplace. Bristol-Myers Squibb Company is in one of the most competitive industries in the world. In the last ten years pharmaceutical products have become increasingly important. With such diseases such as Aids and Cancer plaguing our society, companies such as Bristol-Myers have to take a lead role in fighting these deadly diseases. The Bristol-Myers-Squibb was formed in 1989, following the merger of its predecessors Bristol-Myers and the Squibb corperation. Bristol-Myers was founded in 1887 by William McLaren Bristol and John Ripley Myerts in Clinton, New York both men were graduates from Hamilton College. That would make Bristol-Myers-Squibb 113 year old company. In 1999, President Clinton awarded Bristol-Myers-Squibb the National Medal of Technolgy, the nation’s highest recognition for technological achievement,” for extending and enhancing human life through innovative pharmaceutical research and development and for redefining the science of clinical study through groundbreaking and hugely complex clinical trials that are recognized models in the industry.” Bristol-Myers is a maker of many useful products that people use and may depend on today. There products range from Pharmaceutical, consumer medicines, Clairol a well known hair care system, Matrix , Mead Johnson nutritional, Convatec, and Zimmer. Some of Bristol-Myers more well known Pharmaceuticals are Taxol which is a anticancer agent that Bristol-Myers Squibb has made one of its top research and development priorities worldwide and Pravachol received FDA labeling as the world's first lipid lowering drug to prevent first heart attacks. Some of Bristol-Myers well-known worldwide consumer products are Ban (deodorant), Nuprin, Bufferin and Excedrin (headache relief drugs) .
Clairol is known as one of the most widely used hair care products around the world. Matrix a subsidiary of Bristol-Myers makes products such as Vavoom and Biolace hair care products. Mead Johnson Nutritional another one of Bristol-Myers very successful subsidiaries deals with vitamins and baby formulas such as well-known favorites like Enfamil which is said to be as close to breast milk. Convatec which deals with wound, skin care and chronic care products. Finally, Zimmer is a maker of surgical care devices.
Bristol-Myers is known as one of the leaders against cancer. In January of 1991 Bristol-Myers was chosen by the National Career Institute (NCI) to become a commercial developer of Paclitaxol, now Taxol, which is the breakthrough treatment against Ovarian and breast cancer. Taxol comes from a rare species of yew tree found in the U.S. Pacific Northwest. Manufacturing of the substance isn't easy due to the 50-step process taken to extract it. Bristol-Myers made Taxol its number one Research and Development priority. Bristol-Myers leads worldwide in Cancer research and prides itself on it.
Bristol-Myers Squibb Company's market isn't just the U.S. Its market extends all over the world, from Europe, Asia and South America. One of Bristol-Myers biggest market is Eastern Europe. A Hungarian company named Pharmavit develops one of Eastern Europe's most popular vitamins called Plusssz. Plusssz has achieved ninety-seven percent name recognition in Hungary. Fifty percent of the people have used the product while twenty-four percent use it regularly. The Plusssz line has become so successful that Mead Johnson, Bristol-Myers global nutritional business, is test marketing Plusssz for launch in the Philippines and many other regions of the world. Plusssz has established Bristol-Myers as an instant player in Hungary, a market that is among the most competitive in all of Eastern Europe.
There are many similarities and differences between Bristol-Myers Annual Reports, Form 10K and 10Q Reports. The annual reports for Bristol-Myers are very colorful and detailed. However the Form 10K and 10Q reports are not colorful but just Financial Statements. The annual report is designed for the shareholder and informs any would be buyer. Whereas the Form10K and 10Q reports are in plain black and white and serve the purpose of informing none only the Securities and Exchange Commission (SEC). It is not sent out to shareholders or would be shareholders so it isn't as flashy and glossy as the annual report. The Form 10K report has many reports inside. The 10K first begins with an introduction just as the annual report does with a description of Bristol-Myers. It than goes into detail about its products much like the annual report, however with no pictures or color which the annual report uses to its advantage. However the 10K report doesn't explain in detail about the products. It gives a short description whereas the annual report goes into full detail about all its products. After products the 10K goes into detail about its Domestic and Foreign operations. It starts talking about properties and some of Bristol-Myers legal proceedings. The annual report also talks about its litigation's but it hides it way in the back of the report. Mostly everything from growth to success is talked about in the annual report. After litigation's the 10K goes into more about the Executive Officers, there names and ages to their position on the board. The Form 10K report is a report that is published by the fiscal year while the Form 10Q report is published quarterly and the annual report is done every year. The Form 10K report uses a five-year financial summary. The Form 10Q reports about the company in quarters, while the annual report summarizes the year.

Accounting principles talks about the Basis of Consolidation. Which just explains that the financial statements have Bristol-Myers and all of its subsidiaries. Cash and Cash Equivalents which is the cash on cash equivalents that mature in three months or less at the time of purchase, recorded at cost, which approximates market. Time Deposits and Marketable Securities are available for sale and are recorded at fair value, which approximates cost. Inventory valuation are generally stated at average cost, not in excess of market. Property and Depreciation- expenditures for additional renewals and betterment's are capitalized at cost, while depreciation is computed using the straight-line method. The excess to cost over the net assets received prior to October 31, 1970 is being amortized on a straight-line basis over periods not exceeding 40 years. The earnings per share are computed using the weighted-average number of shares outstanding during the year
Each of the companies preferred shares are convertible to 8.48 shares of common stock and is callable at the companies option. The reduction in 1996, 1995, and 1994 were a result due to the conversion in common stock. The dividends per common stock for 1996 was $1.50, 1995 it was $1.48 and in 1994 it was $1.46.
Stock Compensation Plans: The company allows officers, directors and key employees to purchase company's stock at no less than 100% of the market price on the date the option is granted. Options generally become exercisable at installments of 25% per year and have a maximum of 10 years. The plan also provides granting of stock appreciation rights where the grantee may surrender exercisable options and receive common stock or cash measured by the excess market price of the common stock over the exercise price. This plan also guarantees certain executives granting of performance-based stock options.
Under the TeamShare Stock Option Plan, all full time employees, excluding key executives that meet certain years of service requirements are granted these options to purchase the company's common stock on the date of the market price.
Deutsche marks, French francs, Italian lira and Japanese yen. The company mitigates the currency and its effect through third party borrowers and foreign exchange forward contracts. Foreign exchange option contract usually expire within the year and are used to hedge intercompany shipments occurring during the year. Gains are recognized in the same period as the hedged transactions. Some foreign exchange forwards are used to minimize exposure to fluctuating exchange rates. Gains or losses are recognized as hedged transactions. The company does not fear for any adverse effect on its financials resulting from its involvement in this Conclusion I found Bristol-Myers to be a very interesting company. They have a broad range of products and they are known around the world. Whether it is in the United States or as far as Europe and Asia. They lead the world in cancer research, but there research and development goes beyond just fighting cancer. They have managed to dip there hand in every market in the world. Whether it is cancer research to basic nutritional needs to hair product. Everything that we might use and take for granted might have been produced by Bristol-Myers or one of their subsidiaries. Bristol-Myers truly has an edge in whatever they do. Strong competition though given from there competitors like Merck and Johnson & Johnson will help Bristol-Myers get ahead. Only with this type of competition will companies succeed and will the people who need there valuable medicine.