Академический Документы
Профессиональный Документы
Культура Документы
Report submitted to CMS Business School (Jain University) in partial fulfilment of the requirements
for the Degree of Masters in Business Administration
Submitted by
ABHISHEK MISHRA
14MBA63002
No. 319, 17th Cross, 25th Main, JP Nagar 6th Phase, Bangalore - 560078
Bangalore, INDIA
E-mail: mba@cms.ac.in, Website: www.bschool.cms.ac.in
DECLARATION
I, Abhishek Mishra with Reg. No: 14MBA63002, declare that this report on the Use of
Osterwalder's Framework in Online Health Care Companies is undertaken by me and is submitted to
CMS Business School, in partial fulfilment of the Master of Business Administration programme
offered by the Jain University Bangalore is a record of original and independent work done during the
academic year 2015.
Abhishek Mishra
ACKNOWLEDGEMENT
I especially like to thank Prof. Krishna Koppa faculty of Marketing Jain University who helped me
lot for the successful accomplishment of this report. I thank him for being my mentor for this study
and guiding me at various stages to achieve my objective.
Finally, I also like to thank him for providing me everything that I needed for this study.
I am glad and lucky enough to have mentor like him. Thank you sir.
Thank you.
Abhishek Mishra
CHAPTER ONE
INTRODUCTION
A healthy manufacturing sector is very essential for the development of any economy. But talking
about pharmaceutical manufacturing then it is not something which everyone and every economy can
perform. Nepal as being naturally rich country it have some advantage and competitiveness in this
industry if the capacities are utilized. due to which there are many foreign Ayurvedic companies
which made their way to Nepal to have such herbs. A well developed pharmaceutical system
promotes investment by the identified investors in the country leading to various business
opportunities, mobilizing funds and effective utilization of resources.
Nepal Pharmaceuticals industry we have 44 companies all playing vital role in the economic
development of the country. In Nepal, pharmaceuticals are considered as one of the few very
successful business which is contributing and have bright future. In Nepal presently we have
companies manufacturing medicines for both humans as well as animals. In Nepal Pharmaceutical
industry there are few companies who have just started formulating the medicine compositions, there
are companies manufacturing best qualities of bands and band-aids. And of all Nepal Pharmaceutical
will always be known for its huge and best qualities Ayurvedic products of their own.
The main focus of this report is to let the readers know about the strength of Nepal's Pharmaceutical
Industry knowing and overcoming its weakness. And also to aware my readers about impact of WTO
and Provisions of TRIPS 2016.
1.2 Objective
1.3 Scope
1.5 Limitations:
ii. Study mainly focuses on the Pharmaceutical Industry and companies. So it can't be used
for other studies.
iii. Report includes only data collected from DDA and study of operating procedure of only
one company. So very difficult to apply over all the companies (small and medium) in the
industry.
iv. The recommendations given are based on perspective of the present status of the Nepalese
pharmaceutical industry and the opportunities vis-à-vis and the changing regulatory
environment in the context of WTO. So the report is mainly of short term in nature
although it covers macro environment but can't be equally important after 5-10 years. As
the period of 10 years is a considerable time frame for any industry in changing its
dynamics.
v. Most of the Nepalese Pharmaceutical Companies were not able to clear the threats the
industry is currently facing and the impact of WTO regime on them. Therefore, the study
of WTO relating to Nepalese pharmaceutical industry is taken parallel from the other
markets, where WTO agreements were recognized.
For the specialization in the field of marketing, I had certain options to choose from the
Pharmaceutical organizations that offers the most of the information. So I chose Amtech Med as it
has the best offerings to the students.
In order to attain my objective following the guidelines of the Jain University, this study program
was successfully accomplished from Friday, 23 October 2015 to 15 January 2015 in Biratnagar
Nepal. There are various activities performed by the intern during these period which will be dealt in
detail in Chapter 4.
CHAPTER TWO
INTRODUCTION OF INDUSTRY
2.1 Background
Nepal has become a WTO member on April 23, 2004. Accession of Nepal to WTO has brought both
opportunities and challenges to Nepalese pharmaceutical industries. World market of pharmaceutical
products is now open to Nepalese industries and simultaneously Nepalese market is open to industries
worldwide. In this context Nepalese pharmaceutical industries should be able to explore the
opportunities and make best use of the opportunities. In addition, Nepalese industries should also
identify the external threats for them and make efforts to overcome the threats. Therefore, it has
become imperative for individual Nepalese pharmaceutical industries and Pharmaceutical Industry as a
whole to formulate the strategies which could lead them to their growth and how they could harness
their strengths for exploiting the opportunities before stepping into WTO/TRIPS regime in 2016.
Since majority of pharmaceutical industries in Nepal are SMEs, there is a necessity for a facilitating
role by the government for gearing-up Nepalese industries to utilize the opportunities under WTO
regime. Therefore, it is also imperative to identify the roles to be played by the government to facilitate
the Nepalese pharmaceutical sector to enter WTO regime. With a view to fulfil these needs this study
has been carried out.
The usage of pharmaceuticals is governed by the underlying medical science. The four primary
medical sciences are as Allopathy or modern medicine has gained global popularity, Ayurveda, an
ancient Indian Science, mainly uses herbal remedies, Unani, having Chinese origin, is prevalent in
South East Asia, and Homeopathy, founded by a German Physician, was fairly popular in the early
19th century.
World-over the pharmaceuticals industry is focused on Allopathy, the most modern medical science.
Other modes of medical treatment such as Homeopathy, Ayurveda and Unani are more prevalent in
their world countries.
Industry Structure
As per DDA there are 44 pharmaceutical industries in operation at present in Nepal. According to the
Industrial Enterprise Act 1997 and subsequent amendments, industries with the capital investment up
to Rs 30 million is considered as small scale industries and those between Rs 30 million to 100
million is considered as medium scale industries. The industries with capital investments more than
Rs 100 million are categorized as large scale industries. Of the above 44 industries, 7 units are of
small scale, 32 units in medium scale, and the rest 5 in large scale.
Majorities of these units are located in Kathmandu Valley and Narayani Zone, while the rest are
scattered in places like Janakpur, Biratnagar, Bhairahawa, Dharan. Except the Royal Drugs Limited,
all the pharmaceutical units are in private sector and registered as private limited company. The list
of recognized pharmaceutical units along with their location is presented in Table No, 1.6.1.
Alive Pharmaceutical Pvt.Ltd Biratnagar
Amtech Med Pvt.Ltd Biratnagar
Alliance Pharmaceuticals Pvt. Ltd Simra, Birgunj
Amie Pharmaceuticals Pvt.Ltd Janakpur
Apex Pharmaceuticals Pvt.Ltd Parwanipur, Birgunj
Arya Pharmalab Pvt.Ltd Rampur, Kokani, Parwanipur, Birgunj
Asian Pharmaceuticals Pvt. Ltd. Padsari, VDC-9 Rupendehi, Bhairahawa
All pharmaceutical industries produce pharmaceutical products in tablet and capsule forms while a
limited number of units produce products in liquid, ointment, dry syrup, powder forms. Of those only
two units produces IV Fluid and a another one the injectables. Majority of the industries are
producing same group of products, but some have started producing cardiovascular, psychotropic and
anti-diabetic products too. Only two industries are producing I V Fluid i.e. Dextrose. And most of
these companies as urged by DDA, have already acquired WHO-GMP Certificate and are also ISO
9001:2000,14000 certified companies.
2.3.2 Market
The Nepalese pharmaceutical market has one of the highest brands Per capita and is highly import
driven. The market is highly dependent on import from domestic and multinational companies of
India, Bangladesh, and others. The top 10 companies hold 33% of the total retail pharmacy market by
sales value and the next top 30 companies hold 62% of the market. The top 10 pharmaceutical
companies in retail market are given in Table No. 1.6.2.
The top 10 pharmaceutical products based on sales value in the market are largely dominated by
those of the Indian companies. Those have earned this position by virtue of being in the market the
longest. In addition, better marketing and promotion, and an impression of superior quality have kept
them on the top 10 list. Off late the Nepalese pharmaceutical companies are able to make their entry
into the top 20 products with brands like Nemox, De Cold, Brucet, Reymoxis, etc. produced by
National Healthcare Private Limited, Lomus Pharmaceuticals, Nepal Pharmaceutical Laboratories
Ltd, Deurali Janata.
All pharmaceutical industries are marketing their products solely within the country. Their
pharmaceutical products reach the end users through a four– tier distribution system consisting of
distributors, stockiest, sub stockiest and retailers. According to the recent statistics of the DDA, there
are 2,350 medical wholesalers and 18,255 pharmacies that are operating in the country.
Nepalese pharmaceutical industries are dependent of import for bulk drugs and active pharmaceutical
ingredients. The major source for importing bulk drug and active pharmaceutical ingredients for
medicines is India. The others are China, Belgium, South Korea, Australia, Denmark, Holland and
Switzerland. Other requirements of the domestic producers like binders, diluents, disintegrates,
glidants for tablets, capsule shells for capsules, suspending agent for suspensions, sweetening agents,
colors, preservatives, antioxidants and other auxiliary materials are also met from India.
Technology
The technologies used to manufacture pharmaceutical products in Nepalese industries differ from
semi-automatic to automatic depending upon the form of pharmaceutical product. – Tablets,
capsules, liquid, ointment, dry syrup, powder, injectables etc. The machineries used to manufacture
pharmaceutical product are mostly from India. But instruments and equipment for quality control and
quality assurance are mostly from third countries like Singapore, Japan, Germany, etc. All the
industries have incorporated quality control in its production process, but only a few have system for
quality assurance. With a view to enhance technology and quality of the sector, two industries have
come forward and developed linkages with academia. Only one industry has technical collaboration
with Bangladesh Company.
Human Resources
Except highly skilled technical manpower there are enough human resources available for Nepalese
pharmaceutical industries to carry out pharmaceutical formulation, production and marketing of
formulated finished products, as Nepal has sufficient number of qualified pharmacist, chemist and
skilled technical manpower required for above. Therefore, all domestic pharmaceutical industries are
having Nepalese production and marketing manpower. But in case of highly skilled technical
manpower capable of undertaking R & D, quality assurance, and complex formulations; the
requirement is met from India and abroad.
Research and Development
b. Product Quality
Quality of Nepalese pharmaceutical products is good and therefore, those have received well
recognition from the medical doctors and medical practioners. As a result of this Nepalese industries
have acquired 30% market share within a short span of time.
c. Human Resources
The human resources involved in production, quality control, manufacturing, R & D, and marketing
are well qualified and experienced in their respective areas. Human resources involved in this sector
are taken as an asset and therefore, majorities of industries are putting their emphasis on human
resources development.
Weaknesses
a. Poor Capacity Utilization/Economies of Scale
The capacity utilization of 39 Nepalese pharmaceutical industries varies from 25 to 80%. Of these
large scale industries (five in number) and a few having wide range and forms of products have it
over 60%. The majorities have fairly low capacity utilization. The basic reasons behind it are
identified as less product range and form of products compared to industries having higher capacity
utilization and also installation of plant and machineries of higher capacity than required due to lack
of knowledge and information on industry at the time of establishment.
m. Knowledge on WTO/TRIPS
Majorities of industries are unaware of provisions of WTO/TRIPS and their consequences to their
business.
Opportunities
a. Favourable Government Policy
Government has categorized pharmaceutical sector as one of the priority sectors. The government is
providing monetary and fiscal facilities and incentives to the sector for its development. It is
providing incentives to the pharmaceutical industry like levying only one per cent customs duty for
input materials, machineries, etc. No Value Added Tax is levied for the industry.
e. Restriction on Imports
The government has imposed restriction on importing pharmaceutical products produced by
industries without WHOGMP Certification limiting competition by such industries in domestic
market.
Threats
a. Emergence of Competition
WTO regime opens up the climate for entry of foreign companies including MNCs into the domestic
pharmaceutical market. The domestic companies have to compete with well established companies.
Companies from LDCs with advanced technology like Bangladesh could also easily enter Nepalese
pharmaceutical market.
3.1 Introduction
Amtech Med is one of the listed company in DDA and is very well recognized in market, fulfilling
all sorts of quality standards. It was established on 2004 but formal operation was started only in
2005 and it is located in morang district, katahari VDC-9. Amtech Med (P). Ltd is committed
towards producing high quality pharmaceutical products as per international specifications and to be
a leader in Nepal by satisfying all customers through following statutory and regulatory requirements
with a continual improvement of an established QMS.
Amtech Med factory is build up in the area of 8500 sq. feet having proximity to all modes of
transportation. It is within the range of 0.5 km from main highway, 15 km from railway station and
12 km from airport. So the factory location is very well selected. And it is also well equipped all type
of modern manufacturing infrastructure which made it a WHO GMP recognized company. Since
very beginning of its operation, Amtech Med is committed towards producing high quality
pharmaceutical products. To carry on such activities significant steps has been taken to assure the
quality of products. These steps includes advance training of personnel, procurement of state of art,
inspecting and analytical equipments and modernization of quality area. Its objectives are as:
to develop validated manufacturing process
to reduce complaints
to increase customer satisfaction
to upgrade skills of available men power
to increase company sales
to introduce new products as per market demand
to validate use of machine and equipments
quality supply
creating awareness of quality management
Quality
Manual
Quality
Procedure
Quality Quality
Format Plan
3.1.1 Mission:
To put into action those activities through a continual improvement of an established QMS to
benefit society and a nation as a whole, and a commitment to build our stakeholders value by making
Amtech Med a truly sustainable company.
3.1.2 Vision:
To be a leader in Nepal by satisfying our customers and stakeholders through following all types
of statutory and regulatory requirements and being committed for producing high quality
pharmaceutical products as per international specification with a continual improvement of an
established QMS.
3.1.3 Goal:
S = Strategic Shift, Innovation
P = Productivity
E = Enhancement
A = Assertion
R = Reach
3.1.4 Objectives:
to develop validated manufacturing process
to increase customer satisfaction
to upgrade skill of available men power
to increase company sales
to introduce new products as per market demand
to validate use of machines and equipments
quality supply
creating awareness of quality management
Business model mainly defines how company is earning its return from market, what activities are
carried out to earn money. So Amtech, it is in pharmaceutical industry producing various range of
quality medicines of international standard that satisfies various need of customers. And this is how it
earns return.
3.1.6 Business Definition:
Customer Need
Customer Group
Technology
Customer needs: It satisfies various needs of medicines from a common Iron tablets or capsules to
medicines for some chronic diseases as Liver tonics etc. It mainly satisfies the need of medicines.
Customer Group: Main target customer group are doctors and some big stockists.
Technology: It satisfies those needs by producing different medicines for different use of high quality
which are approved as per WHO GMP and ISO standards and making it available to market using
various levels of distribution channels.
Managing
Director
RM Dept.
Chief of Finance & Quality Control
Accounts Trainee
PM Dept.
The management team of Amtech consists of all the managers and the department heads. They are
the one who supervise their subordinates and guide them to accomplish their work efficiently.
Management of organization play a major role in achieving organizational goal. As the head of
organization i.e. managing director formulates the vision, mission and objectives for the organization,
where as managers formulate action plan to achieve those objectives. The members of management
team are as:
Amtech Med believes in safe and sustainable growth as the major driving factor behind all its future
plans. Some of the important goals that the company would be looking to achieve in the medium
term are as follows:
1) Continue to reinforce Amtech as a franchise in order to supplement its business and
reputation in the market.
2) Raise the size of the balance sheet to generate the advantage of scale. However the
expansion will be based upon judicious selection of business both in terms of product
verities and market coverage.
3) Focus on high yield leading business opportunities in both segments i.e. chronic and acute
segments.
4) To increase the present annual sales of Rs.50,00,000 to Rs. 80,00,000 in next 3 years.
Amtech Med comprises of departments where each department looks after their own area of activity
and with its sound and efficient capabilities assists the other departments also moving whole
organization towards the positive prospects. The major departments of Amtech are discussed below:
A. HR Department:
Human resource department is closely related to company's employees such as recruitment,
selection, development, promotions, transfer, performance appraisal, etc. Before selection of
staffs all the candidates have to go through a medical examination by the organization doctor.
Mainly production staffs are medically examined by the registered organization's doctor at the
time of recruitment. Personnel suffering from any contagious or obnoxious work are not
allowed to work or visit the production area. For the purpose of improving the skills, abilities
and knowledge of the staff members, human resource development of Amtech Med provides
various job related trainings. Trainings covers all employees as per the need. Need is
recognized as per the information or felt by the employees ultimate supervisors. The newly
appointed staff has to undergo a introductory training regarding company profile, premises,
sanitation, and hygiene and depending upon the work the training is done regarding WHO
GMP and GLP, training is also given on installation of new machines, change development in
manufacturing, analytical procedures, production of new products etc. The training provided
to the staffs is generally in house and are repeated in every six months, but there is also
arrangement for external training by sending employees to other institutions. Evaluation of
training is done by the questionnaire details during and outside the training section.
D. Legal Department:
The main function of this department is to look after the legal aspects of the company.
Formulation of laws and policies for the company also lies in this department. This
department takes all the legal actions on the behalf of the company as required according to
the situation.
E. Marketing Department:
The main function of this department is to formulate the marketing & promotional plans for
the product. As the company's sales is totally dependent on personal selling, so how better to
divide the market as per the sales force abilities are also the responsibilities of the marketing
manager. This department formulates plans, divide the whole geographical market areas,
plans the marketing budget, controls the medical representatives, handles the customer
compliance, understands the market demand and always focus on increasing the company's
sales and work with quality assurance department to handle quality related problems.
Managing compliance as per figure 4:
Quality Assurance
Marketing Manager
Area Representatives
Area representatives collect the materials and bring back to the organization and QA
department takes control of such products and are labelled as RECALL products and are
stored separately until they are checked and approved for resupply in market. The distribution
channel used by the company is shown in the figure 4.1:
Chemist Store
AMTECH MED
Stockists
Hospitals ( Target
Customers)
F. Production Department:
Production department is sole responsible for production of the quality products and quality
work practice in factory. Production department is controlled by production manager who is
in direct contact with company's managing director. Under production manager there are
quality assurance department manager and store manager. Production manager or Plant
manager is responsible for managing human resource in factory and he is also responsible for
recruiting people in factory.
G. R & D Department:
Actually in Amtech it is not R & D department, it is FR & D i.e. Formulation , Research and
Development. This department is responsible for studying those products which is already
available in market and develop its composition and establish the product and suggest
company's managing director about those products which can be produced and is feasible to
produce by having some changes.
3.3 Major Products of Company:
The above table 4.1 shows some the major products of the company. Besides these medicines
currently company is also working on some new products as Liquid syrups and in this syrups there
are several range as from a normal cough syrup to antibiotics and also VITA-PLUS syrups and
LIVER-TON. Besides syrups company is also working on developing sugar free cubes.
CHAPTER FOUR
ANALYSIS OF ACTIVITY DONE AND PROBLEM SOLVED
During organization study period, internee worked and visited in different departments. Inside the
block of the company, internee got chance to work in production plant, marketing department mainly.
An internee was given a brief overview about the work of the particular department and allowed to
observe and learn the work procedure but was never allowed to be involved in actual work procedure
as per their SOP. However, internee learned by asking questions to the staffs of the departments and
also by observing their daily work.
Different activities that internee had carried out during the placement in production department are as
follows:
Inspection of store or inventory department which comes under production department and
watch out the inventory management system of the company. In store room also before
storing the materials, materials have to move through various test to know about its quality
and store temperature. In store room storage section were different for different chemicals
and were stored in cool and dry place in controlled room temperature of 18°C to 25°C. None
of the materials are stored without test and from store department also none of the materials
are moved forward into production area without test.
After inspection of the inventory system, internee was moved to actual production area.
There internee was expected to watch the production process and suggest something if
needed. In production site internee came to know about the production process of tablets,
capsules and ointment. Company mainly used PROCESS LAYOUT for all types of
medicines. Production process of different medicines are as:
For Tablets:
Mixing of raw materials
Granulation using aqueous or non aqueous binder
Equalizing the size of the granules
Drying
Lubrication
Coating
Sorting and Packing
For Capsules:
Mixing
Filling
Polishing
Sorting
Packing
For Ointment:
Preparation of oil phase
Preparation of water phase
Mixing of oil & water phase
Cooling
Milling
Filling & Crimping
Packing
After production packaging. In packaging also all the process carried out was as per the WHO
GMP standard. In packaging both labour as well as human power are used for packaging.
Mainly men power is used for printing the dates and batch numbers and keeping record of the
weights of accepted finished goods and rest things were done by machine.
So these are some of the activities performed in the production department. But internee really
enjoyed being in marketing and also suggesting some ways of marketing and establishing some
digital platforms of the company.
After production main role is played by marketing. Here in this industry always they use Personal
Selling as one promotional mix and some time for some medicines they may use direct marketing but
till now it is not used by the company. Company is mainly using personal selling. The selling process
with doctors are as:
Taking appointment may be by cold calling or through friends
Meeting with doctor
Information about company and product presentation
Handling objections
Closing sales and
Follow-up
And for selling products to stockists they carry out almost same procedure but instead for taking
appointment they believe in building relationship, cold calling, and reference from others through
these Medical Representatives they prepare their list of qualified stockists and have some pre-
approaches before visiting them in order to have better closing of sales. Internee being part of the
marketing department here he understood about core of marketing of pharmaceutical company and
very important 4P's as well as 7P's for pharmaceutical company.
7P's as:
Product- Medicines, Health awareness educations
Price- Pricing is mainly done on the basis of market prevailing rate and premium pricing
Place- Two and Three level of distribution channel is used
STP:
Segmentation: Demographic Segmentation
Targeting: Targeting is mainly done on the basis of segment attractiveness along with
company's objective and strategy used id differentiated marketing.
Positioning: "We understand your Health", a company for complete health solution
TRIPS
The main impact of TRIPS agreement of WTO will be felt on two areas. They are:
1. Domestic manufacturers who are producing and commercializing products covered by patents will
be forced to go for licensing agreements with the patent holders resulting in the royalty payments and
in some situations there would be an increase in prices of the drugs. By the time Nepal recognizes the
patents of products related to the pharmaceutical industry, most of the drugs that were approved for
marketing from 2002 would be still in patent period as on January 1, 2016. For these drugs either the
innovators will distribute these drugs themselves through his own distribution channels or give
license for the players who are operating in the domestic market by charging a royalty on the sales.
As per the mail box provision of TRIPS, the patent holder has to file his application for patent in the
Nepal market with the concerned regulatory agency in order to get patents recognized in the market.
2. TRIPS inhibit the advantages the players are currently deriving through reverse engineering and
there would be increased investments in R&D. Here the domestic pharmaceutical companies which
are currently progressing well with the generic versions of the patented drugs with lesser costs would
lose the opportunity of coming out with the newer drugs within a period of 1 to 2 years from the
launch of the innovator product in the international markets. So the option for them would be to
remain completely a generic player or slowly move to a research based pharmaceutical company or
be a contract manufacturer for the innovative and generic companies. With such scenario the business
and revenue models of the pharmaceutical companies would be witnessing a change. As the options
for the companies to sustain will be few, there would be increased investments in research &
development by the companies and the investments would go from the current levels of less than 1
per cent of sales to near about 5 to 8 per cent by the time the patents are recognized in the
pharmaceutical industry from 2016.
3. With the introduction of TRIPS, most of the MNC players would be eyeing the market in a major
way as the product patents are recognized and they come out with their complete portfolio of drugs
which are of highest quality produced in plants that are certified by regulatory agencies globally with
the economies of scale(in most of the cases the plants from which the drugs are produced for the
Nepal market would be located outside until unless there is a distinct cost advantage in the domestic
market and the market is so huge in 2016). Moreover with the growth of the market, there would be
tougher competition from the generic MNC’s to the domestic companies. This results in the domestic
players also making their drugs in the internationally certified plants to have better quality with
higher capacity utilizations and increase their budgets for the marketing and promotional activities to
sustain in the market. Looking at the impact of the patent recognition of the drugs (molecules) on the
pharmaceutical industry in the various market, it was found that the industry has grown overall in
terms of growth, increased domestic players presence and increased Alliances/Joint ventures/
technology transfers, etc.
Although Amtech is able to meet the changing need of the market, some problem have been analysed
and possible measures have been taken to minimize the problem and solved them while working in
Amtech. Following are some of the advice given and steps taken by intern to solve the problems
during his internship:
1) Development of digital platform for promotion of company as well as its product.
2) Advice given to have adjustments in order minimize operating cost.
3) Lead time management by suggesting the appropriate use of the workers in organization.
When intern was in organization as intern, what intern saw was pharmacists in one
department was sitting as his work was finished and now no more work to do where in other
department production was stopped due to lack of pharmacists. So intern suggested to
minimize the lead time by increasing the responsibilities and have better use of limited
resources by having cross functional departmental work approach and by that approach
pharmacists can be transferred to that department where there was shortage of pharmacist.
4) Got chance to develop the distribution channel for the company.
The students are selected as internee in different organization so that they can present themselves as
skilful person on related field on which they have been appointed. The organization gives the
environment for internee to fulfil certain responsibilities. Regarding this internee can show their
capability and intelligence. While working in the company internee observed and evaluated the
theoretical knowledge he has gained and what actually happened in the work situation. Theoretical
knowledge helps a lot in understanding the actual working environment, but not exactly cent percent.
CHAPTER FIVE
CONCLUSION AND RECCOMENDATION
Recommendations
Competitiveness of a sector or industries under the sector can be enhanced through the enhancement of
quality and productivity of the sector or its industries. Therefore, the steps to be taken by the Nepalese
pharmaceutical industries to enable them to capitalize on the opportunities and face up to the
challenges would be those measures, which would enhance quality and productivity of the industries
in isolation or in combination. The steps are as follows:
Quality Assurance through Quality Management System and Environment Management Systems:
Having ISO 9001:2000 Series and ISO 14000 Certification will not only improve the corporate image
of the industries but also guide the industry to have management systems which could lead them to
their long term sustainability and growth; and fulfil the environmental responsibilities. These
certifications can also assist industries to have systems, procedures, data/information base and others
where these are lacking especially in industries run and managed by owner managers leading to
enhancement in quality, productivity and competitiveness.
produce those pharmaceuticals by fulfilling the pre-requisites for their production, if possible. It is
because these are the segments, demand for which is growing faster and lasts for longer period.
b. Supply-Chain Management
By having effective and efficient supply-chain management industries could reduce their cost of
production enhance productivity and competitiveness.
c. Backward Integration
Producing the bulk drugs or active pharmaceutical ingredients by domestic industries by acquiring the
process development knowledge and skills could reduce the cost of those materials leading to drop in
cost of production for industries. Such producers could look at supplying to the other domestic
formulation manufacturers apart from their in-house consumption. Apart from domestic market, there
could be an export potential for those with the certified plant. This brings in better margins for the
companies by integrating operations backward. The purposes of such integration is to achieve control
on costs, quality and delivery period of inputs.
b. Institutionalization of Industries
Gradual institutionalization of Nepalese industries would be necessary for enhancing the
competitiveness of the sector as a whole. It would provide vision and mission for the industries, where
those should head for and also organizational systems, procedures, processes, and others. A few
industries might have to undergo even restructuring and reengineering processes.
c. Collaboration
Collaboration with foreign or domestic companies could enhance competitiveness due to improvement
in productivity and quality of self or due to comparative advantages of collaborating partner(s).
Shrestha, B.K., & Bhandari, D.B. (2013). Drug Markets & Institutions. Kathmandu:
Asmita Books and Distributors Pvt. Ltd.
Matrix Services Plc. In association with Centre for Gender & Management and Cygnus
(2012). Research Report on Nepal Pharmaceutical industry. Kathmandu:
www.google.com
www.dda.gov.np
www.ekantipur.com
Appendix 1