SlideShare une entreprise Scribd logo
1  sur  100
Télécharger pour lire hors ligne
1
Presentation on
Beximco Pharma
the first US FDA approved company in Bangladesh
Presented by
Md. Hafiz-Al-Asad
EMBA 18th Batch
ZR 1401003
3
Sequence of Presentation
1 • About the Study
2 • Organizational Overview
3 • Strategy Overview
4 • Evaluating External Environment of Beximco Pharma
5 • Evaluating Resources, Capabilities and Competitiveness
6 • Generic Competitive Strategy of Beximco Pharma
4
Sequence of Presentation
7 • Strengthening Company’s Competitive Position
8 • Strategies for Competing in International Market
9 • Diversification Strategies of Beximco
10 • CSR, Ethical Practices and Corporate Culture of BPL
11
• Building of the Organization Capable of Good Strategy
Execution
12 • Recommendations
5
About the Study6
Rationale of the Study
• Management practices as a strategic growth option is
particularly relevant in developing countries like Bangladesh,
because of:
• Insufficient strategic management knowledge
• Lack of best practices
• Less use of effective strategic management guides
• Less priority in top managements mind set
• Not achieving optimization in management processes
• As such, this study is highly significant to improve the efficiency
and effectiveness of strategic management practices in
Beximco Pharmaceuticals Ltd. (BPL).
7
Objectives of the Study
• Broad Objective
8
To conceptualize the current strategic
management practices and problems of
Beximco Pharma
To identify and suggest scopes of
improvement
To devise some recommendations to
improve the strategic manoeuvre of the
company
Objectives of the Study
• Specific Objectives
• To understand and analyze various concepts, tools and techniques of
strategic management to evaluate BPL’s overall strategy.
• To present and analyze the vision and mission statement.
• To analyze the objectives and core values.
• To conduct situation analysis considering external and internal
environmental factors.
• To identify the competitive business strategy of BPL.
• To identify on the strategies for diversification of BPL.
• To highlight BPL practices on ethics and CSR.
• To present an overview of the corporate culture in BPL.
• Offer some recommendations to improve the strategic management
practices of BPL.
9
Methodology
Primary
Source
• Current working experience
• Discussion with different levels of mid and high ranking officials;
Sample size: 35 (Directors, Head of Department, Senior
Managers and Managers)
Secondary
Source
• Annual reports, periodic reports, articles and brochures
• Journals, research papers and articles from various online
sources and websites
10
Organizational Overview11
Contribution of Pharma Industries in
GDP of Bangladesh
Market Size13
120
Top 10 Pharmaceutical Companies14
Ser Name of the Company Market Size (BDT) Market Share (%) Growth (%)
1 Square 19,722,066,693 19.50 12.55
2 Incepta Pharma 10,184,993,624 8.20 11.84
3 Beximco Pharma 8,967,999,031 7.70 8.04
4 Opsonin Pharma 5,302,711,389 4.80 4.77
9 Acme 3,954,249,448 4.80 5.76
6 Eskayef 4,547,963,290 4.60 4.28
5 Renata 5,056,968,911 4.50 8.75
8 ACI 4,263,630,198 4.50 8.69
7 Aristopharma 4,382,948,837 4.10 11.37
10 Drug International 3,924,562,931 3.90 10.51
Market Share of Top 10 Pharmaceuticals
in Bangladesh
15
SQUARE
19.5%
INCEPTA
8.2%
Beximco
7.7%
ACME
4.8%
OPSONIN
4.8%
ESKAYEF
4.6%
RENATA
4.5%
A.C.I.
4.5%
ARISTOPHARMA
4.1%
DRUG INT
3.9%
OTHERS
33.4%
Source: Source: IMS Health Survey
Key Company Information16
Year of Establishment : 1976
Country of Incorporation : Bangladesh
Commercial Production : 1980
Status : Public Limited Company
Business Lines : Manufacturing and Marketing of Pharmaceutical Products
Country of Operation : Bangladesh
Authorized Cap (Taka) : 9,100 million
Paid-up Capital (Taka) : 3,862.4 million
Number of Shareholders : Around 90,000
Stock Exchange Listings : DSE, CSE and AIM of London Stock Exchange
Number of Employees : 3,063
17
CFO
ED, 
A&F
ED, 
SLS
MD
COO
ED, 
PRD
ED, 
Quality
Qua
TRACK 
I
TRACK 
II
Factory 
Wing
Head, 
R&D
Dir, 
Mfg
Dir, 
IMT
Dir, 
Commercial
Mfg
MKT & COM
Organogram of Beximco Pharma
Dir, 
Mfg
Organizational Divisions of Beximco Pharma18
Factory Wing
Commercial/
Supply Chain
Management
Marketing &
Sales
Management
Financial
Management
Human
Resource
Management
Source: Primary
Core Business Focus
Branded Generics
Formulation products for local
and international markets
300+ generics in 500+
presentations
APIs
Local market share 70%
Paracetamol
Penicillins
High value APIs (pipeline)
Contract Manufacturing
Successful track record of
contract manufacturing for
global MNCs
Bayer, Upjhon, GSK, Novartis
Company Operations
• One of the largest pharmaceutical
companies in Bangladesh.
• In local market, BPL operates in
all over 64 districts.
• Largest exporter of
pharmaceutical products from
Bangladesh.
• Received National Export
Trophy (Gold), the highest
national accolade for export, for
the record 04 times.
20
Performance Analysis of 2014
Launched 28 products (24 generics) in the domestic market
Introduced Oral Soluble Film (OSF) technology
Entered 02 new markets (Romania and Uganda)
A total of 55 new registrations done in 15 different countries
Net sales increased to BDT 11,206.9 million, registering a y-o-y
growth rate of 6.8%
Net Profit after tax increased 8.8% to BDT 1,528.3 million
EPS rose by 8.64% to BDT 4.15
21
Strategy Overview22
Vision Statement of Beximco Pharma23
“We will be one of the most trusted, admired and successful
pharmaceutical companies in the region with a focus on
strengthening research and development
capabilities, creating partnerships and building
presence across the globe”
Analysis of BPL’s Vision Statement
• Characteristics:
• Easy to communicate
• Graphic
• Directional
• Focused
• Flexible
• Feasible
24
• Shortcomings:
• Too generic
• Too broad
• Not easy to memorize
Mission Statement of BPL
“We are committed to enhancing human health and
well-being by providing contemporary and affordable
medicines, manufactured in full compliance with global
quality standards. We continually strive to improve our
core capabilities to address the unmet medical
needs of the patients and to deliver outstanding
results for our shareholders.”
25
Analysis of BPL’s Mission Statement
1. Who we are? Does not clearly identify the company.
2. What we do? Enhancing human health and well-being by
providing contemporary and affordable medicines.
3. Why we are here? To address the unmet medical needs of the
patients.
4. Who is satisfied? Human health, patients and shareholders.
5. What is satisfied? Enhancing human health and well-being,
address unmet medical needs of the patients and deliver
outstanding results for the shareholders.
6. How is satisfied? By providing contemporary and affordable
medicines, manufactured in full compliance with global quality
standards; by continually striving to improve their core capabilities.
26
5 Core Values of BPL27
Objectives
Financial Objective
Strategic Objective
28
Financial Objectives
1. A 10% increase in annual revenues.
2. Annual increases in after-tax profits of 10%.
3. Annual increases in earnings per share of 10%.
4. Annual dividend increases of 15%.
5. Profit margins of 10%.
6. A 10% return on capital employed (ROCE).
7. To ensure strong bond and credit ratings and larger cash flows.
8. Increased shareholder value-in the form of an upward-trending
stock prices.
29
Strategic Objectives
1. To achieve large volume of sales and increase market
coverage.
2. To introduce wider product line and superior on time delivery.
3. Improving innovation and flexibility through improved
knowledge creation and sharing .
4. Continuous learning and developing a learning organization.
5. Explore and keep on exploring new markets for products.
6. Meet and exceed our customer requirements and expectation.
7. Increase networking with partners.
8. To contribute to the personal wellbeing of its employees.
30
Balanced Scorecard
Financial
Perspective
Customer
Perspective
Business
Process
Perspective
Learning
and Growth
Perspective
31
Balanced Scorecard32
Perspective Strategic Theme: Smart, Profitable Expansion
Objective Measure Target Initiatives
Financial
Increase
10% of
Revenue
from Custom
Products
% of Revenue from
custom orders
initiated in last 3
years
> 30% year 1
Marketing to new
target markets> 50% year 3
Avg. number of days
to cost recovery
< 160 days year 1
Operations
review
< 130 days year 3 Project selection
Increase
Sales
Efficiency
Revenue per order
delivery
> 30% more
revenue year 1
Priority based
project
development
> 50% more
revenue year 3
Balanced Scorecard33
Perspective Strategic Theme: Smart, Profitable Expansion
Objective Measure Target Initiatives
Customer
Acquire New
Customers
Avg. Number of local
customers
> 30K in first 6
mos.
Local
marketing/PR
campaigns
> 50K in first year
> 200K by year 3
Avg. Number of long
term custom clients
> 10K in first 6
mos.
Value added
service like
optimization,
auto bill
> 20K in first year
> 80K by year 3
Avg. number of
foreign development
clients
> $ 3K year 1
Free subscription
for some existing
customer
> $ 10K year 3
Targeted
marketing for
start-ups
Balanced Scorecard34
Perspective Strategic Theme: Smart, Profitable Expansion
Objective Measure Target Initiatives
Process
Fact-based
Project
Selection
Market trends and
new technology
adaptation
< 90 days year 1
Design &
software
Outsourcing
< 70 days year 3
Research on
existing projects
Streamline
Development
Process
Project duration,
project acquisition to
delivery
< 365 days year 1 Standardize
design/build
processes
< 300 days year 3
% of project delivered
on schedule
> 93% year 1 Web-based
project
management
> 95% year 2
Balanced Scorecard35
Perspective Strategic Theme: Smart, Profitable Expansion
Objective Measure Target Initiatives
Learning
and Growth
Use
Business
Intelligence
Systems
% Eligible employees
trained
>90% year 1
In-house system
training
>99% year 2
Integrated
Knowledge
Management
Online forms/surveys
< 200 year 1
Corporate digital
nervous system
< 100 year 2
< 5 year 3
Strategic Intent
1. Strives to provide quality health care products, at the least cost
reaching the lowest rungs of the economic class of people.
2. Strives for the protection of shareholders’ capital, ensure
highest return and growth of their assets.
3. Strives for best compensation to all the employees.
4. Strives for the best cooperation of the creditors and debtors;
the suppliers, utility service providers and the customers.
5. Try to understand client’s needs and to fit in with the
competitive advantage.
6. Try to face customers’ real-life issues through R&D.
7. Strives for practicing good-governance in every sphere.
36
Strategies at Different Levels37
Corporate Strategy
Mission & Vision
Long-Term Value Creation
Business Strategies
Functional Strategies
R&D, Marketing, Manufacturing, HR,
Finance, etc.
Operating Strategies
Regions, Plants, Departments within
Functional Areas
Board of Directors
10 member
Executive Committee
4 member
Management Committee
10 member
Departmental Heads
Source: Primary
Business Model
Profit Formulae
Value Proposition
38
Value Proposition
• One of the best quality drugs manufacturer in the country.
• Benchmarked to the highest global regulatory standards, TGA,
Australia, AGES (EU), Health Canada (Canada), ANVISA
(Brazil), TFDA (Taiwan) and finally the US FDA authority.
• Continually strive to provide access to safe, effective and
affordable medicines.
• Able to respond to the needs of physicians, patients, and
health care providers, both therapeutically and economically.
• Continue to expand its product portfolio; strong differentiation
in specialized dosage delivery systems.
• Strong research orientation in generic formulation development,
which are very difficult to imitate.
39
Profit Formulae40
Source: Annual Report of 2014
Evaluating External Environment of BPL41
Industry’s Development42
80%
20%
1980
MNC Local
20%
80%
2008
MNC Local
Source: Website of Ministry of Trade and Commerce
Industry Life Cycle
of Pharma
Industry
43
Drivers of Change
in Pharma
Industry
Regulatory
Influences and
Government
Policy
Technological
Change
Changes in the
Long-term
Industry Growth
Rate
Manufacturing
Innovation
Marketing
Innovation
Changes in Cost
and Efficiency
The Internet and
e-commerce
Technologies
Socio-cultural
Changes
Increasing
Globalization of
the Industry
44
PESTLE Analysis45
PESTLE Analysis46
• Political.
• A troubled political history since
1971.
• Political instability is blighting its
prospects for economic growth.
• Political situation of Bangladesh
is calm and quite now.
• But very recent political
instability caused a great
harm to pharmaceutical
business.
PESTLE Analysis47
• Economical.
• Rapidly developing market-based economy.
• Inflation pulled demand (GDP) growth is significantly
potential for growing market.
• The economy has grown at the rate of 6-7% per annum
over the past few years.
• Buying power of Bangladeshi people is increasing.
• Health conscious buyer is increased too.
• Pharmaceutical market size is around 12,000 Crore BDT.
PESTLE Analysis48
• Social.
• Unplanned urbanization and the changing lifestyle, taking
of more and more fast foods and soft drinks by the urban
people is the main cause of diabetes in the country.
• The death rate of non-infectious diseases like
diabetes or cardiac disease in Bangladesh is more than
two times higher than infectious ones.
• As such, the social values and practices in Bangladesh is
influencing the industry product requirements.
PESTLE Analysis49
• Technological.
• Major companies are very
much aggressive to introduce
any technological change
through strategic alliance and
joint venture.
• Application of new
technologies in planning,
process, distribution and
other activities have become
common in this industry.
PESTLE Analysis50
• Legal.
• DGDA is the Drug Regulatory Authority of the country.
• DGDA supervises and implements all prevailing Drug
Regulations in the country
• Two pricing method for locally manufactured items;
controlled and decontrolled category.
• In controlled category, govt. fixes the MRP and in
decontrolled category, company does the same.
• At present, the legislation and regulation in pharmaceutical
industry is favourable to boost the industry.
PESTLE Analysis51
• Environment.
• Have to handle different kinds
of drugs, chemicals etc. which
are very harmful for both the
people, who are dealing with
it, as well as for the
environment, when it is
exposed.
• Many of the pharmaceuticals
companies have world class
'Effluent Treatment Plant
(ETP)'.
Porter’s Five
Forces Model
52
Source: https://saylordotorg.github.io/text_principles-of-marketing-v2.0/s05-02-components-of-the-strategic-pl.html
Porter’s Five Forces Model53
Source: Primary
Strategic Group Mapping54
Low Medium High
Product Quality
ProductLine
NarrowMediumWide
Square
Incepta
Beximco Pharma
Renata
Opsonin
Acme
SK+F
Aristopharma
ACI
Drug International
Sanofi Aventis
Gaco
Navana
RAK
Somatec
Rangs
Evaluating Resources, Capabilities and
Competitiveness
55
SWOT Analysis
Strengths
• Strong Brand Image and
favourable corporate image
• Decentralized decision-making
structure.
• An attractive loyal customer
base.
Weakness
• Excessive overhead cost, and
hence low profit margin.
• Fragile share market images to
customers.
• Lack of proper integration
between functional units.
Opportunity
• Faster market growth.
• Government regulations are in
favour of local manufactures.
• Opportunity to enter in the
biggest market like US market.
Threats
• Intense competition.
• Highly regulated market.
• Strong competitors are
working on backward linkage
for API production.
56
Assessing Competencies57
• Competencies of Beximco Pharma
Quality Competent HR
Assessing Competencies58
• Competencies of Beximco Pharma
2008 2015
Regulatory
Approvals
Therapeutic Goods Administration (TGA), Australia
AGES, Austria; for European Union
TFDA, Taiwan
ANVISA, Brazil
INVIMA, Colombia
MCC, South Africa
Assessing Competencies60
• Core Competencies of Beximco Pharma
State of the Art Manufacturing Capability
Assessing Competencies61
• Distinctive Competencies of Beximco Pharma
Strong R&D Capabilities
Supply Chain Management in BPL62
63
Value Chain
Analysis
Key Success Factors (KSFs)
Manufacturing Related KSFs
• Zero defect manufacturing.
• High capacity utilization.
• Availability of skilled labour.
• Low cost product design and
engineering.
Marketing Related KSFs
• Breadth of product line and
product selection.
• In time filling of customer
orders.
• Attractive style and packaging
design.
Skills Related KSFs
• Expertise in R&D and
technology.
• Ability to develop innovative
products.
• Quality control know-how.
Technology Related KSFs
• Technical capability to make
innovative improvements in
production process.
• Product innovation capability.
• Research expertise in
introducing new products.
64
Generic Competitive Strategy of
Beximco Pharma
65
Broad Differentiation Strategy
R&D capabilities with
successful
development of
difficult-to-make
formulations
Created strong
differentiation by
offering technology-
driven, specialized
drug delivery
systems
Focusing on
innovation,
differentiation and
diversification of
products for a broad
cross section of
customer segments
including the global
customers
66
• Metered dose inhalers
• Dry powder inhalers
• Prefilled syringes
• Lyophilized injectable etc.
• Multi-layer tablet
• Sustained release formulation
• Dispersible tablet etc.
Strengthening BPL’s Competitive Position67
Offensive Strategy
Key to the offensive strategy - Innovation and
Differentiation.
Continuously developing its diversified manufacturing
capabilities.
In 2014, Beximco Pharma expanded its portfolio with 24
new generics in a total of 28 presentations across 09
different therapeutic categories; 03 products were
launched for the first time in Bangladesh.
68
Red Ocean Strategy
• Difficult for a technology driven pharmaceutical company to find
or create a new uncontested market space.
• BPL competes in existing market place & beats the competition.
• Exploits existing demand, makes the value cost trade-off and
align its activities with its strategic choice of broad
differentiations.
• The domestic market is highly concentrated and competitive.
• BPL continuously thrives its efforts to increase its existing
market share competing with Square and Incepta.
• Offensively exploring the international market and trying to
enter in the regulated market.
69
Merger of Beximco Pharma and Beximco
Infusions (2005)
• Went for an 'amalgamation scheme' of merger on June 2, 2005.
• Strategy to grow and lead in pharmaceuticals export at a
competitive price.
• Benefits:
• Improved organisational capability
• Combination of people having diverse skills, talent and vast
experience.
• Rationalised overhead costs, use of raw-material and HR
ensuring ‘value for money’.
• Reducing cost and improving efficiency.
70
Strategic Alliance and Partnership71
Strategic Alliances with global MNCs
Textiles
Others
Partnerships with Leading International Corporations
Outsourcing Value Chain Activities
I&I Service is the distribution partner of BPL, which help
achieving excellence in product distribution to customers
Outsource the printing materials, their design, technical
training to the technical person (SMSRC, IMS, Chlorofil),
Software to run the business
It does not create hollow out effect of company
It does not lose its touch to the value chin activities that are
critical for long term sustainability
73
Integrating the Backward & Forward Linkage
Backward Linkage
Manufacturing API
like amoxicillin,
paracetamol,
cloxacillin,
flucloxacillin to meet
own demand and
also supplying to
other local
manufactures and
MNCs.
Forward Linkage
Possessing Suktara
Printers and
Packaging Unit that
is providing the
secondary
packaging materials
like packaging
carton, leaflet,
brochures, annual
reports etc.
74
Strategies for Competing in
International Market
75
Export Strategies
• Aggressively pursuing the export
operation as a strategy to
compete in international market.
• A global footprint in 45
countries.
• Growing presence in different
countries across Africa, Latin
America, Asia, Middle East and
Central America.
• Received National Export
Trophy "Gold" for a record 4
times for its outstanding
achievement in export.
76
Asia
Singapore
Hong Kong
Cambodia
Nepal
Sri Lanka
Philippine
Thailand
Bhutan
Macau
Malaysia
Afghanistan
Azerbaijan
Vietnam
Current Export Markets
Middle East
Yemen
Jordan
Africa
Kenya
Ghana
Somalia
Nigeria
Benin
Liberia
South Africa
Ethiopia
Mauritius
Mozambique
Sudan
Burundi
Uganda
Lesotho
Caribbean
Jamaica
Netherlands Antilles
Pacific Island
Fiji
Papua New Guinea
Solomon Island
Kiribati
Tonga
Samoa
Latin & Central
America
Chile
Belize
El Salvador
Colombia
Surinam
Nicaragua
Europe
Austria
Germany
Turkey
Latin America &
Central America
Brazil3
Mexico
Venezuela
Paraguay
Ecuador
Uruguay
Bolivia
Cuba
Peru
Costa Rica
Honduras
Panama
Dominican Republic
Guatemala
Africa
Tanzania
Cameroon
Botswana
Togo
Namibia
Swaziland
Madagascar
DR Congo
Gabon
Mauritania
Zimbabwe
Tchad
Sierra Leone
Asia
Indonesia
Taiwan
MENA
Saudi Arabia2
Kuwait2
Bahrain2
Oman2
Qatar2
UAE2
Iraq
Algeria
Libya
Tunisia
Australia1 &
New Zealand1
USA4
1Received GMP clearance and product approvals from TGA Australia 4Subject to approval by USFDA2Received GMP approval from GCC 3 Received GMP approval from ANVISA, Brazil
Expanding Global Footprint Across all the Continents
Canada
North America
Europe
Licensing Strategies
• Beximco Pharma was
incorporated in the late 1970s,
and began as a distributor,
importing products from global
MNCs like Bayer, Germany
and Upjohn Inc., USA and
selling them in the local market,
which were later manufactured
and distributed under
licensing arrangements.
79
Strategies NOT Adopted Yet80
Diversification Strategies of Beximco81
Product Diversification82
Product Categories
Regular (14) Specialized (8) Newly Developed (13)
Specialized Products
MDI DPI Prefilled Syringes
IV Infusion Lyophilized Injectables Ophthalmics
Related Diversification
• Beximco Group is the largest private sector industrial
conglomerate in Bangladesh.
• Beximco comprises of 05 publicly listed companies and 16
private companies.
• The Group turnover in 2008 was BDT 18.5 billion.
• Beximco employs 48,000 people and has 230,000
shareholders.
• Beximco’s shares constitute 4.34% of the market
capitalization of DSE.
• No related diversification; diverse unrelated diversification.
84
TEXTILES CERAMICSPHARMACEUTICALS
JUTE MEDIA HOSPITALITY
25 Companies, 4 are publicly listed
48,000 employees, 250,000 shareholders
Unrelated Diversification
Unrelated Diversification
“Yellow” “Shinepukur Ceramics Ltd.”
CSR, Ethical Practices and Corporate
Culture of BPL
87
Corporate Social Responsibility (CSR)88
Responsibility to the
Community at Large
Responsibility to the
Environment
Responsibility to the
Stakeholders
Responsibility to the Community at Large
• Mobile Alliance for Maternal Action
(MAMA).
• Extending Support to Jaago
Foundation.
• Support to Rana Plaza Victims.
• Free Medicines for UN Health Camps.
• Sponsoring to Promote Maternal and
New-born Health.
• Sponsoring National Campaign on
Healthy Living.
89
Support to Jaago Foundation
MAMA Campaign
Responsibility to the Community at Large
• Support for Developing Low
Cost Mechanical Prosthetic
Hand.
• Sponsoring ‘Spreading Care’.
• Universal Children’s Day, 2014.
• World Osteoporosis Day, 2014.
• World Heart Day, 2014.
90
Universal Children’s Day, 2014
Responsibility to the Environment
• World Environment Day, 2014.
• Path to Protecting the Ozone
Layer.
• CFC gases used in inhalers have
ozone-depleting properties.
• In 2006, BPL were the first
Bangladeshi company to proactively
make the shift to HFA inhalers.
• Beximco Pharma and Bangladesh
Lung Foundation, designed an
effective awareness raising strategy
for CFC-free MDIs for asthma and
COPD patients.
91
Ethical Practices in Beximco Pharma92
Promote
ethical
business
practice
Ensure equal
opportunities
Provide a
safe and
healthy work
environment
Value
diversity in
the
workplace
Do business
ethically
We Don’t Practice in Beximco Pharma93
Faulty oversight that implicitly
allows the overzealous pursuit
of personal gain, wealth, and
other self-interests
Heavy pressures on company
managers to meet or beat
performance targets
A company culture that puts
profitability and "good"
business performance ahead
of ethical behaviour
A Strong and Healthy-Culture Company
The Managing Director (MD), established consistent
and sensible values, principles, and practices
A sincere, long-standing company commitment to
operating the business according to these established
traditions
A genuine concern for the well-being of the
organization’s three biggest constituencies -
customers, employees, and shareholders
94
Building of Beximco Pharma; An Organization
Capable of Good Strategy Execution
95
10 Basic Tasks of Strategy Execution Process
1
• Staffing the organization with the right people for executing the strategy
2
• Build the organizational capabilities required for successful strategy
execution
3
• Establish a strategy supportive organizational structure
4
• Allocate sufficient resources to the strategy execution effort
5
• Institute policies and procedures that facilitate strategy execution
96
10 Basic Tasks of Strategy Execution Process
6
• Adopt best practices and business processes that drive continuous
improvement
7
• Install information and operating systems that support strategy
execution activities
8
• Tie rewards and incentives directly to the achievement of strategic and
financial targets
9
• Instill a corporate culture that promotes good strategy execution
10
• Exercise strong leadership to propel strategy execution forward
97
Recommendations
1. A top level, highly empowered “Strategic Value Chain Optimization Team” may
be formed in Beximco Pharma, in order to coordination the entire value chain activities
of the company to enhance cross-functional coordination in order to attain maximum
supply chain surplus.
2. Measures may be taken to form “Joint Venture” with foreign leading
pharmaceuticals companies and develop Active Pharmaceuticals Ingredients (APIs)
manufacturing capability internally; thereby to improve the backward integration, in
order to reduce absolute dependency on input suppliers and external environment.
3. The company may strengthen their focus in “Differentiated Promotional
Approach” by providing medical representatives with more professional knowledge
based training and communication materials (beyond company’s traditional sales aids)
to develop and increase the hoard of MR knowledge of Beximco Pharma.
98
Corporate Video99
100

Contenu connexe

Tendances

MGT210 Report Beximco Pharma EXODUS
MGT210 Report Beximco Pharma EXODUSMGT210 Report Beximco Pharma EXODUS
MGT210 Report Beximco Pharma EXODUSNadim Siddik
 
Presentation on HRM activities of Square pharmaceuticals limited
Presentation on HRM activities of Square pharmaceuticals limitedPresentation on HRM activities of Square pharmaceuticals limited
Presentation on HRM activities of Square pharmaceuticals limitedSHOHAGRANA11
 
Internship Report on Incepta Pharmaceutical Ltd.(Accounts & Finance Department)
Internship Report on Incepta Pharmaceutical Ltd.(Accounts & Finance Department) Internship Report on Incepta Pharmaceutical Ltd.(Accounts & Finance Department)
Internship Report on Incepta Pharmaceutical Ltd.(Accounts & Finance Department) Md.Toufiqur Rahman Mahabub
 
Report on MANAGEMENT PRACTICES IN BEXIMCO PHARMA
Report on MANAGEMENT PRACTICES IN BEXIMCO PHARMAReport on MANAGEMENT PRACTICES IN BEXIMCO PHARMA
Report on MANAGEMENT PRACTICES IN BEXIMCO PHARMAArif Hossain
 
Assignment on HRM activities of square pharma. ltd.
Assignment on HRM activities of square pharma. ltd.Assignment on HRM activities of square pharma. ltd.
Assignment on HRM activities of square pharma. ltd.SHOHAGRANA11
 
Assignment on Beximco 2nd part
Assignment on Beximco 2nd part Assignment on Beximco 2nd part
Assignment on Beximco 2nd part Al Shahriar
 
report Pharmaceutical industry in Bangladesh
report  Pharmaceutical industry in Bangladeshreport  Pharmaceutical industry in Bangladesh
report Pharmaceutical industry in BangladeshYasin Shipon
 
Strategic analysis on square pharma
Strategic analysis on square pharmaStrategic analysis on square pharma
Strategic analysis on square pharmaTaibul Islam Tushar
 
Business Project Report on Nishat Textile Mills Pakistan
Business Project Report on Nishat Textile Mills PakistanBusiness Project Report on Nishat Textile Mills Pakistan
Business Project Report on Nishat Textile Mills PakistanMuhammad Shahid
 
Gsk pakistan limited final presentation
Gsk pakistan limited final presentation Gsk pakistan limited final presentation
Gsk pakistan limited final presentation Muhammad Rafay
 
Nishat mills LTd Final Project
Nishat mills LTd Final ProjectNishat mills LTd Final Project
Nishat mills LTd Final ProjectMehmood Ul Hassan
 
Strategic analysis on square pharma
Strategic analysis on square pharmaStrategic analysis on square pharma
Strategic analysis on square pharmaTaibul Islam Tushar
 
Assignment on Beximco 1st part
Assignment on Beximco 1st part Assignment on Beximco 1st part
Assignment on Beximco 1st part Al Shahriar
 
Brand failures in Pakistan - Services
Brand failures in Pakistan - ServicesBrand failures in Pakistan - Services
Brand failures in Pakistan - Servicessoul3dout
 
Muhammad ehsan 19576 report (3)
Muhammad ehsan 19576 report (3)Muhammad ehsan 19576 report (3)
Muhammad ehsan 19576 report (3)Farooq Memon
 
Performance Appraisal of Square Pharmaceutical ltd
Performance Appraisal of Square Pharmaceutical ltdPerformance Appraisal of Square Pharmaceutical ltd
Performance Appraisal of Square Pharmaceutical ltdShakhawatul Islam SaaGooR
 

Tendances (20)

BEXIMCO pharmaceuticals Ltd. - Basic report (MGT 210)
BEXIMCO pharmaceuticals Ltd. - Basic report (MGT 210)BEXIMCO pharmaceuticals Ltd. - Basic report (MGT 210)
BEXIMCO pharmaceuticals Ltd. - Basic report (MGT 210)
 
MGT210 Report Beximco Pharma EXODUS
MGT210 Report Beximco Pharma EXODUSMGT210 Report Beximco Pharma EXODUS
MGT210 Report Beximco Pharma EXODUS
 
Presentation on HRM activities of Square pharmaceuticals limited
Presentation on HRM activities of Square pharmaceuticals limitedPresentation on HRM activities of Square pharmaceuticals limited
Presentation on HRM activities of Square pharmaceuticals limited
 
Internship Report on Incepta Pharmaceutical Ltd.(Accounts & Finance Department)
Internship Report on Incepta Pharmaceutical Ltd.(Accounts & Finance Department) Internship Report on Incepta Pharmaceutical Ltd.(Accounts & Finance Department)
Internship Report on Incepta Pharmaceutical Ltd.(Accounts & Finance Department)
 
Report on MANAGEMENT PRACTICES IN BEXIMCO PHARMA
Report on MANAGEMENT PRACTICES IN BEXIMCO PHARMAReport on MANAGEMENT PRACTICES IN BEXIMCO PHARMA
Report on MANAGEMENT PRACTICES IN BEXIMCO PHARMA
 
Assignment on HRM activities of square pharma. ltd.
Assignment on HRM activities of square pharma. ltd.Assignment on HRM activities of square pharma. ltd.
Assignment on HRM activities of square pharma. ltd.
 
Assignment on Beximco 2nd part
Assignment on Beximco 2nd part Assignment on Beximco 2nd part
Assignment on Beximco 2nd part
 
report Pharmaceutical industry in Bangladesh
report  Pharmaceutical industry in Bangladeshreport  Pharmaceutical industry in Bangladesh
report Pharmaceutical industry in Bangladesh
 
Strategic analysis on square pharma
Strategic analysis on square pharmaStrategic analysis on square pharma
Strategic analysis on square pharma
 
Business Project Report on Nishat Textile Mills Pakistan
Business Project Report on Nishat Textile Mills PakistanBusiness Project Report on Nishat Textile Mills Pakistan
Business Project Report on Nishat Textile Mills Pakistan
 
Gsk pakistan limited final presentation
Gsk pakistan limited final presentation Gsk pakistan limited final presentation
Gsk pakistan limited final presentation
 
Nishat mills LTd Final Project
Nishat mills LTd Final ProjectNishat mills LTd Final Project
Nishat mills LTd Final Project
 
National foods
National foodsNational foods
National foods
 
Strategic analysis on square pharma
Strategic analysis on square pharmaStrategic analysis on square pharma
Strategic analysis on square pharma
 
Assignment on Beximco 1st part
Assignment on Beximco 1st part Assignment on Beximco 1st part
Assignment on Beximco 1st part
 
Brand failures in Pakistan - Services
Brand failures in Pakistan - ServicesBrand failures in Pakistan - Services
Brand failures in Pakistan - Services
 
Muhammad ehsan 19576 report (3)
Muhammad ehsan 19576 report (3)Muhammad ehsan 19576 report (3)
Muhammad ehsan 19576 report (3)
 
Johnson & Johnson pp
Johnson & Johnson ppJohnson & Johnson pp
Johnson & Johnson pp
 
Performance Appraisal of Square Pharmaceutical ltd
Performance Appraisal of Square Pharmaceutical ltdPerformance Appraisal of Square Pharmaceutical ltd
Performance Appraisal of Square Pharmaceutical ltd
 
Overall Marketing Strategies of PRAN-RFL GROUP”
Overall Marketing Strategies of PRAN-RFL GROUP”Overall Marketing Strategies of PRAN-RFL GROUP”
Overall Marketing Strategies of PRAN-RFL GROUP”
 

En vedette

Mehdi(NUB) Beximco Pharma 2016
Mehdi(NUB) Beximco Pharma 2016Mehdi(NUB) Beximco Pharma 2016
Mehdi(NUB) Beximco Pharma 2016MD. MEHDI HASAN
 
Innovation In Pharmaceutical Tablet Manufacturing
Innovation In Pharmaceutical Tablet ManufacturingInnovation In Pharmaceutical Tablet Manufacturing
Innovation In Pharmaceutical Tablet ManufacturingReyaz007
 
AP1 Presentation - Epilepsy
AP1 Presentation - EpilepsyAP1 Presentation - Epilepsy
AP1 Presentation - EpilepsyMacia Noorman
 
Pharmaceutical Technology
Pharmaceutical TechnologyPharmaceutical Technology
Pharmaceutical TechnologyReyaz007
 
All about Tablets (Pharma)
All about Tablets  (Pharma)All about Tablets  (Pharma)
All about Tablets (Pharma)Sathish Vemula
 
General pathology lecture 5 inflammation & repair
General pathology lecture 5 inflammation & repairGeneral pathology lecture 5 inflammation & repair
General pathology lecture 5 inflammation & repairLheanne Tesoro
 
tablet presentation
tablet presentationtablet presentation
tablet presentationAnju K John
 

En vedette (11)

Ppt for od
Ppt for odPpt for od
Ppt for od
 
Mehdi(NUB) Beximco Pharma 2016
Mehdi(NUB) Beximco Pharma 2016Mehdi(NUB) Beximco Pharma 2016
Mehdi(NUB) Beximco Pharma 2016
 
Search
SearchSearch
Search
 
Innovation In Pharmaceutical Tablet Manufacturing
Innovation In Pharmaceutical Tablet ManufacturingInnovation In Pharmaceutical Tablet Manufacturing
Innovation In Pharmaceutical Tablet Manufacturing
 
AP1 Presentation - Epilepsy
AP1 Presentation - EpilepsyAP1 Presentation - Epilepsy
AP1 Presentation - Epilepsy
 
Pharmaceutical Technology
Pharmaceutical TechnologyPharmaceutical Technology
Pharmaceutical Technology
 
All about Tablets (Pharma)
All about Tablets  (Pharma)All about Tablets  (Pharma)
All about Tablets (Pharma)
 
General pathology lecture 5 inflammation & repair
General pathology lecture 5 inflammation & repairGeneral pathology lecture 5 inflammation & repair
General pathology lecture 5 inflammation & repair
 
GESTATIONAL DIABETES
GESTATIONAL DIABETESGESTATIONAL DIABETES
GESTATIONAL DIABETES
 
tablet presentation
tablet presentationtablet presentation
tablet presentation
 
Tablets
TabletsTablets
Tablets
 

Similaire à Presentation on Beximco Pharmaceuticals Ltd

Beximco Pharma EXODUS
Beximco Pharma EXODUSBeximco Pharma EXODUS
Beximco Pharma EXODUSNadim Siddik
 
Application Of Bsc
Application Of BscApplication Of Bsc
Application Of Bscmufaroo
 
Application Of Bsc
Application Of BscApplication Of Bsc
Application Of Bscmufaroo
 
Application of Balance Scorecard
Application of Balance ScorecardApplication of Balance Scorecard
Application of Balance Scorecardmufaroo
 
Novartis Balanced Scorecard
Novartis Balanced ScorecardNovartis Balanced Scorecard
Novartis Balanced ScorecardRoberta Canavesi
 
Introduction to pManifold's Health Practice
Introduction to pManifold's Health PracticeIntroduction to pManifold's Health Practice
Introduction to pManifold's Health PracticepManifold
 
Pbi Consultancy Services
Pbi Consultancy ServicesPbi Consultancy Services
Pbi Consultancy ServicesMichaelMcNamara
 
Found_658811648_11301224.pptx
Found_658811648_11301224.pptxFound_658811648_11301224.pptx
Found_658811648_11301224.pptxSunil kumar
 
Retention of employees @ pharmaceutical industry project report mba markting
Retention of employees @ pharmaceutical industry project report mba marktingRetention of employees @ pharmaceutical industry project report mba markting
Retention of employees @ pharmaceutical industry project report mba marktingBabasab Patil
 
Dr. Reddy's Investorpresentation november2010
Dr. Reddy's Investorpresentation november2010Dr. Reddy's Investorpresentation november2010
Dr. Reddy's Investorpresentation november2010Biswajit Dash
 
JOHNGRANSEERESUME2016
JOHNGRANSEERESUME2016JOHNGRANSEERESUME2016
JOHNGRANSEERESUME2016John Gransee
 
project-report-on-working-capital
project-report-on-working-capitalproject-report-on-working-capital
project-report-on-working-capitalRamesh Ankathi
 
Strategic management - An Outlook on Growth strategy
Strategic management - An Outlook on Growth strategyStrategic management - An Outlook on Growth strategy
Strategic management - An Outlook on Growth strategyNeha Kalal
 
45337850 mgt-company-analysis-beximco-pharma
45337850 mgt-company-analysis-beximco-pharma45337850 mgt-company-analysis-beximco-pharma
45337850 mgt-company-analysis-beximco-pharmaMd. Mahamudul Bari
 
competitive analysis of Abbott company.
competitive analysis of Abbott company.competitive analysis of Abbott company.
competitive analysis of Abbott company.bilal hassan
 
Merck into Emerging India
Merck into Emerging IndiaMerck into Emerging India
Merck into Emerging IndiaRay Yip
 
Supply Of A Food And Beverages Producing Company From...
Supply Of A Food And Beverages Producing Company From...Supply Of A Food And Beverages Producing Company From...
Supply Of A Food And Beverages Producing Company From...Jana Clark
 
Presentation 1 (Management Project).pptx
Presentation 1 (Management Project).pptxPresentation 1 (Management Project).pptx
Presentation 1 (Management Project).pptxShrutiPillai16
 
Biocon Press Conference FY13 Results - April 26, 2013
Biocon Press Conference FY13 Results - April 26, 2013 Biocon Press Conference FY13 Results - April 26, 2013
Biocon Press Conference FY13 Results - April 26, 2013 Biocon
 

Similaire à Presentation on Beximco Pharmaceuticals Ltd (20)

Beximco Pharma EXODUS
Beximco Pharma EXODUSBeximco Pharma EXODUS
Beximco Pharma EXODUS
 
Application Of Bsc
Application Of BscApplication Of Bsc
Application Of Bsc
 
Application Of Bsc
Application Of BscApplication Of Bsc
Application Of Bsc
 
Application of Balance Scorecard
Application of Balance ScorecardApplication of Balance Scorecard
Application of Balance Scorecard
 
Novartis Balanced Scorecard
Novartis Balanced ScorecardNovartis Balanced Scorecard
Novartis Balanced Scorecard
 
Introduction to pManifold's Health Practice
Introduction to pManifold's Health PracticeIntroduction to pManifold's Health Practice
Introduction to pManifold's Health Practice
 
Pbi Consultancy Services
Pbi Consultancy ServicesPbi Consultancy Services
Pbi Consultancy Services
 
Found_658811648_11301224.pptx
Found_658811648_11301224.pptxFound_658811648_11301224.pptx
Found_658811648_11301224.pptx
 
Retention of employees @ pharmaceutical industry project report mba markting
Retention of employees @ pharmaceutical industry project report mba marktingRetention of employees @ pharmaceutical industry project report mba markting
Retention of employees @ pharmaceutical industry project report mba markting
 
Dr. Reddy's Investorpresentation november2010
Dr. Reddy's Investorpresentation november2010Dr. Reddy's Investorpresentation november2010
Dr. Reddy's Investorpresentation november2010
 
JOHNGRANSEERESUME2016
JOHNGRANSEERESUME2016JOHNGRANSEERESUME2016
JOHNGRANSEERESUME2016
 
project-report-on-working-capital
project-report-on-working-capitalproject-report-on-working-capital
project-report-on-working-capital
 
Strategic management - An Outlook on Growth strategy
Strategic management - An Outlook on Growth strategyStrategic management - An Outlook on Growth strategy
Strategic management - An Outlook on Growth strategy
 
45337850 mgt-company-analysis-beximco-pharma
45337850 mgt-company-analysis-beximco-pharma45337850 mgt-company-analysis-beximco-pharma
45337850 mgt-company-analysis-beximco-pharma
 
competitive analysis of Abbott company.
competitive analysis of Abbott company.competitive analysis of Abbott company.
competitive analysis of Abbott company.
 
Merck into Emerging India
Merck into Emerging IndiaMerck into Emerging India
Merck into Emerging India
 
Goals of PepsiCo.docx
Goals  of PepsiCo.docxGoals  of PepsiCo.docx
Goals of PepsiCo.docx
 
Supply Of A Food And Beverages Producing Company From...
Supply Of A Food And Beverages Producing Company From...Supply Of A Food And Beverages Producing Company From...
Supply Of A Food And Beverages Producing Company From...
 
Presentation 1 (Management Project).pptx
Presentation 1 (Management Project).pptxPresentation 1 (Management Project).pptx
Presentation 1 (Management Project).pptx
 
Biocon Press Conference FY13 Results - April 26, 2013
Biocon Press Conference FY13 Results - April 26, 2013 Biocon Press Conference FY13 Results - April 26, 2013
Biocon Press Conference FY13 Results - April 26, 2013
 

Presentation on Beximco Pharmaceuticals Ltd

  • 1. 1 Presentation on Beximco Pharma the first US FDA approved company in Bangladesh
  • 2. Presented by Md. Hafiz-Al-Asad EMBA 18th Batch ZR 1401003
  • 3. 3
  • 4. Sequence of Presentation 1 • About the Study 2 • Organizational Overview 3 • Strategy Overview 4 • Evaluating External Environment of Beximco Pharma 5 • Evaluating Resources, Capabilities and Competitiveness 6 • Generic Competitive Strategy of Beximco Pharma 4
  • 5. Sequence of Presentation 7 • Strengthening Company’s Competitive Position 8 • Strategies for Competing in International Market 9 • Diversification Strategies of Beximco 10 • CSR, Ethical Practices and Corporate Culture of BPL 11 • Building of the Organization Capable of Good Strategy Execution 12 • Recommendations 5
  • 7. Rationale of the Study • Management practices as a strategic growth option is particularly relevant in developing countries like Bangladesh, because of: • Insufficient strategic management knowledge • Lack of best practices • Less use of effective strategic management guides • Less priority in top managements mind set • Not achieving optimization in management processes • As such, this study is highly significant to improve the efficiency and effectiveness of strategic management practices in Beximco Pharmaceuticals Ltd. (BPL). 7
  • 8. Objectives of the Study • Broad Objective 8 To conceptualize the current strategic management practices and problems of Beximco Pharma To identify and suggest scopes of improvement To devise some recommendations to improve the strategic manoeuvre of the company
  • 9. Objectives of the Study • Specific Objectives • To understand and analyze various concepts, tools and techniques of strategic management to evaluate BPL’s overall strategy. • To present and analyze the vision and mission statement. • To analyze the objectives and core values. • To conduct situation analysis considering external and internal environmental factors. • To identify the competitive business strategy of BPL. • To identify on the strategies for diversification of BPL. • To highlight BPL practices on ethics and CSR. • To present an overview of the corporate culture in BPL. • Offer some recommendations to improve the strategic management practices of BPL. 9
  • 10. Methodology Primary Source • Current working experience • Discussion with different levels of mid and high ranking officials; Sample size: 35 (Directors, Head of Department, Senior Managers and Managers) Secondary Source • Annual reports, periodic reports, articles and brochures • Journals, research papers and articles from various online sources and websites 10
  • 12. Contribution of Pharma Industries in GDP of Bangladesh
  • 14. Top 10 Pharmaceutical Companies14 Ser Name of the Company Market Size (BDT) Market Share (%) Growth (%) 1 Square 19,722,066,693 19.50 12.55 2 Incepta Pharma 10,184,993,624 8.20 11.84 3 Beximco Pharma 8,967,999,031 7.70 8.04 4 Opsonin Pharma 5,302,711,389 4.80 4.77 9 Acme 3,954,249,448 4.80 5.76 6 Eskayef 4,547,963,290 4.60 4.28 5 Renata 5,056,968,911 4.50 8.75 8 ACI 4,263,630,198 4.50 8.69 7 Aristopharma 4,382,948,837 4.10 11.37 10 Drug International 3,924,562,931 3.90 10.51
  • 15. Market Share of Top 10 Pharmaceuticals in Bangladesh 15 SQUARE 19.5% INCEPTA 8.2% Beximco 7.7% ACME 4.8% OPSONIN 4.8% ESKAYEF 4.6% RENATA 4.5% A.C.I. 4.5% ARISTOPHARMA 4.1% DRUG INT 3.9% OTHERS 33.4% Source: Source: IMS Health Survey
  • 16. Key Company Information16 Year of Establishment : 1976 Country of Incorporation : Bangladesh Commercial Production : 1980 Status : Public Limited Company Business Lines : Manufacturing and Marketing of Pharmaceutical Products Country of Operation : Bangladesh Authorized Cap (Taka) : 9,100 million Paid-up Capital (Taka) : 3,862.4 million Number of Shareholders : Around 90,000 Stock Exchange Listings : DSE, CSE and AIM of London Stock Exchange Number of Employees : 3,063
  • 18. Organizational Divisions of Beximco Pharma18 Factory Wing Commercial/ Supply Chain Management Marketing & Sales Management Financial Management Human Resource Management Source: Primary
  • 19. Core Business Focus Branded Generics Formulation products for local and international markets 300+ generics in 500+ presentations APIs Local market share 70% Paracetamol Penicillins High value APIs (pipeline) Contract Manufacturing Successful track record of contract manufacturing for global MNCs Bayer, Upjhon, GSK, Novartis
  • 20. Company Operations • One of the largest pharmaceutical companies in Bangladesh. • In local market, BPL operates in all over 64 districts. • Largest exporter of pharmaceutical products from Bangladesh. • Received National Export Trophy (Gold), the highest national accolade for export, for the record 04 times. 20
  • 21. Performance Analysis of 2014 Launched 28 products (24 generics) in the domestic market Introduced Oral Soluble Film (OSF) technology Entered 02 new markets (Romania and Uganda) A total of 55 new registrations done in 15 different countries Net sales increased to BDT 11,206.9 million, registering a y-o-y growth rate of 6.8% Net Profit after tax increased 8.8% to BDT 1,528.3 million EPS rose by 8.64% to BDT 4.15 21
  • 23. Vision Statement of Beximco Pharma23 “We will be one of the most trusted, admired and successful pharmaceutical companies in the region with a focus on strengthening research and development capabilities, creating partnerships and building presence across the globe”
  • 24. Analysis of BPL’s Vision Statement • Characteristics: • Easy to communicate • Graphic • Directional • Focused • Flexible • Feasible 24 • Shortcomings: • Too generic • Too broad • Not easy to memorize
  • 25. Mission Statement of BPL “We are committed to enhancing human health and well-being by providing contemporary and affordable medicines, manufactured in full compliance with global quality standards. We continually strive to improve our core capabilities to address the unmet medical needs of the patients and to deliver outstanding results for our shareholders.” 25
  • 26. Analysis of BPL’s Mission Statement 1. Who we are? Does not clearly identify the company. 2. What we do? Enhancing human health and well-being by providing contemporary and affordable medicines. 3. Why we are here? To address the unmet medical needs of the patients. 4. Who is satisfied? Human health, patients and shareholders. 5. What is satisfied? Enhancing human health and well-being, address unmet medical needs of the patients and deliver outstanding results for the shareholders. 6. How is satisfied? By providing contemporary and affordable medicines, manufactured in full compliance with global quality standards; by continually striving to improve their core capabilities. 26
  • 27. 5 Core Values of BPL27
  • 29. Financial Objectives 1. A 10% increase in annual revenues. 2. Annual increases in after-tax profits of 10%. 3. Annual increases in earnings per share of 10%. 4. Annual dividend increases of 15%. 5. Profit margins of 10%. 6. A 10% return on capital employed (ROCE). 7. To ensure strong bond and credit ratings and larger cash flows. 8. Increased shareholder value-in the form of an upward-trending stock prices. 29
  • 30. Strategic Objectives 1. To achieve large volume of sales and increase market coverage. 2. To introduce wider product line and superior on time delivery. 3. Improving innovation and flexibility through improved knowledge creation and sharing . 4. Continuous learning and developing a learning organization. 5. Explore and keep on exploring new markets for products. 6. Meet and exceed our customer requirements and expectation. 7. Increase networking with partners. 8. To contribute to the personal wellbeing of its employees. 30
  • 32. Balanced Scorecard32 Perspective Strategic Theme: Smart, Profitable Expansion Objective Measure Target Initiatives Financial Increase 10% of Revenue from Custom Products % of Revenue from custom orders initiated in last 3 years > 30% year 1 Marketing to new target markets> 50% year 3 Avg. number of days to cost recovery < 160 days year 1 Operations review < 130 days year 3 Project selection Increase Sales Efficiency Revenue per order delivery > 30% more revenue year 1 Priority based project development > 50% more revenue year 3
  • 33. Balanced Scorecard33 Perspective Strategic Theme: Smart, Profitable Expansion Objective Measure Target Initiatives Customer Acquire New Customers Avg. Number of local customers > 30K in first 6 mos. Local marketing/PR campaigns > 50K in first year > 200K by year 3 Avg. Number of long term custom clients > 10K in first 6 mos. Value added service like optimization, auto bill > 20K in first year > 80K by year 3 Avg. number of foreign development clients > $ 3K year 1 Free subscription for some existing customer > $ 10K year 3 Targeted marketing for start-ups
  • 34. Balanced Scorecard34 Perspective Strategic Theme: Smart, Profitable Expansion Objective Measure Target Initiatives Process Fact-based Project Selection Market trends and new technology adaptation < 90 days year 1 Design & software Outsourcing < 70 days year 3 Research on existing projects Streamline Development Process Project duration, project acquisition to delivery < 365 days year 1 Standardize design/build processes < 300 days year 3 % of project delivered on schedule > 93% year 1 Web-based project management > 95% year 2
  • 35. Balanced Scorecard35 Perspective Strategic Theme: Smart, Profitable Expansion Objective Measure Target Initiatives Learning and Growth Use Business Intelligence Systems % Eligible employees trained >90% year 1 In-house system training >99% year 2 Integrated Knowledge Management Online forms/surveys < 200 year 1 Corporate digital nervous system < 100 year 2 < 5 year 3
  • 36. Strategic Intent 1. Strives to provide quality health care products, at the least cost reaching the lowest rungs of the economic class of people. 2. Strives for the protection of shareholders’ capital, ensure highest return and growth of their assets. 3. Strives for best compensation to all the employees. 4. Strives for the best cooperation of the creditors and debtors; the suppliers, utility service providers and the customers. 5. Try to understand client’s needs and to fit in with the competitive advantage. 6. Try to face customers’ real-life issues through R&D. 7. Strives for practicing good-governance in every sphere. 36
  • 37. Strategies at Different Levels37 Corporate Strategy Mission & Vision Long-Term Value Creation Business Strategies Functional Strategies R&D, Marketing, Manufacturing, HR, Finance, etc. Operating Strategies Regions, Plants, Departments within Functional Areas Board of Directors 10 member Executive Committee 4 member Management Committee 10 member Departmental Heads Source: Primary
  • 39. Value Proposition • One of the best quality drugs manufacturer in the country. • Benchmarked to the highest global regulatory standards, TGA, Australia, AGES (EU), Health Canada (Canada), ANVISA (Brazil), TFDA (Taiwan) and finally the US FDA authority. • Continually strive to provide access to safe, effective and affordable medicines. • Able to respond to the needs of physicians, patients, and health care providers, both therapeutically and economically. • Continue to expand its product portfolio; strong differentiation in specialized dosage delivery systems. • Strong research orientation in generic formulation development, which are very difficult to imitate. 39
  • 42. Industry’s Development42 80% 20% 1980 MNC Local 20% 80% 2008 MNC Local Source: Website of Ministry of Trade and Commerce
  • 43. Industry Life Cycle of Pharma Industry 43
  • 44. Drivers of Change in Pharma Industry Regulatory Influences and Government Policy Technological Change Changes in the Long-term Industry Growth Rate Manufacturing Innovation Marketing Innovation Changes in Cost and Efficiency The Internet and e-commerce Technologies Socio-cultural Changes Increasing Globalization of the Industry 44
  • 46. PESTLE Analysis46 • Political. • A troubled political history since 1971. • Political instability is blighting its prospects for economic growth. • Political situation of Bangladesh is calm and quite now. • But very recent political instability caused a great harm to pharmaceutical business.
  • 47. PESTLE Analysis47 • Economical. • Rapidly developing market-based economy. • Inflation pulled demand (GDP) growth is significantly potential for growing market. • The economy has grown at the rate of 6-7% per annum over the past few years. • Buying power of Bangladeshi people is increasing. • Health conscious buyer is increased too. • Pharmaceutical market size is around 12,000 Crore BDT.
  • 48. PESTLE Analysis48 • Social. • Unplanned urbanization and the changing lifestyle, taking of more and more fast foods and soft drinks by the urban people is the main cause of diabetes in the country. • The death rate of non-infectious diseases like diabetes or cardiac disease in Bangladesh is more than two times higher than infectious ones. • As such, the social values and practices in Bangladesh is influencing the industry product requirements.
  • 49. PESTLE Analysis49 • Technological. • Major companies are very much aggressive to introduce any technological change through strategic alliance and joint venture. • Application of new technologies in planning, process, distribution and other activities have become common in this industry.
  • 50. PESTLE Analysis50 • Legal. • DGDA is the Drug Regulatory Authority of the country. • DGDA supervises and implements all prevailing Drug Regulations in the country • Two pricing method for locally manufactured items; controlled and decontrolled category. • In controlled category, govt. fixes the MRP and in decontrolled category, company does the same. • At present, the legislation and regulation in pharmaceutical industry is favourable to boost the industry.
  • 51. PESTLE Analysis51 • Environment. • Have to handle different kinds of drugs, chemicals etc. which are very harmful for both the people, who are dealing with it, as well as for the environment, when it is exposed. • Many of the pharmaceuticals companies have world class 'Effluent Treatment Plant (ETP)'.
  • 52. Porter’s Five Forces Model 52 Source: https://saylordotorg.github.io/text_principles-of-marketing-v2.0/s05-02-components-of-the-strategic-pl.html
  • 53. Porter’s Five Forces Model53 Source: Primary
  • 54. Strategic Group Mapping54 Low Medium High Product Quality ProductLine NarrowMediumWide Square Incepta Beximco Pharma Renata Opsonin Acme SK+F Aristopharma ACI Drug International Sanofi Aventis Gaco Navana RAK Somatec Rangs
  • 55. Evaluating Resources, Capabilities and Competitiveness 55
  • 56. SWOT Analysis Strengths • Strong Brand Image and favourable corporate image • Decentralized decision-making structure. • An attractive loyal customer base. Weakness • Excessive overhead cost, and hence low profit margin. • Fragile share market images to customers. • Lack of proper integration between functional units. Opportunity • Faster market growth. • Government regulations are in favour of local manufactures. • Opportunity to enter in the biggest market like US market. Threats • Intense competition. • Highly regulated market. • Strong competitors are working on backward linkage for API production. 56
  • 57. Assessing Competencies57 • Competencies of Beximco Pharma Quality Competent HR
  • 58. Assessing Competencies58 • Competencies of Beximco Pharma 2008 2015
  • 59. Regulatory Approvals Therapeutic Goods Administration (TGA), Australia AGES, Austria; for European Union TFDA, Taiwan ANVISA, Brazil INVIMA, Colombia MCC, South Africa
  • 60. Assessing Competencies60 • Core Competencies of Beximco Pharma State of the Art Manufacturing Capability
  • 61. Assessing Competencies61 • Distinctive Competencies of Beximco Pharma Strong R&D Capabilities
  • 64. Key Success Factors (KSFs) Manufacturing Related KSFs • Zero defect manufacturing. • High capacity utilization. • Availability of skilled labour. • Low cost product design and engineering. Marketing Related KSFs • Breadth of product line and product selection. • In time filling of customer orders. • Attractive style and packaging design. Skills Related KSFs • Expertise in R&D and technology. • Ability to develop innovative products. • Quality control know-how. Technology Related KSFs • Technical capability to make innovative improvements in production process. • Product innovation capability. • Research expertise in introducing new products. 64
  • 65. Generic Competitive Strategy of Beximco Pharma 65
  • 66. Broad Differentiation Strategy R&D capabilities with successful development of difficult-to-make formulations Created strong differentiation by offering technology- driven, specialized drug delivery systems Focusing on innovation, differentiation and diversification of products for a broad cross section of customer segments including the global customers 66 • Metered dose inhalers • Dry powder inhalers • Prefilled syringes • Lyophilized injectable etc. • Multi-layer tablet • Sustained release formulation • Dispersible tablet etc.
  • 68. Offensive Strategy Key to the offensive strategy - Innovation and Differentiation. Continuously developing its diversified manufacturing capabilities. In 2014, Beximco Pharma expanded its portfolio with 24 new generics in a total of 28 presentations across 09 different therapeutic categories; 03 products were launched for the first time in Bangladesh. 68
  • 69. Red Ocean Strategy • Difficult for a technology driven pharmaceutical company to find or create a new uncontested market space. • BPL competes in existing market place & beats the competition. • Exploits existing demand, makes the value cost trade-off and align its activities with its strategic choice of broad differentiations. • The domestic market is highly concentrated and competitive. • BPL continuously thrives its efforts to increase its existing market share competing with Square and Incepta. • Offensively exploring the international market and trying to enter in the regulated market. 69
  • 70. Merger of Beximco Pharma and Beximco Infusions (2005) • Went for an 'amalgamation scheme' of merger on June 2, 2005. • Strategy to grow and lead in pharmaceuticals export at a competitive price. • Benefits: • Improved organisational capability • Combination of people having diverse skills, talent and vast experience. • Rationalised overhead costs, use of raw-material and HR ensuring ‘value for money’. • Reducing cost and improving efficiency. 70
  • 71. Strategic Alliance and Partnership71 Strategic Alliances with global MNCs
  • 72. Textiles Others Partnerships with Leading International Corporations
  • 73. Outsourcing Value Chain Activities I&I Service is the distribution partner of BPL, which help achieving excellence in product distribution to customers Outsource the printing materials, their design, technical training to the technical person (SMSRC, IMS, Chlorofil), Software to run the business It does not create hollow out effect of company It does not lose its touch to the value chin activities that are critical for long term sustainability 73
  • 74. Integrating the Backward & Forward Linkage Backward Linkage Manufacturing API like amoxicillin, paracetamol, cloxacillin, flucloxacillin to meet own demand and also supplying to other local manufactures and MNCs. Forward Linkage Possessing Suktara Printers and Packaging Unit that is providing the secondary packaging materials like packaging carton, leaflet, brochures, annual reports etc. 74
  • 75. Strategies for Competing in International Market 75
  • 76. Export Strategies • Aggressively pursuing the export operation as a strategy to compete in international market. • A global footprint in 45 countries. • Growing presence in different countries across Africa, Latin America, Asia, Middle East and Central America. • Received National Export Trophy "Gold" for a record 4 times for its outstanding achievement in export. 76
  • 77. Asia Singapore Hong Kong Cambodia Nepal Sri Lanka Philippine Thailand Bhutan Macau Malaysia Afghanistan Azerbaijan Vietnam Current Export Markets Middle East Yemen Jordan Africa Kenya Ghana Somalia Nigeria Benin Liberia South Africa Ethiopia Mauritius Mozambique Sudan Burundi Uganda Lesotho Caribbean Jamaica Netherlands Antilles Pacific Island Fiji Papua New Guinea Solomon Island Kiribati Tonga Samoa Latin & Central America Chile Belize El Salvador Colombia Surinam Nicaragua Europe Austria Germany Turkey
  • 78. Latin America & Central America Brazil3 Mexico Venezuela Paraguay Ecuador Uruguay Bolivia Cuba Peru Costa Rica Honduras Panama Dominican Republic Guatemala Africa Tanzania Cameroon Botswana Togo Namibia Swaziland Madagascar DR Congo Gabon Mauritania Zimbabwe Tchad Sierra Leone Asia Indonesia Taiwan MENA Saudi Arabia2 Kuwait2 Bahrain2 Oman2 Qatar2 UAE2 Iraq Algeria Libya Tunisia Australia1 & New Zealand1 USA4 1Received GMP clearance and product approvals from TGA Australia 4Subject to approval by USFDA2Received GMP approval from GCC 3 Received GMP approval from ANVISA, Brazil Expanding Global Footprint Across all the Continents Canada North America Europe
  • 79. Licensing Strategies • Beximco Pharma was incorporated in the late 1970s, and began as a distributor, importing products from global MNCs like Bayer, Germany and Upjohn Inc., USA and selling them in the local market, which were later manufactured and distributed under licensing arrangements. 79
  • 82. Product Diversification82 Product Categories Regular (14) Specialized (8) Newly Developed (13)
  • 83. Specialized Products MDI DPI Prefilled Syringes IV Infusion Lyophilized Injectables Ophthalmics
  • 84. Related Diversification • Beximco Group is the largest private sector industrial conglomerate in Bangladesh. • Beximco comprises of 05 publicly listed companies and 16 private companies. • The Group turnover in 2008 was BDT 18.5 billion. • Beximco employs 48,000 people and has 230,000 shareholders. • Beximco’s shares constitute 4.34% of the market capitalization of DSE. • No related diversification; diverse unrelated diversification. 84
  • 85. TEXTILES CERAMICSPHARMACEUTICALS JUTE MEDIA HOSPITALITY 25 Companies, 4 are publicly listed 48,000 employees, 250,000 shareholders Unrelated Diversification
  • 87. CSR, Ethical Practices and Corporate Culture of BPL 87
  • 88. Corporate Social Responsibility (CSR)88 Responsibility to the Community at Large Responsibility to the Environment Responsibility to the Stakeholders
  • 89. Responsibility to the Community at Large • Mobile Alliance for Maternal Action (MAMA). • Extending Support to Jaago Foundation. • Support to Rana Plaza Victims. • Free Medicines for UN Health Camps. • Sponsoring to Promote Maternal and New-born Health. • Sponsoring National Campaign on Healthy Living. 89 Support to Jaago Foundation MAMA Campaign
  • 90. Responsibility to the Community at Large • Support for Developing Low Cost Mechanical Prosthetic Hand. • Sponsoring ‘Spreading Care’. • Universal Children’s Day, 2014. • World Osteoporosis Day, 2014. • World Heart Day, 2014. 90 Universal Children’s Day, 2014
  • 91. Responsibility to the Environment • World Environment Day, 2014. • Path to Protecting the Ozone Layer. • CFC gases used in inhalers have ozone-depleting properties. • In 2006, BPL were the first Bangladeshi company to proactively make the shift to HFA inhalers. • Beximco Pharma and Bangladesh Lung Foundation, designed an effective awareness raising strategy for CFC-free MDIs for asthma and COPD patients. 91
  • 92. Ethical Practices in Beximco Pharma92 Promote ethical business practice Ensure equal opportunities Provide a safe and healthy work environment Value diversity in the workplace Do business ethically
  • 93. We Don’t Practice in Beximco Pharma93 Faulty oversight that implicitly allows the overzealous pursuit of personal gain, wealth, and other self-interests Heavy pressures on company managers to meet or beat performance targets A company culture that puts profitability and "good" business performance ahead of ethical behaviour
  • 94. A Strong and Healthy-Culture Company The Managing Director (MD), established consistent and sensible values, principles, and practices A sincere, long-standing company commitment to operating the business according to these established traditions A genuine concern for the well-being of the organization’s three biggest constituencies - customers, employees, and shareholders 94
  • 95. Building of Beximco Pharma; An Organization Capable of Good Strategy Execution 95
  • 96. 10 Basic Tasks of Strategy Execution Process 1 • Staffing the organization with the right people for executing the strategy 2 • Build the organizational capabilities required for successful strategy execution 3 • Establish a strategy supportive organizational structure 4 • Allocate sufficient resources to the strategy execution effort 5 • Institute policies and procedures that facilitate strategy execution 96
  • 97. 10 Basic Tasks of Strategy Execution Process 6 • Adopt best practices and business processes that drive continuous improvement 7 • Install information and operating systems that support strategy execution activities 8 • Tie rewards and incentives directly to the achievement of strategic and financial targets 9 • Instill a corporate culture that promotes good strategy execution 10 • Exercise strong leadership to propel strategy execution forward 97
  • 98. Recommendations 1. A top level, highly empowered “Strategic Value Chain Optimization Team” may be formed in Beximco Pharma, in order to coordination the entire value chain activities of the company to enhance cross-functional coordination in order to attain maximum supply chain surplus. 2. Measures may be taken to form “Joint Venture” with foreign leading pharmaceuticals companies and develop Active Pharmaceuticals Ingredients (APIs) manufacturing capability internally; thereby to improve the backward integration, in order to reduce absolute dependency on input suppliers and external environment. 3. The company may strengthen their focus in “Differentiated Promotional Approach” by providing medical representatives with more professional knowledge based training and communication materials (beyond company’s traditional sales aids) to develop and increase the hoard of MR knowledge of Beximco Pharma. 98
  • 100. 100