Glaxo Pakistan

Topics: Financial ratio, Financial ratios, P/E ratio Pages: 26 (8550 words) Published: April 27, 2010
Table of Contents
INTRODUCTION
As per Jim Collins, *“V*ery few have a capability of going from Good to Great”. Many companies strive to be the best in the market. Most never succeed. Many do so only temporarily and subsequently lose their position through misunderstanding how they got there and what is needed to stay there. http://www.roi-ally.com/BPE_vol1.htm

Therefore in order to maintain the business position and to identify its future needs, one requires an accurate analysis of the reality of the business situation and determine its financial health. This is rather complicated yet necessary for keeping one’s financial affairs clean and sustains the organization’s growth. Recognizing the importance of the above subject matter, I choose topic 8 for my research report i.e. “An analysis of the financial situation of your choice of organization.” The company selected for this purpose is *“*GlaxoSmithKline Pakistan Limited*”*, also referred to as “GSK” or “The Company”. REASON FOR CHOOSING THE TOPIC
Topic selection is based on a number of factors which derived me towards selecting this topic for my thesis in comparison to other topics specified in research and analysis project guidelines. Following are the few reasons for choosing the said topic: Relevance to the Current profession:

While working in the Financial Advisory Services Department of Deloitte Pakistan, I got various opportunities to explore different sectors and industries. This has equipped me with strong interpretational and analytical skills which helped me to work effectively on the said topic. Future Assistance:

The pharmaceutical industry provides a lot of financial analysis opportunities because of the complexity of its operation. This complicated structure enabled me to better understand and practically apply theoretical knowledge and be better equipped to undertake financial analysis in my future career. Importance in ACCA:

Financial analysis is one of the most important topics tested in ACCA examinations. I personally feel that it is an interesting topic which has a practical application. Moreover, it enabled me to utilize my IT skills and the knowledge that I gained from my studies. COMPANY AND SECTOR

Industry:
Pakistan has a very vibrant and forward looking Pharma Industry. It has about 500 pharmaceutical manufacturing units including those operated by 25 multinationals present in the country. It has shown progressive growth over the last one decade and now meets around 70% of the country's demand of Finished Medicine. The industry has invested substantially to upgrade itself in the last few years and today majority of the industry is following Good Manufacturing Practices (GMP), in accordance with the domestic as well as international Guidance. The industry has the capacity to manufacture a variety of product ranging from simple pills to sophisticated Biotech, Oncology and Value Added Generic compounds. http://www.ppma.org.pk/ The Company:

History:
There are four major companies in the history of GSK: Burroughs Wellcome & Company, Glaxo Laboratories, Beecham and SmithKline and French. GlaxoSmithKline Pakistan Limited was created on January 1st 2002 through the merger of the aforementioned companies operating separately in Pakistan. Today GSK is standing as one of the largest pharmaceutical company of the world. Business:

As a leading international pharmaceutical company, GSK is dedicated towards global healthcare and believes it to be ethically important and a key to its business success. GSK Pakistan’s primary activities are manufacturing, import, export and marketing of research-based pharmaceutical and consumer healthcare products. It operates mainly in two industry segments: Pharmaceuticals (prescription drugs and vaccines) and consumer healthcare (over-the-counter- medicines, oral care and nutritional care). Market Share:

GSK Pakistan limited holds a major market...

References: Printed Material
ACCA Study Text (2008/09) Paper F9 Financial Management
ACCA Study Text (2008/09) Paper F7 (INT) Financial Reporting. Kaplan Publishing Foulks Lynch
ACCA Study Text (2008/09) Paper P2 (INT) Corporate Reporting
ACCA Study Text (2008/09) Paper P3 Business Analysis. BPP Learning Media Ltd
Annual Report (2006), Glaxo SmithKline
Annual Report (2007), Glaxo SmithKline.
Annual Report (2008), Glaxo SmithKline
Financial Analysis http://www.enotes.com/small-business-encyclopedia/financial-analysis
(Visited 05th November 2009)
Introduction http://www.roi-ally.com/BPE_vol1.htm (Visited 05th November 2009)
Industry http://www.ppma.org.pk/ (Visited 05th November 2009)
Investopedia. Vertical Analysis: http://www.investopedia.com/terms/v/vertical_analysis.asp (Visited 05th November 2009)
Investopedia
Investopedia. Current Ratio: http://www.investopedia.com/terms/c/currentratio.asp (Visited 05th November 2009)
Investopedia
Investopedia. Accounts Recievable Collection Period: http://www.investopedia.com/terms/a/average_collection_period.asp
(Visited 05th November 2009)
Investopedia. Accounts Payable Payment Period: http://www.investopedia.com/terms/a/accountspayableturnoverratio.asp
(Visited 05th November 2009)
Investopedia. Interest Cover: http://www.investopedia.com/terms/i/interestcoverageratio.asp
(Visited 05th November 2009)
Investopedia. Earning Per Share: http://www.investopedia.com/terms/e/eps.asp (Visited 05th November 2009)
Investopedia
(Visited 05th November 2009)
William Pollard
Competitor Websites
Novartis Pharma: http://www.novartis.com (Visited 05th November 2009)
Sanofi-Aventis: http://www.sanofi-aventis.com.pk (Visited 05th November 2009)
Regulators/ Governments Websites
Karachi Stock Exchange: http://www.kse.com.pk (Visited 15th November 2009)
Pakistan Pharmaceutical Manufacturers Association: http://www.ppma.org.pk (Visited 12th November 2009)
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