Marketing Programme Through Institute and Corporate Awareness

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Pharmaceutical companies around the globe are continuously search
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.

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 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.

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.

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

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.

The report On “…………………” 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.


This report consists of two parts:



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.

In Project Part, Research design and methodology is
described. Response of the forborne has and the management practices of
the organization are analyzed in this part. Major finding of this research are
also given in this part.





regarding GSK’s headquarters, registered
office and manufacturing site
and other important facilities are as follows:



Corporate Office

House No 2A, Road No 138, Gulshan-l, Dhaka-l212,

Registered Office


Fouzderhat Industrial Area

Dhaka Trunk Road , PO North,


Sites and Facilities


Fouzderhat Industrial Area

Dhaka Trunk Road , PO North Chittagong-4217,

Corporate head office

980 Great West Road Brantford

Middlesex TW8 9GS


Zone Office

District Marketing


Dhaka, Mymensingh


Chittagong , Maijdee


Comilla, Sylhet


Bogra ,Rajshahi,Rangpur


Barisal, Jessore



Court  pharmacy, the forerunner of
Alien & Hanburys Ltd, is established in London by Silvanus Bevan.



John K Smith opens his first drugstore in
Philadelphia. John’s younger brother, George, joins him in 1841 to form John
K Smith & Co.


Thomas Beecham launches the Beecham’s Pills business
in England. The laxative is to become widely successful.



Beecham opens the world’s first factory to be built
solely for making medicines at St Helens in England.



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.


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



Tabloid is registered as a
Burroughs Welcome & Compam trademark to describe its compressed tablets.


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.




The Welcome Tropical Research
Laboratories open.


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.


Glaxo is registered by Joseph
Nathan and Co as a trademark for dried milk. A Burroughs Welcome subsidiary
is created in New York.


The Giaxo department of Joseph
Nathan and Co opens in London and the first “baby book” is


Te “Blue Line” is added to the Smith,
Kline & French name, a range including poison ivy lotion, iron tablets
and lozenges.


Production of Beecham’s Pills reaches one million a


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.


The vitamin D preparation Ostelin becomes Giaxo’s
first pharmaceutical product. The Welcome Foundation Ltd is formed. The
Deecnam  estate is purchased by phllip
Hill, who realised that the Beecham’s Pills business could, through
diversification become the basis
of a major company.


Beecham’s Powders are introduced.



Sydney Smith of Welcome isolates the gly cos ides of
Digitalis lanata, a variety of foxglove. Lanoxin is used in the treatment of
heart failure.


Glaxo Laboratories is formed and new facilities are
created at Greenford, near London.


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.


Beecham acquires Macleans Ltd and Eno’s
Proprietaries Ltd. Macleans toothpaste and Lucozade energy-replacement drink
are added to Beecham’s product line.


Beecham acquires County Perfumery Co Ltd,
manufacturers of Brylcreem, a men’s hair application.


Beecham Research
Laboratories is formed with the mission to focus exclusively on basic
pharmaceutical research.


Beecham Group Ltd is established, replacing Beecham
Pills Ltd and Beecham Estates Ltd – later known as Beecham Group pic – and
incorporates Beecham Research Laboratories.


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.


Vitamin B12 is
isolated by Glaxo scientists for the treatment 1 of pernicious anaemia.
Streptomycin for TB treatment is I produced by Glaxo scientists, Polymixin
anti-bacteriais are developed by Welcome. Smith Kline &. French Laboratories equine a new site at 1330 Sping
Garden Steel, Phnadelphia. 


Beecham Group Ltd
acquires C L Bencard Ltd, a company specializing in allergy vaccines. It is a
first step towards ethical products for the Beecham company.




Welcome launches its antileukaemic drug Purinethol




Welcome launches range of Actifed antihistamine
products for head colds and allergies.


The Welcome Foundation acquires Cooper, McDougall
& Robertson Ltd, an animal health company founded in 1843.



Betnovate becomes the first of Glaxo’s range of
steroid skin disease treatments, hi the mid-1960s, Smith Kline & French
acquires RIT (Recherche et Industrie Therapeutiques), a vaccines business.


Septrin (co-trimoxazole) anti-bacterial from Welcome
is introduced.


Glaxo launches Ventolin for asthma, developed at
Ware and marketed under the Alien & 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.


Burroughs Welcome Inc moves its production facility
from New York to Greenville, North Carolina.


Welcome launches its rubella vaccine. Burroughs
Welcome Inc opens its research site at Research Triangle Park, North


Scientists at Beecham Research Laboratories discover
amoxycillin and launch Amoxil, to become a widely used antibiotic. Beecham
Group pic 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.


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.


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 (cefiiroxime) is introduced by


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.


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 biologically active


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  renal dialysis.


Beecham acquires the US firm Norcliff Thayer, adding
Turns antacid tablets and Oxy to its portfolio.


The AIDS treatment Retrovir (zidovudine) is launched
by Welcome. Glaxo introduces the oral antibiotic Zinnat (cefuroxime axetil).


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


SmithKline Beckman and The Beecham Group pic merge
to form SmithKline Beecham pic. Engerix-B, a genetically engineered hepatitis
B vaccine, is launched in the US and France.


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 Zorran 1 (ondansetron) anti-emetic
for cancer patients.


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.


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.


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


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.


Glaxo and Welcome merge to form Glaxo Welcome. Glaxo
Welcome acquires California-based AfTymax, 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.


Community Partnership is established by SmithKline
Beecham to focus philanthropy on community-based healthcare. SmithKline
Beecham Healthcare Services is ormed by combining the clinical laboratories,
disease management and Diversified Pharmaceutical Services businesses.


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


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.


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.



The plan is announced to form GlaxoSmithKline
through the merger of Glaxo Welcome and SmithKline Beecham.

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

2.3.2 Smith Kline

The merger in 1989 of Smith
Kline Beecham 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

On the 17th January 2000 Glaxo Welcome and Smith Kline
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.

GlaxoSmithKline (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 pharmaceutical, “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.

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.

2.4.1 Mission

The mission statement of GSK is as follows:

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

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

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

  • 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

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.

  • 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.

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

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

  • 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

  • Executive
    and leadership development programs have 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.

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

even GSK operates principally in two types of industry

1. Pharmaceuticals-
Prescription pharmaceuticals and Vaccines.

2. Consumer Healthcare-Over the counter medicines, oral care
and nutritional healthcare.

GlaxoSmithKline in Time

  • Every second, more than 30 doses of vaccines are distributed by
  • Every minute, more than 1,100 prescriptions are written for
    GlaxoSmithKline products.
  • Every
    spends more than $ 450,000 to find new products.
  • Every
    more than
    200 million people around the world use i GlaxoSmithKline brand toothbrush
    or toothpaste.
  • Every
    donates more than $ 184 million in cash and products to communities around
    the world.


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 relationship 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 below:

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

  • Liaison
    with government with legal issues.
  • Communicate
    with doctors
  • Handling
  • 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.

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 ware’s


It is mentionable here that training
in GSK is basically marketing oriented. So the Training Manager comes directly
under GM Marketing. He is reasonable for the training of the sales force. And
training in other fields is managed by the HR Managers.


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:



1.Market size

All over the country

2. Scope of
competitive rivalry

National, in some
rare regional.

3. Market Growth

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 target customer. However, the end customers Are

6. Type of
Distribution Channel Used

Wholesaler and
retailer, in some rare cases (like vaccine) it is through special outlets

7. Products

8. Scale Economies

Moderate to high,
largely depends on projected annual demand.

9.Persentage of

Yes, especially in
drug research and formulation.

10. Industry

Above par,
Ultimately it is affected by the state of national economy.

11. Capacity

Below 70%

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


Market Share
















Drug International















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.

GSK’s Market shares and positions

Table 5: GSK’s Market shares and positions

Year Market
Position in the

Share Industry

2004 4.01% 8

Source: Marketing Department of GSK

Figure 2: GSK’s Market shares



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.

  • Overall
    higher unit cost relatively to leading rivals.
  • Poor
    marketing promotional activities.
  • Underutilized
    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.

  • 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
  • Alliances-contract
    manufacturing that expands the firm’s market coverage and competitive

  • Increasing
    threats from the local companies.
  • Adverse
    shift in foreign exchange rates and trade policies of
  • Governments.
  • Growing
    bargaining power of the customers.
  • Slowdowns
    in market growth.


Medicine is such a thing, which is compulsory to take for an
ill person but if anyhow he\she gets wrong treatment it can even cost the life.
So it is always necessary that people should always take drugs according to
doctor’s prescription,

According to the doctor’s point of view, square is number one
company in all aspects. It has a wide range of products and almost all of them
are very much dependable. Most of the doctor’s say that still there is no
company that can compare its products reliability with square other than
Beximco. It ca be said that both Square and Beximco are running in same pace
but Square is a bit above. Compared to them Novartis, Aventis and GSK are not
holding that much good position regarding new drugs. In spite of having the
name International, they are not being able compete with local companies. Acme
is really in a bad position compared to all of these companies. It is really
difficult to find Acme products in doctor’s prescription. Even the doctors’
perceptions about Acme’s products are not that well. They are not at all
satisfied with the performance of the drugs of that company.

Being a poor country, Bangladesh has to depend on important
in various sectors of consumption. But, the scenario is exceptional for
pharmaceutical sector. Strong local firms are now competitive and capable
enough to fulfill the local demands. This is a positive sign for the country
but negative for GSK. Local pharmaceutical products have ample quality and some
of these firms are likely to become global concerns in coming time. Analyses of
the findings of this study indicate that GSK is facing substantial amount of
problems compare with other pharmaceutical companies.

However, this report is just an exploratory study but I
believe that findings from this study will effectively provide a platform for
any further work in this area. In addition, the recommendations and measures
stated in this study have strong possibilities to contribute to the future success.
Nevertheless improving the present condition depends upon the forecasting
capabilities, enthusiasm and ability to face the increasing competition on part
of the concerning authorities. Finally, I want to say that strong marketing and
motivating programs of GSK can regain the market again. 

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:

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. 


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 b>
their new company’s pioneers as they build what they plan will be the leader in


This text highlights some of these past achievements. They
are notable events that will lead to further successes in the future: