bus 475 week three paper review

Research and Development at Baxter International

Kevin Gough

BUS/475

Petra Yurchich

7/31/2015

Research and Development at Baxter International

Creating a new division within Baxter is challenging. Baxter International, Inc. is in the top 4 of medical device companies in the United States. They have developed and maintained a growing company for 84 years and are here to stay. The division that will be created will address customer needs, achieve competitive advantages, and develop a vision, mission and values.

“Baxter International, Inc. touches millions of lives every day. Our products and services are essential building blocks of healthcare. You’ll find Baxter’s products and therapies on nearly every floor, in every department, in almost every hospital worldwide. You’ll find us in clinics and in the home.  Patients and providers rely on Baxter for lifesaving renal and medical products, including intravenous (IV) solutions, systems and administrative sets, IV infusion parenteral nutrition, perioperative care, pharmacy devices and software, acute renal care, and home and in-center dialysis. Our mission is to save and sustain lives inspires our work and our commitment to expanding access to care, providing cost-effective healthcare solutions, delivering quality products and advancing innovations for the world” (Corporate Overview, Baxter).

Division and Service

Research and Development is crucial for any company wanting to sustain and grow. The research and development at Baxter International is a service that will provide new and updated solutions to all products at Baxter making Baxter International the worldwide leader in the healthcare and medical device industry.

Baxter’s Division of Research and Development mission statement is to support Baxter’s mission by exploring and advancing products and services, new and old that are essential building blocks of healthcare.

“Baxter International Inc. provides a broad portfolio of essential renal and hospital products, including home, acute and in-center dialysis; sterile IV solutions; infusion systems and devices; parenteral nutrition; bio-surgery products and anesthetics; and pharmacy automation, software and services. The company’s global footprint and the critical nature of its products and services play a key role in expanding access to healthcare in emerging and developed countries. Baxter’s 50,000 employees worldwide are building upon the company’s rich heritage of medical breakthroughs to advance the next generation of healthcare innovations that enable patient care” (Our Products and Expertise, Baxter).

Address Customer Needs

The research and development division at Baxter will address customer needs by exploring and advancing new and old products that will solve healthcare problems and benefit the end user, the patient. The research and development division will address customer needs at the home, clinic, and hospital by exploring and advancing the new and old products and services. “Since 1931, Baxter products and services have helped people around the world in critical moments of care – when it matters most” (Home Page, Baxter).

Competitive Advantage

Looking at Johnson and Johnson’s website, (they are the leader in the medical device industry in the United States), they do seem to have a research and development division, along with General Electric and Siemens who are second and fourth respectively who are the top grossing medical device companies in the United States. The competitive advantage that arises from the research and development division will be advances and exploration that will allow Baxter to outperform its competitors, and to make their departments and services better, through growth, innovation, and sustainability.

Division Vision and What it will Become in the Future

Baxter’s Division of Research and Developments vision is to improve, progress, implement, and sustain the advancement and exploration of new and old products, along with services offered at Baxter International. We see the research and development division at Baxter to be the leader in the medical device industry and to grow the company exponentially in the future. “Innovation is at the core of Baxter’s mission to save and sustain lives. We deliver essential products to expand access to care, provide cost-effective healthcare solutions, deliver quality products, and advance healthcare innovations around the world. Baxter’s scientific achievements continue to make a difference for millions of patients and healthcare providers each day” (Past, Present, and Future, Baxter).

Guiding Principles

Guiding principles for Baxter International will continue to be the same and we will extend it to the division of research and development. “We partner with our suppliers and other organizations around the world to deliver products that are essential to healthcare and drive access to care globally. We partner with organizations to provide scientific expertise, manufacturing capabilities, and packaging solutions. We also support communities through grant and other programs” (Partners and Suppliers, Baxter). “As we prepare for the next phase of our journey, we are committed to working on your behalf to build long-term shareholder value in pursuit of our mission. Making a positive impact for generations to come by supporting our communities and creating lasting social, environmental, and economic value for all of our stakeholders is the foundation of our commitment to sustainability. Baxter’s leadership and values are reflected in our history of responding to global sustainability challenges such as climate change, natural resource scarcity, corruption, and unequal access to healthcare.” (Corporate Responsibility, Baxter).

Explanation of the Vision, Mission, and Values of the New Division

The division of research and development vision, mission, and values align with Baxter Internationals vision, mission, and values. To formulate a mission we have “thought about the business at its inception. The typical business begins with beliefs, desires, and aspirations of a single entrepreneur. Such an owner-manager’s sense of mission usually is based on the following fundamental beliefs:

1. The product or service of the business can provide benefits at least equal to its price.

2. The product or service can satisfy a customer need of specific market segments that is currently not being met adequately.

3. The technology that is to be used in production will provide a cost- and quality-competitive product or service.

4. With hard work and the support of others, the business can not only survive but also grow and be profitable.

5. The management philosophy of the business will result in a favorable public image and will provide financial and psychological rewards for those who are willing to invest their labor and money in helping the business to succeed.

6. The entrepreneur’s self-concept of the business can be communicated to and adopted by employees and stockholders” (Strategic Management, Pearce, J. II, Robinson, R.).

We developed a vision by “presenting the firm’s strategic intent that focuses the energies and resources of the company on achieving a desirable future” (Strategic Management, Pearce, J. II, Robinson, R.). then we developed the values/ethics by “reflecting the company’s notion of right and proper business behavior. Ethical responsibilities are obligations that transcend legal requirements” (Strategic Management, Pearce, J. II, Robinson, R.). We feel that the research and development division will uphold all of Baxter Internationals vision, mission, and values and continue to grow the company while performing ethically.

Conclusion

After looking at addressing customer needs, achieving competitive advantages, and developing a vision, mission and value to be clear and precise we see an extreme value and opportunity that the division of research and development has to offer at Baxter International. “A strategic plan for coping with industry conditions, outcompeting rivals, meeting objectives, and making progress toward the strategic vision. A strategic plan includes a commitment to allocate resources to the plan and specifies a time period for achieving goals” (Crafting and Executing Strategy, Thompson, Peteraf, Gamble, and Strickland). The division of research and development strategic direction is to improve, progress, implement, and sustain the advancement and exploration of new and old products, along with services that will allow Baxter to outperform its competitors, and be employee and customer driven. Baxter International has developed and implemented a very good strategic plan, and with the help of the research and development division they could become leaders in the medical device field along with other avenues in the healthcare industry. With the addition of the research and development division you will find Baxter’s products and therapies on every floor, in every department, and in every hospital worldwide.

References

Baxter. (2015). Corporate Overview. Retrieved from:

http://baxter.com/inside-baxter/about/overview/corporate.page

Baxter. (2015). Index. Retrieved from:

http://baxter.com/index.page

Baxter. (2015). Products. Retrieved from:

http://baxter.com/products-expertise/all-products.page?

Baxter. (2015). Past, Present, Future. Retrieved from:

http://baxter.com/inside-baxter/science/innovations/past-present-future.page?

Baxter. (2015). Partners and Suppliers. Retrieved from:

http://baxter.com/partners-suppliers.page

Baxter. (2015). Corporate Responsibility. Retrieved from:

http://baxter.com/corporate-responsibility.page?

Pearce, J. II, Robinson, R. (2013). Strategic Management: Planning for Domestic and Global Competition, 13th Edition. McGraw-Hill/Irwin.

Thompson, A., Peteraf, M., Gamble, J., Strickland, L. (2012). Crafting and Executing Strategy: The Quest For Competitive Advantage. 18th Edition. McGraw-Hill/Irwin.