Bausch & Lomb
Harvard Case Study: Bausch & Lomb: Regional Organization
Case Overview
The Daniel Gill, the chairman and CEO faces the possibility of changing the organizational structure of Europe, Asia/Pacific, and the Western Hemisphere. The current organization includes an International Division which oversees production and marketing for countries outside the United States. The goal of changing the organizational structure of these three regions is to increase sales growth internationally and decentralize responsibility away from headquarters to field operations.
Case Synopsis
Company Background: The company was originally started in 1853 by John Bausch in Rochester, New York. The small store excelled because Bausch discovered Vulcanite, a hard rubber substance, which replaced the frames of many standard optical products. By the 1920s, the company grew to several different capacities: producing microscopes, binoculars, telescopes, and eventually Ray-Ban sunglasses. Market capabilities were furthered with the buyouts of several small companies, and the company grew to sales exceeding $100 million in 1966.
Another significant accomplishment came occurred with the creation of the soft contact lens and solutions. In 1981, Gill became CEO, opted out of the eyeglass and industrial instrumentation industries, and focused more on the company's development internationally.
The International Division: In 1983, Bausch and Lomb had subsidiaries in 23 countries and classified its organization into four categories: professional eye care products, personal products, consumer products, and instruments. These organizations were located in Rochester, New York and were responsible for procurement, manufacturing, and R&D globally.
Countries experienced organizational ineffectiveness because the international subsidiaries did not have a quality management system that prioritized business opportunities. The American...
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