Department of Organization Strategy & Leadership

University of Dhaka

Assignment on
OSL201: Strategy Fundamentals

Submitted to,
Sharmeen Akhter
Assistant Professor
Department of Organization Strategy & Leadership
Faculty of Business Studies
University of Dhaka

Submitted by,
Mohammad Abrar Tahmeed
ID: ZH-134-046
OSL 6th Batch (BBA 2nd Year)
Faculty of Business Studies
University of Dhaka
Industry Analysis of Pharmaceuticals Industry
The industry that I selected is pharmaceutical industry where the products are mostly sensitive
as it is related to health and safety of the mass people. It deals with medicines, antidotes, vaccines
and many more lifesaving products.
The pharmaceutical business is a massive and fast expanding industry, with worldwide revenues
expected to top $1.2 trillion by 2020. The majority of sales, almost 46%, take place in North
America. New pharmaceuticals have the potential to generate billions of dollars in yearly income,
but the research process is costly and dangerous, with many projects failing to gain FDA clearance.
As a result, analysing individual pharmaceutical stocks can be difficult, necessitating a thorough
grasp of the technical elements of medication research and regulatory procedures. Large-cap
firms with wide product portfolios and large R&D expenditures provide the most stability, while
smaller companies with game-changing breakthroughs can provide the largest profits.

Porters Five Forces Analysis

Porter's Five Forces study gives a framework for assessing the competitive dynamics of a sector.
The five factors are as follows: threat of new entrants, supplier negotiating power, buyer
bargaining power, threat of substitutes, and competitive rivalry. Understanding how these factors
interact may give insights into the general health of an industry as well as a company's strategic
position within it.

Threats created by new entrants: In the pharmaceutical sector, it is modest. While venture
financing is readily accessible for intriguing new ideas, emerging companies seldom constitute a
substantial challenge to incumbent pharmaceutical behemoths. As their products proceed
through the development phases, many startups are bought by larger corporations.
Power of Suppliers: In the pharmaceutical sector, suppliers have little negotiation strength. Raw
materials are commodities, and equipment may be obtained from a variety of sources. Because
of the absence of supplier concentration, price power is moderated.
Power of Buyers: Buyers have varied degrees of negotiating power, including patients, physicians,
and insurance firms. Patients have little direct control over price, and physicians are prohibited
from benefitting from medicine sales due to ethical duties. Insurance companies can bargain with
distributors over pricing, but they have less clout with medication makers. Pharmacies and
medical institutions have some bargaining leverage, although it is restricted for newer
pharmaceuticals under patent or drugs manufactured by a single company.
Availability of Substitutes: The availability of replacements varies according to the medicine.
New, first-to-market, patented medications for important health diseases can create considerable
revenues, but it might take years for subsequent treatments for the same ailment to repay
development expenses. When patents expire, generic drug makers join the market, offering
lower-cost alternatives. Counterfeit pharmaceuticals are also a risk, as they may reduce earnings
and harm reputations.
Competitive Rivalry: With over $1 trillion in worldwide sales, the pharmaceutical sector is highly
competitive. Because intellectual property is highly valuable, top talent and researchers face
strong competition. Even with strict non-disclosure and non-compete agreements, information
leaking remains an issue. Companies keep a careful eye on public information for prospective
replacements and invest in mergers and acquisitions to acquire access to promising research or
new treatments.

Segment Analysis:
The segments of a pharmaceuticals industries are related to producing medicines, vaccines,
preventive cures and many more. Primarily the daily essentials medicines are always the priority
of the pharmaceuticals company.
Regardless of the exact sector within pharmaceuticals, organizations gain in a variety of ways from
narrowing their emphasis. Certain drugs will be targeted at patients based on their age, while
certain B2B services will be targeted at executives based on their empl oyment. varied segments
often have varied purchasing processes, and the elements that influence the actual purchase,
such as responses to product attributes, varies as well. Based on the following events companies
segment the market and after analyzing the attractiveness of each segment, they select one or
more to serve.
So Among the pharmaceutical industry , I have taken two local and two international companies
to analyze their mission and vision.

The two local company that I selected are –

1) Beacon Pharmaceuticals.

2) General Pharmaceuticals.

The two international companies are –

1) Sanofi Pharmaceuticals.
2) Roche Pharmaceuticals.

Mission and Vision of Beacon Pharmaceuticals.

Mission Statement: To improve the quality of human life by providing innovative pharmaceutical
products developed through continuous research and development ensuring stakeholders
satisfaction.
Vision: To be regarded and recognized as one of the most value-driven pharmaceuticals
companies in the country.

Mission and Vision of General Pharmaceuticals.

Mission Statement: To ensure a healthier life by producing the top-notch products one can trust
in treatment of ailments.
Vision: Become the pharmaceuticals of choice through consistent product quality, empowering
people, and satisfying stakeholders.

Mission and Vision of Sanofi Pharmaceuticals.

Mission Statement: Shaping tomorrow’s health
Vision: To be the most admired and best in class healthcare partner enhancing the quality of life
through prevention, cure, and innovation with commitment towards society and environment.
Mission and Vision of Roche Pharmaceuticals.
Mission Statement: Doing now what patients need next.
Vision: Developing medicines and diagnostics that will help patients live longer, better lives.

Analysis of Mission and visions of the above four companies are stated below –

Key Themes
Patient focus: All four companies have a strong focus on patients and their needs. Beacon
Pharmaceuticals and Roche Pharmaceuticals emphasize developing products that will help
patients live longer, better lives. General Pharmaceuticals and Sanofi Pharmaceuticals emphasize
producing products that are safe and effective.
Innovation: All four companies are committed to innovation. Beacon Pharmaceuticals and Sanofi
Pharmaceuticals emphasize developing new and innovative products. General Pharmaceuticals
and Roche Pharmaceuticals emphasize continuous improvement and innovation.
Quality: All four companies are committed to quality. General Pharmaceuticals and Roche
Pharmaceuticals emphasize producing top-notch products. Beacon Pharmaceuticals and Sanofi
Pharmaceuticals emphasize producing products that are safe and effective.
Stakeholder satisfaction: All four companies are committed to satisfying their stakeholders.
Beacon Pharmaceuticals and Sanofi Pharmaceuticals emphasize satisfying their shareholders,
employees, and customers. General Pharmaceuticals and Roche Pharmaceuticals emphasize
satisfying their customers, employees, and communities.

Analysis of Mission Statements:

Beacon Pharmaceuticals and General Pharmaceuticals both have mission statements that focus
on improving the quality of human life. However, Beacon Pharmaceuticals emphasizes
innovation, while General Pharmaceuticals emphasizes trust.
Sanofi Pharmaceuticals has a mission statement that is focused on innovation and improving the
quality of life through prevention, cure, and innovation.

Roche Pharmaceuticals has a mission statement that is focused on patients and their needs.
 Analysis of Vision Statements

Beacon Pharmaceuticals and Sanofi Pharmaceuticals both have vision statements that are
focused on being admired and recognized as the best in their industry.
General Pharmaceuticals has a vision statement that is focused on becoming the
pharmaceuticals of choice.
Roche Pharmaceuticals has a vision statement that is focused on developing products that will
help patients live longer, better lives.
Overall, the mission and vision statements of Beacon Pharmaceuticals, General Pharmaceuticals,
Sanofi Pharmaceuticals, and Roche Pharmaceuticals are all well-crafted and reflect the
companies' values and commitment to their patients, stakeholders, and communities.

Misson Statement Evaluation Matrix

Component Component Component Component Component

Organization Customers Products or Market Market Capture Technology

Services
Beacon Yes Yes No Yes No
Pharmaceuticals
General Yes Yes No Yes Yes
Pharmaceuticals

Roche No No No Yes Yes

pharmaceuticals

Sanofi No Yes No Yes No

Pharmaceuticals

Conclusion
From the above discussion we have got a brief idea about the pharmaceutical industry and its
segments and the analysis of local and international pharmaceutical company’s mission
statements and their vision as well.