Becton Dickinson a manufacturing company, with operations worldwide, and revenues of over $2.7 billion was founded in 1897, and had ten core businesses organized into two product sectors: medical and diagnostic. Mainly US domestic operation was beginning to give way to expanding international sales, warranting a separate division in Europe. By 1970s, the company was organized by business divisions centered in US and focusing on the largely domestic US market, and an International sector. Since most revenues were earned from the domestic market, priority tended to be domestic, which frustrated managers in foreign countries who wanted to focus more on the resources on their local market. Going international, better said, transnational was the beginning of an evolving problem that Becton Dickinson would face in the upcoming years.
Causes of Problem
Becton Dickinson and Company (BD) was a supplier of medical products and diagnostic systems to healthcare professionals, the medical industry, hospitals and the general public which included mostly medical gloves, hypodermic needles and intravenous catheters in the medical sector.
Blood collection devices, automated systems to detect and identify bacteria and blood cell analysis systems were one of the few diagnostic products that Becton Dickinson produced. During the 1970s BD's managers did not really take the international market as serious as they should do. Orders were only processed, when the domestic ones were filled out and completed. Furthermore, the managers' refusals to accept and consider new product requests from abroad were a big threat to the company. In 1980, BD's senior executives decided to take attempts to develop products and strategic ways to meet the worldwide demands of marketing needs for medical technologies. The competition did not sleep and started expanding into Europe, which began to be another threat to Becton Dickinson not only for the international sector, but...