Bausch & Lomb: Regional

Organization
Submitted To : Poornima Gupta

By Nikita Khanduja(221077)
Nitish Girotra(221082)
Pankaj Bansal(221084)
Prabhat Taneja(221090)
Prashant Nayyar(221094)
Rahul S Gupta(221109)

Brief on Case
In 1853, John Jacob Bausch, a German immigrant, opened a small optical
goods store in Rochester, New York.
By 1903 the company had added microscopes, binoculars, and
telescopes to its eyeglass business and expanded its sales network and
manufacturing capabilities.
In 1966, B&L purchased the rights to a contact lens made of hydrophilic
material.
In 1984 an International Division was created.
The ID structure proved beneficial for the organization.
But eventually the company began to face problems with the ID structure
and so arose the need for a change.
QUESTION
What do you expect to HAPPEN to the
B&L organization.

Paradigm Shift At B&L
Structure

Augment growth through late stage R&D investments
Organize by customer-facing business units.
Discourage the creation of large business development teams.
Consistent with their decentralized operating philosophy, their
corporate centre will be small, lean and focused on three things:
Ensuring adequate controls to protect their shareholders .
Ensure they are in compliance with all regulatory requirements.
Ensuring overall corporate financial objectives are met.
Actively managing all capital allocation decisions (e.g., what
business development deals they will or will not do)



Consumer Offering
The company will grow into new markets and reach consumer's
demands appropriately

Will possess ability to cover consumer needs, and have a strong
global presence once brand recognition is developed more.

As a result, consumer preferences in different regions will become
more similar, and B&L will have a strong global presence.

Market Standpoint

They will build a leadership position in those market segments they
choose to compete in - focusing on markets that have attractive
underlying fundamentals.
From a cost standpoint, they will continue to apply a low margin
operating mindset to high margin businesses.
B&L takes pride in frugality. Their ability to make quick decisions
based on internal resources, and their willingness to all wear
different hats at different times. And in return, they will pay above
average total compensation for superior performance and above
average shareholder returns.

SWOT - MARKET
STRENGTH

Market exploration


WEAKNESS

Deviation from Core focus

OPPORTUNITY

Market segmentation
First mover advantage
More revenue
Strong global presence



THREATS

May increase the Number of employees
Market followers will try out reach global map
and increase Competition

SWOT - CONSUMER INTIMACY
STRENGTH

Better understanding
Feedback


WEAKNESS

More employers required
Needs keep on changing


OPPORTUNITY

Product Differentiation
Previous Experience



THREATS

Entry of local competitors





On the Global Front
OPPORTUNITITES
As consumer preferences in different regions will become more similar, and
B&L will have a strong global presence.
B&L could ADOPT globalization again.
Vision care products will especially have an advantage in the global market
because consumer needs are relatively similar.
THREAT
It should consider the possible preference of disposable eye lenses by
consumer.
ShJohnson & Johnson and Visx Inc. are able producer of disposable lenses and
laser eye care technology respectively
PARADIGM SHIFT
If B&L has success with the new organizational structure, then they will
dominate many local markets.
There will probably more than three regional headquarters to appropriately
manage growth and market's economies