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1.1 INTRODUCTION Prevalent from the birth of mankind, man involved himself in one or another business through sole proprietorship and partnership form of business. But these forms appeared to be less perpetual, because of unlimited liability and affections by natural factors viz death, insolvency or lunacy of the owner or partners. Then company form of organization came into existence which changed the ‘populi’ view of doing business. An organization is defined as “a consciously coordinated social unit composed of two or more people that functions on a relatively continuous basis to achieve a common goal or set of goals”. In other way round it can also be defined as “a form of every human association for the attainment of a common purpose or goal”. Thus in a way the term organization emphasizes upon “the human groupings/associations and whose main objective is to meet certain predefined goals that may vary from profit motive to serving the society as well as the nation”. An organizational study is the study of individual and group dynamics in an organizational setting, as well as the nature of the organizations themselves. Whenever people interact in organizations, many factors come into play. Organizational studies attempts to understand and model these factors. Being a part of the curriculum under 2 years MBA program, we got the opportunity to carry out one such organizational study in a large cap public company. The objective of this study was to enjoin the students with the functioning of the organization, as also of its departments. The main aim of the organizational study is to acquire the knowledge regarding the functional as well as the management aspects of an organization, and its sustainability towards achieving its mission, vision and values set for growth. 1.2 TITLE OF THE STUDY Organisation study on “ZIM LABORATORIES LIMITED”
1.3 OBJECTIVES OF THE STUDY • • • • • • To know about the market structure within which the organization is a player. To know about the market share and share of competitors. To understand key issues in strategy deployment like mission, vision, goals, objectives etc. To study the organizational administrative structure. To understand as to how different functional areas of an organization work together to achieve common objective of the firm. To study key business levels functions and process like Marketing, Finance, HR, Operations, etc. 1.4 SCOPE OF ORGANISATIONAL STUDY
The study focuses on the overall structure of the organization. In this study, the researcher analyzed the overall functioning of the firm and also the financial performance of the enterprise. The researcher made a moderate attempt to have the SWOT analysis of the study. The researcher also experienced practical application of the theoretical knowledge gained 1.5 LIMITATIONS of the Study
As the project is prepared for the academic purpose only, it suffers from the
limitation of time, due to which the detailed report about the operations of the organization was not possible. • • The information given by the persons may not be complete because of their busy The report suffers from the limitation of meeting only the departmental heads work schedules because of lack of permission to interact with other people. Certain areas are restricted, so a detailed study is not possible.
information media that gives a wide picture of the Organization with respect to the external Schedule time frame Time period: Data collection: Data analysis: Report preparation: Submission of report: 25 days (17-10-09 to 14-11-09) 7 days (22-10-09 to 28-10-09) days ( -11-09 to -11-09) days ( -11-09 to -11-09) 14-11-09 Page No. Internal Data. Personal Interview. world. Observation.It includes organization data derived from internet. 2. and there was a questionnaire that was followed as questions which were asked depending upon situations. like External Data. Annual reports etc.There was a keen sense of observation followed during the study period to follow the various functions of the company. and other Organization structures. Secondary Data 1.1.4 .There were interview sessions with each of the functional heads.This includes data provided at the company’s office. Balance sheet. 2.6 METHODOLOGY used for Organization study Primary Data 1.
CHAPTER 2 INTRODUCTION TO THE PHARMACEUTICAL INDUSTRY Page No.5 .
The industry got underway in earnest from the 1950s. Belgium and the Netherlands following suit. with the UK.2 GLOBAL SCENARIO Page No. became mass-manufactured and distributed.2.6 . Most of today's major pharmaceutical companies were founded in the late 19th and early 20th centuries. many of the drug stores in Europe and North America had eventually developed into larger pharmaceutical companies. 2. Key discoveries of the 1920s and 1930s.1 INTRODUCTION The pharmaceutical industry develops. and markets drugs licensed for use as medications. Germany and Italy had particularly strong industries. understanding of human biology (including DNA) and sophisticated manufacturing techniques. testing and marketing of drugs. The first known drugstore was opened by Arabian pharmacists in Baghdad in 754. which led to the formation of mutually beneficial partnerships with large pharmaceutical companies and a host of corporate buyouts of the smaller firms. small biotechnology firms were struggling for survival. Pharmaceutical companies can deal in generic and/or brand medications. Cancer drugs were a feature of the 1970s. The earliest drugstores date back to the Middle Ages. US. From 1978. produces. By the 19th century. Legislation was enacted to test and approve drugs and to require appropriate labeling. with a few large companies holding a dominant position throughout the world and with a few companies producing medicines within each country. Switzerland. By the mid-1980s. Numerous new drugs were developed during the 1950s and mass-produced and marketed through the 1960s. and many more soon began operating throughout the medieval Islamic world and eventually medieval Europe. They are subject to a variety of laws and regulations regarding the patenting. India took over as the primary center of pharmaceutical production without patent protection. such as insulin and penicillin. due to the development of systematic scientific approaches. Prescription and non-prescription drugs became legally distinguished from one another as the pharmaceutical industry matured. Pharmaceutical manufacturing became concentrated.
2015 Page No.Global Pharmaceuticals Market 1. and aggressive market penetration driven by the relatively smaller companies. rising prevalence of chronic diseases. Africa. a. b. Size of the global pharmaceutical market was US$ 602 bn. The pharmaceutical markets worldwide can be classified as Regulated. greater penetration of health insurance. The market has grown at a CAGR of nearly 11% during 1998-2005. The regulated markets constitute 88% of the global pharmaceutical market. 2005 Top 14 Pharmaceuticals Markets. The semi and non regulated markets of Asia. adoption of product patents. Top 14 Pharmaceuticals Markets.7 . expansion of medical infrastructure. According to McKinsey & Company report (“India Pharma 2015). the following trends are expected to influence the growth of the Indian pharmaceuticals market over the next decade: doubling of disposable incomes and the number of middle-class households. 2. Global Sales 2005 : US$ 602 billion The top 10 Pharma companies are facing prospects of slowdown in sales as a large number of blockbuster drugs that they possess are going off patent. Australia and Latin America have been growing at a rapid pace (registering double digit growth in 2005) highlighting the tremendous market potential of these regions. Semi Regulated and Non Regulated markets.
Page No. • USA .2. The Japanese market is poised to become an important destination for many global generic players with the introduction of generic substitution in 2006. • Currently the Indian industry is estimated to account for 22% of the world generics market which is expected to reach 30% according to the forecasts of Assocham.8 .1 STRATEGIES ADOPTED BY GLOBAL MARKET PLAYERS Generic Exports • The global generics market is expected to continue growing rapidly due to the underlying demand drivers like an aging global population. is also the single largest export market for Indian generics. the largest generics market globally.US $ billion US $ billion 2. growing healthcare expenditure and low generic penetration across large geographical areas.
especially China and Israel . Around 70% of the country's demand for bulk drugs.9 . Indian Pharmaceutical Industry has attained wide ranging capabilities in the complex field of drug manufacture and technology. • India is also an apt destination for outsourcing of research services due to its large population with relative underexposure to drugs. CRAMS • Rising pricing pressure on global revenues and falling trend in R&D productivity is making it imperative for global pharma players to increase outsourcing to sustain profitability. almost every type of drug is now made indigenously. pharmaceutical formulations. From simple pain killers to sophisticated antibiotics and complex cardiac compounds. Indian Pharma Industry is playing a key role in promoting and sustaining development in the vital field of medicines. 2. drug intermediates.3 INDIAN SCENARIO “The Indian pharmaceutical industry is a success story providing employment for millions and ensuring that essential drugs at affordable prices are available to the vast population of this sub-continent. which would have been difficult to obtain otherwise. It provides employment to millions and ensures that essential drugs at affordable prices are available to the vast population of India. • Indian custom manufacturing players have been aggressively acquiring custom development companies in the EU in order to gain access to a wide gamut of valuable client relationships. chemicals.” Richard Gerster Pharmaceutical Industry in India is one of the largest and most advanced among the developing countries. tablets. Page No.• Low production costs give India an edge over other generics-producing nations. significant cost advantage and the availability of well qualified investigators. capsules. • Custom manufacturing operations in India or China offer unparalleled cost advantages and increasing pricing pressures is forcing innovators to minimize manufacturing costs and shift operations to India and China .
The industry has thrived so far on reverse engineering skills exploiting the lack of process patent in the country. has not dampened the robust growth but has improved the overall IPR environment. pursuant to the obligations under the WTO Agreement. The Indian pharmaceutical companies have been doing extremely well in developed markets such as US and Europe.24942 crore in 2006-07 accounting for as much as 34% of the turnover. Biotechnology etc.orals and vaccines is met by Indian pharmaceutical industry. The turnover of the industry was Rs. which is another trend seeing a reversal. bulk drugs. Cipla. having risen more than 12times since 1990. Novel Drug Delivery Systems. Exports have also grown significantly to over Rs. New Chemical Entities. This has resulted in the Indian pharmaceutical players offering their products at some of the lowest prices in the world. The companies have their strategies in place to leverage opportunities and appropriate values existing in formulations. Reddy’s Labs. Wockhardt. notable among these being Ranbaxy. which is next only to that in the US. This is further triggered by the fact that generics worth over $40 billion are going off patent in the coming few years which is close to 15% of the total prescription market of the US. India has become one of the leading global players. A number of Indian pharmaceutical companies adhere to highest quality standards and are approved by regulatory authorities in USA and UK.f. generics. The Indian Generics market is witnessing rapid growth opening up immense opportunities for firms. Multinational companies have traditionally dominated the industry.72000 crore during 2006-07. The quality of the products is reflected in the fact that India has the highest number of manufacturing plants approved by US FDA. Dr. 1 January 2005. Nicholas Piramal and Lupin. The adoption of world-class patent laws for pharmaceutical products w. holding fourth position in terms of volume and thirteenth position in terms of value of production.e. Page No. The Indian pharmaceutical industry registered strong growth during the Ninth and Tenth Five Year Plan periods and has emerged as an area of strength especially in generics. Indian pharmaceutical industry is undergoing fast paced changes.10 .
Above all.1 Advantage India (i) Competent workforce: India has a pool of personnel with high managerial and technical competence as also skilled workforce. and the commercial potential. There is already an established international industry and business community. it has more than 70 million middle class market. They chose specific therapeutic areas to target based on their strengths in the market. (iv) (v) Information & Technology: It has a good network of world-class educational institutions and established strengths in Information Technology. The market is also very fragmented with about 30. The Key to success in this industry is research & development. R&D is the starting of the industry value chain and is also the most important value creator. particularly in the area of improved cost-beneficial chemical synthesis for various drug molecules is excellent. It provides a wide variety of bulk drugs and exports sophisticated bulk drugs. Page No. Basic R & D 2. Analogue or Discovery Research 4. Professional services are easily available.11 . NDDS(New Drug Delivery System) Research 2.000 entities and the organized sector consisting of about 300 entities. It has an educated work force and English is commonly used.3.Currently. (ii) Cost-effective chemical synthesis: Its track record of development. Companies that involve in R&D do so in specific areas. Consolidation is increasing in the industry with many local players building a global outlook and also growing inorganically through mergers and acquisitions. Globalization: The country is committed to a free market economy and globalization. (iii) Legal & Financial Framework: India has a 58 year old democracy and hence has a solid legal framework and strong financial markets. it is the Indian companies which are dominating the marketplace with the local players dominating a number of key therapeutic segments. Biotechnology Research 5. Process Research & Reverse Engineering 3. Kinds of Research : 1.
96 bn) 2.41.838 bn) 10. the international pharmaceutical industry is finding great opportunities in India. Sun Pharma Industries (2007 Turnover – Rs.9.4 TOP 10 MARKET PLAYERS IN PHARMA INDUSTRY 1.Reddy’s Laboratories (2007 Turnover – Rs.20.37. (vi) Consolidation: For the first time in many years.4. Dr.734 bn) 8.622 bn) 3. 2.801 bn) 7. Cadilla Healthcare (2007 Turnover – Rs.24. has started taking place in India.637 bn) 4.13 bn) 9. Glaxo SmithKline Pharma(2007 Turnover – Rs.which is continuously growing. Aventis Pharma (2007 Turnover – Rs.17.1 THE STRATEGIES ADOPTED BY MARKET PLAYERS Business Strategies followed by Indian Pharmaceutical Companies Page No. Ipca Laboratories (2007 Turnover – Rs. which has become a generalized phenomenon in the world pharmaceutical industry.635 bn) 5. The process of consolidation.9.16.804 bn) 2. Aurobindo Pharma (2007 Turnover – Rs.12 .22. Ranbaxy Laboratories(2007 Turnover – Rs. Cipla (2007 Turnover – Rs.155 bn) 6. Lupin Labs (2007 Turnover – Rs.251.
000 registered units and is very top heavy.e. India is largely selfsufficient in case of formulations. Over 60% of India's bulk drug production is exported and the balance is sold locally to other formulators. Page No. which accounts for 60-80 percent of total sales.Indian Pharmaceutical sector is highly fragmented with more than 20. These units produce complete range of pharmaceuticals. which include medicines ready for consumption by patients and about 350 bulk drugs.13 . There are also 5 Central Public Sector Units that manufacture drugs. i. Some life saving.2 DISCOVERY R & D IN INDIA The Indian industry has attained cost advantages in process research used for generic drugs & value added generics production. new generation under-patent formulations are imported. The leading 250 pharmaceutical companies control 70% of the market with market leader holding nearly 7% of the market share. This cost advantage is in the fact that: . chemicals having therapeutic value and used for production of pharmaceutical formulations. by MNCs.4. 2. which they market in India.Most infrastructure facilities are much cheaper in India than in developed countries.. More than 85% of the formulations produced in the country are sold in the domestic market.
with industry chipping in with 10% to 12%. Indian companies have started investing in complex R & D activities like novel drug delivery system and new drug discovery. 2. Consequently.Indian scientists can be attracted at much cheaper rates than their US counterparts. The more value added basic research methodologies are being pursued by very few players like Ranbaxy. total expenditure on R&D was low (multinational pharmaceutical players spend about 1316% of total sales on R&D). Biocon & Dr. The cost differentials are due to lower costs in machinery and human capital.Lack of Product Patent protection: The delayed adoption of TRIPS in India is cited as the major impediment to the possible investment by international companies in India. The government continues to bear the burden. The cost Page No. Investments made in R&D by the Indian pharmaceutical companies would yield 3-4 molecules a year.3 CHANGING SCENARIO OF INDIAN R&D The acceptance of provisions of the agreement on TRIPS is expected to change the orientation of Indian companies towards R & D. Indian companies ignored basic research and concentrated their R&D efforts toward producing drugs through alternative processes. Reddys who are willing to take the risk of investing millions in building research capabilities and developing molecules. The advantages of conducting R & D in India are given below: . which is a very small number. Indian industry instead mastered the art of reverse engineering to gain competitive advantage.4.. due to: . The profitability of Indian companies is also much lower than international levels. as the industry structure did not provide Indian firms incentives have invested to very invest little in in R&D in basic India research. This also evident in the data of patent granted in the country where the top firms granted patents are mostly MNCs. There is very little private initiative to invest in R&D. .14 . In the absence of product patents.Inadequate profit base: The price control has squeezed the profit margins making it difficult for Indian and international companies to cull out and invest sizable sums in R&D. The pre-tax profit margin of pharmaceutical companies in India is much less than 6% on sales in sharp contrast to the 18% profit margins common to international companies.Lower costs: R&D expenditure in India is far lower than in the developed countries.
investments are expected to start flowing into the area of basic research. • Pest Factors – These are external forces which the organisation does not have direct control over these factors. Page No.5 PEST ANALYSIS An organisation’s success is influenced by factors operating in it’s internal and external environment.Population advantages: A larger population base would facilitate clinical trials for diseases especially prevalent in developing countries. A successful organisation will not only understand existing factors but also forecast change. Such R&D activities will be targeted towards segments such as antibiotics.advantages can only be exploited if the necessary funds required can be sourced. PEST is an acronym and each letter represents a type of factor (Political.15 . . an organisation can increase it’s success by adopting strategies which manipulate these factors to it’s advantage. Following India’s acceptance of the provision of Trade Related Intellectual Property Rights (TRIPS) under the GATT agreement. Economical Social and Technological). which the organisation can control. Indian R&D efforts could be directed towards infectious diseases that are especially prevalent in Asian countries. • Micro environmental factors – These are internal factors. 2. anti-parasitics and other anti-bacterials. so that it can take advantage of change within the environments in which it operates.
Non conformance with these legislative obligations can lead to sanctions such as fines. Manufacturers are now free to produce any drug duly approved by the Drug Control Authority. Page No. Pharmaceutical Industry in India has been de-licensed and industrial licensing for most of the drugs and pharmaceutical products has been done away with.Diagram: PEST analysis and the marketing mix. adverse publicity and imprisonment in certain cases. since the players have to function within the desired provisions. Ineffective voluntary codes and practices will often lead to governments introducing legislation to regulate the activities covered by the codes and practices. Factories Act 1948 and allied labour and industrial laws also affect the working in the industry. The application of provisions relating to Minimum Wages Act. Indian pharmaceutical industry got a major boost with the signing of General Agreement on Tariffs and Trade in January 2005 with which India began recognizing global patents. POLITICAL FACTORS ANALYSIS It is the first element of the study of PEST Analysis.16 . Besides the industry is also subjected to provisions under the TRIPS.
The top 10 Pharma companies are facing prospects of slowdown in sales as a large number of blockbuster drugs that they possess are going off patent. The higher growth in acute therapy segments – pain/ analgesics and Anti-Infectives can be attributed to the fact that epidemics (dengue & chikungunya) were more prominent in rural areas. The climate of the economy dictates how consumers. For example. several Indian pharmaceutical companies have acquired companies in the US and Europe and many others are raising funds to do so. National and global interest rate and fiscal policy will be set around economic conditions. Ranbaxy acquired Romania's Terapia. ECONOMIC FACTORS ANALYSIS The second element of a PEST analysis involves a study of economic factors. All businesses are affected by national and global economic factors. Prevalence rates of key chronic diseases in India Percent of population Looking at the recession period and in order to lower labor costs and savings in manufacturing costs. Besides there have been a number of regulatory developments since 2005. which includes implementation of VAT. suppliers and other organisational stakeholders such as suppliers and creditors behave within society. Ethimed NV of Belgium and GSK's generic business Allen Page No.17 . The rural markets grew by over 40 percent during the calendar year 2006.The pharmaceutical industry has thrived so far on reverse engineering skills exploiting the lack of process patent in the country. a shift in excise duty levy to MRP based levy and the enactment of product patent regime.
software and hardware equipments used in information exchange system and in managing the business. neighbours and the media. friends. also provides ample market place for the pharmaceutical companies to diversify their selling area. to a great extent. that will help people to maintain health and be happy. colleagues.SpA in Italy. only about one in ten thousand chemical compounds discovered by pharmaceutical industry researchers proves to be both medically effective Page No. Companies like Glenmark Pharma. Aurobindo and Jubilant Organosys are on the lookout for lucrative acquisitions. A number of pharmaceutical companies have therefore come out with such drugs and syrups. If organisations do not respond to changes in society they will lose market share and demand for their product or service. Besides the growing population of India.18 . are becoming health conscious. Here to. TECHNOLOGICAL FACTORS ANALYSIS The last element in the PEST study is the analysis of technological factors. and they desire to spend more for maintaining their health and status. The companies have also to a great extent been able to change the philosophy of timid Indian towards spending on medicines through aggravating marketing advertisements. Gone were the days when medicines and herbs used to be purchased based on monetary factor. ex. According to industry statistics at global level. Dr Reddy's acquired German generic drug maker Betapharm. Organisations must be able to offer products and services that aim to complement and benefit people’s lifestyle and behaviour. SOCIAL FACTORS ANALYSIS The third aspect of PEST focuses its attention on forces within society such as family. doctors and physicians play an important role in furthering the advantages of medicines. Lupin. Indian people. A distinguishing feature of the pharmaceutical industries in India is the large scale investment by big pharma companies in the research and development. which includes the machinery.Revital. The standard of living of people has increased to a great extent.
This technological revolution has increased the rate at which information is exchanged between stakeholders.19 . Also focused on 3 other NCE projects and 4 very promising NDDS platforms Has out-licensed a novel statin to PPD . A faster exchange of information can benefit businesses as they are able to react quickly to changes within their operating environment. However an ability to react quickly also creates extra pressure as businesses are expected to deliver on their promises within ever decreasing timescales. Has 1 Malaria NCE in Phase II Conducting clinical trials on Oral Insulin and Monoclonal Antibody for inflammation Has launched another Monoclonal Antibody for head and neck cancer Has 1 oncology NCE in Phase II and plans to have 7-8 NCEs in clinical trials over the next few quarters Conducting phase II trials on the anti-psoriasis NCE Has out-licensed 2 of its NCEs to global pharma companies Sun Pharma Ranbaxy Biocon NPIL Lupin Glenmark 2. The discovery R&D pipeline of Indian pharma players has been seeing a steady build up over the years. Technology has created a society which expects instant results. has a very strong biogenerics programme One NCE in Phase II trials in USA .6 PORTER’S FIVE FORCES ANALYSIS The most influential analytical model for assessing the nature of competition in an industry is Michael Porter's Five Forces Model. Company Dr Reddy's Labs Overview of discovery R&D programme 2 NCEs in Phase II and another 4 NCEs in Phase I along with a significant number of pre-clinical candidates. Leading Indian companies have started to look beyond generics and are investing in discovery R&D (NCE/ NDDS research) for sustainable long term growth. and about half of all new medicines fail in the late stages of clinical trials. Also partnering with innovative companies on specialty drugs. which is described below: Page No.and safe enough to become an approved medicine.
which may cause in reducing its attractiveness. Key barriers to entry include • • In industry Economies of scale is very slow because it take time to achieve to customer loyalty and whole growth is dependant on the loyalty factor only. These five "competitive forces" are: • • • • • The threat of entry of new competitors (new entrants) The threat of substitutes The bargaining power of buyers The bargaining power of suppliers The degree of rivalry between existing competitors Threat of New Entrants New entrants to an industry can raise the level of competition. The threat of new entrants largely depends on the barriers to entry. For new entrants.20 . it’s a very big challenge to establish business because heavy amount of capital and investment is required.Figure: Porter’s Five Forces Model for Industry Analysis Porter explains that there are five forces that determine industry attractiveness and longrun industry profitability. Page No. In Pharmaceutical industry it is easy to enter but talking about Products it is tough because it depend on the reliability of customer.
but will affect the market share of other pharmaceutical organizations also. substitutes price.21 .e. it’s difficult thereafter to divert customer mind to other substitutes. These type of co-existence also affects to a great extent the functioning of small and medium scale organizations. once competitor gets customer reliability(loyalty). Recent acquisition of Ranbaxy by Daiichi Sankyo will not only help Daiichi to strengthen its roots in the Indian Pharmaceutical industry. The cost of items bought from suppliers (e. which go a long way in manufacturing the product. If suppliers have high bargaining power over a company. The relative price and performance of substitutes affects the usage of the organizations drugs. raw materials. The bargaining power of suppliers will be high when: ➢ In an industry there are many buyers and few suppliers. price plays a major role and it’s totally dependant on market price of the goods i. We can also infer here the entry of consolidated/amalgamated corporates or newly acquired organization. The New entrants find it difficult to cope up with this problem. then in theory the company's industry is less attractive. But in pharmaceutical industry there are many buyers and many suppliers so bargaining power over a company is not much. components) can have a significant impact on a company's profitability.g. Supplier is said to have high bargaining power where the product sold by him has no substitute or even very close substitute. The threat of substitute products depends on: ● In pharmaceutical industry. Page No. Bargaining Power of Suppliers Suppliers are those business houses that supply raw materials & other products to the industry. Threat of Substitutes The presence of substitute products in pharmaceutical industry can lower industry attractiveness and profitability because they limit price levels. ● In pharmaceutical industry. which are generally taken up by already substantiable organizations. This factor may apply to new entrants in industry.• Distribution of drugs and vaccines plays a major role with out which it is not possible for manufacturer to reach prospective customers.
cancer drugs. But this situation varies in case of drugs of extreme necessity viz. and generally playing industry participants off against one another. demanding better quality or more service (thereby driving up costs). who can force the organization to produce only such class of drugs or vaccines which is more popular among their potential customers. including price discounting. small pharma companies find it profitable to remain on track. since it is a business to business market and the buyer here are the wholesalers. new product introductions. if we talk of retail buyer. Page No. The degree to which rivalry drives down an industry’s profit potential depends. • In pharmaceutical industry. But in case of pharmaceutical industry. more or less on an equal size and out of which about 250 are big pharma companies controlling 70% of the market share.➢ The industry is not a key customer group to the suppliers. Pharmaceutical industry is the key customer to the supplier because for suppliers other buyers are few. where there can be no expectation of bargaining by the buyers against the manufacturing industries. the intensity of rivalry is very high because there are more than 20000 registered units. they can be said to have a moderate bargaining power. and progress through R & D. first. and other drug buyers than those drug companies offering generic (non-patented) products. and service improvements. secondly. on the basis on which they compete. all at the expense of industry profitability. • Despite the exit barriers. Pharmaceutical companies that offer patented drugs with distinctive medical benefits have more power over hospitals. health maintenance organizations.22 . Rivalry among existing competitors Rivalry among existing competitors takes many familiar forms. on the intensity with which companies compete and. Bargaining power of Buyers Powerful customers – the flip side of powerful suppliers – can capture more value by forcing down prices. then he can be said to have low or no bargaining power in case of necessary drugs or vaccines. High rivalry limits the profitability of an industry. advertising campaigns. In case of Industrial buyers.
Overall. the pharmaceutical industry shows an upward trend in its core markets. Such degree is very much required between the players in the pharmaceutical industry.23 . The forecast of the leading 16 pharmaceutical companies for 2001 to 2007 suggests that combined sales will grow at a minimum rate of 5. The industry remains highly valued.• • Big pharma companies in India are competing on the basis of R & D facility and through scheme of new drugs and vaccines. Its future potential demand trend is positive and despite increased competition the industry still shows a continuing upward growth momentum.2 percent based on the potential of their product pipeline. has a favourable market position with strong financial make-up and strong earnings growth. Page No. because they are also the provider of great employment opportunities in urban as well as rural sectors.
New breakthroughs in the world & Healthcare occur at a hectic pace. Zim Laboratories Limited exemplifies an organization displaying these very traits.1 BACKGROUND AND HISTORY The Pharmaceutical sector is one where trends and technologies are in a state of flux.CHAPTER 3 COMPANY PROFILE 3. The organization has been established under the shelter and support of Universal Group of Pharmaceutical Companies. This demands for expertise & skill to stay ahead. Page No. one of the leading pharmaceutical group in central India.24 .
Shantinagar.ZIM has made a significant mark as a maverick pharma innovator. and successfully demonstrating its commitment to its Missions & Goals. India.in Felicitation of Mr.I. Page No. Managing Director by Central Institute of Business Management Research & Development.of India. E-mail : zimltd@dataone. Felicitation for contributing to Industrialization and other important.Daud.25 . areas to Mr.1 Accomplishments Works B-21/22. E-mail – firstname.lastname@example.org md@zimlab. India.Anwar S. Zakir S. Planning Commission of India.in 3. MIDC Area. organization’s systems and documents are in conformance with the ISO 9001:2000 Standards accredited by AQA of USA.(Govt.in Website – www. for being an Eminent Industrialist.zimlab. Govt. constantly penetrating newer areas of pharmaceutical business & technology. India). ZIM has established itself as one of the preferred healthcare solution providers in the field of New Drug Delivery Systems (NDDS).of Maharashtra.C. Headquartered & set-up in the industrial belt of Nagpur City of Central India.Vali. but the Deputy Chairman. ADDRESS Of Corporate Office and Works Place Corporate Office 545. Nagpur – 440002. Chairman.1. Kalmeshwar – 441501. by Award of Udyog Patra. Registration The as vendor by Ministry of Defence (Director General Quality Assurance). The facilities provided by the organization are WHO CMP. ZIM & Associates are supported by excellent technical team & sufficient capacity to produce large requirements for different market segments. certified by Food and Drugs Administration. Award of the Best Managed Industry by D.
ZIM & its Associate Companies are engaged in the activities of manufacturing. ZIM has pioneered several innovative technologies & products particularly in the spheres of Pellets. Ointments. Capsules. have ensured a strong presence in the domestic markets.26 . material sourcing assistance and developments of products based on client's specifications. External Preparations. Multiplets.1. including Tablets. Powders. 3. Dry Syrups. its products and services through following six core principles : • UNDERSTANDING markets & Customers Page No.2 The Core Principles of ZIM The organization articulates its understanding of market.organized Business this organization is in a support from conception to schedule and provides packaging development. Resinates. Liquid Orals. etc. SVPs (Injectables). as well as in the international markets. The Independent and Development Department at position to offer customer product delivery in a strict services ranging from product development and design. Multiparticulates & Modified Release Oral Solid Dosage Forms have been identified as a thrust area & key formulations developed. well . customers. Herbals & Diagnostics. The wide appreciation for its quality and prompt services to clients. distribution & marketing of pharmaceuticals in Allopathic & Herbal categories encompassing almost every dosage form.
• DESIGN Products & Services..2 MISSION AND VISION 3..2.27 ... • Niche Products and Markets...1 MISSION STATEMENT “We will exploit our Zeal for Excellence and Spirit of Innovation in the field of Medicine to ensure our position as a premier pharmaceutical manufacturing organization specialized in.2 VISION STATEMENT "Making Quality Healthcare Affordable" “We believe that the pharmaceutical business is today poised for a great leap forward..2. • Biotechnology based Products & Processes.. tryly innovative technologies with the potential to change the nature of human health & Page No. 3. • MARKET & SELL Products & Services • PRODUCE Products & Services. • DELIVER Products & Services. • PROVIDE Customer Service. thereby contribution to make available of High Quality Affordable Healthcare for the common man and meeting our Obligations to our Employees. .. • Original Research based Herbals for Chronic aliments.. Investors and the Shareholders.” 3..
We are committed towards providing our national & international clients an easy & timely access to sophisticated process technologies & products. give value for money. Uniquely positioned to provide expertised drug delivery systems. teaming with like-minded associates in the pharmaceutical technology business. That's why. aspire to play a significant role in making the fruits of such technologies available as affordable healthcare solutions.3 GOALS AND THE VALUE DRIVEN CULTURE The following best explains the corporate philosophy which ZIM percolates through the entire organization and hence forms the core :- Pursuing Excellence through Continuous Innovations. globalization & evolving market such as those for nutritional supplements.” 3.28 . advances in drug therapy & delivery systems. aiming for Customer Satisfaction. We at ZIM. Striving for Customer’s Satisfaction through all their actions. & to offer our customers innovative & exclusive quality products that differentiate them from their competitors & significantly impacts their bottom-line. Ever changing regulatory guidelines. while respecting the rights of others. There is a desperate need for solutions that emerge out of these innovative technologies to reach the common man at an affordable cost so that these benefits do not remain accessible only to the rich and affluent sections of society.longevity have already appeared and each day brings better & better innovations. we support our own & customer's objectives with specialized formulations to reach the market faster & easier than ever. every day we continue to put our Zeal for Excellence and Spirit of Innovation into all our actions.2. old-age & alternative therapy medicines pose challenge to every pharmaceutical organisation to manage and accelerate the drug development process. Page No. drug industry Mergers Acquisitions.
Aspiring for a Responsible Corporate Citizenship through Humanity in constant harmony and Peace. Respecting the Rights of all Stake-holders & Associates. Transacting business with Integrity & Transparency.29 . For this purpose and to serve an industry that is rapidly changing. The management very well believes in producing new drugs and vaccines that will help in the control of diseases. customizing testing to meet client specifications through time-valued and cost effective tests at their facility. Less through–put time ensures the organization to cope up with the future orders and also ensures to maintain quality of the medicines and the drug processes.e. Making Innovative Products our regard for Environment. 3. 2. ZIM has assembled a team of researchers. Less through-put time ZIM has mastered the strategy of involving less time in meeting up with the order of the clients.3 SWOT ANALYSIS Strengths 1. This is because of the sophisticated machinery and the great endeavor taken by the Business Development Department towards fulfilling the orders of the clients. 3. and contribution towards Disease-free ZIM is very much involved in the production of novel allopathic drugs. promotion of Education. Quality drugs and processes Page No. (iii) Performing and monitoring stability testings based on ICH guidelines. scientists and technical personnel with competence and experience to provide the following varied range of services : (i) (ii) Development and validation of formulations Analytical development i.
the company is exporting Page No. This is done in a strict time schedule. ZIM believes that Quality is a continuous process an not an isolated stage. A well equipped Quality Control laboratory comprising sophisticated instruments manned by highly experienced technocrats ensure that the laid down quality policy aspects are strictly adhered to. Presently.There is production of drugs and vaccines that meet more than upto the expectations of the clients. and that too because of the quality drugs manufactured by it. Many a times. facilitating the International Quality Standards with innovative services tailored to users need. Moreover.30 . packaging development and design. and provides a standing in-house representation of the inside company. Opportunities Export Potential ZIM has great potentiality in the foreign markets because of its innovation driving mechanism which is very well required in this sector. A unique feature of this department is that it provides services ranging from product development. The independent and well-organized BDD is in a better position to offer customer support from development to delivery of product. ZIM has a highly developed and sophisticated customer care department. special care is taken at every stage of the manufacturing process. 4. Highly Sophisticated Customer Care department To be very well proficient with meeting the requirements of the customers and to stand up in the competitive era. the order quantity poses a risk to production pattern and hence results in capacity constraint. Weaknesses Capacity constraint The organization faces the problem of meeting to the excess order requirements of the clients. which is nominated as Business Development Department. material sourcing assistance and developments of products based on the specifications or requirements of the clients. The BDD acts as the connecting link between the prospective clients of the organization and the company.
• Bio-availability Enhancement---. some of which are Maharashtra. Threats Competition from Indian organizations operating outside India Operating in the foreign markets requires huge investment besides facing a tough competition from the operation of domestic organizations in the foreign markets. and multiparticulates. Egypt. The organization is comprehended to the threat of operations of major domestic players like Ranbaxy Laboratories. • Herbal single & multi-components pre-mixes. Nigeria. Iraq and Yemen. Besides it has also covered several Central and South states in the domestic sector. • Sustained Release Formulations. and others. • Non-Pareil Seeds & other pre. Sri Lanka. The reason why it places high dependence on export sales is because of its superior quality drugs and processes.. which makes it one of the better manufacturers among its sector. Algeria. Morocco. some of which are Bangladesh. Libya.Formulations & Powders . The company sees a bright market prospect in the continents of Africa and America.Premixes & Granulates. UAE. Page No.4 PRODUCTS AND MARKETS PRODUCTS The following specific formulations are offered:• Taste and Odour Masked Formulations. • Immediate Release Stabilised Multi. granules. • Stability Enhancement----. Vietnam.31 .processed excipients. 3. Latin America. • Enteric Release Formulations.its products to more than 25 countries. • Dual Release Formulations (Delayed Release With Enteric Coating Attributes).component Formulations. • Dispersible / Mouth Dissolving Tablets and their R C Granules. Chattisgarh and Madhya Pradesh. Glaxo SmithKline.
32 .Ulcers AntiHypertensive Esomeprazole Atenolol Lansoprazole Omeprazole Pantoprazole Nicardipine Nifedipine Nitroglycerin Verapamil Anti-Allergics Chlorpheniramine Maleate Cetirizine/Levocetirizine Loratadine TABLETS Anti-Hypertensive Candesartan Cilexetil Carvdilol Diltiazem SR Losartan potassium & Ramipril Anti-Depressant Clomipramine HCl Citalopram Anti-Diabetic Glimepiride Metformin Metformin Repaglinide CAPSULES Anti-Bacterial Cefixime & Cefdinir Albendazole Cefuroxime axetil Fluconazole Ofloxacin Anti-Viral Didanosine Delayed Release Azithromycin Ciprofloxacin Gatifloxacin Roxithromycin Anti-Fungal Fluconazole Anti-Asthamatic Theophylline SR TASKS MASKS Cefixime Clarithromycin Levofloxacin Cefpodoxime proxetil Erythromycin ethyl succinate Nystatin Page No. Some of the products in the above category manufactured by ZIM are : PELLETS Antiinflammatory Aspirin Ibuprofen Indomethacin Ketoprofen Tramadol AntiAsthamatics Aminophylline Hydrate Montelukast Sodium Chewable Hyperacidity.Additionally. the company has the experience & ability to manufacture and supply large volumes of standard and customized finished formulations under different labels & brand names. This large volume capacity allows us to offer our customers products of consistent quality with reduced lead-times.
The impact of the right strategies will automatically be reflected in the results.33 . By focusing not only on financial outcomes but also on the operational. The balanced scorecard is a strategic performance management tool for measuring whether the smaller-scale operational activities of a company are aligned with its largerscale objectives in terms of vision and strategy. marketing and developmental inputs to these. The Balanced Scorecard is such an innovative tool which has considered not just the financial indices but also the non-financial indicators as equally critical in determining organizational performance. Moreover. Page No.5 BALANCED SCORE-CARD Analysis of the Organization using Balanced Score Card Approach: The success of any organization is reflected upon by its performance which is in turn highly dependent upon its strategies.3. development of state-ofthe-art technologies and creation of an environment of learning and growth. what an organisation requires is not just framing the right strategies. In this era of cut-throat competition. the Balanced Scorecard helps provide a more comprehensive view of a business. any organisation has to understand that it needs to give impetus not only towards the financial results but also towards satisfaction of the customers. This tool brings a link between strategy and action. which in turn helps organizations act in their best long-term interests. the framework is gaining increasing importance among different business houses. but also managing the same. Due to these.
34 .Balance Scorecard Phases Page No.
It aligns everyone within an organization so that all employees understand how they support the strategy. 4. 2. It translates vision and strategy into action. It provides a basis for compensation for performance.35 . 6. It communicates the objectives and measures to a business unit. Advantages of using Balanced Scorecard approach : 1. and (ii) It is not just a performance measurement tool but is also a performance management system. The tool has given stress on the other areas which are required to ‘balance’ the financial perspective in order to get a total view about the organizational performance and improve the same. They are– (i) It considers the financial indices as well the non-financial ones in determining the corporate performance level. Example of Balanced Scorecard A typical scorecard of an organization can be prepared as under: Page No. The framework tries to bring a balance and linkage between the – (a) Financial and the Non-Financial indicators. (b) Tangible and the Intangible measures. One of the tools for organizational appraisal that is gaining immense popularity is the Balanced Scorecard. (c) Internal and the External aspects and (d) Leading and the Lagging indicators. This innovative tool is unique in two ways compared to the traditional performance measurement tools. It defines the strategic linkages to integrate performance across organizations. 3.The long-term success of any organization is determined by the capabilities and the competencies it has developed. The scorecard provides a feedback to the senior management if the strategy is working. 5. 7. developed by Robert S Kaplan and David P Norton in 1992. It aligns the strategic initiatives in order to attain the long-term goals.
Observational Analysis of ZIM Laboratories The Financial Perspective: The company follows effective financial strategies to maintain stability in finance and allocation of funds. Besides. which looks out for overall satisfaction of its customers. The Customer Perspective: The company satisfies its customers in an effective way and caters to the customer requirements very efficiently. The Process Perspective: Page No. Since the company is an unlisted one. This has been carried out to a large extent by the highly efficient Business Development Department of the company. there arises no questions of return to the shareholders. They set goals according to national and international standards and accordingly they take effective measures to achieve them.36 . company has negligible funding from outside sources.
Company generally follows production on the basis of orders generated from the customers. logistics or sales and then set goals related to such things as quality. by using the people resources most effectively.37 . retention. The above analysis has been carried on the basis of observations brought out during the organizational study. The Innovation and Learning Perspective: In this area.In process perspective also the company have a very specific goals regarding like production. in order to avoid wastage and spoilage. It also look at measures for research and development. and cost reduction. the company is examining measures relating to employee development. and skills improvement. Note: Company doesn’t follow balanced score-card approach. time/efficiency. It focus here is on continuous improvement and value creation. Page No.
CHAPTER 4 ORGANISATION STRUCTURE AND CRITICAL REVIEW Page No.38 .
customer. 5.1.3 What is Organizational design ? It is the process by which managers select and manage aspects of structure and culture so that an organization can control the activities necessary to achieve its goals.4. In functional structure. Following are the broad types of structural forms : 1. organization is departmentalized on the basis of products. Maintenance.1.1. Human Resources. Mechanistic and Organic structures 4. Vertical and Horizontal structures 3. R & D.39 . The Matrix Structure. operations.1 Why Organizational Design ? Organizations have become the primary form of social institution in contemporary society. Organization structures may take different forms. the organization is departmentalized on the basis of various functions performed by it viz. Federations A brief introduction to the above forms of organization structures is given below : Functional and Divisional structures The oldest and commonly used organization structure is functional structure. 4. etc. influencing the attitudes and social relations that emerge over time and the ways in which work related tasks are completed. Page No. The way in which an organization is structured creates/restrains opportunities for interactions with other organizational members.2 Organizational structure The formal system of task and authority relationship that control how people coordinate their actions and use resources to achieve goals Structure facilitates effective response to problems of coordination and motivation 4. In case of divisional structure. Functional and Divisional structures 2. or region. production.
both absolute centralization and decentralization are neither desirable nor possible. On the contrary. the organizational structure suitable to stable conditions was termed as mechanistic structure. Hence. Page No. Accordingly. The essence of modified structure lies in the modifications to the classical principles of delegation of authority and standard of control. Matrix forms of management can be regarded as an early form of 'network' structure.Vertical and Horizontal structures In an organization. The product managers and functional managers have equal authority within the organization. Accordingly. In this structure. However. and employees report to both of them.40 . Individuals were made responsible both to their line manager and the project manager involved. Matrix Structure The matrix organization structure was proposed by Dairs and Lawrence for Aero space programme of the United States. In a matrix organization. Mechanistic and Organic structures Two contrasting types of organizational structure were recommended by Bruns and Stalker in their study of twenty industrial firms in England. structures incorporating wide spans and limited layers of control at horizontal levels were called horizontal structures. this dual structure simultaneously organizes part of organization along product lines and part of the organization along functional lines to gain the advantages of both. attempts were made to combine the advantage of product and functional departmentalization to achieve the organizational goals. while the organizational structure which was considered appropriate to changing conditions was called organic structure. bringing skilled individuals together from different parts of the organization. In other words. organizations having a series of narrow span of control were termed as vertical structures. the writers and organizations began to explore ways to modify the two structures. They focus on project teams. both these structure have their own advantages and disadvantages. each department reports simultaneously to both product managers and functional managers.
CHAIRMAN Page No.Federations This form is a variant of the divisional organizational structure which has great importance because of its human resource factor. 4. But this form of organization has attracted criticism from stock market analysts who find difficulty in comprehending its subtle informality. since the power of management control is divided between the Financial Director and Executive Director from the Managing Director. The federations is a loosely connected arrangement of businesses with a single holding company or separate firms in alliance.2 ORGANISATION STRUCTURE OF ZIM LABORATIES Zim Laboratories follows Horizontal form of organizational structure.41 .
ALL ASST. PRODUCTION MANAGER STORE INCHARGE(FG) STORE INCHARGE(RM) STORE INCHARGE(PM) PERSONNEL OFFICER ALL ASST. ALL ASST. INWARD / OUTWARD INCHARGE ALL ASST. ACCOUNTANT ADMIN. ALL ASST. Page No. ALL ASST. OPERATION PROJECT INCHARGE OSD QC QA MANAGER MAINTENANCE ENGG. PRODUCTION OFFICER ALL ASST. ASST. R&DS R.P.42 .3 CRITICAL REVIEW of the Organizational Structure 1. EXEC ALL ASST.MANAGING DIRECTOR FINANCIAL DIRECTOR EXECUTIVE DIRECTOR PURCHASE OFFICER A/C OFFICER EDP ERP ADMIN. ALL ASST. VPBDD INTERNAL AUDIT INCHARGE MANAGER R&D V. ALL ASST. 4. The Chairman is concerned with policy making matters. ALL ASST. PURCHASE ALL ASST. OFFICER HR MANAGER SECURITY ASST.
the production. Like a just organization. Quality Control and Quality Assurance c. The MD also supervises the working of the following departments / functions : a.2. The Finance Director controls not only the accounts department. to some extent. Therefore he is burdened with the task of responding to each of them. Projects 7. but also the purchase department. which can have. 4. 6. Page No. wherein it is desirable to have a horizontal organization design. a demeaning effect on the working of the MD. 9. Since MD is to concern himself with the making of policies in an organization. stores and personnel departments are under the control and supervision of Operations department. During the Board Meetings there has to be reporting of policies framed and exceptional functions performed during the routine management. Business Development Department b. The Managing Director is entrusted with the functions of routine management.43 . this form of organization design poses a great challenge for him. 5. which requires technical as well as functional expertise on his part. 8. Operations f. The organization operates in a B2B market. EDP and ERP functions also. 3. Research and Development e. Internal Audit d. The only misconception about this form of design is that the MD has to operate and hear from all the departments functioning within it. The Finance and the Executive Directors are under the supervision of the MD.
1 FUNCTIONAL DEPARTMENTS OF ZIM LABORATORIES 1.CHAPTER 5 BUSINESS LEVEL FUNCTIONS AND PROCESSES 5. Business Development Department Page No.44 .
EDP & ERP 7.2. Finished Goods & Dispatch 11.45 . Marketing Department 5. Accounts Department 5.2. Packing Materials c. Maintenance Department 12.1 Recruitment / Training and Development Process Vacancies Arise in the Respective department Job advertisement is given in the newspaper & Applications are collected The Resumes received are then scrutinized The Respective Head of Department further scrutinizes the application A Committee Panel is established and a date & time is decided from the Panel Candidates selected from Preliminary Interview are called for Final Interview Page No. Human Resources Department 14. Purchase Department 4. Quality Assurance 8. Research & Development 6.2 HUMAN RESOURCES DEPARTMENT 5. Administrative Department 3. Production Department 10. Quality Control 9. Raw Materials b. Materials Department a. Personnel Department 13.
Instead.2. whenever employee wants to work less on any particular day of the week. these credit hours are adjusted the emergency hours i.46 . Extra incentives are pointed out here in the sense of overtime work.e. There is no payment for overtime work. This generally happens in case of family or social functions at the employees residence or in case of accident or other uncertainity of any of his/her family members. then if he/she has done some overtime work before.2. Performance. 5. then that overtime work hour is adjusted towards in such emergency situation.Selected candidates are called for Preliminary Interview Selection and Disbursal of Offer letters Appointment and Joining Formalities Induction Process Internal Training and Development Performance Appraisal (Self-Appraisal by employees) Appraisal by the Head of Department whose employees are evaluated Review with Committee Panel 5. Incentives and Leaves It was informed that there were no extra incentives to the employees apart from the monetary allowances.2 Promotion Policy.3 Number of Employees Administrative Category of Employee Trainee On Probation Confirmed Posts Total Number 52 22 82 Total 156 Non-Administrative (Workers) Permanent workers 54 Page No.
Instead customers visit the factory outlets and place direct orders with the organization. no questionnaires nor behavioral method. and also for export purposes in some cases.4 Matters dealt with by the department 1. Spoilage and Wastage 8. Sale of Scrap. Marketing is generally done of Finished goods and Semi-finished goods. In case of exports. only Semi-finished goods are marketed. for the reason of it being the financial capital of India. Incentives and Bonus Payment 3. Bus facility 7. 5.Casual (on contract basis) 300-400 5.3. In case of exports. Scrap. Provident Fund 4.3. Activities concerning welfare of employees 5. 5. In case of transaction with governments and institutions.47 . Canteen facility 6. they are marketed for the government and institutions. Salary & Wages 2. the usual process adopted is : Page No.1 Role of the Marketing Department The Mumbai Office takes care of the Marketing function of the organization.e. while in case of finished goods. 5.2 Method of Marketing deployed The organization has not employed any of the direct marketing strategies i.2.3 MARKETING DEPARTMENT ZIM Laboratories has its registered office in Mumbai. there are also frequent visits by the Health Ministers and other top officials of the health department of the foreign country.
Iraq and Yemen. and thereafter places the order accordingly. Algeria. Chattisgarh and Madhya Pradesh. Nigeria. Morocco. Country visit 2. custom manufacturing.3. Contract Manufacturing The organization is involved in selling of allopathic drugs according the requirements of the customer i. the company is exporting its products to more than 25 countries.8. However. ZIM holds – i.48 . Tender awarded 10. Libya. some of which are Bangladesh. supply of goods. Presently. Meeting customers through local agents appointed in that country. The greatest advantage of this type of strategy is that there is following of JIT system to the tune of 80- Page No. Appointment of local agents in foreign country 3. 3rd Party Export It is selling goods locally in more than 15 countries. ISO 9001:2000 WHO Certification (for Export and Registration) NAFDAC (National Agency for Food & Drugs Administration and Control) which is helpful mostly for export of products in the country of Nigeria. Where organization visits foreign country :1. Export The organization has export in more than 25 countries. Vietnam. B. 3. iii. 2. Buyers directly approach the organization through informed visits to factory. Tender participation 9. Finally. Egypt. some of which are Maharashtra. Sri Lanka. Besides it has also covered several Central and South states in the domestic sector. export marketing usually involves following steps : A. UAE. 5. ii.3 The Market Strategies or the Business Models 1. Latin America.e.
In case of Trade Marketing. since production is carried out only after receiving the specification or requirements of the order. In fact the manufacturing rights remained with ZIM and were displayed as ‘Marketed By : ZIM Laboratories’ on the tablet / capsule strips or syrups or related products. Government and Institutes ZIM also supplies drugs and syrups to government and allied institutions. tools adopted are : Page No. Trade Marketing This comprises of own marketing of products. 5. some of which are ESIC. WCL.Director General of Quality and Assurance for supply in Defence sector. This is just indirect manufacture. 4. as if to appear that the product has been marketed by that client. which excludes direct marketing techniques. 1. It is the customer who directly approaches the organization either through 7. 5. Many a times. Loan License Manufacturing Under this strategy. the organization used to sell/manufacture drugs with specific names of clients on the products as per its requirements. since these organizations face the problem of finding the right supplier.4 Sales Promotional Techniques ZIM follows basic promotional techniques and does not goes for mere technical tools. RDPL. it is the foreign entities who approach ZIM in order to purchase these machinery and equipments. wherein ZIM used to manufacture the drugs and medicines and dispatched them under the name and seal of the client. The organization holds a Certificate of registration from DGQA i. 6.90%.etc.3.49 .e. Trading ZIM also aids those organizations which find it difficult to import instrument parts and other quality control equipments for manufacturing purposes.
Conferences, Gifts, Coupons and Prizes. 2. In case of Export Sales, tools and techniques adopted are : Bonus goods or free goods, Commission or Discount on further purchases. 3. In case of Marketing of products, ZIM provides only promotional materials to its customers, simply because the superior quality of products provided by it to them. 5.3.5 Marketing Information Systems Marketing Information Systems is generally brought in application of Age analysis of Debtors and Creditors of the organization. Age analysis means how old or for how much time the party is appearing as Debtor or Creditor in the Ledger of the organization. For this purpose, a provision is made to exclude a specific amount of debtors from the total amount. 5.4 FINANCE DEPARTMENT The recording of transactions with respect to purchase of raw materials, payment of revenue expenditure and receipts is regulated and functioned by the finance department in any organization. In fact, finance is considered to be the backbone of any organization, since it brings forth the true and correct position of the organization. The recording of transactions relating to raw material starts with the security check and entry in the Register Inward kept for the purpose at the entry gate of ZIM Laboratories. Materials in this case usually consists of : i. ii. iii. Inputs (Raw Materials or Packing Materials) Capital Goods (generally Machinery) Spares & Consumables (Factory Expenses)
Thereafter, they are transferred to respective departments after making an entry in the Outgoing Register. Input goods are transferred to Raw Materials/Packing Materials Department, Capital Goods are transferred to Production Department, and Spares & consumables are transferred to Stores Department. A Goods Receipt Note(G.R.N) is issued by the respective departments on receipt of raw materials/capital goods.
5.4.1 Posting of Transactions After issue of GRN, there is made an entry of receipts in registers kept for the purpose : i. ii. iii. Receipt Register (Raw/Packing Materials) Inward/Fixed Assets Register (Production Department) Receipt Register (Stores Department)
5.4.2 Dispensing / Basis of Issue of Raw Materials On the receipt of requisition from respective user department, a slip is issued in favor of the respective department and finally an entry in made in outward register. Accordingly, i. ii. iii. Issue Slip (by Raw/Packing Department) and entry made in Outward /Issue Register. Delivery Memo to Stores (by Production Department). It also acts as register entry. Issue Slip ( by Stores Department) and entry made in Issue Register.
5.4.3 Posting of Issues After issue of raw materials or spares and entry in department outgoing register, the issue is posted in Ledger(financial effect) and Invoice/Sale-Book(Inventory effect). 5.4.4 Financial and Inventory effects of transactions Only payment related details are entered in the financial books viz. date, cheque no., amount, etc. and in case of inventory books the unit price per material is entered along with issue slip issued by the raw materials or stores department. In case of deviation from the required quantity, a Debit Note is issued by the department in favor of the party for verification and variation. After the entire cross verification, entry is made in the financial accounts.
5.4.5 Payment method
Generally, payment for raw material purchases is done on cash or cheque basis. In case of cash payment, payment entry is posted in Party account by cash register. Similarly, on payment through cheque, entry is posted in respective Party account by Bank Register. 5.4.6 Recording of Raw Material/Packing Material Purchases At Security check point, entry is made in Entry Register and GRN issued. Material passes to Quality Control department for sample checking. If the material is approved by the QC department, an entry to that effect is made in the Materials Receipt Register and posted in Party’s Ledger account. Requisition slips are filled by the departments in need of the raw material and issued in favor of materials and stores department. In return, the materials and stores department issues ‘Issue Slips’ and enters the transaction into Issue Register. Finally, the entry is posted in Ledger and Stock Register is updated.
5.4.7 Books of Accounts maintained 1. Cash Book 2. Bank Book 3. Journal 4. Purchase Registers i. ii. iii. i. ii. iii. Raw Materials PR Packing Materials PR Finished Goods PR Commercial SR Excisable SR Other SR
5. Sale Registers
6. Credit Note Register 7. Debit Note Register Credit note and Debit note Registers are maintained by the organization for entering Rate Difference and Short quantity. Page No.52
Ledger Accounts 5. 5.53 . In fact. The BDD is just like the Customer Care department which functions to face the competitors and focus to customer requirements. To develop the organization business b. for transacting with the organization. 5. The department is a one window concept which means a one stop place for outsiders. no entry is made in the books of accounts or no payment is made.4. more specifically customers. 5.4. Overheads Budget / Cost Budget 5. Page No. Fulfilling customer requirements.5 BUSINESS DEVELOPMENT DEPARTMENT ZIM believes that the pharmaceutical business today is poised for a great leap forward.9 Voucher Entries ZIM follows the practice of entering transactions of normal or regular expenditure only through supporting vouchers.2 Activities of BDD 1.1 Functions of BDD a. 1. ZIM also concerns itself with the preparation of various budgets viz.8 Budgets In consonance with the general practices and like other organizations.8. Sales Budget 3. Cash Budget 2. unless there is some voucher to support its nature of transaction. Purchase Budget 4. Financial Budget 5.5.5. To represent and deal on behalf of customers with the organization.
right from conception to product delivery. 3. Ensuring shipment of products in time. 5. Follow-up of customer and agent payment. The BDD acts as a connecting link between the organization departments on one hand and the agents and customers on the other hand. The position can be better explained with the help of following diagram :5. HR QC Mkg A/c BDD Relationship Export Model Prodn .3 THE BDD CUSTOMER RELATIONSHIP MODELS BDD Relationship Domestic Customer Model Prodn .54 .2. 4.5. HR QC Mkg BDD Agents Customer 1 Customer 2 Customer 3 Customer 4 BDD Customer 1 Customer 2 Customer 3 Customer 4 A/c The independent and well-organized BDD is in a better position to offer efficient customer support. Monitoring performance of the agents appointed in foreign countries as also the performance of the customers with regard to the use of the products. Payment of Commission to agents appointed in foreign countries on time. Timely intimation to customers about introduction of new drugs and processes. 6. keeping in view a strict time Page No.
1 The Production Plant The production facilities are located at Kalmeshwar Industrial Area near Nagpur in Central India. The BDD provides services in the form of product development. Moreover. secular atmosphere and work culture. Easy availability of technically qualified work force. Page No.6. 5. A cosmopolitan. All the activities of BDD are geared towards providing a standing in-house representation the company to its valued customers. Regulation and Commercial Documentation Team.6 PRODUCTION DEPARTMENT\ 5. Plentiful electricity and water. Advantages of having the production plant in such area are numerous. such that both facilitate direct export/import. A dry dock facility and further development of the nearby Industrial area (Butibori). d.55 .5. Logistics Management Team.4 Composition of BDD The BDD is constituted of four interrelated cells with well-defined activities encompassing: b. and e. material sourcing assistance and developments of products (drugs) based on specifications provided by the clients. packaging development and design. Central India is surrounded by vast tribal forest areas having their own wealth of plants of medicinal value giving it easy. some of which are : Easy access by all means of transportation to all parts of the country. 5. Procurement Teams c. Easy and economical availability of raw and packing materials. local availability of the required plant raw materials. Packaging Development Team.schedule.
Quality Assurance Analysis and release 12. Unit Packing and re-IPQC Check and Release 10. Final Packing of the Capsules 11. Raw Material and Packing Material planning 3. Capsule section is divided into following : 1. Passing to Quarantine section 13. Receipt of Inputs 5. Bringing in Raw Material(Active/Inactive) 2. In Process Quality Control Check and Release 9. Steps involved in the process of PELLETS and TABLETS Manufacturing Page No. 10. Passing to Finished Goods and Packing Material Stores Finally. Checking . Inspection and Polishing of the Capsule 8. Transfer of packaged products to Finished Goods store for dispatch.2 Production Processes The normal production process followed by ZIM is given below : 1. Receipt of order from the customer. Testing of the manufactured product. 8. Steps involved in CAPSULE PROCESSING 1. Analysis & Release 4.6. Sampling and re-testing of products packed. 6. 9. Sifting. Polishing Section.56 . Testing of Inputs received.5. Actual manufacturing of products (drugs or processes) 7. 2. Packing of products. the capsules are ready for packing and distribution. Capsule filling 7. Blending & Weighing 3. Passing to Quarantine area 5. Mixing / Blending 2. Empty capsule loading 6. Material requirement planning 4.
A good number of talented professionals are engaged in the unending endeavor to break new grounds and bring forth fresh solutions. R & D requires not only a good technical team but also following of Quality check and Quality policy. Then the tablets/pellets are dried using an Oven and passed through vibratory sifter. ZIM possesses an exceptional technical team. 10. However there are certain additional steps in the preparation and processing of tablets. Page No. 6. preparation of Binder and there is drug layering through coating the pan. 3. the tablets are covered in the Blister Cell. There is re-IPQC checking. First. After weighing.1.57 . 5. The defective tablets are purified using the Bulk Tablet Machine.1 Research and Development wing at ZIM The requirement of a sophisticated research and development wing is very essential from the point of view of pharma industries. The R & D and Technical Services departments are key focus areas. the tablets and pellets are packed after electronic balance checking.7 R & D DEPARTMENT 5. bulk density and total assay & drug release. It is then proceeded by an IPQC checking with regards to Moisture content. Thereafter using PVC Sheets. 8.7. Then there is weighing of the powder and tablets using the electronic balance. The Double track machine. 7. 9. 5. an independent Research & Development department and a full fledged quality Assurance department. The products are then coated and dried using a coating pan/fluid bed coater. 4. Powder is prepared 2. The above steps lays down the general process for the production of tablets and pellets. Finally.
scientists and technical personnel who have great competence and experience to provide a range of services. This ensures the company an unbeatable edge in the competitive market place. and otherwise conventionally unworkable materials rendering them Environmental friendly or processable.These talented team members ensure that the company’s customers. Customers at ZIM obtain high-tech product advantage. the company’s R & D department comes into play and develops the product through its sophisticated technical department and panel of technical team members.2 The Technology path ZIM provides its customers a wide spectrum of value-added & cost-effective services whether pertaining to manufacturing. Page No. cost-effective and Quality products being produced after much research & development.7. 5.7. Formulation Development Whenever an order is placed by a customer regarding manufacturing of a new drug or process. corrosive and hazardous. to a great extent and even perpetually. and Ready for Compression Granules for unstable.3 Activities undertaken at R & D Department 1. new therapeutic classes besides renewing the interest for the older drug molecules by their continual improvisation through elimination of their negative attributes which otherwise would have rendered those molecules obsolescent. The formula is developed after great research and experimentation required specifically in the field of medicines and drugs. derive the advantage of Innovative. product development. or. technical assistance or regulatory affairs. ZIM has a team of researchers. Site specific/Target release characterization. Taste-masking and flavouring technology for masking bitterness and obnoxious odour of active drug ingredients. Solubility and Stability enhancement.58 . Products in several categories are available with diverse attributes that include conversion of Hygroscopic molecules to Non-Hygroscopic forms. pharmaceutical & analytical method development. Enteric Release specifically for Acid-labile drugs. including development and validation of formulations. 5.
that there will be a single software which will control all the functional departments. Where a purchase order has been placed by the purchase department. Formulation redesigning is done only after receiving the requisition from the client regarding redesigning of product subject to change in the processes previously involved in the manufacture of the product. the information will be updated for reference and approval by other departments. and informed with respect to the functional softwares.2. 5. Page No. The company generally carries out this activity with regard to the products already manufactured by it. Formulation Redesigning ZIM also undertakes the redesigning of formulations pertaining to products already in the market.59 .8 ERP & EDP The company has installed the Enterprise Resource Planning Software 2 months before.
60 . 6.The company Heads and Managers have been highly cooperative and had made good arrangements for the interactions despite their tight schedule.1 OBSERVATIONS Page No.CHAPTER 6 OBSERVATIONS LEARNINGS AND CONCLUSIONS It was an interesting and practical experience that was gained at ZIM Laboratories during the study .
Despite the general performance appraisal procedures. 3. 8. Because of the quick functioning of the BDD. The self-appraisal forms are then re-evaluated by a separate team of members appointed from each department. The company’s market strategies which comprises of seven different models are unique and distinguishing. For efficient functioning of its departments. concerned. 9. timely delivery of products to its customers.61 . Page No. 2. but follows the simple and lucid system of crediting of excess worked hours towards emergency hours required by the workers. specially the department heads. which ensures quality products and processes. it ensures. Understanding the functioning of the various departments in the organization. The company has ensured following of the quality policy through quality control and assurance department. The company in consonance with point 2 facilitates international quality standards with innovative services tailored to users need. The company has excellent research and development wing. besides. 4. which ensures evaluation of the true and correct productivity of the employees. 5.2 KEY LEARNINGS The study has facilitated me in learning the following things : 1. Requirement of better co-ordination between the departments for their effective functioning. tablets and capsules have all been imported from China. ZIM has divided them into 15 different departments. The machinery used in the production of powders. This ensures timely implementation of functions 6. ZIM goes for selfappraisal. 7. which can be operated using the touch-screen system. pellets. 2.1. 6. proper co-ordination between the different departments functioning within the organization. The company has not involved itself in the providing of extra incentives to its workers and employees.
Page No. 6. They maintain good relation within the employees as well as with the customers. or to be more specific. The main focus on the study in ZIM was on coverage of all the departments in average. Necessity of great division of labour and technical skills in such an industry is of vital importance. Placing Customer care and Customer Service at the apex of objectives list. But what comes of more importance is the functions of the organization. Through this organizational study. There is healthy competition in the industry with entry of global giants.62 . Thus the overall study in ZIM Laboratories was a learning experience. 4. PEST and Porter’s Five Forces analysis.3. Understanding the organization structure and the decision making process. The company has good marketing strategy for export and domestic market. All the departments are linked with each other. Learned how to carry on the SWOT.3 CONCLUSIONS An organization is a unified group of individuals who work laterally to achieve the desired goals and objectives. as also the reporting procedure between the departments. and fame & reputation in the central industrial belt comprising Maharashtra and adjoining states. The company believes in providing “Affordable Quality Healthcare through Zeal and Innovation in Medicine”. By having joint venture and collaboration with the foreign companies the industry can overcome the competition and at the same time it can upgrade its production technology. 6. we get to know the working of organization and have an overview of its functional departments. 5. The working of an organization is very well reflected by the working of its departments. more will be the growth of the organization. the departments comprised in the organization. and that no organization can succeed without taking into consideration this fact. ZIM is a pharmaceutical manufacturing company having diversified market strategies. The Indian firms should put in good efforts to overcome the competition. The unique feature observed was that the Business Development Department was the intermediary between the customer and the organization. The better the co-ordination between the departments.
marketing. production.New / Novel Drug Delivery System. Drug development refers to activities undertaken after a compound is identified as a potential drug in order to establish its suitability as a medication.Thus the company has enabled me to learn the various aspects of management.63 . ABBREVIATIONS AND MEANING OF TERMS NDDS . Objectives of drug Page No. Drug discovery is the process by which potential drugs are discovered or designed. finance which will be useful for my further studies.
as well as to establish safety.January 2008 (Porters 5 forces) Page No. Penicillin is an antibiotic produced naturally by certain blue moulds. Harvard Business Review. BIBLIOGRAPHY Books and Magazines 1.64 . Insulin is a polypeptide pancreatic hormone which lowers the glucose levels in the blood. and which is now prepared synthetically. Generic Drug is a drug which is produced and distributed without patent protection. a lack of which causes diabetes.development are to determine appropriate Formulation and Dosing. CHRONICLE Magazine– March 2009 2.
marksonspharma. www.org 6.managementhelp. www. www.themanager.Websites 1.special.org Page No. www.com 3.net (orgnaisation structure) 7.marketingteacher.65 .learnmarketing.net 5.com 4.org 10. www.org 9. www. www.com (balance scorecard) 8.balancedscorecard.hrmguide.zimlab. www.wikipedia.in 2.rediff. www. www.
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