SANDFI AVENTIS

Course: Strategic Management

Instructor: Sir. Naveed
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ulsLrlcL Manager SanoflAvenLls
Contents Contents
O Buckground und nLroducLIon
O BrIeI DescrIpLIon oI ProducLs
O AnuIysIs oI MIssIon und VIsIon SLuLemenL
O ExLernuI ucLor EvuIuuLIon MuLrIx
O nLernuI ucLor EvuIuuLIon MuLrIx
O SWOT MuLrIx
O SPACE MuLrIx
O CompeLILIve ProIIIe MuLrIx
O BCG MuLrIx
O BuIunce Score Curd
O BIue Oceun SLruLegy
O InuncIuI RuLIos
O ConcIusIon
,.7ound ,nd Int7odu.tIon ,.7ound ,nd Int7odu.tIon
1. Compuny wus IncorporuLed on December 8, 1q6; us
HoecIsL PukIsLun ImILed.
z. n June 1qq6, HoecIsL PukIsLun ImILed cIunged ILs
nume Lo HoecIsL MurIon RousseI (PukIsLun) ImILed,
und LIe core busIness wus LIen resLrIcLed Lo
pIurmuceuLIcuI ucLIvILIes.
. n December 1qqq, HoecIsL AG & RIone PouIenc S.A.
gIobuIIy merged LIeIr IIIe scIences busIness InLo u new
compuny known us AvenLIs S.A. TIe nume
oI LIe compuny In PukIsLun wus cIunged
Lo AvenLIs PIurmu (PukIsLun)
ImILed In November zooo.
q. AvenLIs PIurmu (PukIsLun) ImILed wus merged IocuIIy
wILI RIone PouIenc Rorer PukIsLun (PrIvuLe) ImILed
und LIe compuny cIunged IL`s nume Lo AvenLIs ImILed
Irom AprII zoo.
. DurIng zooq AvenLIs S.A. wus ucquIred by SunoII
synLIeIubo Lo Iorm u compuny cuIIed SunoII-AvenLIs.
Cont.. Cont..
O SunoII-AvenLIs Is u muILInuLIonuI pIurmuceuLIcuI compuny IeudquurLered In
PurIs, runce.
O WorId`s q
LI
IurgesL compuny by suIes und runked
LI
In PukIsLun.
O PresenL In more LIun 1oo counLrIes, wILI uround 11,ooo scIenLIsLs und 1oo,ooo
empIoyees.
O Heud oIIIce und MunuIucLurIng pIunL oI SunoII-AvenLIs PukIsLun ImILed Is
IocuLed uL KorungI ndusLrIuI ureu.
O ocuI dIsLrIbuLIon oI producLs Is ensured by 1 dIsLrIbuLIons nuLIonwIde.
O L Iocuses ILs ucLIvILIes on seven mujor LIerupeuLIc ureus: curdIovuscuIur,
LIrombosIs, oncoIogy, cenLruI nervous sysLem, meLuboIIc dIsorders, InLernuI
medIcIne und vuccInes.
Cont.. Cont..
TIree muIn unILs ure:
Mujor depurLmenLs IncIude:
1. ndusLrIuI AIIuIrs
z. MedIcuI
. ReguIuLory AIIuIrs
SunoII-AvenLIs
Core BusIness
6o-6 %
Buse BusIness
CurdIo Onco
zo - z %
Pasteur
Vaccines
10 - 15 %
7Ief 0es.7IptIon of P7odu.ts 7Ief 0es.7IptIon of P7odu.ts
O SunoII-AvenLIs porLIoIIo oI murkeLed producLs IncIudes
severuI medIcInes In LIe ureus oI LIrombosIs,
curdIovuscuIur dIseuse, sIeep dIsorders, epIIepsy,
dIubeLes und cuncer.
O SunoII-AvenLIs Ius u compreIensIve IIsL oI medIcInes
Irom A - Z.
Top 1o brunds ure:
IssIon ,nd VIsIon St,tements IssIon ,nd VIsIon St,tements
Mission Stutement
Our core sLruLegy Is Lo:
CreuLe vuIue by rupIdIy IuuncIIng und successIuIIy murkeLIng InnovuLIve
pIurmuceuLIcuIs LIuL suLIsIy unmeL medIcuI needs In Iurge puLIenL popuIuLIons.
ocus commercIuI resources on sLruLegIc brunds Lo drIve suIes growLI und
muxImIze LIe vuIue oI exIsLIng und new gIobuI brunds. AggressIveIy recruIL und
reLuIn Lop LuIenL, enIuncIng our cupubIIILIes In drug InnovuLIon und
commercIuIIzuLIon.
omponents not covered[Anulysis
CusLomers
SunoII-AvenLIs sLrIves Lo serve ILs cusLomers In u unIque und eIIecLIve wuy und
Iocuses on suLIsIyIng LIeIr unmeL needs.
ProducLs und servIces
MunuIucLure u broud runge oI IIgI quuIILy und eIIecLIve medIcInes und vuccInes.
Cont.. Cont..
MurkeL
SunoII-AvenLIs noL onIy cuLers Lo LIe Iumun IeuILI secLor buL produces
medIcInes Ior unImuI IeuILI.
TecInoIogy
SunoII-AvenLIs posses sLuLe oI LIe urL LecInoIogy Lo produce good quuIILy
medIcInes.
SurvIvuI, growLI & proIIL
SunoII-AvenLIs uIms Lo ucIIeve corporuLe success LIrougI u IIrm commILmenL Lo
provIde cusLomers wILI IIgI quuIILy producLs und uLIIIze resources on sLruLegIc
brunds.
PIIIosopIy
SunoII-AvenLIs sLrIves Lo be LIe IeudIng pIurmuceuLIcuI munuIucLurer In
PukIsLun.
Cont.. Cont..
SeII-concepL
SunoII-AvenLIs beIIeves In InnovuLIon und udvuncemenL In LIe IIeId oI medIcIne
Lo prevenL LIe consumers Irom dIseuses.
Concern Ior pubIIc Imuge
SunoII-AvenLIs Is un enLILy wILI u deep conscIousness oI conLrIbuLIng Lo LIe
communILIes In wIIcI IL operuLes. TIere Is u IIrm commILmenL Lo LIe uIIevIuLIon
oI Iumun suIIerIng, wIeLIer LIe cuuse Is IIIness or nuLuruI dIsusLer.
Concern Ior empIoyee
EmpIoyees ure LIe mosL ImporLunL resource Ior SunoII-AvenLIs, LIe LuIenLed pooI
wIIcI SunoII-AvenLIs recruILs Is LIe key eIemenL Ior LIeIr success. TIe
munugemenL uL SunoII-AvenLIs provIdes cIunces Lo empIoyees Lo exceI In LIeIr
personuI und proIessIonuI IIves und Is concerned LIuL LIeIr demunds ure meL
uccordIngIy
Cont.. Cont..
'ision Stutement
To become u dIversIIIed IeuILIcure Ieuder, Iocused on puLIenLs` needs
VuIued by puLIenLs & IeuILIcure provIders
SougIL-uILer us un empIoyer
RespecLed by LIe scIenLIIIc communILy & our compeLILors
Exte7n, F,.to7 Ev,u,tIon ,t7Ix Exte7n, F,.to7 Ev,u,tIon ,t7Ix
We|ght kat|ng We|ghted Average
Cpportun|t|es
lgh populaLlon growLh 008 3 024
2 Lmerglng dlseases 0 4 06
3 CusLomer's preference for medlclnes produced by MnCs 0 3 03
4 AcqulslLlon of local companles 08 4 072

ncreaslng awareness of Lhe markeL abouL varlous drugs and

dlseases
0 3 04
@hreats
Slow down of Lhe economlc growLh of Lhe counLry 003 2 006
2 eavy rellance on Lhlrd parLles for supplylng of maLerlals 008 008
3 CounLerfelL producLs ln Lhe markeL 00 2 0
4 Lxchange raLe flucLuaLlons 00 2 0
Dse of herbal and homeopaLhlc medlclnes 004 2 008
6 CovernmenL flxlng prlces of pharmaceuLlcal producLs 009 009
@ota| 1 282
Inte7n, F,.to7 Ev,u,tIon ,t7Ix Inte7n, F,.to7 Ev,u,tIon ,t7Ix
We|ght kat|ng We|ghted Average
Strengths
ank no4 ln Lhe world and no ln aklsLan 0 4 04
2 SLrong and recognlzed brand name 008 4 032
3 esearch developmenL 00 3 0
4 ulverslfled range of markeLs 006 4 026
Medlcal markeLlng deparLmenL 00 2 0
6
uge and sLrong producL porLfollo caLerlng dlfferenL
segmenLs
0 3 04
7 SLaLe of Lhe arL manufacLurlng planLs 0 4 04
8 L sysLem belng used Lo seek lmprovemenL ln processes 00 3 0
Weakness

ConLrolllng ls dlfflculL due Lo a blg group and so many

dlvlslons
00 2 0
2
roducLlon lssue because markeL demand ls hlgher Lhan
producLlon
008 2 06
3
Some of Lhe medlclnes are of very hlgh prlce Lhan lLs
compeLlLors
002 002
4
Slow declslon maklng process due Lo elongaLed hlerarchy
sLrucLure
002 2 00

uecreaslng markeL share (2nd Lo Lh poslLlon ln a space of 2

years)
0 0
6 Less employee beneflLs and perks 00 2 0
7 1ough CredlL ollcy (Cash/CredlL 89/) 003 2 006
@ota| 1 282
SWDT ,t7Ix SWDT ,t7Ix
StrengthsS WeaknessW
S ank no4 ln Lhe world and no ln aklsLan
W ConLrolllng ls dlfflculL due Lo a blg group and so many
dlvlslons
S2 SLrong and recognlzed brand name
W2 roducLlon lssue because markeL demand ls hlgher Lhan
producLlon
S3 esearch developmenL
W3 Some of Lhe medlclnes are of very hlgh prlce Lhan lLs
compeLlLors
S4 ulverslfled range of markeLs
W4 Slow declslon maklng process due Lo elongaLed hlerarchy
sLrucLure
S Medlcal markeLlng deparLmenL
W uecreaslng markeL share (2nd Lo Lh poslLlon ln a space of 2
years)
S6 uge and sLrong producL porLfollo caLerlng
dlfferenL segmenLs
W6 Less employee beneflLs and perks
S7 SLaLe of Lhe arL manufacLurlng planLs W7 1ough CredlL ollcy (Cash/CredlL 89/)
S8 L sysLem belng used Lo seek lmprovemenL ln
processes
Cont.. Cont..
Cpportun|t|esC SCStrateg|es WCStrateg|es
lgh populaLlon growLh
ncrease Lhe markeL share and sLrengLhen Lhe
producL porLfollo by acqulrlng local companles %S6 C4)
locuslng on unLapped markeLs llke Cancer I and new
dlsease Lo lncrease markeL share %WS C2 C4)
2 Lmerglng dlseases
2 ConducLlng semlnars and A1L acLlvlLles Lo creaLe
awareness abouL emerglng dlseases %S3SSC3C2CS)
2 ALLracL poLenLlal cusLomers by glvlng easler credlL Lerms Lo
abouL 20 %W70103)
3 CusLomer's preference for medlclnes produced by
MnCs
3 ueveloplng new formulas ln flelds such as Cancer
%S3 C2 CS)
4 AcqulslLlon of local companles
ncreaslng awareness of Lhe markeL abouL varlous
drugs and dlseases
@hreats@ S@Strateg|es W@Strateg|es
1 Slow down of Lhe economlc growLh of Lhe counLry
8y focuslng heavlly on personal selllng Lhey can
lnform poLenLlal cllenLs abouL Lhelr superlor quallLy
medlclne compared Lo Lhe cheaper local medlclnes
%S2SS@3)
MoLlvaLe employees Lo formulaLe and markeL new medlclnes
by glvlng Lhem moneLary beneflLs %WSW6@3@S)
12 eavy rellance on Lhlrd parLles for supplylng of
maLerlals
2 CaplLallze on excluslve Lechnology develop new
medlclnes (1ableL nsulln) %S3S7 @1 @6)
2 8ackward lnLegraLlon Lo avold poLenLlal shorLage %W4@2)
13 CounLerfelL producLs ln Lhe markeL
14 Lxchange raLe flucLuaLlons
1 Dse of herbal and homeopaLhlc medlclnes
16 CovernmenL flxlng prlces of pharmaceuLlcal
producLs
SPACE ,t7Ix SPACE ,t7Ix
|nanc|a| Strength %S) Lnv|ronmenta| Stab|||ty %LS)
eLurn on nvesLmenL + 1echnologlcal changes 2
LlquldlLy + aLe of lnflaLlon 4
Worklng CaplLal +4 uemand varlablllLy 2
Cash flows + rlce range of compeLlng producLs 2
nvenLory Lurnover +4 8arrlers Lo enLry lnLo markeL 3
Leverage +4 CompeLlLlve pressure 3
Lase of exlL from markeL 2
rlce elasLlclLy of demand 4
lsk lnvolved ln buslness 2
S Average +4S LS Average 26
Compet|t|ve Advantage %CA) Industry Strength %IS)
MarkeL share 3 CrowLh oLenLlal +4
roducL quallLy roflL oLenLlal +
roducL llfe cycle 2 1echnologlcal knowhow +6
CusLomer loyalLy 2 llnanclal sLablllLy +
CompeLlLlon's capaclLy uLlllzaLlon 3 esource uLlllzaLlon +
1echnologlcal know how Lase of LnLry lnLo new MarkeLs +4
ConLrol over suppllers and roducLlvlLy capaclLy uLlllzaLlon+
dlsLrlbuLors 2
CA Average 2 IS Average +49
Cont.. Cont..
Score und Gruph
Y cxis = IS + ES = + (.+ (-z.) = :.p
X cxis= CA + IS = -z.oo + (.p = z.p
CompetItIve P7ofIe ,t7Ix CompetItIve P7ofIe ,t7Ix
CkI@ICAL SUCCLSS AC@CkS WLIGn@ kA@ING SCCkL kA@ING SCCkL kA@ING SCCkL
MarkeL Share 0 3 04 4 06 2 03
rlce CompeLlLlveness 0 4 04 4 04 4 04
8rand mage 02 3 036 3 036 4 048
llnanclal oslLlon 0 4 06 4 06 3 04
roducL CuallLy 00 3 0 4 02 3 0
Consumer LoyalLy 008 3 024 4 032 3 024
ulverslflcaLlon 0 4 04 4 04 3 03
AdverLlslng 00 2 0 3 0 3 0
Company mage 02 3 06 4 08 3 06
@C@AL 1 33 383 307
SANCIAVLN@IS GSk A88C@@
CC ,t7Ix CC ,t7Ix
@C 8kANDS
|agy|
C|aforan
Amary|
naemacce|
@ar|v|d
Daon||
henergan
NoSpa
Av||
Lasor|de

Cont.. Cont..
,,n.e S.o7e C,7d ,,n.e S.o7e C,7d
Cont.. Cont..
ue D.e,n St7,te ue D.e,n St7,te
O SunoII-AvenLIs Ius u IuLure sLruLegy Lo
IuuncI Peripherol Vosculor
ongioplostg in Pokiston.
O PerIpIeruI ArLery dIseuse (PAD)??
O A dIseuse LIuL occurs wIen urLerIes
become nurrowed or bIocked due Lo
cIoIesLeroI, IIpId or IuLLy deposILs In LIe
perIpIeruI urLerIes und bIocks LIe IIow
oI bIood.
O A SLenL (Lype oI rIng) Is pIuced In beLween LIe urLery Lo open und wIden
IL, resuILIng In smooLI IIow oI bIood.
O TIIs Lype oI operuLIon Is currenLIy noL IuppenIng In PukIsLun, so onIy
SunoII-AvenLIs wIII Iuve LIIs LecInoIogy und un edge Lo provIde LIe
soIuLIon In neur IuLure.
Cont.. Cont..
PeripheraI VascuIar AngiopIasty
FIn,n.I, P,tIos FIn,n.I, P,tIos
2009 2010
neL Sales 672708 6829
CosL of Sales 09909 44047
Cross roflL 62699 7344
neL roflL (AfLer 1ax) 6737 224024
neL ncome 27839 82047
neL Worklng CaplLal 3824 9
1oLal LqulLy 220366 26624
CurrenL aLlo (1lmes) 4
Culck aLlo (1lmes) 04 0
peraLlng Cycle (uays) 46 3
nvenLory 1urover (1lmes) 44 37
AccounLs ecelvable 1urnover (1lmes) 27 24
1oLal AsseL 1urnover (1lmes) 2 8
uebL Lo LqulLy aLlo (1lmes) 0
nLeresL Larned (1lmes) 29 4
llxed AsseL Lo LqulLy (1lmes)
llnanclal Leverage (1lmes) 2 22
neL roflL Margln () 2 36
Cross roflL Margln () 242 28
peraLlng roflL Margln () 7 86
A () 49 67
L () 29 3
ks 000