A look at Europe ­ where we were when the year began, and where we are going ­ provides insights. In the past our predominantly "numbers-driven" orientation showed great business focus and outstanding manufacturing capability. Despite the resulting sales effectiveness, however, the company was limited in achieving its one-company philosophy. The business focus that served us well in the past limited our ability to take advantage of new growth opportunities.

Response? Executive Vice President Gary Cohen says, "We found a way to liberate people's ideas, contributions and motivations in a less traditional way. Organizationally, while maintaining our business focus, we elevated the responsibilities of country leaders. This approach facilitates more initiatives at a country level, better customer responsiveness and identification of greater growth opportunities.

In addition, a new pan-European business development and growth organization has been formed, which will specifically seek out growth and acquisition opportunities at a European level.

"All you have to do is look at the growth initiatives undertaken in the last year to see the power that is unleashed when you tap into the potential of our human capability. The effective transition following the acquisition of MDD is but one example. Other examples include the establishment of a focused Eastern Europe, Middle East and Africa entity and the transformation of our businesses in Germany, Switzerland and Austria to seize the potential of those markets. In the company's pursuit of greatness, we must continue to unlock the full potential of our global associates if we are to achieve our purpose of 'Helping all people live healthy lives.'"

Expanding Output and Infrastructure in India and China
Dedicated to the production of insulin syringes, the first phase of Becton Dickinson's plant in Haryana, India came on line in late 1997. The plant's 150,000-square-foot second phase ­ more than 10 times larger than the first ­ went operational recently with a capacity of 400 million hypodermic needles and 200 million syringes annually. The plant's full production will be absorbed in the Indian market, where Becton Dickinson expanded its presence by opening four regional offices with a 100-person sales staff.

In Suzhou, China, where Becton Dickinson opened a plant in late 1996, production of hypodermic syringes with needles, I.V. catheters and anesthesia trays doubled over the past year. To better reach decision makers in China's far-flung provinces, the company expanded the number of regional sales offices from four to 16.

New Commitments in South Korea and Pakistan
Becton Dickinson broadened its presence in Asia and the subcontinent through an acquisition in South Korea and a joint venture in Pakistan.

In South Korea, the company purchased Boin Medica, the country's largest medical supplies company. Boin Medica provides Becton Dickinson with a leadership position in the Korean market as well as another base from which to export to other parts of Asia.

In Pakistan, the company entered into a joint venture with a well established partner, Service Industries, to manufacture hypodermic needles and syringes. The agreement, which creates Becton Dickinson Service (Pvt.) Limited, opens new markets and brings Becton Dickinson world-class quality standards to health care professionals and the population at large.

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