Beximco Group the largest conglomerate in the private sector of Bangladesh
Beximco Pharmaceuticals Industry is one of fastest growing and one of the largest foreign revenue earning sectors in Bangladesh. It is pleasure to do my internship program from such a reputed organization which is known for its renowned quality. Beximco Pharmaceutical Ltd. is a part of Beximco Group the largest conglomerate in the private sector of Bangladesh. Beximco Pharmaceuticals Ltd. started its journey as a public limited company in 1976 by registration. But the company starts its commercial production in 1980. Currently Beximco Pharma has been established as leading Pharmaceuticals Company in Bangladesh. BPL is not only fulfilling the demand of local market but also fulfilling the demand of foreign market. BPL is UN approved supplier of pharmaceutical product in the world. It is also greatly contributing to our national economy by exporting their product in abroad.
Currently BPL has exports market in 19 countries including , Cambodia, Georgia, Hong Kong, Iran, Kenya, Malaysia, Mozambique, Myanmar, Nepal, Pakistan, Philippines, Russia, Singapore, South Korea, Sri Lanka, Taiwan, Ukraine, Vietnam and Yemen. For the contribution to national economy BPL has been awarded National Export Trophy several occasions. BPL has share holder over 50,000. In 2005 the total turn over of BPL was 3879.42 million.
The Pharmaceuticals Industry of Bangladesh is very bright in fact we are such a country who fulfills the local demand by ourselves. The local pharmaceutical company’s produce 78% products out of the total consumption and only 21% products are been produced by foreign company’s in Bangladesh. Beximco Pharmaceutical Ltd holds the maximum 19.26% prescription market share among the all local pharmaceuticals company in Bangladesh. Its position in different therapeutic class is also very good. To face the challenges of 21st century BPL has a clear vision for the future and they are preparing themselves according to that manner. In 21st century BPL want to place it as a one of the leading pharmaceutical company in Asia with comparison with other leading pharmaceutical companies. To accomplish it vision BPL are implementing aggressive strategies and relentlessly pursuing operational excellence.
CHAPTER ONE: INTRODUCTION
Medicine is directly related to human life and therefore, its manufacturers have immense social responsibility of providing safe and effective medicine, demanding uncompromising efforts, at all levels of its activities. Beximco pharmaceuticals Ltd the leading health care company in Bangladesh has been making every effort to ensure the effectiveness and safety of the medicine that it produces. Physicians and patients of the company reply on the efficacy of the medicines of Beximco Pharma at the time of critical needs demonstrating their confidence and trust on BPL products. BPL has a remarkable mission statement, which is being seriously pursued in its thoughts and actions. An increasing amount of contribution is ploughed back into social causes demonstrating BPL’s commitment to the nation. As we continue to grow, it should not only benefit BPL itself but it should also positively contribute to the nation and society where we live.
In BPL believe that they manufacture and sell medicine to provide health, happiness and smile back in life of our fellow citizens. We intend to help realize the ultimate aspiration of the nation for a lifetime of good health ensuring a healthier tomorrow for the people.
1.2 ORIGIN OF THE REPORT
Today, practical experience is as much essential as academic education that enables someone to be successful business executive especially in the glove, competitive business environment. In order to gather knowledge and exposure regarding the organization culture, behavior the business students has to be go internship after the successful completion of their Business degree.
Stamford University Bangladesh is known for the global standard education. Due to this slogan of Stamford University, the business students of this university is known for their excellent knowledge both theoretical and also practical which makes them a competitive and more global across the globe. This internship program of mine at BPL is a process of gathering practical knowledge regarding Pharmaceutical industry in Bangladesh.
Beximco Pharmaceutical Ltd is the manufacturer and marketer of pharmaceutical product under chemical divisions of Beximco Group. Beximco Pharmaceuticals is one of the leading pharmaceutical companies in Bangladesh. It also is one of the biggest suppliers of pharmaceutical product of any Bangladeshi based company. BPL is the first Bangladeshi company to supply pharmaceutical product to Riffles Hospital the most prestigious hospital of Singapore.
1.3 SCOPE OF THE STUDY
The end users of pharmaceuticals products are the doctors and pharmacists. So, we need find to out the prescription market share of BPL by analyzing and collecting the prescription through the prescription survey. We also need to analyze whether the survey findings are been properly implemented and proper strategy is been taken or not.
1.4 LIMITATION OF THE STUDY
Every matter has got some limitation. So, this is also not an exception. The limitation of this research are been stated bellow.
1) Time limitation is one of the biggest limitations regarding this research. Due to lack of time larger number prescription from different parts of the country can not been collected.
2) The attendants of different chemist shops are sometimes not co-operative in survey activities.
3) Sometimes the patient or the guardians sometimes do not participate with the survey people.
4) As I am a business students, it was sometimes become difficult for me identify the name of the product referred by the doctors in the prescription for lack training and skills.
2.1 RESEARCH OBJECTIVE
The main objective of this research is to identify whether there is any discrepancy between the survey finds of MRC and also the implementation of the survey findings. More broadly if we categorized the objective of this research we can find the following objective stated bellow.
1) The prescription percentage of BPL products in comparison with different companies under different therapeutic class.
2) The generic percentage of BPL products under different therapeutic class.
3) To see whether the survey findings of MRC are been properly implemented by Central product Management Department in terms strategies.
2.2 RESEARCH TECHNIQUE
For conducting and analyzing this research project the following technique are been followed which are stated bellow.
1) In order to identify the product collecting the prescription from the patient or their guardian from the different chemist shop in Dhaka city.
2) Keep standing besides the chemist shop and looking for prescription coming?
3) Talking with the MRC and CPM authority of Beximco Pharmaceuticals whether the survey findings are been properly implemented or not.
The population for this research project is prescription suggested by doctors of different chemist shop, hospital and clinics. The target population of this project is been stated in details in the followings.
Sampling Units: Hospital, Clinic and chemist shop.
Area: Dhaka Metropolitan City.
2.4 SAMPLE SIZE
For any research sample size is the most important factor and this research is also not an exception. For analyzing this research 496 prescriptions and 1101 products are been analyzed for identifying the market share of BPL products.
2.5 SOURCES OF INFORMATION
For any research work the information play the most significant part. Because without the update information no research can be conducted successfully. Besides in this case two sources of information are been adopted for further continuation of the research project.
1. Primary sources.
2. Secondary sources.
2.5.1 PRIMARY SOURCES
Before discussing about the primary sources of this research project let us try to know first of the basic concept regarding primary sources. The primary sources are that information which has been collected for the first time relevant with the research project. In this regard the primary sources are the direct personal prescription observation from the chemist shop are been used.
2.5.2 SECONDARY SOURCES
The secondary sources are that information which has been already collected by some other research project.
In this case of research project the adopted two secondary sources of information.
1. Internal Sources: For my project the internal secondary sources of information was the brochures, medical book and annual report of 2005 of Beximco Pharmaceuticals Ltd. Besides the also taken some other unpublished information from the staffs of MRC dept.
2. External Sources: As an external secondary source of information the taken data from some other reports of other pharmaceuticals companies.
2.6 SAMPLING FRAME
There are many hospital, clinics and chemist shop in Dhaka city. I have selected the following hospital, clinics and chemist shop randomly for my research project.
· BSMMU Hospital.
· BIRDEM Hospital.
· Dhaka Medical College Hospital.
· Holy Family Hospital.
· Manoyara Hospital, siddeswari.
· Mitford Hospital.
· Bangladesh Medical College Hospital.
· Popular Diagnostic Center.
CHAPTER THREE PHARMACEUTICALS INDUSTRY IN BANGLADESH
3.1 BACKGROUD OF PHARMACEUTICAL INDUSTRY
The pharmaceuticals sector is a high-technology and knowledge-intensive industry in Bangladesh. The industry has two-tier structure. The largest firm accounts for the majority of the R&D investment in the industry and hold the majority of patents. There are a large number of smaller firms producing mostly for local markets. The pharmaceuticals industry is heavily regulated.
Once a product is brought to market, pharmaceuticals companies spend heavily on marketing and promotion. The larger drug companies maintain a large sales force, which makes direct regular contact with individual prescribing physicians and other pharmaceuticals decision makers. The money spent on marketing is huge. Pharmaceuticals marketing efforts are not only directed at physicians and consumers; drug companies have also sought to directly influence pharmacist, in some cases paying pharmacist to induce customers to change their drug consumption habits.
The nature of competition in this industry differs between the two sets of firms. The second tier of firms holds fewer patents and relies primarily on manufacturing off patent generic medicines or patent medicines under license. Competition between these firms takes the conventional form of competition on price, cost efficiency and quality. In contrast, a few large research-based pharmaceutical companies invest heavily in R&D and hold the bulk of the patents, and can often enjoy substantial market power while these patents are in force. For these companies, competition is not primarily on the basis of price, but rather on the basis of marketing and innovation. These companies compete to develop entirely new drugs which treat new medical conditions, improve upon existing drugs, or serve as substitute for existing patented drugs. Some large pharmaceutical companies in this tier export and compete in international markets.
The scenario of pharmaceutical industry can be depicted in two parts-before the Drug policy ordinance, 1982 and after the Drug policy ordinance, 1982. Before the ordinance there were 177 pharmaceutical companies in the country but local production is used to be dominated by multinational drug companies which manufactured 75% of total production. 25 medium sized national companies manufactured about 15% of total production. 133 small local based companies produced the remaining 10%. The multinational companies were fully armed with modern technology for producing sophisticated essential drugs, but they were only engaged, t a large extent, in formulation of simple drugs including many useless products. At that time, the unregulated drug market of the country had very little favorable conditions for pharmaceuticals to over price their products. Near monopoly market conditions mean that local firms could not compete effectively with these multinational market tycoons.
A great change was noticeable in the pharmaceutical industry after the drug policy ordinance of 1982. The total national production of pharmaceuticals has risen by a substantial 63%; the value of essential drugs made in national factories has gone up to 140% over the four years. At present there are 260 national & multinational based pharmaceutical companies in Bangladesh.
3.2 TOP TEN PHARMACEUTICAL COMPANIES IN BANGLADESH
|Name of the Company||Market Share|
3.3 MARKET SHARE OF NATIONAL COMPANIES
|Name of the companies||Market share|
3.4 MARKET SHARE OF MULTINATIONAL COMPANIES
|Name of the companies||Market Share|
CHAPTER FOUR: BEXIMCO GROUP ITSELF
4.1 HISTORY OF BEXIMCO GROUP
Beximco is the largest business conglomerate of private sector in Bangladesh. Over the years since started it could gain a position to symbolize effective management, fund generation, and diversification of exploring business opportunities. Today it is one of the most known name is the country’s business arena.
Beximco was the first private sector company to be registered in Bangladesh as a public limited company in September 1972. Since then, Beximco has taken the lead in public equity offerings in Bangladesh.
At the end of 1996, the ten publicly listed companies of the Beximco Group accounted for Tk. 33.87 billion or 20.4% of the market capitalization of the Dhaka stock exchange and Tk. 31.12 billion or 21.3% of the market capitalization in Chittagong stock exchange. Beximco shares are also the volume leaders on the national bourses, accounting for 22.08% of turnover at the DSE and 29.23% turnover at the CSE in 1996.
The Beximco Group has also played a pioneering role in establishing and expanding the debt instruments market in Bangladesh. Beximco Pharmaceuticals Ltd was the first Group Company to issue debentures in 1988 and has been followed by seven additional Groups companies since.
Beximco equities and debentures continue to perform the market as a rule, and have been often rated as buys by several foreign investments firms such as UBS, Crosby Securities, Peregrine and the erstwhile Smith New court. Beximco stocks are also well represented in the emerging market funds portfolios of leading mutual funds world wide.
An emerging economy like that of Bangladesh needs not just newer and bigger industries, but also a reliable service infrastructure, especially in financial services. Anticipating this, the Group decided to start Beximco securities Ltd., which is the first firm formed especially for the retail individual investor offering a customer friendly environment for its growing number of individual clients. The firm is also aggressively engaged with institutional clients and issue underwritings.
4.2 MISSION OF BEXIMCO GROUP
“Each of our activities must benefit and add value to the common wealth of our society. We firmly believe that, in the final analysis we are accountable to each of the constituents with whom we interact; namely: our employees, our customers, our business associates, our fellow citizens and our shareholders. Each of our activities must benefit and add value to the common wealth of our society. We firmly believe that, in the final analysis we are accountable to each of the constituents with whom we interact; namely: our employees, our customers, our business associates, our fellow citizens and our shareholders.”
4.3 BUSINESS UNITS OF BEXIMCO GROUP
Beximco Group has got some diversified business units in different challenging sectors of Bangladesh. Beximco Group is consists of 34 different companies under 8 divisions.
4.3.1 TEXTILE DIVISIONS
Beximco Textile Divisions comprises of seven companies. They are:-
1. Padma Textile Mills.
2. Beximco Synthetics Ltd.
3. Beximco Apparels Ltd.
4. Beximco Knitting Ltd.
5. Beximco Textile Ltd.
6. Beximco Denims Ltd.
7. Beximco Fashion Ltd.
Padma Textile Mills is manufacturer of both cotton and blended yarn while Beximco Synthetics Ltd. Is the manufacturer of POY and DTY for polyester filament yarn. Beximco Apparels has a 100% export oriented ready made garments units. Beximco Knitting is into manufacturing, dyeing and finishing of Knit fabrics while Beximco Textile is into weaving, dyeing and finishing. Beximco Denims is into manufacturing, dyeing and finishing of denims fabrics while Beximco Fashion is into ready made garments manufacturing. Beximco Apparels, Beximco Knitting, Beximco Textile, Beximco Denim and Beximco Fashion are continuously exporting their quality products to various countries of the world with major emphasis on USA and EU market. Among these Padma Textile Mills, Beximco Synthetics Ltd, Beximco Knitting Ltd, Beximco Textile Ltd and Beximco Denims Ltd are listed in Dhaka stock exchange.
4.3.2 JUTE DIVISION
Beximco jute division comprises of four companies, namely
1. New Dhaka Industries Ltd.
2. Sonali Ansh Ltd.
3. Esses Exporters Ltd.
4. Shinepukur Jute Spinners Ltd.
Jute division’s activities include manufacturing of high quality jute yarn and twine, and trading in raw jute. New Dhaka industries Ltd. Manufactures jute yarn and twice, while Sonali Ansh Ltd. and Esses Exporters Ltd. are into trading of raw jute and jute goods. The high quality products of jute divisions are exported to USA, UK France, Belgium, Spain and Iran.
Beximco construction division comprises of two companies, namely
1. Beximco Engineering Ltd.
2. Shinepukur Holdings Ltd.
Beximco Engineering Ltd is into construction of roads, bridges and buildings while Shinepukur Holdings Ltd manufacturer jute yarn and twice. It is also engaged in real estate business as a developer of land, multistoried private apartments and commercial shopping complexes. Shinepukur Holdings Ltd is listed in Dhaka stock exchange.
Although the group’s emphasis shifted from trading to manufacturing 25 years ago, the divisions still plays significant role in group’s overall business activities. Its major strength lies in dealing under Special Trade Agreement which Beximco introduced in Bangladesh for the first time in 1972, at a time, when acute hard currency shortage demanded innovate approach to selling country’s marketable in exchange for import of much needed essential commodities, which the country had no resources to finance. Beximco Trading Divisions comprises of three companies namely
1. Bangladesh Export Import Company Ltd.
2. Beximco Holdings Ltd.
3. Beximco Securities Ltd.
Beximco Ltd is into trading and indenting business. Beximco Holdings Ltd is an investment company, while Beximco Securities Ltd is engaged in stock brokerage, underwriter and portfolio management business. Among these three companies, Beximco Ltd is listed in Dhaka stock exchange.
MARINE FOOD DIVISION
Bangladesh is endowed with lot of marine food resources which the group did not miss to identify and utilize. Marine Foods is engaged in cultivation and processing of shrimp and other sweets & salt water fishes, all of which are exported. Marine food Divisions comprises of two companies, namely
1. Beximco Foods Ltd.
2. Beximco Fisheries Ltd.
Beximco Foods Ltd is into fish processing and export business and Beximco Fisheries Ltd. is into shrimp cultivation. Beximco Fisheries ltd. is listed in Dhaka Stock Exchange.
IT Division has five companies that are related to development of software, providing IT education, reseller of IBM pc, and one of the largest internet service providers in Bangladesh. The IT Divisions of Beximco is comprises of five companies namely
1. Beximco Computers Ltd.
2. Beximco System Ltd.
3. Bangladesh On-line Ltd.
4. Beximco Softech Ltd.
5. Beximco Zenith Ltd.
Beximco Computers Ltd is involved in marketing of mid-range and personal computers and develops banking and business software’s which are widely used in Bangladesh. Bangladesh On-line Ltd is into IT business. It is also renowned Internet Service Providers (ISP). Beximco System Ltd is an IT training center, joint ventures with NIIT software development.
Three business unit of Beximco are
1. Beximco Media Ltd.
2. Gammmatech Ltd.
3. Shinepukur Ceramics Ltd.
Beximco Media Ltd. is engaged in publication of The Independent- the leading national English newspaper of the country. Gammatech Ltd. a joint venture project with Bangladesh Atomic Energy Commission. This is the country’s only such facility which provides sterilization of medical products and preservation of foods. Shinepukur Ceramics Ltd. manufactures table wares from poracelain and Bone china. Currently, the company is marketing and selling its high quality products both at home and abroad. It exports its products to USA, UK, Germany, France, Spain, KSA, India and Pakistan.
The introduction of pharmaceutical plant in 1979 marked the beginning of today’s chemical divisions. BPL started its journey back in 1980 with manufacturing and marketing of licensee products of Bayer AG, Germany an Upjohn Inc. of USA. After its initial years of struggle, it broke ground with the launching of its own products in 1983. Today in addition to manufacturing pharmaceutical formulations in dosage forms and basic chemicals at Beximco Pharmaceutical Ltd, the divisions also produces intravenous fluids at Beximco Infusions Ltd. a state-of-art ISO 9001 certified intravenous fluid production facility. The Chemical Division also has I & I Service Ltd, its own in-house organization for direct distribution national wide.
Today Beximco Pharmaceutical Ltd is one of the market leadings in Bangladesh. The bulk of the profit BEXIMCO group comes from the chemical division. Its quality services and high standard of professionalism helped to earn public recognition both home and abroad. Today Beximco Pharmaceutical Ltd is one of the market leadings in Bangladesh. Its success is evidence of what a strict focus on quality can achieve. Beximco Pharmaceuticals product range continues to expand every year and each new product adds to the many lives already improved.
A partnership with former Ciba-Giedy now Aventis of Switzerland, the Beximco Pharma center for Etc & Industrial Research Ltd. was set up to conduct collaborative research programs through which Beximco scientists will be developing high performance pigments, which Aventis will screen for commercial potential and ultimate commercialization.
BOARD AND MANAGEMENT
The management of BEXIMCO PHARMA is simply exceptional in comparison to any other listed companies in this country. It has a blend of professionalism and wisdom, which plays a key role in managing the champion organization. The Board of Directors includes:
|A S F Rahman||Chairman|
|Salman F Rahman||Vice Chairman|
|Dr. Abdul Alim Khan||Director|
|A.B. Siddiqur Rahman||Director|
|Dr. Farida Huq||Director|
|Chowdury Hafizur Rahman||Director|
A dedicated Management committee and an Executive Committee make sure that BEXIMCO PHARMA achieves its target with sheer professionalism. The committees are:
The Management Committee:
The Executive Committee:
SUBDIVISION OF CHEMICAL DIVISION
4.6 MAJOR ACHIEVEMENT OF BEXIMCO PHARMA
1976 : Registration of the company
1980 : Started manufacturing and marketing of licensee products of Bayer AG of Germany and Upjohn Inc. Of USA
1985 : Listing in the Dhaka Stock Exchange (DSE) as a Public Limited Company
1990 : Commissioning of Basic Chemical Unit
1992 : Started export operation with Active Pharmaceutical Ingredients (apis)
1993 : First export market operation with finished formulation
1996 : Introduction of Sustained Release Dosage Form
1997 : Introduction of Suppository Dosage Form Commissioning of Metered Dose Inhaler (MDI) plant Introduction of Metered Dose Nasal Spray
1998 : First pharmaceutical company of the country achieving ‘National Export Trophy (Gold)’for 1994-95
1999 : UNICEF approval of BPL as an enlisted supplier
2000 : Agreement to manufacture Metered Dose Inhaler (MDI) for Glaxo smithkline
2001 : Introduction of Small Volume Parenterals (Injectables) Establishment of Analgesic-Antiinflammatory API plant 2002 : Won the first prize of ICAB National Awards 2000 for ‘Best Published Accounts and Reports’in Non- Financial Sector Category The first Bangladeshi company to supply pharmaceuticals to Raffles Hospital- the most prestigious hospital of Singapore
2003 : Received ‘National Export Trophy (Gold)’for consecutive 2 years (1998-99, 1999-2000) Won the Silver prize of ICAB National Awards 2003 for ‘Best Published Accounts and Reports’in Non-Financial Sector Category. Won a tender to supply Neoceptin R and Neofloxin to Raffles Hospital of Singapore for the whole year’s consumption. Introduced Anti-HIV drugs for the first time in Bangladesh. Diversification into Anti-Cancer therapeutic class.
2004: signed contract with Novartis to manufacture their liquid, cream, ointment and suppository products under “Toll Manufacturing “agreement. Visit of Saudi delegated by Hon’ble Minister, Kingdom of Saudi Arabia
2005: Merger of Beximco Infusions Ltd. With Beximco pharmaceuticals Ltd. Admission to alternatives Investment market (AIM) of London Stock Exchange (LSE)
4.7 THE FASTES GROWING COMPANY
With a record of highest growth rate in the history of Bangladesh Pharmaceutical industry, BPL has maintained its leadership position with consistent growth over the year. The company maintained its growth performance in 1999 even when the industry experienced a decline in market growth during the same period of time. It is continuously adding new products of different therapeutic classes in its portfolio and those products are always appreciated by the health professionals. In the year 2001, BPL added 26 new products to its existing product lines.
4.8 OVERSEAS BUSINESS
BPL has been able to establish a very successful international marketing network in Asia, Middle East and Africa. In 2001, BPL signed and agreement with one of the leading distributors of Singapore with an objective to consolidate i9ts presence in Singapore market. In Pakistan, BPL comes into an agreement with one of the leading local companies to manufacture BPL brands locally and to market the same in Pakistan market. So, far Beximco has market its presence in 22 countries. These countries are.
3. Hong Kong.
14. South Korea
4.9 THE VISION OF NEW MILLENNIUM
BPL has transformed its activities, culture, style and philosophy to meet the demands of the new millennium. Business diversification that is strategically important for sustained growth today is followed here as a result of its vision of the future. BPL has been producing solid products like tablets and capsules and liquid products like syrup, suspension and solution, as well as semisolid products like cream and ointment. BPL is the pioneer company to manufacture and market nasal sprays, inhalation aerosols and suppositories in Bangladesh. BPL stepped forward to manufacture small volume parental or inject able dosage form in 2001.
A multi-million dollar pharmaceutical formulation plant is being built. This world class facility is structured and erected in line with international guidelines for cGMP (Current Good Manufacturing Practices) and with particular regard to the USFDA. This plant will be one of the finest facilities to be available anywhere in the globe.
4.10 NEW CUSTOMER APPROACH
A BPL mission statements states “Each of our activities must benefit and add value to the common wealth of our society”; BPL stands on the heritage of bringing innovative medicine to people. Commitment to customers is one of the hallmarks of BPL. Its sales force of over 540 highly professional sales representative ensures timely promotion and smooth delivery of products to anywhere of the country.
4.11 BLOCKBUSTER PRODUCT OF BPL
Increased market complexity now a days places great demand on the sales and marketing operations of pharmaceutical companies, making it even more difficult and costly to manage. But our marketing and sales team was able to withstand competition successfully in 2004 which enabled us not only to retain market leadership of all the key brands but also to grow in other therapeutic areas. Several new brands like Bextrum/Bextrun Gold, Frenxit, Ultrafen Plus, Neofloxin XR, Vercef, Tycil DS etc. have already shown potential to become future Block buster brands.
4.12DEPARTMENT OF BEXIMCO PHARMACEUTICALS
4.12.1 CPM DEPARTMENT
Central product management department includes the activities of marketing and sales promotion of both BPL (Beximco Pharmaceutical Ltd) and BIL (Beximco Infusion Ltd). The head of the department guides products officers. The activities that are performed by the CPM department are-
· Preparing product literature and promotional material for doctors.
· Determining the packaging pattern, color and size.
· Fixing target sales.
· Searching about competitor strength, weakness, opportunity and threat.
· Issuing budget in consulting with different departments.
· Setting price for each products.
· Collecting statistical data which are relevant to their operations.
The downward communication system of the CPM department is shown in figure below:-
Chart: Layout of CPM Department
4.12.2 SALES DEPARTMENT
CPM department determines the target sales and the responsibility of the sales department is to achieve the sales target by its workforce. An executive sales director is the head of the department. This department consists of senior sales manager, regional sales controller, field supervisor and medical representative. The department divided the whole country into 20 regions and assigned 20 regional sales controllers to control sales activities. Again 6 Medical representatives are working under 5 supervisors in each region. The whole process is going on a chain of command. Field supervisor supervise all the activities of medical representatives and field supervisor are supervised by regional sales controller. The regional sales controllers take necessary indication from the senior sales manager of the sales department.
The downward communication system has been developed which is shown in figure below-
Chart: Layout of Sales Department
Main activities of Sales Department:
· Forecasting future sales in consultation with central product Management department.
· Recruitment of sales force in consultation with Human resources department.
· Budget estimation in consultation with finance department and with the director of marketing and commercial.
· Strategy developing for effective sales force.
· Arranging training for field force.
· Handling critical customers.
· Ensuring product availability.
· Donation handling.
· Performance evaluation of the sales force.
Responsibilities of Regional sales controller:
· Leading the subordinates according to the sales manager’s instruction.
· Evaluating the employee’s performance and reporting to the department.
· Making good relationship with major customers.
Responsibilities of Field Supervisor:
· Supervising medical representative’s activities.
· Maintaining good relationship with customers.
· Monitoring the market conditions.
· Evaluating MRs field performance and reporting to regional sales controller.
Responsibilities of Medical Representative:
· Visiting doctors with product sample and literature to promote products.
· Visiting chemist shop to check out the product availability.
· Listing the products that should be supplied to the chemist shop.
· Generating comments and information from doctors and chemists and informing it to field supervisors.
4.12.3 MRC DEPARTMENT
In the competitive business market, “Market Research” is a vital part of any type of company .especially who has wide rage of product like (medicine, cosmetic, and consumer goods, etc. Market research is necessary for making any types of sense about the market and which save the time, resources and wastage of money. Market research is a systematic and objective identification, collection analysis, dissemination and use of information for the purpose of assisting management in decision making related to identification and solution of the problems. MR helps to knowing the condition of the existing product, helps to set furthers steps, helps to achieve know the condition of the competitor, market share and market growth rate. Through the MR (Market research) company can keep the record of each and every product and also some others factors like which the product is earning more value for the company and which one is not, which one the number one product by unit or which one the highest selling drug in different market (like-antibiotic) and also the performance of medical representatives (MRs). MR helps to identify the products records also keeps the doctors record, which doctor helps to earn more revenue by prescribing medicine of Beximco Pharma.
MRC department was established in 1987 with one Sr. product officer and five market reach representative (MRR) under CPM department. MRC depts. divided the whole country into 440 territories under 20 regions. Headed by manger, market research representative do the task of market survey. The department discloses the trend of increasing or decreasing market share by compiling the received data from the market
Organogram of MRC Department
Figure: Organogram of MRC department
Responsibilities of Marketing Research Department:
· Calculating the market share of the company in respect to prescriptions, slip and OTC by visiting the chemist shop in different territories.
· Recruiting research person in consultation with human resource department.
· Strategy developing for effective market survey.
· Arrange training for field force.
· Performance evaluation of market researcher.
· Secret tours are arranged by the department to cross-check the accuracy of the data collected by Market research representative.
Responsibilities of Marketing Research Representative:
· Visiting chemist shop to collect prescription, slip and OTC drugs.
· Filling up product manuals where the doctor’s name and territory code, the name of the prescribed medicine are written down.
At the conclusion would like to say that marketing research and statistical cell department plays the most important role in company because it indicates the ultimate position of company in industry by identifying the market share. But in order to be marketing researcher wide product knowledge is very much essential because without product knowledge survey can not be conducted. The market research representative visit 440 territories around the year and need two day visit per territory.
4.12.4 PLANNING & INVENTORY CONTROL DEPARTMENT
This department has a direct relation with the purchase, production, and finance department. Finance department develops a cash flow budget at the beginning of the year. The sales department fixes the sales target. According to the demand, planning department starts its operation which is mentioned below in the sequential basis.
· According to the market demand. Planning department fragmented every finished goods in different particulars.
· Then they calculate how much and what raw materials they need to produce the products according to the demand through out the year.
· Split out the whole year’s demand on monthly basis for each product type.
· It determines day to day requirements of raw materials: raw material in hand, in pipe lines, and in finishes goods.
· Estimate the price or cost of the product required on a month.
· Decide which product to purchase from the local market and which to import.
· Submit a tender to different suppliers in the first week of every month.
· Raw materials are received every tow or three months after the reorder. The department sends it to the production department for finished goods. Then the production department starts producing the finished goods according to monthly requirements. It is again divided into 10 days operation for better performance.
· This department also decides about the machinery requirements for a specific production process.
4.12.5 PURCHASE DEPARTMENT
This department interacts directly with the planning, production and finance department. Finance department develops a cash flow budget at the beginning of the year. The sales department fixes the sales target. According to the demand, purchase department starts its operation which are mentioned below in the sequential basis-
· Being ordered from the planning department, the department estimates and calculates the cost of raw materials necessary.
· Split out the whole year’s demand for raw materials on monthly basis.
· It asks for cash to the finance department.
· Decide which product to purchase from the local market and which to import.
· It arranges for bidding to the suppliers which involves close interaction with the planning department.
· Along with the planning department, it has to cooperate through the whole process of purchasing raw materials form available sources.
· This department also involves about the machinery requirements for a specific production process and their purchasing.
4.12.6 MEDICAL SERVICES DEPARTMENT
In 1990this department was formally announced as a separate department and the objective is to provide continuously Medical Education program to the practicing doctors. It is involved in indirect promotion of the company by helping the doctors with academic support. As a result it causes a good image of the company among the doctors. As the medical science if an ongoing process, many know about all those things unless and until they do through all medical journals. In our country there are very few magazines on medical science. There are some good world class medical journals which are very expensive. The medical service department of Beximco Pharma prepares its own medical journal from other journals which are relevant to our medical practices and supply it to the doctors at free of cost. So the doctors can know about the new contribution of the medical world.
The functions of medical service department have been listed below:
· Every three months the department publishes a medical news letter of 24 pages. 22500 copies are published among which 18000 copies are most important here is Beximco is the only company in Bangladesh who has the initiative to publish such an article for the doctors.
· 4 to 5 booklets are published in a year about disease related its available medicines in Bangladesh.
· MSD arranges different seminars, meetings, symposiums on different topics of medical science. They focus on a particular topic which has a significant affect in our medical practice recently. Doctors are requested to deliver a speech on that particular topic. After their speeches a medical officer of Beximco Pharma Ltd. gives a speech with the multimedia projection. They focus on their products and their functions over the diseases.
· It keeps doctor’s request by making multimedia projections for them that would be used by them nationally and internationally in seminars and symposiums. Most important tasks of MSD here were adding video clippings inside the presentations. Over 15000 requests were attended by MSD last year.
· BMA (Bangladesh Medical Association) arranged clinical meetings are attended by MSD.
· It responds to the queries of the doctors through mail or medical representatives around the country.
4.12.7 MIS DEPARTMENT
Management information system department functions as a communication highway for all other departments. The functions of the department are-
· It is possible to fax and enter into the internet mail by relating file of working department with the network.
· Communication with the production department that is situated in Tongi is possible through radio link.
· The operation department can communicate and exchange information with the BEL tower and corporate headquarters through fiber optic cable.
· I & I service department can communicate with the head office through modem.
· Employees are provided computers service according to their range of activities. NT server also has a backup server to stay in the safe side. Communication between departments is also done through e-mail. Any user can use these facilities from any workstation. The users need the log in number from MIS department to use computers.
It is a staff department. It comprises of four specialists comprising of a pharmacist, a financial specialist, a marketing specialists and an engineer.
Major Jobs performed by this Department:
· Business development agent: It acts as the business development agent of BPL. It is the duty of this department unveils the alternatives regarding business functions available in the world.
· International Affairs: It tries to interact with WTO, USFDA (United States Food and Drug administration authority), MCA (Medical Council) and other regulatory authority of the world.
· Source Department: It searches of raw materials, accessories, and machineries around the world and selects the best source available.
· International Market: It seeks for international export markets for BPL products.
· Projects Development:
1. It takes new projects in hand.
2. It does the financial projections for the new projects.
3. It searches cheaper sources of machineries and accessories around the globe.
4.12.9 MULTIMEDIA DEPARTMENT
BPL is the only pharmaceutical company that has a multimedia department. This is helping the product promotion. It designs medical videos for the doctor. The color, size, littering etc of the text are carefully selected to attract the target audience easily.
Major function of multimedia department
· Web page designing
· Developing multimedia presentation on program
· Making video conference
· Designing cover page of the annual report
· Making video for product
· Making video for company
· Keeping the record of annual meeting and others meeting
· Storing still photograph and video on medical science
4.12.10 TRAINING DEPARTMENT
Beximco Pharmaceuticals Ltd. has an in-house training program for their employee which is controlled by training department. This department consists of three experts who give the training to their employees. Training has been provided through lectures with the assistance of handout, multimedia projector, technical memorandum, and training materials. This department provides three types of training-
1. Refreshers training program.
2. Training program for MR.
3. Training program for supervisors.
Refreshers Training Program:
This training program f