Essay on The Globalization of Wyeth
From 1997 to 2004, Wyeth went from being a multinational company to becoming a globalized company. The biggest shift? Their Information Technology department. They went from 22 people spread over the world to more than 1,800 people and half a billion dollars of the Wyeth budget. For many years Wyeth was a Laissez-Faire holding company with many locations throughout the world that did not interact or communication with each other. Over the next 8 years, with the help of the Information Technology department, Wyeth became a globalized pharmaceutical company with centralized information that created new efficiency in an increasingly competitive market. The end result was a positive one but it was not an easy road …show more content…
Financial strength- One of Wyeth’s biggest strengths was their financial stability. The shareholders were pleased. Even with their inefficiencies, they were bringing in large profits year after year. For example, in 1997 Wyeth had earnings of $2 Billion. This strength allowed them leeway in making decisions to further their new corporate plan. It is obvious that they still needed to remain profitable and grow their profits, but having the financial means as well as the latitude to make these moves is a benefit that not all companies have when they are reinventing themselves.
Vision- The leadership team for Wyeth believed that in order to remain competitive, they would need to make serious changes in how the company was run. The vision that these leaders had cannot be understated. Without this vision it is likely that Wyeth would have continued at the same pace, and most likely their margins would have shrunk as competitors became more efficient. Wyeth would have problems with inventory over and under stock and would remain somewhat clueless regarding the movements and the outputs