You are on page 1of 25

Assigned by,

Lecturer Department of Finance University of Dhaka

Submitted by,
Group-1 BBA 14th Batch Section-A Department of Finance University of Dhaka

Sl No. 01 02 03 04 05 06

Name Moriom Akter Tamanna Afrin Mitul Rowson Akter Tahmina Haque Esrat Jahan Kazi Musharrat Jahan

Roll 045 071 083 097 061 049

Date of Submission: 10 January, 2012

Date: 10,January,2012.
1 |Page

Tahmina Akhter Lecturer Department of Finance, University of Dhaka.

Subject: Submission of report

Dear madam, With humble respect we would like to convey your knowledge that we have prepared a report under the topic of Functional Level Strategy of Novus Pharmaceuticals Limited under your kind supervision. We have tried our best to prepare the report in consistence with the optimal standard under your valuable direction. We would be very grateful if you kindly accept this report. We tried heart and soul to make this report as a complete one. It would be pleasure for us if this report can serve its purpose.

Sincerely yours, Group-1 BBA 14th Batch Section: A Department Of Finance University of Dhaka.

2 |Page

Acknowledgement
At the inception of preparing this report we would like to express gratitude to the Almighty Allah for special blessing in completing it. Preparing a report is really a great task. A lot of efforts and study has gone in to make this report a reality. This would not have been possible only by us without the genuine support and assistance from others. This report is an accumulation of many peoples endeavor. We are indebted to all the people, with whom we approached during the various stages of writing this report, for their kind advices, suggestions, directions, cooperation and proper guidelines. We would like to acknowledge Tahmina Akhter, Lecturer of Department of Finance,
for giving us the opportunity to make such report.

Origin of the Report


This report is the outcome of the 15 days long effort and group work. The preparation and submission of this report is a class requirement of Tahmina Akhter for Bachelor of Business Administration course curriculum at the Faculty of Business Studies, University of Dhaka.

Objective
The report is prepared primarily for the fulfillment of the class requirement of dept. of Finance, University of Dhaka. The secondary objective of this report To learn about the way of constructing a portfolio. To learn about stock market and its performance over time. To understand performance of different industries over time. To understand performance of a specific company over time. To be introduced with mathematical operation done with software.

Methodology
Research Methodology: To collect information, the following techniques of research were used.
Collecting Data: We have collected the data about the Novus

Pharmaceuticals Company Ltd., its mission & vision, operation, strategy, & efficiency.
3 |Page

Analyzing Data & Presentation of the Fact: 1. The functional level strategies are focused. 2. The efficiency & effectiveness of these analyzed.

strategies

are

Limitation
The main problem faced in preparing this report was the problem of collecting the information about the functional level strategies of the company. They are reluctant to provide information. We had to finish this report within two weeks and this time is not sufficient to work on such huge topic. With all of its limitations, we tried our best to make it as best as possible. Point to be noted that we are students, not professionals. So, users of this report are requested to consider these limitations while reading and justifying any part of our report.

Table of Contents
Topic No. 1 2 3 4 5 6 7 Contents Executive summary Company profile Functional Level Strategy Ways of achieving efficiency Ways of achieving quality Ways of achieving Innovation & Customer Responsiveness Conclusion Page No. 5 7-10 13 14-16 18 20-22 23

4 |Page

Executive Summary
Through the distinctive competencies, resources, capacities a company form its functional strategies which cause either differentiation or low cost or both which result in value creation and superior profitably. Functional level strategies are objective to the superior efficiency, quality, innovation and customer responsiveness which ensure the profitability and profit growth of the company. As a pharmaceuticals company Novas Pharmaceuticals Company focuses on superior efficiency, quality and innovation especially. It gains is superior efficiency through economic of scale, learning effect, effective marketing promotion, superior material management, exclusive training for the personnel and information system. To serve the better interest of the people and country and to achieve the vision of the company it always wants to continue with quality. They measure the efficiency of the employee monthly and yearly basis and give them reward accordingly. As a pharmaceuticals company they ensure quality not quantity. Novus Pharmaceuticals Company focused mostly on the innovation. They have no different R&D department. But they continue it through all of their department. Their innovation development process is like a funnel. They create incentive for their personnel to generate idea. The top management then refines the ideas. Finally the ideas are execute with the consideration of necessity of mass people and marketing. According to their business area Novus Pharmaceuticals focus less to customer responsiveness. As a new company it can be concluded that the company is successful in implementing its functional level strategies so far. The effectiveness of these strategies in future will depend on various macro and micro factors.

5 |Page

Company Profile

6 |Page

Novus Pharmaceuticals Limited


Novus Pharmaceuticals Limited (NPL) is a Strategic Business Unit (SBU) of Abdul Monem Limited which is one of the largest business conglomerates of Bangladesh. Novus Pharmaceuticals Limited (NPL) is entering in the health care sector with a commitment for fulfilling the rising need of developing professionalism for serving humanity worldwide.NPL is run by technically qualified, multi disciplinary competent professionals that enable them to start a new era for the betterment of the healthcare system of the country.

Vision & Mission


NPL is with the mission of inducing more professionalism in the Health Care Sector of Bangladesh and abroad, providing the best health care support to the customers conforming GMP of WHO for exceeding their expectations. NPL is committed to render excellence in the pharmaceutical sector through providing updated knowledge technical skills dedicated manpower innovative process & empowered employees and to render the utmost level of satisfaction to its customer. NPLs mission is to provide internationally acceptable quality products from an excellent business house. In achieving the goal, NPL will ensure in: increasing the skill of the employees through training encouraging empowerment of the employees adopting up-dated technology with skilled technical personnel providing products of high and consistent quality providing improved service & distribution establishing & maintaining cordial and harmonious relation with the professional bodies working in the health care sector. entering into the international market through product and services.

7 |Page

NPL with its all out effort wants to achieve a leading position in the pharmaceutical sector of Bangladesh and enter into international pharmaceuticals business within a very short time.

Pharmaceuticals Market & Novus Pharmaceuticals Limited


Novus Pharmaceuticals believes in Excellence through innovation & quality at every step of its operation, starting from the management of its human resource, procurement of raw materials, and marketing and sales of its drugs. With that objective in view, NPL will produce quality medicine at right time through a cost effective operation & maintaining GMP requirements. The pharmaceuticals market in Bangladesh is about BDT 60,000 million with a capital outlay of BDT 200,000 million made by our entrepreneurs in the said sector. There are top twenty (20) companies who are contributing 80 percent to total sales done in Bangladesh. Among the top twenty companies, Square Pharmaceuticals Limited is the biggest market leader followed by Incepta and Beximco in the realm of marketing its drugs. To be noted here further that there are 246 licensed allopathic drug manufacturing companies operating 12,000 brands in different dosage forms. There is a bright prospect for tremendous growth for marketing of drugs through the length and breadth of the country due to under noted factors: (i) tremendous growth rate in the population of the country (ii) emergence of new ailments (iii) introduction or changes in treatment algorithm (iv) rising health awareness (v) investment in the industry and (vi) introduction of new molecules with the object of making intense promotion of the products by the pharmaceuticals companies. To be noted that here that the top most companies promote products of all ranges and of all dosage forms engaging a huge manpower in the sales team of the concerned companies. They are doing business both in cash on delivery (COD) and credit forms. They promote products by concentrating and also by generalized promotion. To be noted here further that the prescription market of the urban area are promoted by the highly professional doctors as well as by the key leaders who are contributing 30% to the total market share of Bangladesh and the rural market is contributing the remaining 70%. General Practitioners are the main group of prescribers followed by cardiologist, medicine specialist, chest specialist, orthopedicians, diabetic and endocrinologists.

8 |Page

There are seasonal and regional sales variations in the drug sector. The markets of Dhaka, Mymensingh, Comilla, Chittagong, Noakhali, Sylhet, Coxsbazar are the more vibrant than the other part of the country particularly the whole of North Bengal. Now the markets of the North Bengal are a bit vibrant than the markets of 1990 due to the prevalence of the under-noted factor. (i) impact of globalization (ii) developed agro-economy (iii) developed communication (iv) increased NGO activities The drug market of the South-western part of the country is comparatively dry market compared to the markets of Northern Bengal for the following factors: (i) very poor economic condition of the people (ii) poor communication facility It is noticeable that March to September is the pick period for the business for drug in our country.

Strengths of NPL:
NPL has its strength in It is member of a large business conglomerate: Abdul Monem Group of Companies Corporate image can be utilized Brand image of Coca-Cola, Fanta, Sprite and Igloo Ice Cream Strong financial base of Abdul Monem Group of Companies Multidisciplinary and multi professional team effort Factory and marketing head quarter are within the radius of 20 km New business venture for the group and little learning curve Employee product portfolio Small field force the best quality products uncompromised quality assurance customers compliance fairness and transparency in handling functions of any sort trained and skilled manpower and innovation and better technology

Opportunity of NPL:
Market growth and expansion Line extension of business Both way contract manufacturing opportunity Opportunity of export market operation Opportunity of import of pharmaceuticals or medical services products Existing distribution channel of Coca-Cola and Igloo Intra-company knowledge sharing

9 |Page

Strategic Business Policy


Considering the competitiveness of pharmaceutical industry of Bangladesh in the realm of marketing of its drugs through the length and breadth of the country and particularly, the aggressiveness of existing 10-15 companies therein, NPL has its inner strength for being a concern of Abdul Monem Group and is viable to launch. NPL will increase the field force for better coverage that will ensure business volume in the coming years. At the same time NPL will retain its team members considering the market competitiveness. For increasing the sales volume NPL will be manufacturing inject able dosage forms through toll manufacturing without capital investment. NPL can also manufacture liquids of the other companies products for healing earnings. Abdul Monem Groups decision on going for this products for this product is very right. It will positively help nation to resolve unemployment problem and uplifting economic situation. NPL complying with international regulatory requirements, is committed to innovation and manufacturing of life saving drugs of the highest quality. Through extensive exploring of the export market for its drugs, NPL will be able to explore at substantial quantity and thereby earn foreign. The above venture will reduce the cumulative loss of NPL to a larger extent as well as in utilizing the utilized capacity of the plant. Hopefully NPL will achieve breakeven by 4 th year of its operation and the sixth year will earn some profit. With a view to increase the sales volume, NPL will manufacture injectable through toll manufacturing without involving any capital investment. NPL will achieve breakeven by 4th year. NPL can also import world famous medical services products or pharmaceuticals for better business viability. NPL will ensure API production in future as well. NPL is also committed for easy access of its life saving drugs to the ordinary people of the country at its affordable prices. NPL will introduce itself as a quality medicine manufacturer within two (02) years of time and will occupy its place among the top 30 within a span of ten (10) years of time.

10 | P a g e

11 | P a g e

Functional Level Strategy of Novus Pharmacticals

Resources

Building block of Novus pharmaciticals:Differentiati on Functional strategies: Superior: 1. Efficiency 2. Quality 3. Innovation 4. Customer responsiveness Low cost 12 | P a g e

Distinctive competenci es

Value creation

Superior profitability

Capabilities

Novus gives more importance on efficiency,innovation & quality.

Achieving Superior Efficiency by Novus Pharmaceutical


13 | P a g e

Ways of achieving Superior Efficiency by Novus Pharmaceutical:-

14 | P a g e

Efficiency and Learning, Experience Economics of scale:

Efficiency, Flexible production Systems and Mass Customization: - Novus pharmaceutical has no way to use flexible manufacturing system because they have to produce different medicine in different way. Marketing and Efficiency:Marketing strategy: It refers to the position that a company takes with regard to pricing, promotion, advertising, product design and distribution.
Product

Novus introduced and marketed with a decided knowledge based sales tem those are innovative import substitute products from all most all the therapeutic categories and disease condition. High profit making and life saving products with good market potentials are introduced first later on more products with technological advancement are introduced in order to cater to niche and import subscription.
Price-

The prices of products are made based on competitive situation; profit margin and the affordability of patients .drugs are not for business. It has also some moral ethical implication of savings lives fatalities of diseases

15 | P a g e

Place

To distribute network they cover the whole of Bangladesh so that every single demand through prescription could be served with utmost customer satisfaction.
Promotion

As a Parma industry in Bangladesh we shall abide by all regulatory requirements and promoting our products through personal selling process to our valued occurs with update scientific information. Advertisement to medical journals and opportunistic sales promotion as well as publicity campaigns will also be there in our promotional approaches. Their marketing strategy helps to increase their efficiency as their strategy helps to produce right product at right time and promotes them at right place. Their customer defection rate is also lower. As it belongs to pharmaceutical industry they have to maintain tight quality control for regulatory requirements and promotion purpose. Materials Management, Just-in-Time and Efficiency:-For materials management, they has ERD (External Resource Department). It deals with managing material according to the requirement of every department. Here for local materials that near to production department follows Just-in-Time inventory system and for imported materials follows warehousing inventory system. R&D Strategy and Efficiency: Novus has no R&D department. But for innovation they emphasis on every department. For ex. It tells to marketing department to innovate new way of marketing and discover new needs of customer and tells to manufacturing department to innovate new way of production and product. Human Resources Strategy and Efficiency:- It gives more importance in human resources for efficiency. Hiring Strategy: They select employee by proper selection procedure and hire those who are appropriate for those jobs. Employee Training: They provide training on communication & interpersonal relationship and skill development.
Training objectives:

By the end of the workshops participants will be able Develop inter-departmental and intra-department relationship. Define their role as a team member

16 | P a g e

Update themselves with modern concept of achieving target & delegation task Take risk and make positive changes towards organizations productivity Get comprehensive idea about business communication & networking Increase professional competitiveness in work place

Training Contents:

Inter-departmental and intra-departmental relationship Working others in terms Job delegation & empowerment Basic communication skills Coaching & counseling Gap minimizations among colleagues Professional competitiveness Recognition, rewards and celebrations

Information Systems And Efficiency:- They use computerized information system. Every member of the organization has e-mail ID. When any information they need, are provided to his mail ID. Any instruction and direction are provided by to e-mail ID.

Summary: Achieving Efficiency: Novus Company gets superior efficiency by economics of scale, learning effect, marketing strategy, Information system and human resource policy.

17 | P a g e

Achieving Superior Quality by Novus Pharmaceutical

18 | P a g e

Achieving superior quality: NPL has a process to control the quality of the production. The process is being given below:

19 | P a g e

To increase the quality as excellence in the product of the NPL, it follows several steps to achieve that purpose. The steps are-

20 | P a g e

Achieving Superior Innovation & Customer Responsiveness by Novus Pharmaceutical

Achieving superior innovation: NPL has no separate R&D department but the innovation is done in each department according to their function and strategy. But the process for selecting the innovation is similar for each department. The innovation development funnel is given below: Phase 1: Idea generatio n Phase 3: Project execution

Phase 2: Project Refinement

Market

Gate 1 21 | P a g e

Gate 2

Achieving superior customer responsiveness:


To achieve this NPL has issued a employee code of conduct for the employees to shape their attitude towards the customers. The code of conduct are given belowEmployees code of conduct 1. Every employee shall conform to and abide by these rules and comply with and obey orders and direction of his/her superiors under whose supervision or control he/she may be placed. Compliance with the rules and regulations as entered from time to time is a condition of employment. 2. All employees will always maintain honesty and truthfulness in all company affairs. If at any time subsequent to the appointment of any employees ,is found that any statement, information of documents given by employee in the resume are untrue or false, the employee shall be liable to instant termination /dismissal. 3. No employee shall, directly or indirectly, himself in any business, trade or trade secret or profession other than employment, which may interfere with the performance of his/ her duty as an employees of the company, but he/she shall faithfully and diligently perform the duties entrusted to him.
4. An employee may be required to work in any department/section/unit as per decision of the

management without adversely affecting service conditions.


5. All employees are the expected to be at their places of work at the specific office time.

Attending late and or leaving duty place before specified time without proper permission shall be liable to the deduction of salaries or any other disciplinary measure to have been deemed proper by the management.
6. An employee shall neither absent himself/herself from his/her duties, nor leave the station

without permission from his/ her department /section/ unit and HR & Admin department. The employees shall inform the company as soon as possible but not later than two days of his absence, through any available means in case of sudden sickness or accident or any unavoidable reason. He/she must keep the company informed of his/ her latest address and telephone number if any. 7. Employees are to conduct themselves in a sober and orderly fashion, to devote their whole time and attention to the discharge of their official duties, to keep secret all confidential information imparted to them and to surrender on termination/discharge etc. of employment

22 | P a g e

or otherwise when required, all documents, notebooks, manuscripts, identity card and the like in their possession relating to the companys business. 8. Gambling or money or any other purpose, borrowing or lending of money, speculation in stock, shares etc. and unauthorized trading are prohibited.
9. No official shall directly or indirectly engage in any trade or business or selling or any

political activity in a manner likely to prejudice the interest of the company.


10. No employee shall without prior permission of the company contribute to any press ,radio,

television, organization, nor shall make public or publish any document paper or information of the company which may come into his/ her custody or possession. 11. No employee shall sing any business contract or outgoing letter or document nor shall make any financial commitment on behalf of the company unless he/ she is specifically authorized to do so through power of attorney or any other legal means in writing. 12. No employee shall paste any bill, notice, write, paint or print any thing on the walls, notice board or use companys premises to this end. 13. No consideration or requisite may be offered, solicited or accepted by any employee in the course of his/her duties.
14. No employee can use the name of the company or involve the company in his/her dealing not

connected with discharge of his/her duty as an employee staff of the company. 15. No collection of money of any kind may be made at the premises without prior written permission of the management. 16. The use of companys stationary for private purpose is strictly prohibited. 17. Every employee will be responsible for safekeeping and return in good condition of all the companies property, which may be in his/her custody, case or charge. The company shall have the right to deduct the money value of all such things from the employees dues and take such action against the officers, as the company deems proper in the event of employees failure to account satisfactory for such loss or causing damage to officials property. 18. No employee shall without specific and previous written permission of the authorities, remove any property (including papers) etc. from the companys premises. 19. It is the duty of every employee to read notices pasted on companys official notice boards and officers deemed to have knowledge of the contents of all such notices affecting.

23 | P a g e

20. No employee shall, during his/ her service or after its termination, disclose to any person any information relating to the company or its clients or any trade secrets, which have come to his knowledge while in the services of the company expect when compelled to do so by a court of law. 21. The company should be informed in writing within 48 hours of any change in the residential address of an officer. 22. Smoking is not permitted in the office premises expect in the specific place. Chewing of betel leaf in working premises spitting in any place other than in wash basins, throwing of waste materials other than in waste bin or in specified areas is prohibited. 23. No employee shall take any photograph from the companys premises unless expressly and in advance is authorized or requested to do so by the management. 24. No employee may introduce visitors except on business and in accordance with the instruction issued by the management, relations& Personal friends of officers will not normally be afforded access to companys premises. 25. All regular employees are required to devote their time and efforts solely to the companys activities during office hours. 26. An employee should not engage in any political activity leading public controversy on any subject matter affecting image, goodwill and business interest of Novus pharmaceutical limited. 27. Business matters between Novus pharmaceutical limited and its clients are strictly confidential and should not be discussed or disclosed elsewhere. 28. Acceptance of gifts from any business contact of Novus pharmaceuticals limited is not permitted. 29. Shouting to any superior office or subordinates in front of officer superior officers or subordinates in the office or in the office premises or in public is forbidden. 30. Using obscene or slang language to anyone in the officer or in the office premises is strictly prohibited.

24 | P a g e

Conclusion;As a pharmacitical company Novus gives more importance on quality control and innovation. Because it faces so much competition from its industry. From the analysis of report we found that to gain more profit they give more importance on efficiency. Because it is the only way of cost reduction by economics of scale, learning effect and experience curve,

25 | P a g e

You might also like