Introduction:

Eliminate diseases from Bangladesh (EDB) is a generic drug sole pharmaceutical company and
strongly believe in Community health preservation and medicine supply for all segments of
society.(Assumed) We are in business for five years and operating nationally. We usually try to
sell for significantly lower prices than their branded equivalents. ne reason for the relatively
low price of generic medicines is that competition increases among producers! when drugs are no
longer protected by patent! so our companies incur fewer costs in creating generic drugs (only
the cost to manufacture! rather than the entire cost of development and testing) and are therefore
able to maintain profitability at a lower price. "herefore! we can achieve our goal to give
medication as many people as we can in Bangladesh.
Mission:
ur mission is to enriching lives of Bangladeshi people! with highest quality and affordable
pharmaceuticals and distributes products to address the diversified! unmet medical needs of
patients in both mature and emerging mar#ets.
Vision:
"o be in the country$s "op five %ost &uccessful 'harmaceutical Companies list concerning
profitability and financial health.
Revised Mission:
Enriching lives of Bangladeshi people! with highest quality and affordable pharmaceuticals and
distributes products to address the diversified! unmet medical needs of patients in both mature
and emerging mar#ets by dedicate itself to adding e(ceptional value through the creation of
innovative medical products and services! which is also beneficial to the medical community and
human health.
Revised vision:
Be country$s number one 'harmaceutical Company in terms of profitability and financial health
by serving humanity.
Goals and Objective:
1. Responsibility to atients and !onsumers
We will always put the patient and the consumer first! and provide high)quality products
and services of superior safety and efficacy.by )
Developing and obtaining mar#eting approval for new products
in)licensing products and acquiring new products or companies
Development of its research and development portfolio! and e(panding
geographically
'roduce and provide products and services of the highest quality
". #ta$e %older responsibility : Ensure profitable growth by increasing mar#et penetration
and sales of e(isting products*
&. #trict Ad%erence to t%e 'a(
+n all our business activities! we will strictly adhere to all laws and their underlying
principles.
). Respect *or +uman Ri,%ts
We will respect human rights in every aspect of our business activities by practicing
dignity and equity in relationships and provide opportunities for our people to reali,e
their full potential.
-. .air /rade
we will engage in fair and transparent transactions with medical institutions and
organi,ations! suppliers and customers.
-oster mutually beneficial relations with all our business partners
0. Mana,ement o* !orporate Assets
We will achieve our management ob.ectives through the optimal and appropriate
management and use of corporate assets.
1. 2isclosure o* In*ormation
We will actively and fairly disclose our corporate information in accordance with both
legal requirements and the principles of social .ustice.
3. #ocial !ontribution and rotection o* t%e Global 4nvironment
we will remain aware of our responsibility as a good corporate citi,en and actively
continue with our social action programs by managing our operations with high concern
for safety and environment.
5. Relations (it% Governmental and Administrative 6odies
we will maintain fair and transparent relations with policyma#ers and administrative
bodies.
17. Relations (it% 48ternal 6odies
we will maintain fair and transparent relations! within reason! with e(ternal bodies.
Or,ani9ation structure and restructurin,:
-irst of all it is sole proprietorship pharmaceutical company and its not a multinational
company.it is strength of ours that! it is a Bangladeshi company. Besides! it is also a profit
see#ing company regarding to its structure. +n the past five years! we were .ust trying to sell
generic drugs and ma#ing profit by following the low cost structure with the help of economy of
scale and large production. ur product line was simple and undiversified. /ow we are trying to
be diversified! innovative! and socially responsible in response of our revised mission and vision
strategy for sustainable growth. "herefore! we are adding a research facility and new C&0
department to fulfill our new mission and vision.it follow single business unit or business
strategy. "herefore! our business unit divided into three steps (-+12 34)
We have a centrali,ation company structure. -or organi,ational restructuring strategy has to be
used. By involved in acquisitions! divestitures! or spin)offs are using a portfolio restructuring
strategy. We will raise more capital and use spinning off strategy. "his strategy will ma(imi,e the
organi,ation$s strength and help them attract and maintain a talented wor#force. +n addition! we
will add a research facility to develop new medicine or invent new medicine! which go with our
new or revised mission and vision statement. We will also revise our financial 0estructuring
&trategy to change the firm$s capital structure. By changing debt for equity swaps! leverage
buyouts! or some form of recapitali,ation. -or research reveals! there is an immediate influ( of
free cash flows! so we will concentrate in that. Because we are already in profit! so we will use
some of that to maintain cash flow. Debt will also increase because a big amount will spent to
develop a research facility! which is our new addition. +n our new organi,ational &B0 (fig2 35) or
structure the new development or added departments are mar#ed with stars in it.
-+12 35
Industry environment:
'harmaceutical is the core of Bangladesh6s 7ealthcare sector! and serves as one of the most
important manufacturing industry. With a history since 4893s! the industry has now turned one of
the most successful pharmaceuticals manufacturing industry among the developing countries.
'resently! the industry meets 8:; of local demand and e(ports to more than <3 countries. "he
industry has been e(periencing robust growth over the last few years. = local industry supporting
drug policy and effective regulatory framewor#! along with "0+'& rela(ations are the #ey
reasons for success of the industry. While the industry is achieving self)sufficiency! it yet
procures :3; of raw materials from abroad. But developments are already ta#ing place! with a
number of firms now manufacturing raw materials locally. "he industry has been e(panding
locally and internationally. >ocal mar#et grew at 5?; in 5343! while import reached @&D 93
%illion landmar#. +t is one of the fastest growing sectors with an annual average growth rate
consistently in the double digits* Bangladesh6s pharmaceutical industry contributes almost 4; of
1D'. +t is the third largest ta( paying industry in the country. "he mar#et players of this industry
are also very competitive and industry is in mature stage. Because the top 43 players control
around two)third of the mar#et share while the top 49 companies cover ::; of the mar#et.
!urrent dru, mar$et:
"he most important therapeutic group in the Bangladeshi mar#et is &ystemic =ntibiotics. "hey
account for almost ?3; of the mar#et. "he second therapeutic group! =nti)acids! is much less
relevant in terms of mar#et! as well as from a public health perspective. Aitamins! =nalgesics!
%ineral supplements! Cough and Cold preparations and muscle rela(ants also figure
prominently. +t is to be noted! that typical developed mar#et therapeutic groups li#e those
addressing diabetes! cardiovascular diseases! allergies or psychological disorders also are among
the most important in Bangladesh! whereas 7+AB=+D& and =nti)malarial drugs are not.
2istribution c%annels:
"here are three distribution channel systems in Bangladesh2 public hospitals! private hospitals!
and private pharmacies. 'ublic hospitals source mainly from the state)owned .=s for the private
&ector! there is a networ# of wholesalers! comprising of around 4533 wholesale medicine shops.
Whereas small and medium scaled pharmaceutical companies sell to those wholesalers directly
from the factory!
48ternal analysis:
4#/ analysis:
'E&" analysis provides a framewor# to e(amine the e(ternal environment of a company
(1illespie! 5343! p. 4?* %orrison! 533C! p. ?3). 'E&" stands for political! economical! social!
technological .'E&" analysis helps a company to categori,e the relevant issues in its
environment! so that it can assess its relative importance and develop an appropriate strategy
(&loman D 7inde! 533:). "he following sections provide an overview of what will affect our
company.
olitical *actors
E(perienced international businesses engage in political ris# assessment! a systematic analysis of
the political ris#s they face in foreign countries and any changes in the political environment that
may adversely affect the value of a company6s business activities (1riffin D 'ustay! 5343! p. 8:*
C,in#ota et al.! 5338! p. 435* Daniels et al! 5338! p. 49E). 'olitically Bangladesh is stable country
after decades of instability and coups for many years. /ow there has been chaos in political
sector once again. &tri#e became a part nowadays. =s other business sector! it affects
pharmaceutical business too. +n addition! a good relation with government is also necessary.
7owever! in this political instability situation business can have various negative affect for
e(ample it can brea#down supply chain management and distribution channel. +n addition!
0egardless of profit or loss! all companies are required to pay BD" 9!333 as a minimum ta(. "he
new ta( on profits increases the burden! it is definitely too high and unsuitable for business.
When compared to the neighboring countries! it is appro(imately 43; higher. "he labor law has
also increase the cost up. /evertheless! we can say that with strong growth and competitiveness!
we can overcome this problem. &trong growth rates increase the companies6 profitability and
also the ability to give good dividends.
4conomical *actors
"he economic condition of the world is not of good shape at all and the world is facing this type
of economic disaster for the first time after a long period. Bangladesh is also starting to face the
economic disaster situation! as it is getting grants from the first world countries but these welfare
organi,ations are starting to stop funding in various less important pro.ects that are already
running or going to be started to run in this developing country. >ess remittance is coming than
the recent past. +t causes less money supply in the inside overall economy of Bangladesh.
=s Bangladesh is partly dependent on the foreign remittance! so we are facing a restrain of
money. %oreover! the e(port is becoming economic crisis! which also shorten our income.
=s the total e(penditure per person decreases! the people tend to consume cheaper foods! which
cause health problems. Even so! they are reluctant to ta#e e(pensive medicine which is why the
health condition and the average lifespan of the people are decreasing rapidly! on the other hand!
due to global economic unrest! then price of the raw materials required to ma#e the medicine is
getting higher causing the medicine to be e(pensive than before. "his is against our low cost
structure.
#ocio:cultural *actors
= company should identify #ey cultural differences in the country where it is doing or intended
to do business and then it must need to alter its customary practices to succeed there (Daniels et
al.! 5338). +n our culture belief in religion is very strong! so they tend to have a long tradition of
self)medication! as many of its population cannot afford to see health professionals when they
fall ill. %a.ority of population are still using complementary and alternative medicine (C=%) in
the country. =lternative medicine refers to health practices! approaches! #nowledge and beliefs
incorporating plant! animal and mineral)based medicines! spiritual therapies. +t is called #obira.i
in Bangladesh.so it also ta#es away our profit and mar#et share. +n addition! ma#ing customer
response positive becomes more difficult.so we made some social awareness program to
eliminate this blindness.
/ec%nolo,ical *actors
"he pharmaceutical industry in Bangladesh may be the largest in the least)developed countries!
but it does not have the research capacity to invent new pharmaceutical products! nor does it
have the imitative capacity to reverse engineer patented drugs in order to develop competing
generic products. +nstead! the principal activity of the domestic industry is the final production of
generic products using imported generic active ingredients. "hese products are sold primarily to
the domestic mar#et. =round <3; of Bangladesh6s total need of =ctive 'harmaceutical
+ngredient (='+) is being met through imports that are a big problem. +n addition! there is no
research facility or innovativeness in mar#et. "herefore! we are the first or pioneer to develop a
research facility and innovate new product. "hat will diversify our product line. =nother problem
is Bangladeshs unreliable power supply forces most Bangladeshi firms to depend on self)
generation of power! we will also do it. Because cost could be lower when generators are
running on highly under)priced natural gas.
orter;s *ive *orce:
Risk of entry:
'harma industry is not easily accessible industries for an entrepreneur in Bangladesh. "he capital
requirement for the industry is not very low. 7owever! creating a regional Distribution networ# is
easy. But there is a lot of challenge you will be facing when you will enter2
1. otential competitor:
"here is lot of potential competitor in this industry .starting from big companies to small
companies. >i#e square pharma ! be(imco! the =C%E to Ethical Drugs >td. "here are all
potential competitor and #now there business. &ome of them are in the industry for 49 yrs. or
above .so we will face this challenge how we position ourselves in mar#et.
". 4conomy o* scale:
Because there is a lot of big competitors and companies! they also have capabilities to have a
mass production! which will lower the cost. +n addition! they have big fi(ed investment! which
will spread through large volume.so there cost is minimi,ed.so we have to go massive if we want
to be the top most company by using economy of scale larger and efficient than there6s.
&. brand loyalty :
"here are lot of competitors which already have establish there brand loyalty.so without massive
mar#eting you cannot penetrate the mar#et. "his will incur you higher cost. "his is the only way
to establish our brand.
). Access to c%annels o* distribution and relations%ip:
"he large pharmaceutical company in our country has large distribution channel and good
relationship with the retailers.so fight for the supplier with them will also raise cost and a
disadvantage too.
48it barrier:
Because of the big investment and invest in asset! it will very difficult to e(it from this business.
We can see high fi(ed and sun# cost here .+n addition! government rule and economy
dependency of industry ma#es it harder.
6ar,ainin, po(er o* buyers:
+n pharma industry! the buyers are scattered and they as such does not wield much power in the
pricing of the products "he unique feature of pharma industry is that the end user of the product
is different from the influencer (doctor). "he consumer has no choice but to buy what doctor
says. 7owever! when we loo# at the buyer$s power! we loo# at the influence they have on the
prices of the product. 7owever! government with its policies plays an important role in
regulating pricing. Because we will produce the pharmaceutical products! which are
differentiated product and there are high switching cost. Bargaining power depend on two things
one volume per buyer a number per buyer .which is high in our country.so bargaining power is
low as the demand is high.
6ar,ainin, po(er o* #uppliers:
"he pharma industry depends upon several organic chemicals. "he chemical industry is again
very competitive and fragmented. "he chemicals used in the pharma industry are largely a
commodity. "he suppliers have very low bargaining power and the companies in the pharma
industry can switch from their suppliers without incurring a very high cost. 7owever! what can
happen is that the supplier can go for forward integration to become a pharma company. But
without this bargaining power of supplier is very low.
Rivalry amon, establis% company:
+n this industry! there are big names on the board. "herefore! rivalry is intensive in this industry.
+t is difficult to capture mar#et share from other. Because this is a consolidate industry some
company have advantage of economy of scale. Which give them the power of monopoly.
7owever! our advantage wills diversified product and because of our innovation and research we
can introduce new product and capture mar#et share.
/%reat o* substitute roducts:
"his is one of the great advantages of the pharma industry. Whatever happens! demand for
pharma products continues and the industry thrives. ne of the #ey reasons for high
Competitiveness in the industry is that as an ongoing concern! pharma industry seems to have an
infinite future. 7owever! in recent times! the advances made in the field of biotechnology! can
prove to be more helpful for innovation and research.
er*ormance analysis:
Because our company is an assumed company! so it has no financial data! so we have to see the
competitors to evaluate our performance. =lthough it is an internal analysis! but because we are
depend on other companies! so we placed it in the e(ternal analysis2
&o competitive advantage! portability and how well the strategy wor#ing can be evaluate by
0=! 0E! 0+C.
RO4:
"he amount of net income returned as a percentage of shareholders equity. 0eturn on equity
measures a corporation$s profitability by revealing how much profit a company generates with
the money shareholders have invested. %eans for every one dollar you invested how much return
your company is giving. 1enerally! higher this return! the better of this owner.so we will want to
have a figure as high as possible. "his will benefit the owner. "he formula is given below2
Return on 4<uity = >et Income?#%are%older@s 4<uity
ROA :
=n indicator of how profitable a company is relative to its total assets. 0= gives an idea as to
how efficient management is at using its assets to generate earnings. Calculated by dividing a
company$s annual earnings by its total assets! 0= is displayed as a percentage. &ometimes this
is referred to as Freturn on investmentF. "he assets of the company are comprised of both debt
and equity. Both of these types of financing are used to fund the operations of the company. "he
0= figure gives investors an idea of how effectively the company is converting the money it
has to invest into net income. "he higher the 0= number! the better! because the company is
earning more money on less investment.so we will want to #eep it higher to compete against
other competitor .
0eturn n =ssets (0=)2
#AO/ Analysis
&trengths
1. roduct 2evelopment2 "his creative team of professionals is engaged in developing new
formulations and dosage forms with competitive advantages and strong product
differentiation.it is our big advantage because we are the only one have a research
facility.
". +i,% Buality roduct2 our mission is to produce high quality product and doing that
successfully
&. 4nvironmental olicy2 "he company is committed to maintain the harmonious balance
of our eco)system and therefore constantly see#s ways to manufacture and produce
products in an eco)friendly manner so that the balance of nature remains undisturbed and
the environment remains sustainable! which is our new replenished mission.
). We are also one of the mar#et leaders now. Because we already achieve the vision of
being! top 9 in pharmaceutical company.
Wea#nesses
Cnet%ical !ompetitors2 =lthough quality assurance is one of the ma.or aspects of
'harmaceutical industry! only the top 49 to 53 percent producers follow the guidelines.
@nethical competitors may produce at cheaper price. 'rice sensitive customers may be
attracted to these low quality products.
48treme reliance on imports2 =round <3; of Bangladesh$s total need of ='+ is being
met through imports. "he company can earn more revenue if it uses the locally produced
='+ for production.
Aorld 4conomic Recession2 &ince the company eyes more on e(port mar#et! it becomes
more prone to be hit negatively by world economic events.
pportunities
otential domestic and international mar$et: =part from domestic mar#et! we are
e(porting to nine different international mar#ets! namely &ri >an#a! %yanmar! Aietnam!
Gemen! &omalia! =fghanistan! 1uatemala! 7ong Hong! Bhutan. "he company is also
developing mar#ets in another five countries! namely /epal! Henya! &udan! Cambodia!
%acau.
roduction o* AI: Bangladesh government established =ctive 'harma +ngredient
(='+) par# in %unshigan. in %ay 533< to promote production of ='+. "his bac#ward)
integrated ='+ or raw material industry will ma#e pharmaceuticals companies of the
country competitive in e(port mar#ets.
Challenges
Retail rice2 under the drug law! price of the drug is regulated by govt.so if we incur big
cost by innovation new drug! pricing will be challenging.
4nvironmental Re,ulation2 "he Corporation have to develop the infrastructure
incinerator for solid and liquid waste)management.
!apital Intensive Researc% and 2evelopment2 =fter the e(piry of patent provision in
534C! pharmaceuticals companies may face difficult time to deal with capital)intensive
research and development for drug discovery. "his may greatly affect their e(port and
may restrict their growth.
I>/4R>A' A>A'D#I#:
7ow to create value for customer and ma#e profit out of it! using resource! capabilities and
distinctive competence and being efficient is done by internal analysis.
Resources:
-irst of all resources is very important when it comes to compete or having a low cost
production. +f your resources are not available you will incur great cost.so what you can do is
depend on it. 0esources are inputs into the production process. "hey are the basic unit of
analysis (capital equipment! s#ills of employees! patents! brandI)
o Basic categories2 financial! physical! human! technological! reputational and organi,ational

!apabilities:
Capacity for a team of resources to perform some tas# or activity. "hey constitute the main
source of competitive advantage .so we will have to hire better manager and good efficient
wor#er in order to strong this segment.so that we can do more efficiently than our competitors
do. -ig 3? is describing how we will get this advantage and formulate a strategy with distinctive
competitive advantage .
.IG :7&
Value c%ain:
+t is the heart of the business model. 7ow wills your company wor#. 7ow will it produceJ Which
strategy it will follow .how will you differentiate your product from others all depends on value
chain. Gour pricing option and efficiency! quality and distinctive competence depend on it. &o
value chain is a chain of activities that a firm operating in a specific industry performs in order to
deliver a valuable product or service for the mar#et. +ts add value to the product by adding
additional competence.
+ere most important partE (%ic% s%apes t%e %eart o* your strate,y:
Efficiency2
ur company need to be efficient! to be more low cost structure .because if it doesn6t than you
would not able to compete with large companies.so efficiency must be there! in order to produce
in large scale with low cost.
Kuality2
+- you maintain efficiency than it is impossible reality you will be best in quality.so our mission
is to maintain quality! which we will give as much as possible.
+nnovation2
ur revised mission is about innovation and research. "herefore! if we do that we cannot
maintain efficiency.so here we diversify our product.so we can maintain efficiency in generic
drug. 7owever! for innovative and new product we will go with quality and customer response!
so that will be less efficient. Because for new drug mar#et demand is less! but price is high.
Customer response2
=ll the strategy is for satisfy your customer and have positive customer repose. "his helps
strongly to establish your brand name. With qualityful product and innovative product! we bound
to geta good response.
Mar$etin,
%ar#eting is the process by which companies create value for customers and build strong
customer relationships in order to capture value from customer in return .%ar#eting is the
bac#bone of all industries. "hough pharmaceuticals produce lifesaving drugs! they also need
mar#eting. But their mar#eting is to some e(tent different from other industries. &ome ma.or
characteristics of mar#eting sector are given below2
L "heir distributional channel includes invoice system! own distribution channel.
L %edical representatives are the #ey persons in mar#eting.
L -or promotion! the groups such as doctors! surgeons are targeted.
L %a.or promotional strategies include printed promotional materials! physical sample! and
clinical materials.
L &pecial incentives are given to the doctors. -or e(ample! the doctors are given honeymoon
pac#ages! the cost of which is borne by the pharmaceuticals.
"he field level e(ecutives are playing the imperative role for mar#eting division. "hey have
ta#en the responsibility to mar#et the products of their companies. "herefore! the success of a
pharmaceutical industry intensively depends on the efficiency and effectiveness of the medical
representatives. +f our organi,ation wants efficient employees in this section! we have to satisfy
these representatives! which we are trying to do with giving them commission.
Industry li*e cycle analysis and investment c%oice:
=lthough the industry is in the mature stage! where mar#et is totally saturated. 7owever! this
industry growth has not stop yet.so we can assume that industry is in between growth and
matures! so attractiveness of this industry is very good. 7owever! if + go with my new mission
than we will be the first one in this mar#et! who will also invent new drugs for mar#et! so we can
say that in our diversified product line! the generic drug is in mature stage and the new
innovative drug will be in embryonic stage. &hown fig2 3E
!onclusion:
"o achieve this goal! we have to blend our strategy .because it will be very difficult to maintain
diversified product line with two mature stages and maintain efficiency and quality. But our
mission is to meet medical needs of patients in both mature and emerging mar#ets by dedicate
itself to adding e(ceptional value through the creation of innovative medical products and
services! which is also beneficial to the medical community and human health. "herefore! with
maintaining generic drug producing efficiency for profitability! along with innovative but non)
efficient product can be profitable! if we blend the strategy properly