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Organisational Structure of Baxter International

Organisational Structure of Baxter International

Discuss Organisational Structure of Baxter International within the Human Resources Management (H.R) forums, part of the PUBLISH / UPLOAD PROJECT OR DOWNLOAD REFERENCE PROJECT category; Baxter International Inc. (NYSE: BAX), is an American health care company with headquarters in Deerfield, Illinois. The company primarily focuses ...



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Organisational Structure of Baxter International
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Netra Shetty
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Organisational Structure of Baxter International - February 2nd, 2011

Baxter International Inc. (NYSE: BAX), is an American health care company with headquarters in Deerfield, Illinois. The company primarily focuses on products to treat hemophilia, kidney disease, immune disorders and other chronic and acute medical conditions. The company had 2009 sales of $12.6 billion, across three manufacturing divisions: BioScience (producing recombinant and blood plasma proteins to treat hemophilia and other bleeding disorders; plasma-based therapies to treat immune deficiencies and other chronic and acute blood-related conditions; products for regenerative medicine; and vaccines); Medication Delivery (producing intravenous solutions and other products used in the delivery of fluids and drugs to patients, as well as inhalation anesthetics and contract manufacturing services); and Renal (providing products to treat end-stage renal disease, or irreversible kidney failure, including solutions and other products for peritoneal dialysis and hemodialysis).[2]

The company was involved in several controversies. In 2001, malfunctioning dialysis machines resulted in several deaths; in 2008 the company supplied contaminated heparin; in 2009 lethal H5N1 avian flu virus was delivered to laboratories across Europe mixed with seasonal influenza vaccines; also, the company was charged with excessive billing of Kentucky Medicaid.

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Robert Parkinson
Blake Devitt
Albert Stroucken
Carole Shapazian
Peter Hellman
Wayne Hockmeyer
John Forsyth
Kornelis Storm
Walter Boomer
Gail Fosler
Joseph Martin
James Gavin
Lead Director
Thomas Stallkamp
Robert Hombach
Norbert Riedel
David Scharf
Manufacturing & Supply Chain
Human Resources
Asia Pacific
Peter Nicklin
Medical Products
Robert Davis
Associate Legal & Secretary
Investor Relations
Medication Delivery

usually a significant event must occur. It has already happened in this particular organization in the first quarter of 2007, when the company has registered a loss for the first time since its inception. For the change of the structure and culture of the organization, three steps to change management would be followed.


Unfreeze – This stage involves the identification of the need for change in the organization, including the things that need to be changed, and the persons involved in the change process.

Transition or Change – This now involves the action and the actual implementation of the proposed changes that have to be done, which were identified in the Unfreeze stage.

Refreeze – This stage involves the evaluation of the actions done in the Change stage, to see if they have been successful as a response to the problems of the company.

80/20 Principle and Your Business

The key theme of the 80/20 Principle applied to business is how to create the greatest stakeholder value and generate most money with the least expenditure of assets and efforts. Any individual business can gain immensely through practical application of this Principle. The most important use of the 80/20 Principle is "to isolate where you are really making the profits and, just as important, where you are loosing money. Every business person thinks they know this already, and nearly all are wrong. If they had the right picture, their whole business would be transformed."

The game is to spot the few places where you are making great surpluses – be that a product, a market, a customer type, a technology, a distribution channel, a department, a country, a type of transaction, an employee, or a team – and to maximize them; and to identify the places where you are loosing and get out.

8 Best Practices of Successful Companies

Case in Point Warren Buffett

Warren Buffett – the richest man in the world and the most successful investor – said his companies ability to generate such large profits is the result of being able to focus on what is important, and not paying attention to things that would distract the company... More

Sustainable Competitive Advantage

Simple is Beautiful

"Because business is wasteful., and because complexity and waste feed on each other, a simple business will always be better than a complex business." To succeed in managing change and transforming your business by applying the 80/20 Principle, you need to demonstrate that simple is beautiful and why. Unless you understand this, you will never be willing to give up underperforming 80% of your current business and overheads. "The way to create something great is to create something simple... Progress requires simplicity; and simplicity requires ruthlessness."

"The truth is that the unprofitable business is so unprofitable because it requires the overheads and because having so many chunks of business makes the organization horrendously complicated." And complexity means decay. Internal complexity has huge hidden costs and depresses returns more effectively than anything else.

"A complex business can be made more simple and returns can soar. All it takes is understanding of the costs of complexity (or the value of simplicity) and courage to remove at least four-fifths of lethal managerial overhead."

Improving Your Margins

"Margins - between value and cost, between effort and reward - are always highly variable". High-margin activities constitute 20% of total activities but 80% of total margins. You must interfere with this natural allocation of resources unless you wish to see these imbalances to grow even further. Acknowledge the reality that the majority of what your firm does is worth much less than the minority of high margin activities and reallocate resources to take your firm to a new higher level. Don't stop there – do that again.

Last edited by netrashetty; February 2nd, 2011 at 12:06 PM..
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