Marketing Programme Through Institute and Corporate Awareness

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
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.

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.

ORGANIZATION OF THE
REPORT:

This report consists of two parts:

·
Organization
Part

·
Project
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.

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.

CHAPTER 2

OVERVIEW OF

THE ORGANIZATION

2.1
COMPANY PROFILE:

Timeline
1715	Plough Court  pharmacy, the forerunner of Alien & 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	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	1884 Tabloid is registered as a Burroughs Welcome & Compam 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 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 Giaxo department of Joseph Nathan and Co opens in London and the first “baby book” is published. 1910 Te “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 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. 1926 Beecham’s Powders are introduced. 1929 1930 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. 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. 1936 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 pic – 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 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.  1949 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. 1950s 1952 1953 Welcome launches its antileukaemic drug Purinethol (mefcaptopurine). 1958 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 1963 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. 1968 Septrin (co-trimoxazole) anti-bacterial from Welcome is introduced. 1969 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. 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 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. 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 (cefiiroxime) 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 biologically 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  renal dialysis. 1986 Beecham acquires the US firm Norcliff Thayer, adding Turns 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 pic merge to form SmithKline Beecham pic. 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 Zorran 1 (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 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. 1996 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. 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. 2.3.1 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 Beecham 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 industry. 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: 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. 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 intranet. 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. 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 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 Segments even 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 i 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 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 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. 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 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 rivalry National, in some rare 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 Customer 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 Characteristics 8. Scale Economies Usage Moderate to high, largely depends on projected annual demand. 9.Persentage of learning Yes, especially in drug research and formulation. 10. Industry Profitability Above par, Ultimately it is affected by the state of national economy. 11. Capacity Below 70% utilization. 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% 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 GSK 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. 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 need. Alliances-contract manufacturing that expands the firm’s market coverage and competitive capability. 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. CHAPTER 6 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. 

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 b>
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: