Historical Background

Beximco Pharma is a leading edge pharmaceutical company and is a member of the Beximco Group, the largest private sector industrial conglomerate in Bangladesh. The firm started operation in 1980, manufacturing products under the licenses of Bayer AG of Germany and Upjohn Inc. of USA and now have grown to become nation's one of the leading pharmaceutical companies, supplying more than 10% of country's total medicine need. Today Beximco Pharma manufactures and markets its own `branded generics' for almost all diseases from AIDS to cancer, from infection to asthma, from hypertension to diabetes for both national and international markets.

Company profile
Beximco Pharma manufactures a range of dosage forms including tablets, capsules, dry syrup, powder, cream, ointment, suppositories, large volume intravenous fluids, metered dose inhalers etc. in several world-class manufacturing plants, ensuring high quality standards complying with the World Health Organization (WHO) approved current Good Manufacturing Practices (cGMP). They also contract manufacture for major international brands of leading multinational companies. Organizational Structure BPL is completely governed and maintained by a corporate body. The chief of the organization is the Chief Executive Officer and the total operation is divided into Marketing, Sales, Commercial, Manufacturing, Finance and Accounting, Product Planning, Business Research and Development, and MIS departments each supervised by a director. Directors of the departments report directly to the CEO. Bearing the demands of dynamic environment in mind BPL designed its organizational structure as highly adaptive and flexible. It is a Learning Organization that has developed the capacity to continuously learn, adapt and change. In BPL employees are highly trained and empowered to handle diverse job activities and problems. They have minimal formalization with narrow span of control. The organizational members share information openly and collaborate on work activities. For internal communication, BPL follows a strictly formalized Intranet based electronic communication system as well as informal verbal communication. For external communication BPL uses both internet based electronic communication and an array of printed communication material. All the external communications are supervised, mostly by Director, Marketing and in some cases by Director, Sales.

1

In contrast.  Product Range: products.401. Except Beximco Pharma other leading companies are Square Pharma.. BPL manufactures only over 300 products in comparison to Square Pharma’s over 500 2 . Opsonin Chemical Industries Ltd.629. companies in our country have to import these materials from abroad (India.837(BDT) and Square Pharma was 3. the privileges of being LDC as a result of the Patent Law will no longer be in effect after 2015. They only serve the premium market. The most relevant of them are stated here. Square Pharma has a range of 44 injectables and has sold 28. The challenge faced in open market competition is the scarcity and unavailability of raw materials in local market. Aventis Pharma Ltd. So. BPL has a fewer range of products than Square Pharma does.Competitive Status of a Firm In Bangladesh the pharmaceutical sector is one of the most developed hi-tech sectors which is contributing in the country's economy. BPL follows Square Pharma at the 2nd position.000 units in the year 2007-2008. Navana Pharma Ltd.806 (BDT) . For example. In international market the main competitors for pharmaceutical companies in our country are India and China. The national companies account for more than 65% of the pharmaceutical business in Bangladesh.. The analysis of the two company’s financial data shows that for the year 2007-2008 gross profit of BPL was 1. Among them Square Pharma is the market leader at this moment. Besides. There are a number of reasons why BPL could not beat Square Pharma for the first position.  Producing Injectables: Again BPL does not manufacture or market Injectables where this is a huge market. Incepta Pharmaceuticals.514.781. unlike Square Pharma BPL does not do business in the credit market. China and a few countries from Europe) at high price. Etc.289.  Fewer Markets Served: Square Pharma serves a larger market than BPL while BPL concentrates on market focus.

is a leading edge pharmaceutical company is acclaimed for its outstanding product quality. 3 . BPL has entered into 3 new international marketsnamely. Pacific Islands. Afghanistan. As Growth Strategy BPL have decided to enter into nine new international markets in Asia. Beximco Pharma is the pioneer in pharmaceutical export from Bangladesh and has received National Export Trophy (Gold). They are planning to commence marketing of these products by first quarter of 2009. Besides. Africa and Central America and have registered 107 products in different markets. the highest national accolade for export. highly skilled work force and diversified business mix.Business level Strategy Pursued Beximco Pharmaceuticals Ltd.Neoceptin R (Ranitidine) and Napa (Paracetamol) are the top two selling brands in the Bangladesh Pharmaceutical market. Opthalmic and Nebulizer Solutions has progressed as scheduled. Their Short Term plan to build facility to manufacture Small Volume Parenterals (SVP). Beximco Pharma has adopted several Business Level Strategies regarding growth and market focus with the view to achieving organizational goals. Middle East. product development capabilities and outstanding professional services. During the first quarter of 2008. for record three times. world-class manufacturing facilities. Their strategic strengths include strong recognition of brands. BPL signed a Long Term Arrangement with the Global Supply Division of UNICEF (Denmark) to supply 60. Kiribati and Solomon Islands.000 units CFC free metered dose inhaler product over a two year contract period. Their two brands .

for record three times. South Asian and other markets. To meet the future demand they have invested over US 50 million dollar to build a new state-of-the-art manufacturing plant. Being a Learning Organization the core essence of Beximco Pharma is its entrepreneurial spirit in every sphere of its management. 4 .Performance Trends Beximco Pharma (BPL) is a leading edge pharmaceutical company is acclaimed for its outstanding product quality. product development capabilities and outstanding professional services. BPL had been the first-mover to bring Marketing Approach rather than traditional Selling Approach in local pharmaceuticals industry. BPL also believes in Focus Strategy and concentrates on a particular segment of the market. Jinnah Hospital. the tasks of each managerial function are carried out through Management by Objective approach. Beximco Pharma is also an enlisted supplier of World Health Organization (WHO) and UNICEF. Innovation strategies have been the key to their success both in product differentiation and in product promotion. world-class manufacturing facilities. In particular they are very interested in developing a strong export market in USA and Europe. This new plant will also offer contractmanufacturing facility to leading pharmaceutical companies. and outstanding customer relationship. especially from Europe and US. Its strategic strengths include strong recognition of brands. confirming to USFDA and UK MHRA standards. MEDS and Kenyatta National Hospital (KNH) in Kenya. They market their brands through their own professional sales and marketing teams in African. The recipient of three times `gold' national export trophy. BPL has developed unique customer service through their Unbiased Medical Service. The firm also supply products to renowned hospitals and institutions in many countries. They strive to retain existing customers as well as to attract new ones. BPL has also developed superior human resource for earning competitive advantage in the market. They are the only pharmaceutical company in Bangladesh received this highest national accolade for export. including Raffles Hospital and K K Women & Childrens' Hospital in Singapore. Business level strategies developed by BPL help them to earn competitive advantage through quality products. In this spirit. superior services. Beximco Pharma has a strong market focus and is anticipating continued future growth by leveraging business capabilities and developing superior product brands and markets. highly skilled work force and diversified business mix. Agha Khan Hospital and Shaukat Khanum Memorial Hospital in Pakistan. Beximco Pharma is the largest exporter of pharmaceuticals from Bangladesh.

Threat Strong Competitors in Domestic & International Market. Opportunities Ability to Retain Growth & market Focus In difficult Operating Situations Ability to Exploit Opportunities of Patent Law as an LDC in International Market.Swot Analysis Strength Employee Empowerment Capability to Bring Innovation & product differentiation Outstanding Product Quality World Class Professional Service Weakness Insufficient Working Capital Not Operating in Low Cost Market. Rising Trend of Material Price 5 . Political Instability Government & International Regulations.

Pakistan. raw materials must be produced locally. high rate of inflation. so countries will certainly loss their export markets. 70 percent comes from India while the rest comes from China. Ukraine. prices of ingredients will increase significantly. Vietnam. Tanzania. Kenya. Myanmar. increased security problem. Switzerland. Yemen. Germany and Malaysia. Developing plans in a dynamic situation demands critical analysis of the situation and strict adhering to the core principal of the organization. The main challenge for Beximco Pharma is now to bring down production cost to offer medicines in the international market at a competitive price. From the next year. South Africa. Bangladesh is exporting pharmaceutical products to over 50 countries of the world. At present. Bangladesh can substantially increase pharmaceuticals export if the government extends support to local producers after this year when WTO rules on pharmaceuticals for developed and developing nations comes into effect.Possible Measures to Improve Performance Any organization is deeply effected by its environment. Sweden. At present Bangladesh imports 80 percent of total raw materials required for the industry. Malawi and Uganda have a huge pharmaceuticals market for Bangladesh. the least developed countries do not have to provide any patent protection for pharmaceuticals until 2016 as the WTO has extended the deadline only for them through Trips (Trade-Related Aspects of Intellectual Property Rights). Of the requirement. obsolete technology. the developing countries will lose their patent rights to sell products. For this. Sri Lanka. relentless contribution and dedication of the organizations management is very much needed. Countries like Kenya. rising trend of material price. operating in dynamic situation is easier than it seems. In the changed scenario. To compete in international as well as in local market in adverse situation the managers work has become much more difficult in today’s ever changing business environment. Brazil. India. the Netherlands. Norway. Indonesia and Hong Kong. To be successful. Producing countries will lose their rights to sell pharmaceutical ingredients at current prices after 2004 due to the WTO rules. The macro political and economic environment of our country is so full of uncertainty that the managers of business organizations of Bangladesh face very difficult challenges to cope with the ever changing situations. 6 . USA. Bangladesh is now self dependent in the pharmaceuticals the political and economic instability there are other factors like international and domestic laws and regulations. However. As Beximco Pharma is decentralized organization and core values are cherished by everyone within the organization. England. The major markets for Bangladesh's pharmaceutical exports include Korea. The biggest challenge for the managers in the pharmaceuticals industry is the competition. dire country image etc which effect the job of managers in our country most.

Prices of the products are under this category are competitive. Bangladesh mainly concentrates on this category. 7 . So BPL must get ready to compete in a more challenging situation in the international market where. as labor cost is one of the lowest in the world. Beximco pharma can operate on offpatent products as after years of business the formulations of Patent Medicines are sold in the market so that others can go into mass production. BPL will have to concentrate on the Generic medicines that are the products that are produced in mass scale and marketed by several companies under different brand name. However. Again. To sort out these problems here some suggestions are recommended. involving the pharmaceutical industry Beximco Pharma should prepare their arrangements to cope with the coming changed business environment. Handling Competitions: Since. as Government is going to pass a new version of law. Coping with Instable Economic State: To cope with the ever changing economic environment. BPL’s business strategy is to focus on particular segments of the total market they should be operating with the view to becoming the market leader of those areas. Market Diversification: After 2015. they should look forward to grow their business as much as possible both in national and international market. Such approach can be proved as a benefit of the company. As a learning organization BPL should keep their practices of flexibility to encourage innovation for the times of much needed change. the industry is not operating without any problems. India will be the biggest contestant. where the formulation of this product is almost same. This part of the report states the possible steps that could be taken to mitigate the gravity of the difficulties that threat the industry. privileges as LCD regarding Patent Act will expire.The pharmaceutical industry in this country is undoubtedly one of the most promising industries. As one of the leading pharmaceutical company Beximco Pharma also faces these problems that are bar to achieve organizational goals effectively. Again. Negotiating with the Government: In order to ensure more prospects in the import and export activities of raw materials Beximco needs to negotiate to adjust several business laws and regulations with the Government. the management of BPL should always be watchful and should constantly analyze the organization’s overall environment. Thus the company can take a better position by maximizing profit in an open market economical condition. In the mean time.

streamlined operations and effective business relations are essential. decided to introduce leading-edge supplier and customer relationship management capabilities. To improve information exchange with its many partners. Beximco Pharmaceuticals Ltd. 8 .Conclusion In recent highly competitive medicine manufacturing sector.

Sign up to vote on this title
UsefulNot useful