Research Proposal for Research Methodology in Business

On

Submitted To
Mr. Golam Mohammad Forkan
Associate Professor, Eastern University.

Submitted By
Md. Abdul Momin
ID: 202600003. Program: MBA

Date: 07.09.2020
1. Introduction: Bangladesh is an industry friendly country. There are many industries in
Bangladesh. Both domestic and foreign investors have vast opportunity to fund or make
industries. The pharmaceutical industry is one of the most popular and big industry in
Bangladesh. It is one of the most developing sectors of Bangladesh. The pharmaceutical
industry of Bangladesh growing very faster. Those are fulfilling domestic demand and exporting
in international market. This sector provides 97% of the total medicinal requirement of the local
market. There is a huge share of Bangladeshi medicine in international market. The
pharmaceutical has a huge in GDP of Bangladesh. In 2016-2017, the pharmaceutical industry
contributed 1.85% of the GDP. There are 257 licensed companies, at present 150 are functional.
The research on pharmaceutical industry in Bangladesh is very limited and there is a problem I
have identified. There is a problem of investing in pharmaceutical industry. I cannot make
decision investment in pharmaceutical industry. I want to know the solution through measuring
the financial performance of pharmaceutical industry. I want to know is it good or not to invest
in the pharmaceutical industry and this research will be very helpful such as investors, regulators
and pharmaceutical companies. This research will be analyzed how well the companies are
performing the pharmaceutical industry. This research will be measuring financial performance
of some companies in the pharmaceutical industry and determines profitability in this sector.
Performance evaluation of a company is usually related to how well a company can use its
assets, shareholder equity and liability, revenue and expenses. It can help to understand the
financial position of a company. Financial ratio analysis is one of the best tools of performance
evaluation of any company. Ratio analysis is an analytical tool that a company can use to see
how its business’s financial affairs compare year to year and to other business firms in the same
industry. In order to determine the financial position of the pharmaceutical company and to make
a judgment of how well the pharmaceutical company efficiency, its operation and management
and how well the company has been able to utilize its assets and earn profit, ratio analysis as a
tool for measurement. So I will be measuring some company’s financial performance through
ratio analysis.
1.1 Background of the research: This research will be measuring financial
performance of pharmaceutical industry. First of all, this research will do for me. It will increase
my knowledge, experience and also helps to my academic result. This research will be very
important to the investors who want to invest pharmaceutical companies. It may be foreign
investors or local investors both will be benefited by this research. The investors will know also
in which companies they should invest or not. This research will also help some pharmaceutical
companies, researchers, regulators and career seekers. I will analyze top some pharmaceutical
company’s performance. So investor will be known which company will be doing very well. So
this research will be help them to invest, will help to make investment decision.

1.2 Problem statement: The aim of this research is to measuring the financial
performance of pharmaceutical industry based on a study on some top pharmaceutical
companies. There is no well research on the pharmaceutical industry in Bangladesh. So the
investor does not get enough data regarding the investment in pharmaceutical companies. So
there is problem in making decision while investment in pharmaceutical industry. So I have
decided to make a research on measuring financial performance in pharmaceutical industry
which will be benefited for investors as they can invest in the pharmaceutical companies. So this
research will help them to make investment decision
1.3 Objectives:

1.3.1 Broad Objectives: The broad objective of this research is to measure financial
performance of pharmaceutical industry in Bangladesh through study on some
pharmaceutical companies.

1.3.2 Specifics Objectives: The specific objectives of this research are as follows:

➢ To examine the profitability of pharmaceutical industry.

➢ To measure overall performance of pharmaceutical industry through ratio
analysis.
➢ Providing recommendations to improve the profitability conditions of the
Pharmaceutical industry in Bangladesh.
➢ To compare among three pharmaceutical companies based on their
performance.
➢ To find the problems and recommend suggestions to overcome the
problems.

1.4 Justification of the research: Pharmaceutical industry is one of the largest

industries in Bangladesh. The pharmaceutical industry of Bangladesh is growing very faster.
It is very important to know about the industry. The research on pharmaceutical industries is
very few. I cannot get enough valuable research for this industry. It is very important for the
investor to know about the industry and also the pharmaceuticals of company within the
industry. So I have decided to make a research on this industry. The research will be
measuring the financial performance analysis on pharmaceutical industry in Bangladesh.
This research will be benefited by several parties like foreign and local investors, regulators,

different financial institutions and the pharmaceutical of company on Bangladesh. From this
research, investor will able to know about the industry that how well the industry growing, is
it profitable or not, is it suitable or not to invest in the pharmaceutical industry. I will also
analyze with three pharmaceutical companies, for their comparison investor/shareholders
will get enough knowledge in which company they will invest. Even the pharmaceutical
 company themselves will understand in which segment they should improve regarding the
competition in the same industry.

1.5 Scope and Limitations: This research will measure only financial performance of
pharmaceutical industry. It will not compare one industry with another industry. But this
research is very important to the investor while investment in this pharmaceutical industry. This
research will not tell you as an investor is it good for investment or not while investment in
pharmaceutical industry. This research will only help you in taking decision.

2.0 Methodology: The study mainly based on secondary data which will be collected

from the annual financial reports of pharmaceutical company. The research problem was
identified before. So the research will be conclusive research which will be done through
measuring ratio analysis to evaluate the performance of pharmaceutical industry.

2.1 Research Design: This research will be conclusive research. The problem of this
research identified before when I was studying Bachelors of Business Administration at Eastern
University. Then I talked to my honorable course instructor Mr. Golam Mohammad Forkan
sir with this problem. He helped me to decide the actual problem of this research and how to

solve this problem through this research.

2.2 Sampling Frame: This research will be done with pharmaceutical industry. At present,
257 licensed pharmaceutical companies are present in Bangladesh. I will make three groups
based on their ranking. The ranking will be collected from Pharma Tips. The ranking of groups
classified as high, moderate and low based on the ranking provided in the regarding performance
in the industry.
2.2.1 Sampling technique: The research technique will be convenience sampling. I
will select the sample which data will be available and easy to collect considering the
sampling frame.
2.2.2 Sample size: The sample size for this research will be three where I will select
three companies from the sampling frame where having three groups. From each group I
will select one sample.
2.3 Data: This research will be based on the secondary data which will be collected from the
company’s annual report. In this research we will use four main financial statements for ratio
analysis of pharmaceutical company such as Balance Sheets, Income Statement, Cash flow

Statement, Statement of Shareholder’s equity.

2.3.1 Ways of collection:

Observation: Data will be collected from the sample. The research will use secondary data
which will be collected from the company’s annual report. The companies upload their annual
reports on their websites. I will observe the data and collect data from their annual report through
internet.