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  • Cipla: Momina Niaz Muhammad Rashid Hussain Omer Bin Aamer Omer Shahid

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    Cipla is a pharmaceutical company founded in India in 1935. It was the first company to launch a product in September 1935. Mahatma Gandhi visited Cipla in July 1939. Some of Cipla's major competitors include Ranbaxy, Nicholas Piramal, Sun Pharma, Novartis, and Pfizer. Cipla has received several awards for excellence and commercialization. While Cipla has strengths like loyal customers and quality products, it also has weaknesses such as a lack of defined target customers and vague service policies. According to the 2008 financial analysis, Cipla's assets were not being utilized optimally and sales were declining, indicating the core problem was a lack of growth.

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    Cipla case analysis

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    Cipla

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    Cipla is a pharmaceutical company founded in India in 1935. It was the first company to launch a product in September 1935. Mahatma Gandhi visited Cipla in July 1939. Some of Cipla's major competitors include Ranbaxy, Nicholas Piramal, Sun Pharma, Novartis, and Pfizer. Cipla has received several awards for excellence and commercialization. While Cipla has strengths like loyal customers and quality products, it also has weaknesses such as a lack of defined target customers and vague service policies. According to the 2008 financial analysis, Cipla's assets were not being utilized optimally and sales were declining, indicating the core problem was a lack of growth.

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    76 views13 pages

    Cipla: Momina Niaz Muhammad Rashid Hussain Omer Bin Aamer Omer Shahid

    Uploaded by

    Rashid Hussain
    Cipla is a pharmaceutical company founded in India in 1935. It was the first company to launch a product in September 1935. Mahatma Gandhi visited Cipla in July 1939. Some of Cipla's major competitors include Ranbaxy, Nicholas Piramal, Sun Pharma, Novartis, and Pfizer. Cipla has received several awards for excellence and commercialization. While Cipla has strengths like loyal customers and quality products, it also has weaknesses such as a lack of defined target customers and vague service policies. According to the 2008 financial analysis, Cipla's assets were not being utilized optimally and sales were declining, indicating the core problem was a lack of growth.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 13

    Cipla

    Momina Niaz
    Muhammad Rashid Hussain
    Omer Bin Aamer
    Omer Shahid
    Introduction
    Cipla
    Founded by Khawaja Abdul Hameed in 1935
    Went public on 17
    th
    Aug 1935
    First product launched in 2
    nd
    Sep 1935

    Visited by Mahatma Gandhi
    In Jul 1939
    Competitors

    RANBAXY
    NICHOLAS PIRAMAL
    SUN PHARMA
    NOVARTIS
    PFIZER
    REDDY LABS
    Award

    Chemecil award for excellence (1980)

    National award for successful
    commercialization (1988)

    Padma Bushan award (2005)
    Strengths

    Loyal set of customers
    Competitive market share
    Effective advertisement
    Sales force quality
    Quality products
    High integrity
    Weaknesses

    Lacks definition of target customers
    Vague service policies
    Lacking quantitative goals
    Top management was not involved
    Channels overlap each other
    Inappropriate hierarchy levels
    Financials (2008)

    Liquidity Ratios
    Current Ratio (3.16) = high
    Quick Ratio (1.81) = high
    Indicates that assets are not being utilized
    appropriately
    Leverage Ratios

    Debt to equity ratio (0.15) = low
    Proprietary ratio (0..97) = constant
    Fixed asset ratio (2.42) = constant
    Interest coverage ratio (76.01) = volatile

    Indicating that company has reached at the
    stagnant growth stage
    Turnover Ratios
    Inventory holding period (166) = improved
    Working capital turnover (1.61) = reduced
    Inventory turnover (2.17) = increased
    Fixed asset turnover (2.41) = constant

    Implies that sales for the company are reduced.
    Profitability Ratios
    Gross profit ratio (43.1%) = decreased

    Operating ratio (83.9%) = improved

    Companys profitability is also in jeopardy.
    Problem

    Sales are declining

    Assets are not used at optimal level

    Core Problem


    Real problem seems that company lacks the
    surge of growing itself.
    Solution
    Should use its strengths to overcome its
    weakness.

    Take more debt grow the company
    Sales will improve
    Asset will utilize more optimally

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