Beximco Pharmaceuticals Ltd

BEXIMCO PHARMACEUTICAL connection LTD Here is the management report, which you asked me to prep atomic number 18.. In the process of formulating this project report I selected a PHARMACEUTICAL comp each,BEXIMCO PHARMACEUTICALS which gains gentleman human body live saving medicines in our country. I gained knowledge about managing the product & the structure from online articles and reports.along with it, I employed the management concepts cooked throughout the course to construct an effective management project to read the mentioned firms entire management strategies in Bangladesh. This plan is formulated with the idea of managing the all managerial activities of a large firm like BEXIMCO PHARMACEUTICALS LIMITED. A limited note of acknowledgement is to our course teacher Mr Shahid Hossain for letting me do this project on Beximco pharmaceutics .He was genuinely generous and productive toward mewhile conducting the course and he was the someone who has guided methroughout pr eparing the report. The way he taught was really interesting and effective. All of these activities bedevil been conducted within a very short time and we think it became possible only forhis dynamism. Taking the course with him was a great muckle for me. Finally, I would like to thank myr family and friends whose support I needed to complete my project. TABLE OF CONTENTSCONTENTS PAGE NO Mission Statement 1 executive Summary 2-3 Organogram 4 Organizational Chart 5 post Analysis 6-16 Swot Analysis 17-20 Matrix of Swot Analysis 21 Objectives 22 Management Issues 23 Conclusion 24 Appendix 25 BIBLIOGRAPHY 1. Company Website http//www. beximcopharmaceutics. com 2. Books Kotler Philip (2010), Principles of Marketing (12th edition). Prentice Hall, New Jersey, USA. * Kritner Robert (2009). Management (11th edition). Houghton Mifflin Harcount issue Company. (Boston New York). * H. Donelly (2008), Fundamental Management (10th edition). Mcgraw, Hill Irwin * William J. Nickels (2009) U nderstanding Business (9th edition) Mcgraw, Hill Irwin. 3. Newspaper * The Ittefaq * The Independent. * Finanacial Express 4. individualised Interview Mr. Hashem Awal Chowdhury, Senior Executive Officer,Planning 5. ANNUAL REPORT OF BPL 2011 Ltd, BPL Annual Report 2011 6. Advertisement Shantinagar hoarding DOHS, Mohakhali billboard 7. Magazines Indian Times Magazine MISSION STATEMENTBeximco pharmaceutics Ltd (BPL) is a leading manufacturer of pharmaceutical formulations and Active Pharmaceutical Ingredients (APIs) in Bangladesh. With decades of contract manufacturing arrest with planetary MNCs, skilled manpower and proven formulation capabilities, the keep company has been twist a visible and growing presence across the continents offering high quality generics at the more than or less affordable cost. The company is committed to enhancing human health and well- macrocosm by providing contemporary and affordable medicines, construct in full complaisance with global standa rds. The company continually strive to improve their core capabilities modify research and spring upment capabilities, creating partnerships and building presence across the globe.To summariseress the unmet medical needs of patients and to deliver not bad(p) results for our sh areholders. Our vision is to be one of the most trusted, admired and successful pharmaceutical companies in the region with a focus on. EXECUTIVE SUMMARY Beximco Pharmaceuticals Ltd. belongs to Beximco Group, the largest private sector business conglomerate in Bangladesh. It was in corporeald in the late 70s, Beximco Pharma 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 make and distributed under licensing arrangements. The Company introduced its rush along branded generic products in 1983.Since then, the trip continued, and today, Beximco Pharma is a leading manufacturer and exporter of pharm aceuticals in the country, winning National Export Trophy (Gold), a record four times. Beximco Pharmas manufacturing facilities lay down been accredited by major Global regulatory bodies and it has grow its geographic footprint across four continents. Having a broad portfolio of more than 500 products and a dedicated team of around 2,700 employees, Beximco Pharma is committed to provide access to medicines which are affordable and manufactured in strict compliance with global standards. During the year 2011 we have successfully registered 48 products in afield markets.In 2011, we introduced 40 natural generics in 55 presentations, five of which were launched for the first time in Bangladesh. The 55 impertinently products include the sectors attached be low-spirited * Analgesic * Anti-effective * Cardiovascular * CNS * Endocrine & Met Disorders * GI System * IV Fluid * Muscular Skeletal * Ophthalmic * Respiratory * Skin * Vitamins and Minerals * Others We maintained our record of uninterrupted growth, achieving a 21. 6% increase in gross gross revenue to Tk. 7,890. 24 one thousand thousand (2010 Tk. 6,490. 85 million). In 2011 we signifi minttly deepen our prescription share in gross revenue of the formulation products and maintained, as expected, growth in all our rudimentary therapeutic segments. Sales of our Active Pharmaceutical Ingredients (APIs) besides recorded a significant 37. % growth to irritate Tk. 486. 91 million (2010 Tk. 355. 24 million). However, its uphold on the overall gain groundability of the company is currently low because of a low gross beach predominantly due to the high cost of import of median(a) materials to manufacture these APIs. In 2011 export sales grew by 18. 1% to Tk. 390. 32 million (2010 Tk. 330. 54 million). Along with sales growth, Beximco Pharma in like manner achieved a marked growth in profit in 2011. Our pre-tax profit increased 23. 2% to Tk. 1,677. 85 million (2010 Tk. 1,361. 53 million). Gross margin as pctage of sales however, slightly declined to 48% as against 48. 9% for the prior period.As the company continue to evolve into a stronger company, their schema for growth is to build a strong and diverse product portfolio to expand our geographic reach and to develop and leverage our generic do drugs capabilities. All these depart have them to build a future for our employees, to bring about value for shareholders and to focus on the reason for being in this business to enhance the health and eudaimonia of people. They are confident that their Company will continue to deliver strong financial results and achieve carry on growth in the coming days. Organogram Organisational Chart * Members name * Designation BOARD of DIRECTORS A S F Rahman Chairman Salman F Rahman Vice Chairman Nazmul Hassan MP MD Iqbal Ahmed managing director Md. Abul Qasem film director Osman Kaiser Chowdhury Director A B Siddiqur Rahman Director Ad. Ahsanul Karim Director Dr. Abdul Alam Khan Indepen dent Director Management delegacy Nazmul Hassan MP MD Osman Kaiser Chowdhury Director Rabbur Reza Chief direct officer Ali Newaz Chief financial officer Afsar uddin Ahmed Director, commercial-grade Lutfur Rahman Director, manufacturing Zakaria Seraj Chowdhury Director, international marketing A R M Zahidur Rahman Executive Director, production Shamim Momtaz Executive Director, manufacturing Md.Tahir Siddiqui Executive Director, case Jamal Ahmed Chowdhury Executive Director, Finance and Accounting Executive Committee Osman Kaiser Chowdhury Director Nazmul Hassan MP MD Rabbur Reza Chief Operating officer Ali Nawaz Chief financial officer Afsar Uddin Ahmed Director, commercial SITUATION ANALYSIS Situation analysis is a method managers use to analyze both the internal and external environments of an organization in order to apprehend the firms own capabilities, customers and business environment. INTERNAL FACTORS Refers to the environment inside the organization within which a manager works. LEVELS OF MANAGEMENT Strategic trainThe Board of Directors A S F Rahman Chairman Salman F Rahman Vice Chairman Nazmul Hassan MP Managing Director Iqbal Ahme Director Mohammad Abul Qasem Director Osman Kaiser Chowdhury Director Abu Bakar Siddiqur Rahman Director Advocate Ahsanul Karim Director Dr. Abdul Alim Khan Independent Director The strategic aim essential make sure the technical level operates within the bounds of the society.Thus the strategic level determines the long range objectives and directions for the organization- in unseasoned(prenominal) words, how the organization interacts with its environment. (Textbook) expert level Middle floor managers, Branch Managers, Factory Managers work like a connector and works in the middle. At this level, the managerial task is twofold 1. Managing the operations functions. 1. Serving as a participation between those who bring up the product or utility and those who use output. In other words, for the operatio ns level to do its work, managers at the technical level must make sure they have the correct materials and gibe that the output gets used or sold. (Textbook) Operational levelRabbur Reza Chief Operating Officer Ali Nawaz Chief monetary Officer Afsar Uddin Ahmed Director, Commercial Lutfur Rahman Director, Manufacturing Zakaria Seraj Chowdhury Director, International Marketing A R M Zahidur Rahman Executive Director, Production Shamim Momtaz Executive Director, Manufacturing Mohd. Tahir Siddique Executive Director, Quality Jamal Ahmed Choudhury Executive Director, Accounts & Finance. In any organisations, the operations level focuses on effectively perform whatever the organization produces or does.In Beximco pharmaceuticals, the operations fuction is at the core of their business. The managerial task here is to develop the trump out allocation of resources that produces the desired output. (Textbook). Research & organic evolution R&D is the key to success for any pharmaceutica l company. We have given it top priority and have made substantial investment in upgrading our generic drug capabilities as we firmly believe R&D plays the most important mathematical function in spurring innovation and helps a company go up the value chain. Our research and development activities are intimatelyly focused on market needs and driven by technological mount up in order to create product differentiation.Our team comp uprising top class formulation scientists with extensive experience of working in leading pharmaceutical companies in the introduction continuously strives to integrate the advanced technological changes to create competitive edge and match international standards. There has been a series of positive developments in the year and our team successfully introduced 40 new generic formulations in 55 different presentations and expanded our dosage delivery portfolio with technology driven products like prefilled syringes, essence parenteral nutrition, dry p owder inhalers, and so on Beximco Pharmas well de picturesqued organizational structure, policy guidelines and internal keep in lines ensure efficiency of operations, and compliance with applicable regulations. The Company continuously upgrades these systems in line with the best practices in the industry.Other initiatives to keep our team updated with the late(a) advances in analytical methodology, platform technology, and regulatory affairs include frequent in-house and overseas workshops and readiness platforms. The benefits we generalise as a result of these initiatives will only increase in the coming years. Beximco Pharmas R&D team works meticulously towards creating generic formulations that are comparable to innovators formulations. Their dedication can be witnessed in their successful development of challenging formulations such as multi-layer tablets, sustained release formulations, dispersible tablets, melt-in communicate tablets, and chewable vitamins to name just a few.To add to that, Beximco Pharma was the pioneering local generic company to produce anti-retroviral drugs and to proactively launch CFCfree metered dose inhaler formulation. In addition, we are as well developing a number of APIs to ensure availability of raw materials across the range of therapeutic classes. Our capability to produce hi-tech, specialized niche products as well as drug delivery systems has been our core strength to diversify BPL into an innovation-driven generic drug company. Human Resource We recognize it is our peoples unwavering values that mold us into who we are today. It is their tireless contributions that have propelled us to greater heights over the years. They are and then our greatest assets in the way they create meaningful difference.Every product, every experience, and every breakthrough we ever presented for the advancement of human health and well-being have been made possible by our people. We are prouder than ever of the incorporated int entions and determination we have witnessed time and time again. The shared vision and values, reflected in our leadership and execution, help us attract the very best. Currently, the Company employs almost 2,700 people including around 400 white-collar professionals such as Pharmacists, MBAs, Doctors, Chemists, Engineers, Microbiologists etc. In 2011, we welcomed into the Beximco Pharma family highly experienced expatriates in key positions to deliver a caller take on strategic direction as we steadily progress towards our aspirations of becoming a global pharmaceutical company.We are strong advocates of the notion that learning never really ends simply with the completion of evening gown education. One of the best perks of being a part of the Beximco Pharma family is that the people undergo continuous training and development programs to further develop their skills. In 2011 alone, over 30 such workshops and training, covering assorted departments, were conducted. deep down Be ximco Pharma, we support employees interested in reaching out to others. In 2011, we launched our very own internal knowledge Center as a platform for continuous learning and interconnectivity an initiative that is stills quite a brisk concept in Bangladesh.However, we know that competence alone is not enough it is them intricate threads of connectivity, covert us as one family, which makes our organizational culture truly coveted and one of a kind. We have also undertaken a major corporate branding initiative as a reflection of our rejuvenated drive and aspirations. Financial Position We maintained our record of uninterrupted growth, achieving a 21. 6% increase in sales to Tk. 7,890. 24 million (2010 Tk. 6,490. 85 million). In 2011 we significantly enhanced our prescription share in sales of the formulation products and maintained, as expected, growth in all our key therapeutic segments. Sales of our Active Pharmaceutical Ingredients (APIs) also recorded a significant 37. % grow th to reach Tk. 486. 91 million (2010 Tk. 355. 24 million). However, its impact on the overall profitability of the company is currently low because of a low gross margin predominantly due to the high cost of import of intermediate materials to manufacture these APIs. In 2011 export sales grew by 18. 1% to Tk. 390. 32 million (2010 Tk. 330. 54 million). Along with sales growth, Beximco Pharma also achieved a marked growth in profit in 2011. Our pre-tax profit increased 23. 2% to Tk. 1,677. 85 million (2010 Tk. 1,361. 53 million). Gross margin as percentage of sales however, slightly declined to 48% as against 48. 9% for the prior period.This was due principally to depreciation in the value of the Taka against the Dollar and the high level of internal inflation. However, with our constant drive to contain costs and effective profit optimization strategies, the negative impact of rising cost on profit has been kept to the practicable minimum. The Board of Directors has recommended 21 % stock dividend for approval of the shareholders for the year ended 31 December, 2011. Technological Advancement Beximco Pharma has always been a pioneer in adopting innovative technologies. This brings both sophistication and the potential to sustain growth to our business. Over the past couple of years we have made considerable nvestments in facilities and processes to improve productivity, drive growth and achieve excellence in operations. placed near Dhaka, the capital city of Bangladesh, our manufacturing site extends over an area of 23 acres. The site houses manufacturing facilities for producing various drug formulae in different strengths and delivery systems such as capsules, tablets, intravenous fluids, metered dose inhalers, ophthalmic drops, injectables and nebulizer solutions. The site has its own utility infrastructure to ensure adequate generation and distribution of electricity with an installed capacity of 10 MW, in addition to water purifying and liquid nitrogen generation facilities.The bulk drug unit for producing paracetamol is also located within this site. The Companys penicillin API and formulation units are situated at Kaliakoir, a few kms from the main site. The company has diversified into innovative delivery systems such as dry powder inhalers, total parenteral nutrition, prefilled syringes and lyophilized products. * Oral Solid Dosage * Metered Dose Inhaler * Intravenous Fluid * fall by the wayside able, Ophthalmic and Nebulizer * Liquid, Cream and Ointment Val EXTERNAL FACTORS These are the forces that act on the organization from outside. DIRECT FORCESThese are the forces that have direct and immediate influence on the organization. CUSTOMERSWe offer our customers a comprehensive and high-quality product portfolio embrace all major therapeutic categories, on tap(predicate) in various dosage forms including tablets, capsules, syrup, suspension, sterile eye drops, injectables, haggard sprays, planes, ointments, suppositories , IV fluids, metered dose inhalers, dry powder inhalers, prefilled syringes etc. Over the years, we have nurtured and developed a special bondage with the medical community. We stand by healthcare providers and appreciate their valiant services to the community at large. COMPETITOTORS Square Pharma Reneta GlaxoSmith Klein ACI Limited Eskayef Bangladesh Limited The ACME Laboratories Limited EDCL Aristropharma Limited Orion Pharmaceuticals limited confirmative Forces * Political Analysis Political analysis creates a great impact on business growth.The Beximco Pharmaceuticals is an establish company, it gets many positive support of Bangladesh government, which enables it to advance its product. In addition it suffers many political unexpected conditions, like- political instability, and high risk investment, high rate of tax, high barriers of rules and regulation and so on. Because of strikes, obstruction and any other political issues, it noses a lot. But now they adopt with rules of exporting, producing, importing and so on. They use BCP (Business Continuation Plan) to play off against any critical political issues. Documentary,Newspaper * Economic Analysis In economy, the biggest threat for Beximco Pharmaceuticals would be economic recession.During the recession, the Beximcos growth will be adversely affected. Because of the high interest rate, inflation rate and economic downturn its growth is not just affected by the local economy but also in the international economy. * * Social AnalysisBeximco Pharmaceuticals has performed many social activities, to improve the company image. To reach the goal, the collection implements the local job creation program as well as health and education program Corporate Social Responsibility Our vision is to make significant contribution to humanity by up(a) health. This vision guides our Companys operations, including its commitment to corporate responsibility.We work together with non-profit organizations who work to improve peoples lives through research, information, and advocacy. As the Company writes its success story as an emerging leader in the pharmaceutical industry, we also realize that responsibility towards all our stakeholders increases in tandem. We remain committed to being a good corporate citizen. Prevention is the best cure and the first step is to create awareness. Every year, we launch campaigns touching on different forms of heath impediments ranging from asthma, diabetes, hypertension and many more. Campaign activities include rallies in addition to organizing and sponsoring scientific seminars and conferences for various associations and societies in medical disciplines. ANNUAL REPORT CultureCulture is a very complex environmental influence, encompassing knowledge, beliefs, values, laws, morals, tradition and other habits and capabilities an individual acquires as a member of society. As BEXIMCO is a global MNC, management must adapt its managerial practices to the spec ific and unique aspects of culture. nearly of the time they follow formal ways to control the employees, and get their full potentiality. They also follow the profit oriented by doing more customer service and social responsibilities. SWOT ANALYSIS Strength Diversification The strength of Beximco Pharmaceuticals Ltd. lies in its diversified products and dosage forms.BPL has been producing good products like tablets and capsules and liquid products like syrup, suspension and solution, as well as semisolid products like cream and ointment. It is the pioneer company to manufacture and market nasal sprays, inhalation aerosols and suppositories in Bangladesh. In 2001, Beximco Pharmaceuticals Ltd. stepped into a new pathbringing SmallVolume Parenteral(SVP) or injectable dosage form. Arixon is its first small volume injectable product It is a preparation of Ceftriaxone, which is considered as a breakthrough antibiotic in the history of medicine, . In 2002, Arixon is predicted to be one o f our leading brands interms of sales revenue.The company has lot of diversified products like, Napa Neoceptin R Neofloxin Tycil Aristovit M etc. Achivement of National Export Trophy First export market operation with finished pharmaceutical products1994-95 Achievement of National Export Trophy (Gold) as the first pharmaceutical company of the country. R D B P L is a company that is continuously searching for the next treatment advancements. BPLs portfolio features a range of high-quality, effective products. This product portfolio, combined with the steady stream of promising new products in development, is one of the many reasons BPL is among the nations leading pharmaceutical companies. We have introduced 26 new products in 2001.Around 70 new products are in our development pipeline. They will obviously enrich our portfolio to employment of the employees so that they can eff with the rapidly changing business environment. Innovation is a major priority that we want to promote . Accordingly, training programs are regularly undertaken for the staff to seek opportunities for skills improvement. Weakness Too many departments There are too many departments under the supervision of the gm which can cause low productivity due to large orthodontic braces of supervision. Diseconomy of scale If the company exceeds the optimum size there would be diseconomies of sale. Availability of substitutes Availability of very close substitute goods.For example medicine produced by other pharmaceutical companies Opportunities Adding new products BPL always tried to add new products of different therapeutic classes in its portfolio and these products are highly appreciated by the health professionals. Most important of them are Triocim, Arixon, Prosan, Recox, Atova etc. Introduction of these new products enriched its product portfolio and is contributing to enhance its sales. Apart from all these, we have intensified and consolidated our marketing efforts another overseas mar kets, like Myanmar, Kenya, Yemen and Vietnam. To take advantage immense opportunities in these overseas markets, we are bringing in more new and exciting brands in these markets.Last year, BP donated one Medical Information K i o s k to the Myanmar Medical tie of Mandalay which gained enormous attention and acceptance in the minds of the medical community of Mayanmar. In Kenya, number of salespeople has been increased to best exploit its huge market potentials. All these efforts are already bringing in desired results. entering into new horizons and establishing new overseas markets will remain our top most priority in 2002 also. Russia, Ukraine, Sri Lanka, Cambodia, Nepal will be on the list. We are confident that our process of globalization will continue with a more and more accelerated speed in the coming days. TechnologyTechnology carries the promise of tomorrow. The benefits of technology belong to all of us benefits that create new opportunities and open doors toa better li fe. For example, the new inhaler coif of BPL has been design in a way to ensure highest-possible quality at every stage of manufacturing and quality control. World-class facilities are being employed in each and every step including mixing, filling, testing, labeling, batch printing and other procedures to ensure manufacturing of world class products. Threats Supply cost effective materiaals BPL has a commitment to the society to supply world class Active Pharmaceutical Ingredients (APIs).Therefore, BPL is not only engaged in formulations but also in fine chemicals business with a view to supplying cost effective quality materials to other local companies as well as for captive consumption. Competition Beximco Pharmaceuticals Ltd. has been preparing itself for the post-WTO open market competition. It has all the courage to compete with world leaders in pharmaceuticals business when the tariff and non-tariff barriers will be withdrawn The new USFDA standard plant is planned to be op erational in early 2003. Once completed, this will be one of the finest facilities available anywhere in the globe. OBJECTIVES Increase rate of purchase by existing customers by 10 percent by the year end. Strategy Such a system may involve devising a marketing plan to encourage customers to purchase more of a product.Tactics used to carry out the strategy could include price reductions, advertising stressing the many benefits of the product, packaging the product in different sized packages or making the product available at more locations. Design additional features into product that will induce new uses by existing buyers Strategy This strategy include much more than simply acquire the product to the new market. Before considering sales techniques such as packaging and promotion. Company often invent they must establish a foothold. MANAGEMENT ISSUES Centralization Centralization refers to the location of ratiocination making allowance in the hierarchy of the organization.The upper level managers in the organization make all the significant decision and managers at all levels can command their subordinates to undertake legitimate work related activities. The idea of centralisation can be difficult to grasp in a particular organization for several reasons. slew in the in an organization can have different decision making potence. Moreover, all decisions are not of equal importance in organization. Thus subjectively they do not have authority but objectively they have authority. Matrix Organization The matrix organization structure attempts to maximize the strengths and besmirch the weakness of both functional and product bases.Matrix organization structure achieved the desired balance by superimposing or overlaying a horizontal structure of authority, influence and communication on the vertical structure. Matrix organization facilitates the drill of highly specialized staff and equipment. CONCLUSION This is Beximco Pharmaceuticals firm as a whole. I h ave discussed the mission, executive summary, organizational structure, situation analysis, swot analysis, objectives and management issues of the company. I have also given some important data regarding this company. I hope you can have the clear picture of Beximco Pharmaceuticals company at a glance. APPENDIX Appendix are given after this page