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1. BANGABANDHU SHEKH MUJIBUR
RAHMAN SCIENCE & TECHNOLOGY
UNIVERSITY GOPALGANJ-8100.
ASSIGNMENT ON
Short Note & Case Study
Course Title: International Business Management
Course Code: MGT 633
Submitted to:
Zerin Tasnim
Finance & Banking Department
BSMRSTU,Gopalganj-8100
Submitted by:
Khan Mizanur Rahman
ID No :20199999001
3rd semester -EMBA(8th Batch)
Faculty of Business Studies
BSMRSTU, Gopalgonj -8100

2. 1.Saturated Market:
Market saturation is a scenario where the market growth trajectory of a given product stagnates.
It essentially means that the supply of the product becomes much higher than the demand for the
same.
Market saturation is also referred to as the point of a product life cycle where the good or service
is being made available to consumers to such a large extent that any new product idea will not be
accepted in said market. From such point onwards, one company cannot gain new market share
(in the same market, for the same product) without eroding another company’s market share.
At the time of a company’s inception, its rate of revenue growth trends upward. Corporations can
spend two-three decades in the growth phase. However, the upward trend inevitably ends, and
the rate of revenue growth starts following a downward trajectory.
Over the lifetime of an industry, the combined volume of all companies in a market will reach a
level where all possible consumers of a certain product are being serviced. Essentially, a natural
limit is established when a universe of regular users is exploited to the maximum by the industry.
Even population growth stagnates over time as countries develop and modernize towards lower
fertility rates.
2.Economy of scale:
Economies of scale are cost advantages reaped by companies when production becomes
efficient. Companies can achieve economies of scale by increasing production and lowering
costs. This happens because costs are spread over a larger number of goods. Costs can be both
fixed and variable.
The size of the business generally matters when it comes to economies of scale. The larger the
business, the more the cost savings.
Economies of scale can be both internal and external. Internal economies of scale are based on
management decisions, while external ones have to do with outside factors.
3.Six Sigma:
Six Sigma is a quality-control methodology developed in 1986 by Motorola, Inc. The method
uses a data-driven review to limit mistakes or defects in a corporate or business process. Six
Sigma emphasizes cycle-time improvement while at the same time reducing manufacturing
defects to a level of no more than 3.4 occurrences per million units or events. In other words, the
system is a method to work faster with fewer mistakes.
Six Sigma points to the fact that, mathematically, it would take a six-standard-deviation event
from the mean for an error to happen. Because only 3.4 out of a million randomly (and normally)
distributed, events along a bell curve would fall outside of six-standard-deviations (where sigma
stands in for "standard deviation").

3. Key Takeaways
 Six Sigma is a quality-control methodology developed in 1986 by Motorola, Inc.
 It was originally developed as a management method to work faster with fewer mistakes.
 It has now become an industry standard with certifications offered to practitioners.
In recent years, Six Sigma has evolved into a more general business-management philosophy,
focused on meeting customer requirements, improving customer retention, and improving and
sustaining business products and services. Six Sigma applies to all industries. Many vendors,
including Motorola itself, offer Six Sigma training with the special certifications carrying the
names of yellow belt, green belt, and black belt.
4.PESTEL Analysis:
A PESTEL analysis or more recently named PESTELE is a framework or tool used by marketers
to analyse and monitor the macro-environmental (external marketing environment) factors that
have an impact on an organisation. The result of which is used to identify threats and weaknesses
which are used in a SWOT analysis.
PESTEL stands for:
 P – Political
 E – Economic
 S – Social
 T – Technological
 E – Environmental
 L – Legal
 E - Ethical (NEW)
Lets look at each of these macro-environmental factors in turn.

4. All the external environmental factors (PESTEL factors)
Political Factors
These are all about how and to what degree a government intervenes in the economy. This can
include – government policy, political stability or instability in overseas markets, foreign trade
policy, tax policy, labour law, environmental law, trade restrictions and so on.
It is clear from the list above that political factors often have an impact on organisations and how
they do business. Organisations need to be able to respond to the current and anticipated future
legislation, and adjust their marketing policy accordingly.
Economic Factors
Economic factors have a significant impact on how an organisation does business and also how
profitable they are. Factors include – economic growth, interest rates, exchange rates, inflation,
disposable income of consumers and businesses and so on.
These factors can be further broken down into macro-economical and micro-economical factors.
Macro-economical factors deal with the management of demand in any given economy.
Governments use interest rate control, taxation policy and government expenditure as their main
mechanisms they use for this.
Micro-economic factors are all about the way people spend their incomes. This has a large
impact on B2C organisations in particular.
Social Factors
Also known as socio-cultural factors, are the areas that involve the shared belief and attitudes of
the population. These factors include – population growth, age distribution, health
consciousness, career attitudes and so on. These factors are of particular interest as they have a
direct effect on how marketers understand customers and what drives them.
Technological Factors
We all know how fast the technological landscape changes and how this impacts the way we
market our products. Technological factors affect marketing and the management thereof in three
distinct ways:
 New ways of producing goods and services
 New ways of distributing goods and services
 New ways of communicating with target markets

5. Environmental Factors
These factors have only really come to the forefront in the last fifteen years or so. They have
become important due to the increasing scarcity of raw materials, pollution targets, doing
business as an ethical and sustainable company, carbon footprint targets set by governments (this
is a good example where one factor could be classed as political and environmental at the same
time). These are just some of the issues marketers are facing within this factor. More and more
consumers are demanding that the products they buy are sourced ethically, and if possible from a
sustainable source.
Legal Factors
Legal factors include - health and safety, equal opportunities, advertising standards, consumer
rights and laws, product labelling and product safety. It is clear that companies need to know
what is and what is not legal in order to trade successfully. If an organisation trades globally this
becomes a very tricky area to get right as each country has its own set of rules and regulations.
Ethical Factors
The most recent addition to PESTEL is the extra E - making it PESTELE or STEEPLE. This
stands for ethical, and includes ethical principles and moral or ethical problems that can arise in a
business. It considers things such as fair trade, slavery acts and child labour, as well as corporate
social responsibility (CSR), where a business contributes to local or societal goals such as
volunteering or taking part in philanthropic, activist, or charitable activities.
5.SWOT Analysis:
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.
Strengths and weaknesses are internal to your company—things that you have some control over
and can change. Examples include who is on your team, your patents and intellectual property,
and your location.
Opportunities and threats are external—things that are going on outside your company, in the
larger market. You can take advantage of opportunities and protect against threats, but you can’t
change them. Examples include competitors, prices of raw materials, and customer shopping
trends.
A SWOT analysis organizes your top strengths, weaknesses, opportunities, and threats into an
organized list and is usually presented in a simple two-by-two grid. Go ahead and download our
free template if you just want to dive right in and get started.

7. Daimler Chrysler Merger Failure:
DaimlerBenz AG of Stuttgart, Germany, and the Chrysler Corporation of Auburn Hills,
Michigan, surprised the business world at a press conference in London on May 7, 1998, when
they announced their “merger of equals made in heaven.” This major cross-border transaction,
with an equity value of $36 billion, was the largest merger of its kind to date. Robert Eaton and
Jürgen E. Schrempp, co-chairmen of DCX, announced their expectation that this deal would
be “not only the best strategic merger or the best prepared merger, but also the best executed
merger.”
Daimler-Benz Chief Executive Jürgen Schrempp had concluded as early as 1996 that his
company’s automotive operations needed a partner to compete in the increasingly globalized
marketplace. Chrysler’s Eaton was drawing the same conclusion in 1997 based on two factors
emerging around the same time: the Asian economic crisis, which was cutting into demand, and
worldwide excess auto manufacturing capacity, which was looming and would inevitably lead to
industry consolidation. With annual global overcapacity as high as 18.2 million vehicles
predicted for the early 21st century, it became clearer that Daimler-Benz and Chrysler could
survive as merely regional players if they continued to go it alone.
After several months of negotiations, Daimler-Benz and Chrysler reached a merger agreement in
May 1998 to create DaimlerChrysler AG in a $37 billion deal. The deal was consummated in
November 1998, forming an auto behemoth with total revenues of $130 billion, factories in 34
countries on four continents, and combined annual unit sales of 4.4 million cars and trucks. The
two companies fit well together geographically, Daimler strong in Europe and Chrysler in North
America, and in terms of product lines, with Daimler’s luxurious and high-quality passenger cars
and Chrysler’s line of low-production-cost trucks, minivans, and sport utility vehicles. Although
this was ostensibly a merger of equals–the company set up co-headquarters in Stuttgart and
Auburn Hills, naming Eaton and Schrempp co-chairmen–it soon became clear that the Germans
were taking over the Americans. DaimlerChrysler was set up as a German firm for tax and
accounting purposes, and the early 2000 departures of Thomas Stallkamp, the initial head of
DaimlerChrysler’s U.S. operations, and Eaton (who was originally slated to remain until as late
as November 2001) left Schrempp in clear command of the company.
During 1999 DaimlerChrysler concentrated on squeezing out $1.4 billion in annual cost savings
from the integration of procurement and other functional departments. The company organized
its automotive businesses into three divisions: Mercedes-Benz Passenger Cars/smart, the
Chrysler Group, and Commercial Vehicles. In November 1999 DaimlerChrysler announced that
it would begin phasing out the aging Plymouth brand. The Debis services division was merged
with Chrysler’s services arm to form DaimlerChrysler Services, while DASA was renamed
DaimlerChrysler Aerospace. Late in 1999 the company reached an agreement to merge
DaimlerChrysler Aerospace with two other European aerospace firms, the French Aerospatiale
Matra and the Spanish CASA, to form the European Aeronautic Defence and Space Company
(EADS). DaimlerChrysler would hold a 30 percent stake in EADS, which would be the largest
aerospace firm in Europe and the third largest in the world.

8. In early 2000, DaimlerChrysler set the lofty goal of becoming the number one automaker in the
world within three years. The company’s most pressing needs were to bolster its presence in
Asia, where less than 4 percent of the company’s overall revenue was generated, and to gain a
larger share of the small car market in Europe. Filling both of these bills was DaimlerChrysler’s
purchase of a 34 percent stake in Mitsubishi Motors Corporation for $2 billion, a deal announced
in late March. The company later increased its interest in Mitsubishi when it purchased a 3.3
percent stake from Volvo. In another key early 2000 development, DaimlerChrysler agreed to
join with GM and Ford to create an Internet-based global business-to-business supplier exchange
named Covisint.
DaimlerChrysler’s lofty goal would remain unrealized however, as the company faced a host of
challenges. The Chrysler Group division was plagued by high costs and weak sales which
ultimately cost James P. Holden his CEO position. Buoyed by its strong sales in the mid-1990s,
Chrysler had spent heavily on product development in the late 1990s and bolstered its work force
while costs were skyrocketing. By the second half of 2000 Chrysler lost $1.8 billion while
spending over $5 billion. Dieter Zetsche was tapped to reorganize the faltering U.S. division. He
launched a major restructuring effort in February 2001 that included cutting $2 billion in costs,
making additional cuts in supplier costs, slashing 20 percent of its workforce, and making
changes to Chrysler’s product line that included the elimination of the Jeep Cherokee (the Grand
Cherokee remained in the product line) and the launch of the Jeep Liberty.
At the same time, global economies began to weaken in the aftermath of the September 11, 2001,
terrorist attacks. To entice customers, car makers began offering buyer incentives that began to
wreak havoc on profits. Industry analysts began to speculate that the 1998 merger may have been
a mistake–Schrempp’s proclamation that the deal would create the most profitable car maker in
world had indeed fallen short. In fact, the company’s market capitalization was $38 billion in
September 2003. Before the union Daimler’s market cap had been $47 billion.
Meanwhile, the company’s Mercedes division plugged along launching the E-Class sedan, the
SLK roadster, and the Maybach luxury vehicle. In 2003, Chrysler launched the Crossfire, a
roadster developed with Mercedes components, and the Pacifica, a SUV/minivan. It also began
to heavily market its powerful Hemi engine, which could be purchased for the Dodge Ram
pickup and its passenger cars. In early 2004, Chrysler’s 300C sedan and the Dodge Magnum
sports wagon made their debut.
Competition remained fierce in the auto industry prompting DaimlerChrysler to make several
changes in its strategy. In December 2003, the company sold its MTU Aero Engines business.
That year the firm acquired a 43 percent stake in Mitsubishi Fuso Truck and Bus Corporation
hoping to cash in on Asia’s growing truck market. Perhaps its most drastic move, however, came
in April 2004 when DaimlerChrysler’s supervisory board voted against providing funds to
bailout Mitsubishi Motors, which by now was struggling under losses and a huge debt load.
Mitsubishi played a crucial role in Schrempp’s Asian expansion strategy and it developed the
platforms for Chrysler’s compact and midsize cars. The failure to provide funds put a strain on
the business relationship between the two and threatened to result in huge problems for Chrysler,
which had cut back on engineering capacity as it relied on Mitsubishi to develop its small and
mid-sized cars.

9. At the same time, DaimlerChrysler moved ahead in the Chinese market–without Mitsubishi and
without another partner, Hyundai. To bolster is presence in the region, DaimlerChrysler
restructured its joint venture with Beijing Automotive Industry Holding Co. Ltd. and set plans in
motion to tie up with Chinese Fujian Motor Industry Group and the Taiwanese China Motor
Corporation to launch several cars in the Chinese market by 2005. Rumors circulated that
DaimlerChrysler’s relationship with Hyundai was faltering as a result, and in 2004 the company
signaled that it would sell its interest in the South Korean automaker.
By 2004, Schrempp’s DaimlerChrysler was a far cry from what the 1998 merger promised to
deliver. The company’s financial record was lackluster, bogged down by Chrysler’s $637 million
loss in 2003. DaimlerChrysler remained the world’s number three car maker, leaving the 2000
goal–to become the number one auto company in the world–unfulfilled. Whether the merger
would provide the hoped-for results remained to be seen.
Foreign pharmaceutical companies(Sanofi ,GSK)failure in
Bangladesh:
 GSK failure in Bangladesh:
GlaxoSmithKline, otherwise known as GSK, had officially closed their business in Bangladesh
by the end of 2018. Thus is the end of such an international company matching shoulders with
ICI, Pfizer, Nuvista, SK+F. The same year, the Anglo-Dutch company; Unilever Overseas BV
announced that it would buy a 72% stake in GSK’s remaining Health Food and Drinks (HFD)
business.
History:
The story of the world famous pharmaceutical company GlaxoSmithKline is more than 300
years old. With a history of three centuries over three continents, GSK is still a glimmering name
in the pharmaceutical industry. Although GSK formed through mergers and acquisitions with
different companies at different times in the last century, the company never deviated from its
original principles.
It was to provide quality medicine based on their own research. GSK has more than 160 factories
in more than 41 countries around the world. GSK drugs are sold in more than 140 medicine
markets worldwide. According to their website, GSK provides more than 30 doses of vaccine per
second, 1100 prescriptions of GSK medicines are written every minute, and every hour GSK
spends more than $450,000 to create new products.
GSK Bangladesh:
GSK started its journey in Bangladesh in 1949. After carrying on business through import for
more than 10 years, The company established its own pharmaceutical manufacturing factory at
Fauzdarhat in Chittagong in 1983. The company was listed on the Bangladesh Stock Exchange
in 1986. Following the acquisition trend of the major group companies, Glaxo to Glaxo

10. Wellcome Bangladesh was established in 1995 and GlaxoSmithKline Bangladesh was
established in Bangladesh in 2000.
Business Segment:
GSK originally had two business lines – Pharma and Consumer Healthcare. From the beginning,
GSK has done business in many segments or therapeutic areas in the Pharmaceutical industry.
GSK’s goal was to gain customer’s trust by selling research-based drugs in many segments while
maintaining premium quality. GSK used to sell 57 brands of medicine in 13 therapeutic areas
including vaccines. GSK’s portfolio in Consumer Healthcare includes brands like Horlicks,
Horlicks Growth Plus, Sensodyne, Boost, Maltova, Glaxose D.
Despite struggling in the pharmaceutical industry, the company was operating business
profitably in the consumer healthcare segment. Before the closure of the pharma business in
2018, GSK earned Taka 214 crore from this segment at the end of 2017, which was Taka 221
crore in 2015. On the other hand, the income from consumer healthcare business in 2017 was
Taka 465 crore which was Taka 449 crore in 2015. In 2017, the total profit of GSK was 67 crore,
which was 83 crore in 2016. Although the profits in consumer healthcare increased every year,
the entire business was suffering due to the losses of their pharma businesses.
Reasons Behind the Shut Down:
In the post-independence period, there were a lot of foreign pharma companies in Bangladesh
and they did business fruitfully. A law enacted in 1982 to boost the domestic pharma industry
imposed a number of restrictions on foreign companies importing raw materials and
manufactured medicines. Since then, foreign pharma companies have been doing business within
these restrictions. However, the main reason for the closure of GSK’s pharma business was its
inability to adapt to the ecosystem of the domestic pharma industry. However, the main reason
for the closure of GSK’s pharma business was its inability to adapt to the ecosystem of the
domestic pharma industry.
A not so special feature of the pharmaceutical sector in Bangladesh is that there is no research-
based or R&D based medicine. In other words, the pharma market in Bangladesh is a branded
generic market. The essence of the generic medicine market is that most of the medicines here
are generic i.e. a copy of a previously branded medicine; its ingredients, methods, methods of
use, effects, side effects, etc. are perfectly similar to the previously branded medicine. The
generic drug is allowed to be marketed only after the patent of the branded drug (from which it is
copied) expires. Foreign pharma companies tend to make R&D based drugs; GSK was no
exception. The cost of making R&D based drugs is naturally higher than the cost of making
generic drugs. GSKO has not stopped production of R&D based drugs in line with its parent
company’s policy. As a result, there was no growth in revenue and the pharma segment was in
loss. Due to restrictions, GSK was losing business in import-dependent medicines, including two
of its major brands, Evohaler and Energix-B. Despite their relatively good position in the vaccine
segment, GSK was similarly losing business in import-dependent vaccines.

11. Demand for GSK’s R&D-dependent drugs has been declining day by day due to the abundance
and availability of generic drugs. Although some innovative medicines were introduced in the
respiratory and oncology segments, their demand was not so high. Moreover, GSK was losing
some business to less expensive drugs imported from China and India. Not to mention the fact
that they couldn’t compete with domestic companies. GSK was losing both market share and
market rich due to aggressive marketing and distribution of domestic companies. GSK’s share in
the Bangladesh Pharmaceuticals market was less than 2%. Due to the inability to increase market
reach and supply of medicines as per the demand, there was a huge gap in GSK’s product
portfolio with the demand of the customers. Failure to maintain even a low market share, failure
to achieve significant market reach, inability to compete with domestic companies and
restrictions on imports of raw materials and manufactured medicines- due to all this, the
company has been making losses in the pharma business since 2013. Finally, in 2018, the
company was forced to close its pharma business by closing its 56-year-old factory in
Fauzdarhat. From GSK’s 13 Therapeutic Areas, only vaccines continue to be supplied because
UNICEF buys vaccines from several other companies, including GSK and Sanofi.
This is not the first time that a foreign company has left the Bangladesh pharmaceutical sector. In
1982, the UK-based pharma company ICI plc established its subsidiary company in Bangladesh
called ICI Bangladesh. In 1992, ICI (plc.) divides their shares to local shareholders; at the same
time the name of the company was changed to ACI Ltd. Pfizer (Bangladesh), a world famous
pharma company, started its journey in Bangladesh in 1973. The company has the same
consequences as ICI; Renata Ltd. was the new name. Nuvista, a 2006 subsidiary of the
Netherlands-based Organon International (Formerly known as Organon Bangladesh), similarly
left Bangladesh by diverting shares. Another foreign company, Sanofi, also announced its
departure from Bangladesh last year.
GSK’s profitability has improved as loss-making and high-cost pharma businesses have closed.
In 2019, the company’s gross profit margin was 55%, up from 35% -45% in previous years. The
company made a loss of Tk 64 crore in 2016 due to various transition costs, including the closure
of the pharma business, but in 2019 the company made a profit of around Tk 99 crore.

12. Sanofi failure in Bangladesh:
Sanofi, the French pharmaceuticals giant, is planning to exit Bangladesh after 60 years in the
country by offloading stakes, in a massive blow to the government at a time when it is earnestly
looking to attract foreign direct investment.
In a letter to the Sanofi board recently, Muin Uddin Mazumder, managing director of Sanofi
Bangladesh, and Charles Billard, chief financial officer of Sanofi India and South Asia, informed
their intent to sell their stakes in Bangladesh for strategic reasons.Billard was asked whether it
was possible to change their decision but he answered in the negative.
“We will come up with the matter officially soon if there is any development in this regard,”
Mazumder told The Daily Star by phone.
Md Abdul Halim, secretary of the industries ministry, said the issue of proposed winding up of
Sanofi Bangladesh, a company under the Bangladesh Chemical Industries Corporation (BCIC),
will be discussed in a meeting soon.“Sanofi is a profitable company. The ministry was not
informed of any development in this connection yet,” Halim said, adding that the ministry will
try to find out why Sanofi is leaving Bangladesh.An executive of a pharmaceuticals
manufacturing company who is familiar with the issue said Sanofi has been failing to compete
with domestic companies as its manufacturing capacity has not expanded for many years.
“Sanofi has been selling the same medicines for many years. And over the last many years local
companies have become capable of making those medicines at lower prices. So, Sanofi has lost
its market share.”Besides, Sanofi does not produce any generic drug.Bangladesh’s top 10
pharmaceuticals companies each have 2 percent market share, whereas Sanofi does not even
have less than 2 percent share despite being a global player, the executive said.
“We want as many foreign companies as possible. We do not want any company leaving
Bangladesh,” said Ahsan H Mansur, executive director of the Policy Research Institute.“We
need foreign direct investment. Obviously, it is yet another blow to our initiative of attracting
foreign direct investment.”In its world-class plant located in Tongi, Sanofi products are produced
maintaining good manufacturing practice standard and storage procedure.Sensitive and high-tech
products like vaccines, insulin and chemotherapeutic drugs are imported directly from France,
the US, the UK and Germany.
Sanofi Bangladesh is a public limited company, where the government of Bangladesh owns
45.36 percent share. Sanofi has been marketing global brands like Lantus, Apidra, Taxotere,
Eloxatin, Clexane, Amaryl, Insuman, Epilim along with other growth-driving brands, including
Sefrad, Sefurox, Kuracef, Curazith, Fimoxyl, Flagyl, Profenid, Xerosec and Sandom in
Bangladesh, according to the Metropolitan Chamber of Commerce and Industry.
In July last year, GlaxoSmithKline (GSK), another multinational research-based pharmaceutical
and healthcare companies, closed its medicine manufacturing unit in Bangladesh after over six
decades of operation.