Performance Dynamics of Beximco Pharmaceuticals Ltd

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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 andnow have grown to become nation's one of the leading pharmaceutical companies, supplying morethan 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, fromhypertension 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. inseveral world-class manufacturing plants, ensuring high quality standards complying with the WorldHealth Organization (WHO) approved current Good Manufacturing Practices (cGMP). They alsocontract manufacture for major international brands of leading multinational companies. Organizational Structure

BPL is completely governed and maintained by a corporate body. The chief of theorganization is the Chief Executive Officer and the total operation is divided into Marketing,Sales, Commercial, Manufacturing, Finance and Accounting, Product Planning, BusinessResearch and Development, and MIS departments each supervised by a director. Directors of thedepartments report directly to the CEO.Bearing the demands of dynamic environment in mind BPL designed its organizational structure ashighly adaptive and flexible. It is a Learning Organization that has developed the capacity tocontinuously learn, adapt and change. In BPL employees are highly trained and empowered to handlediverse job activities and problems. They have minimal formalization with narrow span of control.The organizational members share information openly and collaborate on work activities. 3

For internal communication, BPL follows a strictly formalized Intranet based electroniccommunication system as well as informal verbal communication. For external communication BPLuses both internet based electronic communication and an array of printed communicationmaterial. All the external communications are supervised, mostly by Director, Marketing and insome cases by Director, Sales. Market Scenario

In Bangladesh the pharmaceutical sector is one of the most developed hi-tech sectors which iscontributing in the country's economy. The national companies account for more than 65% of thepharmaceutical business in Bangladesh. Except Beximco Pharma other leading companies areSquare Pharma, Incepta Pharmaceuticals. Navana Pharma Ltd., Opsonin Chemical Industries Ltd.,Aventis Pharma Ltd. Etc.Among them Square Pharma is the market leader at this moment. BPL follows Square Pharma at the2 nd

position. The analysis of the two company’s financial data shows that for the year 2007-2008gross profit of BPL was 1,629,514,837(BDT) and Square Pharma was 3,401,781,806 (BDT) .There are a number of reasons why BPL could not beat Square Pharma for the first position.The most relevant of them are stated here. 

Fewer Markets Served: Square Pharma serves a larger market than BPL while BPLconcentrates on market focus. For example, unlike Square Pharma BPL does not do businessin the credit market. They only serve the premium market. 

Producing Injectables: Again BPL does not manufacture or market Injectables where this is ahuge market. In contrast, Square Pharma has a range of 44 injectables and has sold28,289,000 units in the year 2007-2008. 

Product Range: BPL has a fewer range of products than Square Pharma does. BPLmanufactures only over 300 products in comparison to Square Pharma’s over 500products.In international...
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