ANALYSIS OF DOCTOR PERCEPTION OF GLAXOSMITHKLINE AND OTHERS PHARMACEUTICALS DRUGS
INTRODUCTION:
Pharmaceutical companies around the globe are continuously searching for extreme quality and innovation since their only product drug is highly sophisticated and directly related to the alleviation of human sufferings. Inhering this responsibly on shoulder GlaxoSmithKline is operating globally as a world-class research based pharmaceutical company with its excellent development capabilities, regulatory expertise, global marketing research, and financial strengths. The augmentation of GSKs pipeline through in- licensing, co-marketing and co-promotion agreements ensures balance in its portfolio, and provides the basis for sustainable growth in a high- risk business like drug development. GSK has an extensive history of successful collaborations, and it brings a “ can do attitude ”,rapid response times, and are a relentless focus on achieving mutual goals. Similarly, the high quality of its various exclusive brands is mitigating successfully the human sufferings throughout the world. Like health sector, GSK`s contribution to the environment and society is also noteworthy. However, the scenario in Bangladesh is a bit different. GSk in Bangladesh is constantly facing competitive thrust for the last several years. Like other multinationals, the local companies are rapidly improving and generating threat as well. In such a restless situation, the company stating measures to better up in every area an intern I had the opportunity to work for the improvement of Doctor’s perception of GSK Pharmaceuticals drugs.
Pharmaceutical Industry has grown in Bangladesh in the last two decades at a considerable rate. Its healthy growth supports development of auxiliary industries for producing glass bottles, plastic containers, aluminum collapsible tubes, aluminum PP caps, infusion sets, disposable syringes, and corrugated cartons. Some of these products are also being exported. Printing and packaging industries and even the advertising agencies consider pharmaceutical industry as their major clients and a key driving force for their growth.
Following the Drug (Control) Ordinance of 1982, some of the local pharmaceutical companies improved range and quality of their products considerably. The national companies account for more than 65% of the pharmaceutical business in Bangladesh. However, among the top 20 companies of Bangladesh 6 are multinationals. Almost all the life saving imported products and new innovative molecules are channeled into and marketed in Bangladesh through these companies. Multinational and large national companies generally follow current good manufacturing practices (CGMP) including rigorous quality control of their products. The Drug Act of 1940 and its rules formed the basis of the country’s drug legislation. Unani, ayurvedic, homeopathic and biochemical medicines were exempted from control under the legislation. The foreign companies dominated the pharmaceutical industry at that time. Even in the allopathic market there were extemporaneous preparations dispensed from retail pharmacies.
The pharmaceutical industry, however, like all other sectors in Bangladesh, was much neglected during Pakistan regime. Most multinational companies had their production facilities in West Pakistan. With the emergence of Bangladesh in 1971, the country inherited a poor base of pharmaceutical industry. For several years after liberation, the government could not increase budgetary allocations for the health sector. Millions of people had little access to essential life saving medicines. With the promulgation of the Drug (Control) Ordinance of 1982 many medicinal products considered harmful, useless or unnecessary got removed from the market allowing availability of essential drugs to increase at all levels of the healthcare system. Increased competition helped maintain prices of selected essential drugs at the minimum and affordable level.
In 1981, there were 166 licensed pharmaceutical manufacturers in the country, but eight multinational companies, which manufactured about 75% of the products, dominated local production. There were 25 medium sized local companies which manufactured 15% of the products and the remaining 10% were produced by other 133 small local companies. All these companies were mainly engaged in formulation out of imported raw materials involving an expenditure of Tk. 600 million in foreign exchange. In spite of having 166 local pharmaceutical production units, the country had to spend nearly Tk 300 million on importing finished medicinal products. A positive impact of the Drug (Control) Ordinance of 1982 was that the limited available foreign currency was exclusively utilized for import of pharmaceutical raw materials and finished drugs, which are not produced in the country. The value of locally produced medicines rose from Tk 1.1 billion in 1981 to Tk 16.9 billion in 1999. At present, 95% of the total demand of medicinal products is met by local production. Local companies (LCs) increased their share from 25% to 70% on total annual production between 1981 and 2000.
In 2000, there were 210 licensed allopathic drug-manufacturing units in the country, out of which only 173 were on active production; others were either closed down on their own or suspended by the licensing authority for drugs due to non compliance to GMP or drug laws. They manufactured about 5,600 brands of medicines in different dosage forms. There were, however, 1,495 wholesale drug license holders and about 37,700 retail drug license holders in Bangladesh. Anti-infective is the largest therapeutic class of locally produced medicinal products, distantly followed by antacids and anti-ulcerants.
One of the major positive impacts of Drug (Control) Ordinance is the rapid development of local manufacturing capability. Almost all types of possible dosage forms include tablets, capsules, oral and external liquids (solutions, suspensions, emulsions), ointments, creams, injections (small volume ampoules/dry fill vials/suspensions and large volume IV fluids), and aerosol inhalers are now produced in the country. In recent years, the country has achieved self-sufficiency in large volume potential, some quantities of which are also exported to other countries. The development of local manufacturing capability helped contain dependence on the import of pharmaceutical products (raw material and finished product) around pre-1982 level. Under the Drug (Control) Ordinance government fixes the maximum retail prices (MRP) of 117 essential drug chemical substances. Drugs other than these essential ones are priced through a system of indicative prices. This rule applies on the locally manufactured products only. For imported finished products, a fixed percentage of markup is applied on the C&F price to arrive at the MRP, regardless of whether they are within the list of essential 117 molecules or not. It is interesting to note that, even with withdrawal of price control from many products, prices have not shot up; healthy competition has been keeping the prices within affordable levels.
Physical distribution of pharmaceuticals in Bangladesh has evolved in a unique way. Unlike other countries Bangladesh pharmaceutical industry is more retail oriented and the companies themselves do bulk of distribution. Pharmaceutical companies distribute their products from their own warehouses located in different parts of the country, as no professional distribution house is available. Wholesalers play a limited role in this regard since companies supply goods to both retailers and wholesalers. Export of pharmaceutical products is still in an infant stage, although a number of private pharmaceutical companies have already entered the export market with their basic materials and finished products. They export their products to Vietnam, Singapore, Myanmar, Bhutan, Nepal, Sri Lanka, Pakistan, Yemen, Oman, Thailand, and some countries of Central Asia and Africa.
The primary responsibility for drug quality control lies with the manufacturers. However, the government’s drug testing laboratories (DTL) and the Directorate of Drug Administration (DDA) have the monitoring and supervising role. There are two government drug-testing laboratories. DTL at Dhaka is in the Institute of Public Health and the regional DTL at Chittagong is under DDA. Drug administration is responsible for registration of drugs for marketing in Bangladesh and for inspection of premises and licensing. With its present set up and inadequate strength, DDA often finds it difficult to carry out its very large volume of assigned work. The national drug policy and the regulatory control policies are yet to achieve best results for a healthy growth of the pharmaceutical industry. Because of the limited capacity of the government’s drug testing laboratories, the quality of products manufactured locally cannot be uniformly ensured. Restrictions on patent rights discourage foreign investors to come up actively in the pharmaceutical market in Bangladesh. Introduction of new research molecules is difficult due to slow registration process and restrictions on patent protection. Although the fixed mark-up system of pricing helped keep the prices of pharmaceutical products low, this made it difficult to cover costs of marketing and distribution. The fixed mark-up system also discourages some companies to invest for CGMP and assurance of high quality production. Some important therapeutic classes of the pharmaceutical market (antacids and oral vitamins) are only open to the local companies even after 20 years of the drug ordinance. This policy is discriminatory and also contrary to the announced investment policy of the government.
The annual per capita drug consumption in Bangladesh is one of the lowest in the world. However, the industry has been a key contributor to the Bangladesh economy since independence. With the development of healthcare infrastructure and increase of health awareness and the purchasing capacity of people, this industry is expected to grow at a higher rate in future. Healthy growth is likely to encourage the pharmaceutical companies to introduce newer drugs and newer research products, while at the same time maintaining a healthy competitiveness in respect of the most essential drugs.
BACKGROUND:
The report on “Analysis of Doctors` perception of GSK and others pharmaceuticals drugs” is prepared to fulfill the requirement of the internship program as a part of MBA .It emphasizes the significance of theoretical knowledge of MBA program that was gathered in the learning process as well as its application in the practical field.
ORGANIZATION OF THE REPORT:
This report consists of two parts:
Organization Part
Project Part
Organization Part:
In Organization Part, An overview of the organization is presented. This includes historical background of GlaxoSmithKline, its mission, objectives, and strategies. The Organ gram of GlaxoSmithKline Bangladesh Limited is attached in this part with major functional department.
Project Part:
In Project Part, Research design and methodology is described. Response of the Doctors, and the management practices of the organization are analyzed in this part. Major finding of this research are also given in this part.
2.1 COMPANY PROFILE:
Company location
Information regarding GSK’s headquarters, registered office and manufacturing site and other important facilities are as follows:
| Name GlaxoSmithKline Bangladesh Limited |
| Corporate Office House No 2A,Road No 138
Gulshan-1, Dhaka 1212 Bangladesh |
| Registered Office Fouzderhat Industrial Area
Dhaka Trunk Road , PO North Kattali Chittagong – 4217 |
| Sites and Facilities Fouzderhat Industrial Area
Dhaka Trunk Road , PO North Kattali Chittagong – 4217 Bangladesh |
| Corporate head office 980 Great West Road
Brentford Middlesex TW8 9GS England |
GlaxoSmithKline (GSK) Bangladesh Limited has eleven district marketing office (DMO) throughout the country that are divided in five zone. The GSK’s products are sold through the DMOs.
The zones and the respective DMOs are given in the following table:
| Zone District Marketing Office |
| Dhaka Dhaka, Mymensingh |
| Chittagong Chittagong , Maijdee |
| Comilla Comilla, Sylhet |
| Bogra Bogra ,Rajshahi,Rangpur |
| Barisal Barisal, Jessore |
GlaxoSmithKline has its operational headquarter in Philadelphia and operating companies in some 70 countries with products sold in over 140 countries. The principal research and development facilities are in the UK, USA. Japan, Italy, and Belgium .Products are currently manufactured in some 40 countries. The major markets for the group’s products are the USA, Japan, UK, France, Germany and Italy.
GlaxoSmithKline pharmaceutical’s international region is split into seven geographical area-Asia pacific, Canada, China / Hong Kong, Japan, Latin America, Middle East / North Africa and Sub – Saharan Africa. Bangladesh is the part of Asia Pacific area.
2.2 COMPANY HERITAGE:
GlaxoSmithKline is a forward-looking company with an exciting future. They are mindful of their global quest to improve the quality of human life for future generations.
Yet this can only be achieved by building on the solid foundations of the companies that have led to the creation of today’s organization and the pioneering exploits of the individuals of yesteryear.
They will always be grateful for the achievements of founders and hope their spirit of entrepreneurial endeavor will be carried forward by their new company’s pioneers as they build what they plan will be the leader in industry.
This text highlights some of these past achievements. They are notable events that will lead to further successes in the future:
| Timeline | |
| 1715 | Plough Court pharmacy, the forerunner of Allen & Hanburys Ltd, is established in London by Silvanus Bevan. |
| 1800 | |
| 1830 | John K Smith opens his first drugstore in Philadelphia. John’s younger brother, George, joins him in 1841 to form John K Smith & Co. |
| 1842 | Thomas Beecham launches the Beecham’s Pills business in England. The laxative is to become widely successful. |
| 1850 | |
| 1859 | Beecham opens the world’s first factory to be built solely for making medicines at St Helens in England. |
| 1865 | Mahlon Kline joins Smith & Shoemaker – as John K Smith & Co had become – as a bookkeeper. |
| 1873 | Joseph Nathan, who left the UK to seek new business opportunities 20 years before, establishes a general trading company at Wellington in New Zealand – Joseph Nathan and Co – the foundation for the Glaxo company to be formed later. |
| 1875 | Mahlon Kline took on additional responsibilities as a salesman and added many new and large accounts. He is rewarded when the company, Mahlon K Smith & Company, is renamed Smith, Kline & Company |
| 1880 | Burroughs Welcome & Company is established in London by American pharmacists Henry Welcome and Silas Burroughs; four years after Joseph Nathan opened a London office. |
| 1884 | Tabloid is registered as a Burroughs Welcome & Company trademark to describe its compressed tablets. |
| 1885 | Thomas Beecham’s company acquires headquarters on the corner of Silver Street and Water Street, St Helens, England. Two years later, the company’s new factory in St Helens becomes the first in the area to have electricity. |
| 1891 | Smith, Kline & Company acquires French, Richards & Company, providing a greater portfolio of consumer brands. |
| 1900 | |
| 1902 | The Welcome Tropical Research Laboratories open. |
| 1904 | Nathan starts dried milk powder production in New Zealand, exporting to London. Henry Welcome hires Henry Dale, who is to discover and study, among other things, histamine and how nerve impulses are transmitted. |
| 1906 | Glaxo is registered by Joseph Nathan and Co as a trademark for dried milk. A Burroughs Welcome subsidiary is created in New York. |
| 1908 | The Glaxo department of Joseph Nathan and Co opens in London and the first “baby book” is published. |
| 1910 | The “Blue Line” is added to the Smith, Kline & French name, a range including poison ivy lotion, iron tablets and lozenges. |
| 1913 | Production of Beecham’s Pills reaches one million a day. |
| 1919 | Alex C Maclean establishes Macleans Ltd, manufacturing own-name products for chemists. Mahlon Kline begins the novel practice of sending pharmaceutical samples through the mail to doctors across the US. |
| 1924 | The vitamin D preparation Ostelin becomes Glaxo’s first pharmaceutical product. The Welcome Foundation Ltd is formed. The Beecham estate is purchased by Philip Hill, who realised that the Beecham’s Pills business could, through diversification, become the basis of a major company. |
| 1926 | Beecham’s Powders are introduced. |
| 1929 | Smith, Kline & French Company is renamed Smith Kline & French Laboratories and becomes more focused on research. |
| 1930 | Sydney Smith of Welcome isolates the glycosides of Digitalis lanata, a variety of foxglove. Lanoxin is used in the treatment of heart failure. |
| 1935 | Glaxo Laboratories is formed and new facilities are created at Greenford, near London. |
| 1936 | Sir Henry Welcome’s will leaves sole ownership of The Welcome Foundation Ltd to a UK medical research charity, today called the Welcome Trust. Sir Henry Dale of Welcome is awarded the Nobel Prize for Medicine for his work in the chemical transmission of nerve impulses. |
| 1938 | Beecham acquires Macleans Ltd and Eno’s Proprietaries Ltd. Macleans toothpaste and Lucozade energy-replacement drink are added to Beecham’s product line. |
| 1939 | Beecham acquires County Perfumery Co Ltd, manufacturers of Brylcreem, a men’s hair application. |
| 1943 | Beecham Research Laboratories is formed with the mission to focus exclusively on basic pharmaceutical research. |
| 1945 | Beecham Group Ltd is established, replacing Beecham Pills Ltd and Beecham Estates Ltd – later known as Beecham Group plc – and incorporates Beecham Research Laboratories. |
| 1947 | Glaxo Laboratories Ltd absorbs the Joseph Nathan company and becomes the parent company. Glaxo is listed on the London Stock Exchange. New Beecham laboratories are established at Brockham Park in Surrey, England. |
| 1948 | Vitamin B12 is isolated by Glaxo scientists for the treatment of pernicious anaemia. Streptomycin for TB treatment is produced by Glaxo scientists. Polymixin anti-bacterials are developed by Welcome. Smith Kline & French Laboratories acquire a new site at 1530 Spring Garden Street, Philadelphia. |
| 1949 | Beecham Group Ltd acquires C L Bencard Ltd, a company specialising in allergy vaccines. It is a first step towards ethical products for the Beecham company. |
| 1950 | |
| 1950s | Thorazine, an anti-psychotic from Smith Kline & French, is introduced. The product will revolutionise the treatment of mental illness during the 1950s and become the product of reference in the first generation of central nervous system drugs. |
| 1952 | Smith Kline & French introduces the first time-released medicine, Dexedrine. It is marketed and used in a Spansule – a novel form of drug delivery. Daraprim (pyrimethamine) anti-malarial is developed by Welcome. |
| 1953 | Welcome launches its antileukaemic drug Purinethol (mercaptopurine). |
| 1958 | Glaxo acquires Allen & Hanburys Ltd. |
| 1958-59 | Welcome launches range of Actifed antihistamine products for head colds and allergies. |
| 1959 | The Welcome Foundation acquires Cooper, McDougall & Robertson Ltd, an animal health company founded in 1843. |
| 1960 | Smith Kline & French launches Contac, the cold remedy, using the Spansule to release an initial major therapeutic dose, followed by numerous smaller doses, over 10-12 hours. The company moves into the animal health business with the acquisition of Norden
Laboratories. |
| 1963 | Betnovate becomes the first of Glaxo’s range of steroid skin disease treatments. In the mid-1960s, Smith Kline & French acquires RIT (Recherche et Industrie Therapeutiques), a vaccines business. |
| 1968 | Septrin (co-trimoxazole) anti-bacterial from Welcome is introduced. |
| 1969 | Glaxo launches Ventolin for asthma, developed at Ware and marketed under the Allen & Hanburys name. Ceporex, Glaxo’s first oral cephalosporin antibiotic, is introduced. Smith Kline & French enters the clinical laboratories business through the purchase of seven laboratories in the US and one in Canada. |
| 1970 | Burroughs Welcome Inc moves its production facility from New York to Greenville, North Carolina. |
| 1971 | Welcome launches its rubella vaccine. Burroughs Welcome Inc opens its research site at Research Triangle Park, North Carolina. |
| 1972 | Scientists at Beecham Research Laboratories discover amoxycillin and launch Amoxil, to become a widely used antibiotic. Beecham Group plc is unsuccessful in its bid for Glaxo Group Ltd – and Glaxo is unsuccessful in its attempt to merge with UK chemists Boots. Oral steroid beclomethasone dipropionate is launched by Glaxo as Becotide for asthma, followed in 1975 by Beconase for rhinitis conditions. |
| 1976 | The H2 blocker Tagamet (cimetidine) is introduced in the UK by the SmithKline Corporation and in the US in the following year. The treatment will revolutionise peptic ulcer therapy. |
| 1978 | Through the acquisition of Meyer Laboratories Inc, Glaxo’s business in the US is started, to become Glaxo Inc from 1980. The broad-spectrum injectable antibiotic Zinacef (cefuroxime) is introduced by Glaxo. |
| 1981 | The anti-ulcer treatment Zantac (ranitidine) is launched by Glaxo and is to become the world’s top-selling medicine by 1986. Augmentin, to combat a wide range of bacterial infections in children and adults, is launched by Beecham. The antiviral Zovirax (aciclovir) is launched by Welcome for herpes infections. |
| 1982 | SmithKline acquires Allergan, an eye and skincare business, and merges with Beckman Instruments Inc, a company specialising in diagnostics and measurement instruments and supplies. The company is renamed SmithKline Beckman. John Vane of the Welcome Research Laboratories is awarded the Nobel Prize, with two other scientists, “for their discoveries concerning prostaglandins and related biologially active substances”. |
| 1983 | Glaxo Inc moves to new facilities in Research Triangle Park and Zebulon, North Carolina. The broad-spectrum injectable antibiotic Fortum (ceftazidime) is launched. Welcome launches Flolan (epoprostenol) for use in renal dialysis. |
| 1986 | Beecham acquires the US firm Norcliff Thayer, adding Tums antacid tablets and Oxy to its portfolio. |
| 1987 | The AIDS treatment Retrovir (zidovudine) is launched by Welcome. Glaxo introduces the oral antibiotic Zinnat (cefuroxime axetil). |
| 1988 | SmithKline BioScience Laboratories acquires one of its largest competitors, International Clinical Laboratories, Inc, increasing the company’s size by half and establishing SmithKline BioScience Laboratories as the industry leader. The Nobel Prize for medicine is awarded to George Hitchings and Gertrude Elion, of Burroughs Welcome Inc, and to Sir James Black, who had worked at the Welcome Foundation and Smith Kline & French Laboratories, “for their discoveries of important principles for drug treatment”. |
| 1989 | SmithKline Beckman and The Beecham Group plc merge to form SmithKline Beecham plc. Engerix-B, a genetically engineered hepatitis B vaccine, is launched in the US and France. |
| 1990 | The synthetic lung surfactant Exosurf and the anti-epileptic drug Lamictal are launched by Welcome. Glaxo introduces long-acting Serevent (salmeterol) for asthma, the inhaled corticosteroid Flixotide (fluticasone propionate), and Zofran (ondansetron) anti-emetic for cancer patients. |
| 1991 | Glaxo launches its novel treatment for migraine, Imigran (sumatriptan), Lacipil (lacidipine) for high blood pressure, and Cutivate in the US for skin diseases. SmithKline Beecham moves its global headquarters to New Horizons Court at Brentford, England. SmithKline Beecham’s Seroxat/Paxil is launched in the UK, its first market. |
| 1992 | Mepron (atovaquone) for AIDS-related pneumonia is introduced by Burroughs Welcome in the US. SmithKline Beecham’s Havrix, the world’s first hepatitis A vaccine, is launched in six European markets. |
| 1993 | SmithKline Beecham and Human Genome Science negotiate a multi-million dollar research collaboration agreement for identifying and describing the functions of the genes in the human body. Glaxo introduces Flixotide (fluticasone propionate) for bronchial conditions |
| 1994 | SmithKline Beecham purchases Diversified Pharmaceutical Services, Inc, a pharmaceutical benefit manager. Sterling Health is also acquired, making SmithKline Beecham the third largest over-the-counter medicines company in the world and number one in Europe and the international markets. With the intention of focusing on human healthcare, SmithKline Beecham sells its animal health business. |
| 1995 | Glaxo and Welcome merge to form Glaxo Welcome. Glaxo Welcome acquires California-based Affymax, a leader in the field of combinatorial chemistry. The Queen opens Glaxo Welcome’s Medicines Research Centre at Stevenage in England. Valtrex (valaciclovir) is launched by Glaxo Welcome as an anti-herpes successor to Zovirax. SmithKline Beecham acquires Sterling Winthrop’s site in Upper Providence, Pennsylvania, to fulfil US R&D expansion needs. |
| 1996 | Community Partnership is established by SmithKline Beecham to focus philanthropy on community-based healthcare. SmithKline Beecham Healthcare Services is formed by combining the clinical laboratories, disease management and Diversified Pharmaceutical Services businesses. |
| 1997 | SmithKline Beecham’s research centre, New Frontiers Science Park, opens at Harlow in England. SmithKline Beecham and Incyte Pharmaceuticals create a joint venture – diaDexus – to discover and market novel molecular diagnostics based on the use of genomics. |
| 1998 | SmithKline Beecham and the World Health Organization announce a collaboration to eliminate lymphatic filariasis (elephantiasis) by the year 2020. The largest pharmaceutical company in Poland is created with the acquisition of Polfa Poznan by Glaxo Welcome. |
| 1999 | The 30th anniversary of the launch of Ventolin is marked as respiratory becomes Glaxo Welcome’s largest therapeutic area. Sharpening its focus on pharmaceuticals and consumer healthcare, SmithKline Beecham divests SmithKline Beecham Clinical Laboratories and Diversified Pharmaceutical Services. SmithKline Beecham’s Avandia, for the treatment of type 2 diabetes, is launched in the US. |
| 2000 | |
| 2000 | The plan is announced to form GlaxoSmithKline through the merger of Glaxo Welcome and SmithKline Beecham. |
2.3 THE MERGERS:
2.3.1 GlaxoWellcome PLC
On January 25, 1995, Glaxo launched a takeover bid for Welcome. On March the integration on these two companies created the world’s largest pharmaceutical company. Total contribution of GlaxoWellcome from June 1994 to December 1995 was 23.2 million. GlaxoWellcome concentrated on scientific, technological and marketing skills on the creation of new medicines where there is a balance of medical need and commercial opportunity.
Smith Kline Beecham
The merger in 1989 of SmithKlineBeecham and the Beecham Group to from SmithKlineBeecham created a new company with one of the world’s biggest research and development organization. The combined product portfolio. Pipeline and geographic networks positioned SmithKlineBeecham at the forefront of the global healthcare industry.
On the 17th January 2000 Glaxo Welcome and Smith Kline Beecham announced that they have unanimously agrees the terms of proposed merger of equals to form GlaxoSmithKline. The merger made GlaxoSmithKline, the world’s number one pharmaceutical company.
2.3.3 G1axoSmithKline (GSK)
G1axoSmithKline (GSK) is a world leading research-based pharmaceutical company with a powerful combination of skills and resources that provides a platform for delivering strong growth in today’s rapidly changing healthcare environment.
On September 27, 1880, two USA pharmaceuticals, “Henry Welcome” and “Silas Burroughs” created important joint activity for US pharmaceutical products as Burroughs Welcome. Within two years Burroughs Welcome started manufacturing its own products in central London basement. Welcome invented the word “Tabloid” to describe the condensed tablets. In 1985, “Welcome Private Limited” was formed.
2.1.5 Establishment of GlaxoSmithKline in Bangladesh
The company started its business in Bangladesh in 1947 at Chittagong by importing from group companies. The Chittagong factory site of GSK Bangladesh Limited was established in 1967. Name of company changed from “Glaxo Welcome Bangladesh Limited” to “GlaxoSmithKline Bangladesh Limited” on 4th September 2002.
Figure 1: Merging History of GSK
2.4 GlaxoSmithKline (GSK)
2.4.1 Mission
The mission statement of GSK is as follows:
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“Our mission statement explains why we are in business-Our global quest is to improve the quality of human life by enabling people to do more, feel better and live longer.”
2.4.2 Strategic Intent
The strategic intent of GSK is as follows
“Our strategic intent states our business goal-We want to become the indisputable leader in our industry.”
2.4.3 Quality Statement
The quality statement of GSK is as follows
“Quality is at the heart of everything we do- from the discovery of the molecule, through product development, manufacture, supply and sale – and is vital to all the services that support our business performance. “
2.4.4 Global Manufacturing and Supply (GMS) Mission
The global manufacturing and supply mission of GSK is as follows.
A secure source of supply of quality products.
Compliance with regulatory requirements and customer expectation.
Best in class cost
Leading edge practices and performance, at sites in procurement
2.4.5 GlaxoSmithKline People
The skills and intellect of GlaxoSmithKline employees are fundamental to the current and future success of the business. It is GSK’s human capital that maximizes the potential of the group’s scientific, commercial and financial assets. The objective of human resources policy is to maintain the reputation of GSK as an employer of choice; the role of Human Resources is to provide alignment between strategy and people strategy. Below some highlights of their HR policies are given to make understand the strength of it.
Performance & Reward
The importance of people as an operating resource has to translate into employment practices that recognize the value of each individual. Compensation and benefit packages are designed to be enlightened, competitive and attuned to the local market.
Compensation includes both skill-and performance- based pay, contributing to retention of skills and consistent recognition and reward of superior performance and accomplishments of business targets.
Alterative work schedules, such as flextime, tele- working, adjusted workweeks, recognize that employees work best in an environment that integrates both their family and personal life.
Communication & Involvement
An extensive range of communications programs stimulates involvement in GlaxoSmithKline goals and progress, including presentations of business results, Group-Wide magazines, site newspapers, videos, recorded voice mail messages from senior executive officers and access to GlaxoSmithKline intranet.
Diversity
Diversity is central to the effective deployment of the skills needed to compete in the modern global economy. The group values diversity of opinion, perspective and background.
GlaxoSmithKline remains committed to employment policies which do not discriminate between potential or existing staff on the grounds of color, race, ethnic and national origin, gender, marital status, religious beliefs or disability. In the UK, if an employee becomes disabled while in employment and, as a result, if unable to perform normal duties, every effort is made to offer suitable alternative employment and assistance with retraining.
Training & Development
Comprehensive training and development opportunities are valuable to all employees at all levels, including access to self-help computer-based training modules. Development planning is a key element in overall performance planning each year.
Executive and leadership development programs have been designed to identify and prepare the key talent necessary for growing the business worldwide. In particular, these programs develop skills identified as critical to future business success, such as entrepreneurship, partnering, cross-functional collaboration and global problem solving.
2.4.6 GSK’s Operation
GSK has its operational headquarters in Philadelphia. At present it has production factories in 40 countries, operations in 70 countries and its products sold in 140 countries. USA, Japan Italy and Belgium are the countries where GSK has its giant research and development plant. The major marketers of the group’s products are the USA, Japan, France, Germany and Italy.
2.4.7 Business Segments
GSK operates principally in two types of industry segment:
1. Pharmaceuticals- Prescription pharmaceuticals and Vaccines.
2. Consumer Healthcare-Over the counter medicines, oral care and nutritional healthcare.
2.5 GlaxoSmithKline in Time
Every second, more than 30 doses of vaccines are distributed by GlaxoSmithKline.
Every minute, more than 1,100 prescriptions are written for GlaxoSmithKline products.
Every hour, GlaxoSmithKline spends more than $ 450,000 to find new products.
Every day, more than 200 million people around the world use a GlaxoSmithKline brand toothbrush or toothpaste.
Every year, GlaxoSmithKline donates more than $ 184 million in cash and products to communities around the world.
2.6 ORGANIZATION STRUCTURE:
The organization structure of GlaxoSmithKline Bangladesh Limited is functional and flat. It has departments right under the Managing Director. It might seen that the bureaucratic cost of the organization would be very much. Actually, the original scenario is different and the environment is not that formal. Information flows in the organization from every direction ,resulting in a very good working atmosphere. However, authorization for important decisions has to be carried down from even the GlaxoSmithKline Group Policy Markers from abroad. In a nutshell, it can be said that good relation ship exist between managers and workers irrespective of their levels and a free of information are a couple of the company’s main asset. The Organ gram of the GSK is given in the following page.
2.7 Description of Functional Departments
GSK Bangladesh Limited has five major departments, namely Human Resource, Finance, Marketing, Technical and the last one is Medical & Regulatory Affairs. The main functions of these departments are shown bellow:
Human Resource Department:
The company places great emphasis and commitment in developing the human resource as the corner stone of the organization. Initially the company used to maintain all employee related information on paper based documents. On implementation of IT enabled system, information is available – on soft form, very easy to use and of course in a very cost effective manner. GSK is one of those very few proud companies in Bangladesh, which use HRIS. The summery of HR functions are as below
Recruiting and training the best pool of employees.
Maintaining smooth workflow in the organization.
Allocating annual holidays.
Arranging for employees motivational programs.
Looking after the wage structure and waivers.
Finance Department
GSK gives proper importance to their finance department. For any business organization profitability and solvency is the main key word. And finance department works to work out on this issue. The financial statement of GSK have been prepared in accordance with Bangladesh Accounting Standards and the relevant requirements of the Schedule to the Securities and Exchange Rules, 1987 and of the Companies Act 1994 follows the historical cost convention.
The summery of Finance functions are as below
· Controlling the accounts
· Completing the annual budgets.
· Allocating all kinds of payments to the staffs and managers.
· Conducting internal audits.
· Looking after all the expenses and revenues.
· Keeping records through IT.
· Facilitating local production cos
Medical and Regulatory Department
· Liaison with government with legal issues.
· Communicate with doctors
· Handling advertisements.
Marketing Department
The pharmaceutical industry of Bangladesh is a limited field for marketing. Yet in an age of high competition like today’s firms are heavily spending and effectively practicing marketing. Now let us look at the practices by GSK. The summery of marketing functions are as below
Designing and implementing sales strategies.
Controlling and updating distribution network.
Designing and carrying out promotional programs.
Providing marketing information services.
Carrying out different awareness creating activities.
Keeping records of data regarding marketing activities.
Building up public communication network.
Conducting marketing survey as needed.
Technical Department
The technical department of GSK is extra ordinarily strong. GSK always strive for reaching the global standard of applications of information technology. This company is one of the very few companies in Bangladesh who use world-class sophisticated soft wares.
2.8 INDUSTRY ANALYSIS
2.8.1 Dominant Economic characteristics of Industry:
The Dominant Economic characteristics are the factors that influence the overall operations of the players in it. The following table is the summery of the factors:
| Factors Description |
| 1.Market size All over the country |
| 2.Scope of competitive National, in some rare
rivalry regional. |
| 3. Market Growth Rate 5% to 7% annually, on an average. |
| 4. Life Cycle Stage Mature, continuous research dose not let
the curve decline. |
| 5.Target and End The doctors and the drugstores are the
Customer target customer. However, the end customers Are |
| 6.Type of Distribution Wholesaler and retailer, in some rare cases
Channel Used (like vaccine) it is through special outlets |
| 7.Products Standardized & no scope of
Characteristics communization. |
| 8. Scale Economies Moderate to high, largely depends on
Usage projected annual demand . |
| 9.Persentage of learning yes, especially in drug research and
formulation. |
| 10. Industry Profitability Avove par , Ultimately it is affected
by the state of national economy . |
| 11. Capacity Below 70% utilization. |
2.8.2 Top 10 pharmaceutical companies in Bangladesh
The list of top ten pharmaceutical companies in Bangladesh according to market share is given below,
Table 4: Market Shares of Top 10 Pharmaceutical Companies
| Name of the Company | Position | Market Share |
| Square | 1st | 30.5% |
| BPL | 2nd | 17% |
| Aventis | 3rd | 12.78% |
| Acme | 4th | 11.28% |
| Opsonin | 5th | 9.77% |
| Drug International | 6th | 6.01% |
| SK+F | 7th | 4.51% |
| GSK | 8th | 4.01% |
| ACI | 9th | 3.75% |
| Renate | 10th | 3.38% |
Source: Marketing Department of GSK
Figure 9: Market Shares of Top 10 Pharmaceutical Companies
Source: Marketing Department of GSK
The statistics give details that GSK stands at 8th position in the pharmaceutical companies. But at top position, there is a local national pharmaceutical company.
2.8.3 GSK’s Market shares and positions
Table 5: GSK’s Market shares and positions
| Year | Market Share | Position in the Industry |
| 2002 | 6.89% | 5 |
| 2003 | 5.90% | 7 |
| 2004 | 4.01% | 8 |
Source: Marketing Department of GSK
Figure 2: GSK’s Market shares
Source: Marketing Department of GSK
The table & figure shows that the market share of GSK is declining day by day. In 2002 it was 6.89%, in 2003 it decreased to 5.90% and in 4th quarter of 2004 it had total market share of 4.01 % only.
2.09. SWOT ANALYSIS OF GSK BANGLADESH LIMITED
2.9.1 Strengths:
World’s one of the leading pharmaceutical companies.
Sophisticated manufacturing process.
Considerable financial resources to grow the business.
Corporate brand reputation.
High product quality than rivals.
Efficient, capable and honest workforce.
Ability to take advantage of economies of scale.
Follows GMP- Good Manufacturing Practices.
Goodwill of the company.
2.9. 2 Weaknesses:
Overall higher unit cost relatively to leading rivals.
Poor marketing promotional activities.
Under utilized plant capacity.
Relatively small sales force.
Weaker distribution network than competitors.
Group compliance. Due to group policy, the company has to import raw materials from UK and Italy, which is very costly. Whereas the in-house competitors are bringing from neighboring countries, which are less expensive. Thus resulting higher cost of production.
Opportunities:
Target and acquire an untapped market for vaccines.
Expanding geographic coverage and product segments.
Expanding the company’s product line to meet a broader range of customer need.
Alliances-contract manufacturing that expands the firm’s market coverage and competitive capability.
Threats:
Increasing threats from the local companies.
Adverse shift in foreign exchange rates and trade policies of Governments.
Growing bargaining power of the customers.
Slow downs in market growth.
Conclusion:
The sector consistently creates job opportunities for highly qualified people. Many established entrepreneurs of today started with pharmaceutical companies in the country. Pharmaceutical companies are either directly or indirectly contributing largely towards raising the standard of healthcare through enabling local healthcare personnel to gain access to newer products and also to latest drug information.