Medicate Pharmaceutical New

Medicate Pharmaceutical
Business Project
Supervised By:
Sir Adnan Bashir

Prepared By: Faizan Rashid Ali Raza Faisal Nadeem Muhammad Saleem Muhammad Usman 09041020-073 09041020-070 09041020-032 09041020-033 09041020-071
Master of Business Administration

Submission Date:
15 September 2011
UNIVERSITY OF GUJRAT
HAFIZ HAYAT CAMPUS
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DEDICATION First of all we are grateful to ALLAH the Almighty for giving us the courage to complete this project in a short span of time. We dedicate this business plan to the department of Faculty of Management & Administrative Sciences, of University of Gujrat, they have helped us a lot in making this project, especially to Mr. Adnan Bashir for his selfless efforts towards the completion of this business plan. This project is also dedicated to the group members & our supporters who have devoted their precious time for its preparation.
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EXECUTIVE SUMMARY:
There are lots of opportunities available in the pharmaceutical industry because the growth rate is high due to increase in diseases and patients. In Pakistan there is lot of companies working in the market which include both local and international. The international companies are providing quality medicines at very expensive rates and local companys vice versa. So we are entering to solve this problem by providing best quality medicine with reasonable prices. We are able to get the first mover advantage in the market as there is no other competitor present in the Gujranwala division so we initially target the market of Gujranwala Division. The management team of any organization is of extreme importance and is crucial to the success and development of any organization. This applies to our venture as well so the management team in our business comprises of very able, efficient and talented people who have expertise in their related fields. Finance is the backbone of any organization. We start our business with the startup capital of 10 million. This capital is same for next 3 to 4 years because we dont want to expand our business to the other cities of the Pakistan before we get recognition in the market and become the sign of quality. After the three year when company reputed in the current market of Gujranwala Division then we will expand our business all over the Pakistan which required the further capital of 3 to 4 million rupees. In exit strategy we windup that part of the business in which we are bearing loss and if the whole business is failure then we will dissolve the business and return will be distributed among partners according to the proportion of investment. If the individual partner will decide to leave the business then the partner is restricted to start new business for three to four years.
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Table of Contents
iv...........................................................................................Table of Contents
1...................................................................................................Introduction 1.........................................................................................Industry Review: 2.............................................................................Medicate Pharmaceutical: 3.............................................................................Vision & Mission Statement 4.....................................................................................................Objectives 4......................................................................Long-term company objectives 4.......................................................................................Annual Objectives 5.............................................................................................SWOT Analysis: 8...............................................................................................PEST Analysis 10.....................................................................................................Products: 12.................................................................................Manufacturing Process: 12.......................................................................................Management Team: 14...........................................................................................Industry analysis 14...................................................................................Industry Description 14.........................................................................................Industry Trends 16...........................................................................................Target Market 18............................................................................................ Marketing Plan 20................................................................................Marketing Department 23........................................................................................Concept Testing 23..........................................................................................Marketing Mix 24................................................................................................Products 25......................................................................................Pricing Strategy 25..........................................................................Channels of Distribution 25...............................................................................Promotional Strategy 28.......................................................................................Demand forecast: 30.....................................................................................Operational Analysis 30............................................................................................Raw Material 31.....................................................................................Production Process 35.............................................................................................Quality Control 39........................................................................Human Resource Management 40.........................................................................Human Resource Planning: 41.........................................................................................Job Analysis: 42..........................................................................................Recruitment: 42..............................................................................................Selection:
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42....................................................................... Training & Development: 44.........................................................Employee Performance Management 44......................................................................Compensation and Reward: 44........................................................................................Incentive Pay: 45...............................................................................Organization Structure: 50..............................................................................Company Ownership: 57........
Number Of Employees Hired:
58..........................................................................................Legal Structure 58..................................................................................Business Partnership 60.............................................................................................Financial Plan: 80....................................................................................Critical Risk Analysis 80.....................................................................................Management Risks 81........................................................................................Marketing Risks 82......................................................................................Operational Risks 83..........................................................................................Financial Risks 85.............................................................................................. Exit Strategy: 86..................................................................................................References: 87.....................................................................................................Appendix
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Introduction
Industry Review:
Global Review: When the life is being on the earth diseases are also invented on the earth and with the passage of time when the life increases diseases are also increased. People were searching the cure of these diseases. So the medicines are started as the life started on the earth. But the latest pharmaceutical industry is started when insulin and penicillin are discovered in the last of 19th century and early 20th century. Most of the major pharmaceutical companies are founded during this era. At international level the pharmaceutical market has an estimated sale of 880 billion US Dollars. There are only 15 major market players whose sales are more than 40% of the total market share. The growth rate of this industry is about 8-9% which is a heavy growth rate in the rest of the world. The reason of this growth rate is that with the passage of time the diseases are increased rapidly between the people. The table shows the annual sales of the major market players. Rank Company Sales ($M) Based/Headquartered 1 Pfizer 43,363 US 2 GlaxoSmithKline 36,506 United Kingdom 3 Novartis 36,506 Switzerland 4 Sanofi-Aventis 35,642 France 5 AstraZeneca 32,516 United Kingdom 6 HoffmannLa Roche 30,336 Switzerland 7 Johnson & Johnson 29,425 US 8 Merck & Co. 26,191 US 9 Abbott 19,466 US 10 Eli Lilly and Company 19,140 US 11 Amgen 15,794 US 12 Wyeth 15,682 US 13 Teva 15,274 Israel 14 Bayer 15,660 Germany 15 Takeda 13,819 Japan http://en.wikipedia.org/wiki/List_of_pharmaceutical_companies
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National Pharmaceutical Industry: In Pakistan there are 687 companies are working but only 376 are registered with the ministry of the health. From these 376 companies more than 40 companies are multinationals, 30 plus are cotton and bandage companies and 40 companies are making veterinary products. The remaining 260 companies are local Pakistan companies but from these 260 companies only 10 to 15 companies are those who compete with the multinational companies by producing better quality products. These products are not meeting the quality of the multinational companies but they are still competing with these companies. The products of remaining 245 companies are low quality. According to the March report of Pakistan medical association the growth rate of Pakistan medical industry is 8% and this growth rate is constant in 3 to 4 years. This report also tells that there is huge potential in the medical industry to export the medicine into the rest of the world. History of medical industry in Pakistan: At the time of independence there are only two pharmaceutical units are working in the Pakistan and they are not enabled to meet the local demand. The rest of the medicines are imported from other countries. In 1972 it was decided that the imported products are restricted to the certain limit and freely allow the local manufacturers to manufacture all the essential drugs which are imported. Due to lack of research this policy is ultimately reversed in 1976. In 1999 the government invested 133 million US dollars in the pharmaceutical industry. So the last 12 years was eventful for the Pakistan Pharmaceutical industry because they have developed a large number of domestic manufacturers. In 2006 more than 350 licensed pharmaceutical companies working in Pakistan, 30 multinational companies are also included which has more than 50% market share. Now the number of pharmaceutical companies is 687.
Medicate Pharmaceutical:
In the view of this fact we are going to start a new business named MEDICATE PHARMACEUTICAL. It is a medicine manufacturing firm who manufacture quality products at reasonable prices. Our business situated at Plot # 43 sultan state Gujranwala. We are newly entered into the medicine market and we are fully confident to get good position in the market within few months. We have initially started with 12 products. Gujranwala division is our first target market but after wards we enter into the other markets of the Pakistan and also increase product line.
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Vision & Mission Statement
Vision Striving to be the best Mission The mission is to providing quality medicines at reasonable price for improving the society health
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Objectives
Long-term company objectives
Our long-term plans include product line extension, increase range of target market, increase our revenue along with good quality but at lowest possible price as compared to our close competitors, and sustain the competitive advantage over competitors for becoming market leader. Division 1 for Product line extension: After three to five years of our commencement of our business, we shall start research projects, for creating new products. In this way we can work for sustainable competitive advantage over competitors.
Annual Objectives
1) Production annual objective We shall increase our production by at least 30% at the end of this year. 2) Marketing annual objective The growth rate of sales is at least of 20% this year. 3) Finance annual Objective We shall obtain long-term debts in next 4 years. 4) Personnel annual objective We shall make it confirm that employees absenteeism would be minimum this year and increment of 12.5% of their basic pay. Value Proposition: The customers are facing the problem of high prices and we are going to manufacture the medicine with best quality at reasonable prices. Market segment: We are initially going to target the market of Gujranwala division, after 3 to 4 years when we will gain good position into the market then we will introduce our products all over the Pakistan.
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Growth Strategy: According to the 2011 report of Pakistan Medical Association the growth rate of pharmaceutical industry is 7-8% but we are newly enter into the market and due to this the growth rate of our organization is 15-20% for two to three years and then the growth rate is same as that of industry.
SWOT Analysis:
S.W.O.T Analysis is the most important tool for audit and analysis the overall strategic position of a business and its environment. The basic purpose of SWOT is to identify the strategies of the business that will best align with the organizations resources and capabilities. It tells about the internal potential and limitations and opportunities and threats from the external environment. The SWOT analysis of our company is as follow. Strength The large part of the capital contributed by the partners Company is situated at good place and has excellent transportation links Latest machinery is imported and installed Best quality raw material will be imported Company is providing best quality products Less wastage due to latest machinery Strong distribution channel Continuous Improvement Weaknesses Company name is not recognized by the people. Company is using rental building which is increasing the cost Inefficient research and development facility Company is offering few products Machinery cant work on electricity generator
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Shortage of Finance
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Opportunities Government is giving tax rebate for five year to new manufacturing units Increase spending power in the Local and National economy We expand our market to the national level Company can expand its product line Opportunity of entrance in the other market of Pakistan Entrance n the international market Potential of growth Opportunities of entrance in the veterinary products because this market has huge potential
Threats Large and increasing competition Increasing inflation rate Government can put different restriction or make different legislations Load shading of electricity may disturb our production Exchange rate fluctuations Less number of suppliers is available in the local market Political instability Relationship of Pakistan with other countries because our raw material is mostly imported from India and China.
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PEST Analysis
Political Factors The Company has a trade mark and a trade name that gives the company an Exclusive right by the government policies to use it and enter into contracts and dealings through its registered trade name. Unstable political situation prevailing in the country Economic Factors Medicate pharmaceutical Industries play an important role for economic growth by contributing into the economy of the country. Economy of Pakistan is going through the state of economic crises because of the poor law and order situation and the global economic crises 2008 in the developed countries. Inflation is swelling day by day. There is recession everywhere in world. Prices of things are reaching at highest level. But the prices of medicine when fix are not change for further five years. So it is very critical to set the prices of the medicine. Due current credit crunch, manufacturing industry is also badly affected because of this orders are not meet on time. And also the stocks are not made by factories because of bad energy shortfalls. In Pakistan Interest rate on credit getting from Bank and other financial institutions is very high which badly affect cost of production. Social Factors Change in the Social Class of employees can increase the trend of the turnover of employees. Culture changes also important for performance of this firm if there is not trend of woman job then the owner has to hire the men for job.
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Technological Factors Technology is vital for competitive advantage, and is a major driver of globalization. The company is dealing with following technological factors. Technology has a great impact in success in every type of organization thats why Company use latest machinery imported from Italy The Company is providing products but not so much innovation is involved in it. The Company has provided the computers to the staff members to eliminate the cost of stationery and to save the time. The manufacturing department also has different types of dyes for different size or shapes of tablets.
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Products:
MEDICATE pharmaceuticals initially is manufacturing 10 medicines, which are related to blood pressure, and also used as anti-biotic. List of these products along with their prices is given below
Product Name 1 1a 2 2a 3 3a 4 5 5a 6 6a 7 8 8a 9 9a 10 10a 11 11a 12 Mediclox 250mg Mediclox 500mg Amoxicate 375mg Amoxicate 625mg Estrazole 20mg Estrazole 40mg Propetocate 40mg Amitaxime 250mg Amitaxime 500mg Atnotol 50mg Atnotol 100mg Propranol 40mg Clathromine 250mg Clathromine 500mg Cefmid 250mg Cefmid 500mg Cefzox250mg Cefzox 500mg Omepracate 20mg Omepracate 40mg Loratamed Product Formula Ampiclox Ampiclox Co-Amoxiclav Co-Amoxiclav Omeprazol + Estrazenica Omeprazol + Estrazenica Propetocaine Cefotaxime Sodium Cefotaxime Sodium Atenolol Atenolol Propranolol Clarithromycin Clarithromycin Ceftrixone Sodium Ceftrixone Sodium Ceftizoxime Ceftizoxime Omeprazol Omeprazol Loratadine Table t Pack 20 20 6 6 10 10 30 10 10 14 14 30 10 10 10 10 10 10 10 10 10 Sale Price 41 71 52 80 97 173 150 180 330 85.5 142 125 120 195 220 380 149 217 70 130 59.5 No. Of Ingredients Antibiotic Mostly For Chest Infection Antibiotic Mostly For Chest Infection Antibiotics Mostly For Chest Infection Antibiotics Mostly For Chest Infection Stomach Diseases (Ulcer) Stomach Diseases (Ulcer) Blood Pressure Antibiotics Antibiotic Blood Pressure Blood Pressure Blood Pressure Antibiotic Antibiotic Antibiotics Antibiotic Antibiotic Antibiotics
Stomach Diseases (Ulcer) Stomach Diseases (Ulcer) Stomach Diseases
The above enlisted items belonged to the product line of our pharmaceutical organization. These products not only used for the cure, but also provides us the grounds for segmenting our targeted market on the basis of geography and product line.
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Manufacturing Process:
Checking the quality of raw material Mixing of ingredients Making the tablets from mixture of raw material Packing
Management Team:
Chief executive officer Finance manager Production manager Human resource officer Quality control Marketing manager Personnel: The qualification of the employees is according to their job specification. The working hours of the Medicate pharmaceutical will be 8 hours. Accounting system: The accounting system in medicate pharmaceutical will be double entry system and company will use their customized software named as medicate customized software. The inventory method of the company is FIFO (First in First Out). The depreciation method will be straight-line method. Mr. Abdul Rasheed Mr. ABC Mr. Yaqoob Mr. ABC Mr. (Pharmacist) Mr. ABC
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INDUSTRY ANALYSIS
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Industry analysis
The people of Pakistan are quite conscious about their health and well being. They want quality in services but not able to get the desired satisfaction level especially in medicine. Existing medicine companies in Pakistan is missing the basic function like quality and price. Medicate pharmaceutical has the first mover advantage in Gujranwala. We have a workforce of expertise in all departments with full autonomy to perform their activities. To survive in the market we continuously conducting surveys to know the changes in needs and satisfaction of the patience about quality.
Industry Description
Pharmaceutical is an important sector of Pakistans economy as it contributes about1% to the Gross Domestic Product. Its growth rate is 8%. It is estimated that about 2 Million people earn their livelihoods from this sector. In this scenario we decided to start business related to medicine. In our target market main patient are from blood pressure, stomach and antibiotics
Industry Trends
People use medicine for release from the disease. Certain types of medicine are available in the market such as alopack .homeopathy. In a pharmaceutical production, research and development and marketing function is very important. Pharmaceutical companies in Pakistan are well developed. Multinational and local companies are doing good business in Pakistan. About 650 pharmaceutical are doing business in Pakistan Two types of pharmaceutical are operating in Pakistan Local Multinational. Government has also an important effect on this industry. This industry is fully price controlled. Multinational are introducing new medicine on the base of their research. In this industry there is a great opportunity regarding the veterinary medicines in the veterinary field there is a great opportunity regarding the new products.
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Business attractiveness As we are in medicine business that is very important need for every person for maintaining health. This industry is in growing stage because it relates with people and the population of Pakistan is increasing with a significant rate. To get the information about our business and industry attractiveness, we have also conducted a research that encouraged us to enter in this industry. Surely, the market of our field will become more attractive because of increasing the awareness of people about our quality products through the promotion strategies. We determine the attractiveness of our market on basis of two factors mentioned below: Industry Size
(I)
Profit Potential
The potential for profit in the pharmaceutical industry is very high. The operating costs required to address this segment are alliance with strategic position, allowing a majority of revenue to be turned directly into profit, while the barriers to competitive entry may be fairly high. No clear leader has gained the mind-share of the potential client market. Additionally, based on the overpowering size of the market and the distributed nature of the potential clients, it is unlikely that any competitor will be able to dominate the market in the near future. (ii) Industry size
In Pakistan there are many pharmaceutical companies are engaged in medicine business about 650 total pharmaceutical are doing business. The size of our industry is large enough to get reasonable profit. our organization can increase the product line after one year because there is a great demand for medicine .our organization can also
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try to extend the medicine product for animal, with the name of animal health division because in this field there are few competitors.
Target Market
Our target market is limited to national boundary; our main focus will be on Gujranwala division which is consist of Gujranwala, Sialkot, Hafizabad, Gujrat, Mandibahawaldin, and Narowal, because this is the area is more populated. Our main focus on the blood pressure, stomach, debates, related medicine. Description of Target Market We divide the whole market on geographically basis in six areas. Gujranwala Gujrat Sialkot Narowal Mandibahawaldin Hafizabad Gujranwala division is geographically situated at very important place. The population of Gujranwala division is 11,431,058 according to the senses of 1998. The area of the Gujranwala division is 17,206(km2). It is bounded on the North by Jammu and Kashmir, on the west Mandibahawaldin, on the east Shakrgarh and in south Lahore. Gujranwala is also main city of Pakistan and situated at the south of Sialkot, on the north Wazirabad and Gujrat in the west Hafizabad, in the South-West Sheikhupora and in south Lahore. So a large number of customers can be attracted and retained in this target market because a large number of people are live in this area. Our organization will provide quality medicine to this area because our business target market is niche and the other reason behind entering this market is competition, no pharmaceutical is operated in this area.
Competitive Position with Target Market Our business focus is patient, therefore, the safety and health of the patient is on primary basis.
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MARKETING PLAN
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Marketing Plan
A marketing plan is a written document that details the necessary actions to achieve one or more marketing objectives. It can be for a product or service, a brand, or a product line. It can cover one year (referred to as an annual marketing plan), or cover up to 5 years. A marketing plan may be part of an overall business plan. Solid marketing strategy is the foundation of a well-written marketing plan. While a marketing plan contains a list of actions, a marketing plan without a sound strategic foundation is of little use. Marketing plan for advertising or promoting products is crucial to pharmaceutical industry tool. However, the pharmaceutical marketing strategies (as well as advertising strategies) are different from other businesses because pharmaceuticals or drugs can negatively affect both- the end consumers or the patients and the health care profession. Also, the advertising strategies included in the marketing plan of any pharmaceutical company are not 'direct to consumer'. Any pharmaceutical marketing strategy targets the health care professionals or the Doctors who recommend the drugs to the patients (end consumers) liable to pay for the products. Traditional Pharmaceutical Marketing Strategies The pharmaceutical companies traditionally adopt four major marketing strategies for promoting their products Giving drugs as free samples to doctors; Providing details of their products through journal articles or opinion leaders; Gifts that hold the company logo or details of one or multiple drugs; and Sponsoring continuing medical education. Why Marketing Plan? Marketing Plan is very important plan for the promotion of business. The overall effectiveness of the company's business is depending on the marketing plan. Marketing plan is the process through which we can easily judge the target market/customers. What are the needs and wants of our targeted customers, what are their intentions, what are the expectations of our customers from our organization. So by analyzing all the requirement we finally develop the marketing plan which not only keep the brand loyalty of customers but also helpful to attract more and more customers with the passage of time. With the intention to achieve that objective the company finally develops the marketing plan.
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The Marketing Planning Process: A market plan includes the following basic points, Market Analysis Competitors Analysis Marketing Mix
Market Analysis: We have conducted the market research through the questionnaire from the physicians and doctors for the purpose to get their views. We have made a formal questionnaire in which we are trying to touch every aspect in terms of price, quality, and availability of the products of the existing companies. We have found that although many companies have achieved the ISO certificate and providing the quality products to their customers but their prices are too high to the reach of the customers. So there is opportunity for us to take advantage of this situation and catch the customers. Marketing plan is usually short term covering normally one to two years. The company's marketing plan is long term because it does not depend upon the fashion or any other environmental factor. We made the life saving drugs and with the passage of time due to global warming pollution diseases are increased rather than decrease, so the long term marketing planning is suitable for our business. In most organizations, "strategic planning" is an annual process, typically covering just the year ahead. Occasionally, a few organizations may look at a practical plan which stretches three or more years ahead. To be most effective, the plan has to be formalized, usually in written form as a formal marketing plan'. The essence of the process is that it moves from the general to the specific; from the overall objectives of the organization down to the individual action plan for a part of one marketing program. It is also an interactive process, so that the draft output of each stage is checked to see what impact it has on the earlier stages - and is amended accordingly.
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Competitors Analysis Our competitors are present in the whole Pakistan. According to the latest report of health ministry of Pakistan there are 376 companies are registered with the health ministry and from these companies 336 are the local manufactures of the Pakistan. But from these companies only few companies made good quality medicines and the doctors are feel satisfaction to recommend these medicines to the patients. By the reading of annual reports of some companies and some reports published by the economists the profit of the pharmaceutical companies are much higher than that of any other industry. Due to this we are decided to enter in this industry. We provide quality medicine to the customers by charging reasonable prices. Another reason for entering into this industry is that according to the Pakistan Medical Association the growth rate of this industry is 7-8% which is very high growth rate.
Marketing Department
Medicate pharmaceutical will establish a marketing department that will carry out the marketing strategies and plans. This department contains qualified people as discussed in the Management section before. Thus marketing staff has to perform market research, advertisement and sales management. Marketing Manager will be responsible for the implementation of marketing plans that will be overseen by the CEO and the Partners. Other functional managers will only facilitate the marketing manager to help in achieving the organizational goals. Our company is finding that todays marketing environment calls for less focus on brands and territories and more focus on customers and customer relationship. With objectives established, the organization now moves ahead with defining a marketing strategy
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BCG Matrix
We are at the question marks stage because we currently occupy no market share. But we have high growth rate because the industry trends are showing high growth rate. The main reason of zero or no market share is that we are commencing our business. Service Feasibility and Strategy With todays busy lifestyles people are often faced with health inconsistency and cure dilemmas for their proper health care. The MEDICATE Pharmaceuticals primary aim is, the provision of on health care products that will ensure health care through its products. Basically this is general health care organization, established initially in Gujranwala division. Our purpose is to provide reliable, quality products at lowest possible prices. We will begin with 12 medicines initially, for blood pressure, Stomach and anti-biotics. To best utilize the marketing staff Gujranwala division has been divided into geographical boundaries. Main Gujranwala city is divided into two segments, eastern and western market, this geographical division is defined on the basis of G.T road.
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These were some tactics which will consider the efficiency and effectiveness. Porters five forces
Michael Porter provided a framework that models an industry as being influenced by
five forces. This model help the management to better understand the industry context in which the firm operates.
Threat of new entrants New entrants to an industry can raise the level of competition due which it loss it attractiveness. The threat of new entrants in pharmaceutical industry is low because of it required a large amount of capital and access to industry distribution channels is difficult. Bargaining power of supplier The bargaining power of supplier is high which a threat for our company. It is high because the market is dominated by a few large suppliers rather than fragmented source of supply so they have strong power to control the pharmaceutical industry. There is no substitute available for the raw material. Bargaining power of customer The bargaining power of customer is low because the medicines are recommended by the doctors and customers are bound to purchase these medicines. There are a lot of substitutes available for different medicines but most of the customers dont known about these substitute. The switching power to the alternative product is easy and requires no financial costs but it could bring increase costs of time, money but still customers are follow the doctors instructions because these are life saving drugs and customer follow the doctors instruction so they will not switch to alternate.
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Threat of Substitutes Threat of substitutes in pharmaceutical industry is high but we can decrease it by getting the doctors loyalty with our products and by making close relationships with doctors. We also can decrease this threat by the relative price for performance of the product. The price might vary by substitute to substitute but customers dont evaluate the whole the product just in term of actual price but also in terms of implicit costs such as time saved and the comfort gain by the product.
Concept Testing
The idea of pharmaceutical organization has been discussed with many of people involved in the field of medicine, our teachers, patients, whole-sellers as well as the retailers, all of above highly appreciated this idea because of its market potential. So we decided to further proceed with the concept. All the respondents admired our idea and this pharmaceutical organization with the newness. The research was conducted to find out whether the medicines that we are going to offer in the market are acceptable or not. To find out the acceptability of the idea in the market, we use survey technique to get the awareness about the views of the doctors and patients. For this purpose we have used Questionnaire method as a tool to find out facts. Our research has shown that our target oriented doctors and patients wants quality products at lowest possible price. There was positive response of distributors and suppliers.
Marketing Mix
The marketing mix principles are used by business as tools to assist them in pursuing their objectives. The marketing mix principles are the controllable variables, which have to be carefully managed and must meet the needs of the defined target group. The marketing mix is a part of the organization planning process and consists of analyzing the defined:
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Products MEDICATE pharmaceuticals initially is manufacturing 12 medicines. Which are related to blood pressure, or can be used as anti-biotic? List of these products along with their prices is given below Detail of Product line of Medicate pharmaceutical:
Product Name 1 1a 2 2a 3 3a 4 5 5a 6 6a 7 8 8a 9 9a 10 10a 11 11a 12 Mediclox 250mg Mediclox 500mg Amoxicate 375mg Amoxicate 625mg Estrazole 20mg Estrazole 40mg Propetocate 40mg Amitaxime 250mg Amitaxime 500mg Atnotol 50mg Atnotol 100mg Propranol 40mg Clathromine 250mg Clathromine 500mg Cefmid 250mg Cefmid 500mg Cefzox250mg Cefzox 500mg Omepracate 20mg Omepracate 40mg Loratamed Product Formula Ampiclox Ampiclox Co-Amoxiclav Co-Amoxiclav Omeprazol + Estrazenica Omeprazol + Estrazenica Propetocaine Cefotaxime Sodium Cefotaxime Sodium Atenolol Atenolol Propranolol Clarithromycin Clarithromycin Ceftrixone Sodium Ceftrixone Sodium Ceftizoxime Ceftizoxime Omeprazol Omeprazol Loratadine Table t Pack 20 20 6 6 10 10 30 10 10 14 14 30 10 10 10 10 10 10 10 10 10 Sale Price 41 71 52 80 97 173 150 180 330 85.5 142 125 120 195 220 380 149 217 70 130 59.5 No. Of Ingredients Antibiotic Mostly For Chest Infection Antibiotic Mostly For Chest Infection Antibiotics Mostly For Chest Infection Antibiotics Mostly For Chest Infection Stomach Diseases (Ulcer) Stomach Diseases (Ulcer) Blood Pressure Antibiotics Antibiotic Blood Pressure Blood Pressure Blood Pressure Antibiotic Antibiotic Antibiotics Antibiotic Antibiotic Antibiotics
Stomach Diseases (Ulcer) Stomach Diseases (Ulcer) Stomach Diseases
The above enlisted items belonged to the product line of our pharmaceutical organization. These products not only used for the cure, but also provides us the grounds for segmenting our targeted market on the basis of geography and product line.
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Quality Level Best quality at reasonable price is the specialty of our organization Feature Medicate pharmaceutical provides different types of products. Our purpose is providing Affordable Quality, reliability and Consistent improvement in our products MEDICATE Pharmaceuticals is providing health care products to the general public. Pricing Strategy MEDICATE pharmaceuticals will be cost-Plus priced and promotional- based in relation to the dictates of the market. Due to introductory stage of our business we intend to implement a cost-based pricing strategy which will ensure that potential customers are not frightened away by our prices, our products are appreciated and fully consumable. However this will dictate that our costs are practically kept so as to ensure our financial goals come to completion. This is reflected in our prices as stated in the product description of this plan. We intend to keep our income structure to match our cost structure, so as to ensure that the salaries we pay to our employees to assure good service are balanced by the cost we charge to customer. All rates are based on dependent on the raw material and fixed of the organization in product ideas. Channels of Distribution Our product will primarily sold to retailers and then to the ultimate consumer i.e. patients. Medicines will be distributed among the distributor and then will be provided to retailers. We shall hire one distributor named as Global Distributors Gujranwala, for whole Gujranwala division. Promotional Strategy This strategy will primarily based on informing doctors about our existing products and pursuing them for the recommendations of our products. The intensions will be to highlight the benefits of utilization of our products. For our promotional activities, we shall use free sampling, note pad and ball points as the promotional tools for attracting and reminding doctors towards our products.
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These promotional tools will certainly help us to position our products in the minds of doctors for obtaining long term relations.
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Advertising Strategy Direct marketing strategy will be used for the purpose of advertisement and promotional activities. Sales representatives will assist the organization for these activities. MEDICATE pharmaceutical will also be advertised through professional manners like brochures, pamphlets, literature and these will contains enough detail to be communicated about the products offered by the business. This literature will be communicated to the doctors. Website The increasing growth of the internet as an informational source provides us an opportunity to globalize our business. This is particular so in view of the increasing distribution of information over the World Wide Web, as individuals and groups look at obtaining the best deal possible. In all the above we intend to communicate our ability to deliver quality products that will satisfy the customers needs. Hence messages of MEDICATE will influence the engagement decision of prospective customers by emphasizing customers focus and, persuade prospective clients that we are different from our competitors. All the above promotional tools shall be well integrated and utilized in tandem so as to maximize their effects. Brochure Our brochure will contain all of the information needed for doctors. It will include our vision, mission, product detail, diseases and features and benefits of using our products. The broachers will be provided to the doctors, distributors and retailers. Personal Selling Face to face communication is a powerful tool for promotion mainly due to the fact that its flexibility will enable us to match the customers needs to specific attributes of our products as well as giving concise details of what we have to offer. Another important determinant in utilizing personnel selling is the fact that we are relatively new in the market. As such, potential customers/clients will, to a certain degree, be skeptical towards the intended products and how they are able to benefit from them. Personal selling is the most efficient tool in pharmaceutical industries for selling.
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Demand forecast:
At first year of operation of our business will decided to attain the target sales of 150, 00,000 (R.s). But our actual sales are only 1, 14, and 00,000. This is because of our first year of operation in the market, we do have high growth rate but lower market share, in this way we have to bear loss in the first year. But in the second year of commencement of our operations the goodwill of our firm increases which is help to increase our sale. After two to three years we are intended to double our product line i.e. from 12 to 24. This increase in product line has increased our profit. Grounds for forecasting: We are offering 1% commission on sales to the medical raps, in this way they are motivated and do hard work with devotion and passion. We also provide 3% discount to the retailers to motivate them to keep our product line on their stores. Concept testing has facilitated in sales forecast. High market growth rate assists the organization for achieving its sales objective. At the first year of operation our growth rate is high but due to low market share, we suffer from loss. But in the 2nd year we not only enlarged the product line but also increased market share, in this way more sales being made. In starting years our growth rate is expected to be 20% as compared to market growth rate 8% because in starting phase our market share is very low and when we are able to make goodwill the market share is increases with high growth rate of 20%. And after this we are intended to achieve growth rate of industry practice.
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OPERATIONAL ANALYS IS
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Operational Analysis
Method of production The method that we use for the production of medicines is flow or assembly line or mass production. This is the most modern production which is used today. In flow production product is made continuously and in large numbers. The product is move in a line and different type of parts added to it, in this way raw materials are added by the beginning of the line and feather process are added and packaged and ready for sale when it reaches the end of the line. We use this production method because products are produced in the minimum possible time, and wages and other costs are low and the finished products are usually not expensive for the customers.
Raw Material
Medicate pharmaceutical made life saving drugs and the main competitive advantage of this industry is providing quality medicine at reasonable prices. Mostly the manufacturers and suppliers of raw material related to this industry are China and India. Canada also made very best quality of the raw material. But in Pakistan companies buy raw material from India and China. Medicate Pharmaceutical purchase raw material from those companies who produce quality raw material. The nominate companies from which medicate pharma purchase raw material are BBSC (China) Tianjin Zhongpin Chemical Co. LTD (China) Tianjin Taoshi Chemical Co. LTD Fauji Fertilizers (Pakistan) ICI Chemicals ( Pakistan) Medicate pharma not bound to buy raw material from these few suppliers. Medicate pharma search new and new suppliers for getting low prices and quality raw material. Medicate pharmaceutical open Letter of Credit with the bank or the purpose to buy the raw material from outside nations. First we deposit money into the bank and then request the bank to open LC. But sometimes when we have not enough money then we pledge some asset to open LC without deposit of money.
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Production Process
The first step in the production is checking of raw material in the photo spectrometer which gives the results about the quantity and quality of the raw material.
Double Jacket Kettle Machine In the second step mix those ingredients which are required to make a specific medicine and make paste of raw material after that dry that paste and make powder of that past again, for this purpose we use double jacket kettle machine.
http://img.21food.com/img/product/2010/4/29/hstank-13320450.jpg
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Before starting third step we again check the quantity of ingredients present in the paste. We check that the ingredients used for making paste are of required quantity or not. For this purpose take some portion of the paste as a sample and mix it with water in the test tube this fluid in entering into the photo spectrometer this machine shows every ingredient used into the paste as well as the quantity of the ingredient. Tablet Pressing Machine The third step in the manufacturing process is to make tablets, we use 32 punch tablet pressing machine for this purpose. The powder which made in kettle machine insert in the tanker of this machine. This is an automatic machine which manufactures roundabout 20,000 to 25,000 tablets in an hour.
http://image.ec21.com/image/breeze88/oimg_GC01186553_CA01186590/High_Spee d_Rotary_Tablet_Press_Machine.jpg
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Blister Packing Machine The fourth step in manufacturing is the packing of the tables, which is done by the Blister Packing Machine. PVC sheet is use for packing the medicines. This machine makes required shape of that sheet according to the shape of the tablets and after filling it with tablets seal it.
http://www.life.kyutech.ac.jp/~ogawahi/photo/Instrument/Inst-7.JPG
Packing of products: After this process the medicines are packed in the carton. The packing materials used for packing of the products are out sourced and the cost of this packing material is according to the policy of the business, added into the direct material cost. The finished goods are ready to send in the market, after that we send these medicines to the market or store room according to the need. This production method has different advantages. Advantages Finished products are not expensive Manufacture in large quantity Best quality of the product Labor costs are reduce due to use of machinery Produce medicines continuously
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Production is fast Take advantage of economies of scale Every system has advantages as well as disadvantages the disadvantages of this production method are as follow.
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Disadvantages Repetitive work become it boring Employees are less motivated Employee motivation is low Large amount of capital required Machinery breakdown can be stop the production Raw materials must be kept
Quality Control
The focus of quality policy of medicate pharmaceutical has to provide products which are the quality which meet the international quality standards. The products of pharmaceutical company are also named as life saving drugs. So these products are must be good quality. But in Pakistan those companies who provide quality medicine are charging high pricing. We made quality products but the prices of these products are reasonable. We made a target to register our firm with ISO 14000 and ISO 9000 after 2 to three years because these standards required some of the experience for the purpose to registration. We have made significant investment in the testing and quality assurance equipment in the each of our production bases and also ensured a firm with standardization. These are periodically reinforced through personal interaction between our representatives. For quality control we use two different types of machines: Photo spectrometer Tablet disintegration apparatus
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Photo spectrometer Photo spectrometer is used to check the quality of the quality of the raw material. If the raw material is not according to the requirement it sends back to the suppliers and warns them. It is also used to check the quality of the manufactured goods what are the ingredients in it and in what quantity. After checking the quality of the raw material, it sent into the chamber for making the tablet. First the paste is made from the raw material and then again some portion of the paste as a sample sent back for the purpose to check the number and quantity of the ingredients used.
http://www.ap-lab.com/images/V530.jpg
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Tablet Disintegration Apparatus: This apparatus is used for different purposes 1st it is used to find the hardness of the tablet Thickness of the tablet Time required to grind the tablet into the stomach Time to dissolve the tablet into the water
http://www.groversequip.com/images/p_tabdisint.jpg
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HUMAN RESOURCE MANAGEM ENT
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Human Resource Management

Goals of Human Resource (HRM): Following are the goals of human resource management HR officer develops such policies that are aligned with the organization mission and vision. Employees should be hired on merit basis to handle the jobs. Staffing strategies should be cost effective. Arranging the training programs if needed to help the new employees in achieving the organizational goals as well as updating the skills of existing employees. Increase employee performance and motivate them to work. Retention of employees Human Resource Management process consists of four major functions. These are important for Human resource management in any organization. First function: Human resource planning Recruitment Selection In this function HR officer will identify the how many people required, of what qualities, whats labor market, what kinds of indicators keep in mind to select the best one among the choice. Second Function: Orientation Training
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In this function provide the orientation to employees about the company mission, vision, policies, rules and regulations. So that employees well known what kind of manners must keep the mind to conduct their activities. In training, enable employees to enhance their productivities by removing their performance drawback in the challenging environment and brightening the employees future career. Third Function: Performance management In the performance management, evaluate the employees strengths and weaknesses through performance appraisal and get information about results and behaviors of employees in their jobs. Fourth Function: Reward and compensation Reward and compensation most important for employees and organizations, because if employees performed their duties well and get insufficient amount then they will de-motivated even leave the organization. So important for organization to pay their employees according to their jobs importance, grade, experience and performance to retain the competent human resources.
Human Resource Planning:

The purpose of human resource planning is to determine current and future supply and demand of workers. In Medicate Pharmaceutical co. we begins Planning by first developing the Organizational Chart so that we know exactly how many people we required at initial stage of our business, what should be there duties and responsibilities, what kind of skills they should have to perform the job efficiently and ultimately help the organization to achieve its overall goals Meeting future human resource needs: Medicate Pharmaceutical co. meets future needs by its goals. If we properly assessed current needs of our employees then we can easily estimate in which area our organization (medicate pharmaceutical co.) need further staff in future. When HR Planning is applied properly it would assist to address the following questions: How many staff does the Organization have? What quality of employees as far as skills and abilities does the Company have? How should the Organization best utilize the available resources?
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How can the Company retain its employees? Job Analysis: It is a process that use to define job duties, responsibilities, and accountably. This analysis tells us that what is happening on the job, the required task, what kind of knowledge, skills and abilities necessary to perform the task. Job analysis method: There are several methods use to perform job analysis, and we are using questionnaire method and on the basis of these information we made job description and job specification. We are using this method because people who are performing job can better able to explain duties and responsibilities than anyone else.
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Recruitment & Selection Recruitment: Recruitment means locating identifying and attracting the capable candidates. Recruiting goals of Medicate Pharmaceutical Company are as follow The first goal is to communicate the information in such a way that job seekers respond. Provide enough information about job so that unqualified applicants not post their CVs. Getting the pool of applications: Recruiting process should be cost effective. Recruitment source: Our recruitment source is the electronic media through advertisement and employee referrals. Selection: After recruitment process Medicate pharmaceutical co. selects those employees who will meet the criteria. Our selection process is fair and on merit base. Selection device: Different organization uses different selection devices to get the best talent for their organization. In Medicate pharmaceutical co. we are using interviews and job related technical knowledge, as a selection device. Selection panel: In Medicate Pharmaceutical co HR officer and Field related person will be a part of selection panel. These people work together in the selection of employees. All panel members need to commit time necessary to study applicants materials and fully participate in all interviews. Each individual will be an equal member of the panel. The purpose of this panel is to select a highly competent person who meets the criteria. Training & Development: Orientation:
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Medicate Pharmaceutical co. orients its new employees so that he/she familiar with organization culture, its staff members and with the job as well. In orientation HR officer also communicates the relevant HRM policies such as working hours, leave policy, pay, and company benefits to its employees. The purpose of orientation is to facilitate new employee in his/her work so that he/she begins his/her work in comfortable environment without any hesitation.
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Employee training: Every organization needs trained and experienced people to perform its activities efficiently and effectively. Training is present oriented and focuses on employee current job and enhancing those skills in employee that are necessary to perform the current task effectively. For this purpose we do TNA (Training Need Assessment) that will tells us where training is necessary either person need training or organization or the task is not properly designed. Training method: If there is any need to give training to employees then medicate pharmaceutical co. will use on the job training (OJT) method. The purpose of selecting this method is that our trainees learn quickly by using actual tool and equipment. Moreover, there will be no loss of work when training occurs. Employee Performance Management To check the employee performances medicate Pharmaceutical co. set standards for the employees so that it is easy to know whose performance is according to the set standard and who performance is not satisfactory. Takes job description as performance standard because employees are accountable for the all responsibilities mentioned in job description and also responsible for producing result. So if a person is performing well according to job description means standard are met. Moreover, if standards are not met it will help Medicate Pharmaceutical Co management to overcome performance gaps by conducting training for those employees. Compensation and Reward: There are two kinds of rewards financial and non financial rewards. Medicate Pharmaceutical Co. will focus on both rewards. Other benefits: Incentive Pay: It is the pay that organization pays to its employees so that they focused on what is important to the organization. Medicate Pharmaceutical Co. also pays incentives in the form of bonus to sales person so that they try their level best to make maximum sales. NOTE: It is mentioned that this increment is not fixed with the salary and link with the performance of the employees.
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Safety and Health First aid is given to the employees of the company in case of any injury during the performance of the organization work.
Organization Structure:
Functional structure: This structure works best when the organization has few products few locations and few types of customers and routine technology. Management Team:
CEO: A CEO (chief executive officer) is the operating head of a company. He is in charge and accountable for all the operations of the organization and thus holds a very important position. They are the representative and decision maker of an organization and at the highest executive position in any company. This is a position which is associated with power, prestige, responsibilities and financial income. CEO of the Medicate pharmaceutical company has been Mr. Abdul Rasheed who is elected by the partners mutual consent because having more than 20years of excellent experience in medical field.
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Finance Manager: Finance is the one of the most important resource of any business among the others. The important task for finance manager to make financial strategy, managing the accounting system. Finance manager of medicate pharmaceutical company will be (Mr. ABC) having 2-3 minimum experience in the relevant field and 2years in managerial level. Production Manager: To ensure the quality and cost of medicine depend upon the production manager. It is most important that production manager must be experience of handling production activities (form parching to finish product), ability to motivate their subordinates and medicine inspection for best interest of society health. Production manager of medicate pharmaceutical company will be (Mr. XYZ) with 3-5 years relevant field experience and 2years experience as a managerial level. Marketing Manager: Marketing activities most important for lunching of any business product in the market that is possible through brilliant marketers because they are representer of organizational image and capture the customers intentions and loyalty toward product. So the responsibilities of marketing manager are strategy formulation, market competitors analysis. Managers of pharmaceutical company will be (Mr. ABC) having 2-4years relevant field experience and 2years as managerial level experience. HR Officer: Human resources are important asset for any organization. To indentify and elect the best personnel depend upon the ability of HR Officer. But in Medicate pharmaceutical Co. we are hiring HR officer who will work under the CEO. The Human Resource Officer is responsible for providing support to CEO in the various human resource functions, which include recruitment, staffing, training and development, performance monitoring and employee counseling. HR Officer of pharmaceutical company will be (Mr. ABC) having 2-3years experience in the relevant field and minimum 2years experience as managerial level.
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Organizational Structure:
Finance Department:
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Production Department:
Human Resource Department:
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Sales and Marketing Department:
The organizational chart describe here in this diagram. The all core decision of the organization will be taken by the CEO. The other four managers will be the representative of the CEO in the organizations regular activities. All the functional head responsible for the performance of their function report to the CEO.
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Company Ownership: We are six partners invest on equality basis. One is sleeping partner and other five are active partners having same rights in decision making as well as managing the profit and loss of company. Company Culture The culture in Medicate Pharmaceutical Co. is supportive. In this kind of culture, employees are competent, and the organization provides an environment for the development and polishing of employee skills. Medicate Pharmaceutical Co. will try its best to retain the existing employees. Decision making authority All the major decisions are made by CEO with the collaboration of operational managers. So that the decisions are proved affective to achieve the goals those contribute in organizational vision. Management Experience: Having a good working experience, May gives us a competitive edge and it is very important in todays business. Although we do not have experience but we know enough about our business. Some of the general responsibilities of our employees are given below CEO A CEO (chief executive officer) is the operating head of a company. He is in charge and accountable for all the operations of the organization and thus holds a very important position. They are the representative and decision maker of an organization and at the highest executive position in any company. This is a position which is associated with power, prestige, responsibilities and financial income. Duties and Responsibilities: A CEO is responsible for making strategic plans and setting business objectives He evaluates the profitability of the various plans formulated by different departments and discusses them with the board of directors He decide and implement the financial investment plans for the firm He has to analyze and distribute budgets to different projects He must ensure that the financial strategies are firms cost effective and the revenues are maintained
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Besides focusing on generating revenues he also has to decide on expansions through mergers and acquisitions
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Skills and Specifications: A CEO needs to have leadership skills as he has to motivate the entire firm and lead by setting an example himself He should have presence of mind and have quick decision-making abilities He must have good communication and networking skills and interact with other people He must have a natural instinct for business and management He must promote a positive atmosphere and keep track of all the different departments of the company He needs to be a man of integrity and should be honest in his dealings without misusing his power Qualifications The CEO is a designation which is at the highest position in the corporate ladder and so only highly experienced people are given this job. The CEO of medicate pharmaceutical has MBA with 10 years experience of Medical field. Finance Manager: Responsibilities Formulate strategies regarding financial planning Analyzing the competitor performance Managing the accounting system of the company Manage the financial system and record Making contact and looking for new sources who can finance the firm Monitoring cash flows and using the same to predict future financial investments Requirement Degree holder in Finance with 2-4 years experience in business analysis, management reporting, gained with progressive multinational corporations. Good understanding of financial accounting principles.
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Excellent command of English and proficiency in spoken Cantonese is essential, with the ability to effectively communicate with different levels and departments in the organization... Strong command in MS-Excel and PowerPoint. Independent, detail-oriented and organized.
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Production Manager (Pharmaceutical) Duties and Responsibilities: Provide overall management of the ongoing production operations including scheduling, inventory/material planning, documentation, equipment efficiency monitoring and QC/inspection; Management of production manpower training/coaching and talent development; and job allocation, staff
Summaries and analysis production data to keep the continuous improvement; Ability to motivate their subordinates Track quality of all processes through analysis of record data and formation of additional test-points; Perform cross department cooperation and communication. Experience and Qualification: MSc (chemistry) Over 3 years working experience in pharmaceutical manufacturing company and at least 2 years in managerial level; Thorough knowledge of production equipment and methods to achieve high yield production; Ability in developing manufacturing methods; Strong verbal and written communication skills. Marketing Manager: Responsibilities: Formulate marketing strategies to promote product and services Developing pricing strategies that balance customer satisfaction and firm objectives as well Conducting surveys to know the prospective market for the product and services Evaluating financial aspects of product development like expenditures budget and return-on investment.
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Requirements: MBA (Marketing), 2 years experience. Good communication and interpersonal skills Fluency in both written and spoken English and Urdu Proficient in MS Word, Excel and Power point
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HR Officer The Human Resource Officer is responsible for providing support in the various human resource functions, which include recruitment, staffing, training and development, performance monitoring and employee counseling. Duties and Responsibility Provide support to supervisors and staff to develop the skills and capabilities of staff. Monitor staff performance and attendance activities Coordinate staff recruitment and selection process in order to ensure a timely organized and comprehensive procedure is used to hire staff. Provide information and assistance to staff, supervisors and Council on human resource and work related issues. Knowledge, Experience and Qualification: Human resources management Job descriptions Performance review methods and techniques Supervisory skills Team building skills Problem solving skills Degree holder or above in hr management, business administration. At least 3years solid experience in hr generalist of business partner, preferably gained
High influencing capability and ability to work in a cross-cultural environment Strong communication skills with fluency in English
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Designation
Name and contact detail Abdul Rasheed Address: 32-B Green Valley near Sialkot Bypass Gujranwala Contact # 03338611321
Qualification
Job functions Develop strategy Set budget Decision Making Budget allocation Budgeting Maintain Book Record Data handling Improve the operation system Supervise the production Branding Advertisement Sale Support to CEO in Recruitment and selection Employee performance Compansataion And reward
CEO
MBA (Executive)
Finance Manager Production Manager Marketing manager HR Officer Mr. Yaqoob Address 92 freed town Gujranwala Contact: 03466222858
MBA(finance)
Msc Chemistry. MBA (marketing) MBA(HRM)
Number Of Employees Hired: In our organization there are total employees hire for different department according to their skills and abilities. Moreover, while hiring the employees the person and job match as well as person and organization match also is keep in mind so that employees perform the work efficiently and effectively and want to stay with the organization for their career development. Production department Finance department Sales & marketing department Hr Other staff Total 9 3 12 1 4 29 Employees // // // // //
Note: there is 12.5% increase of salary every year.
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Legal Structure
Legal form of ownership: The legal form of the business is partnership firm. The partners in the business are going to invest according to their resources. The profit percentage is according to their investment and bear loss according to their stake in organization. The inclusion or exclusion of the partner will be done with the consent of all. Legal form of organization: The business which we have established is limited partnership firm. The liability of every individual is limited up to his or her stake in the business. Furthermore any partner who wants to withdraw his or her stake can do so with the consent of all other partners. Availability of Qualified Labor Pool A qualified labor pool is available in the Faisalabad of the pharmaceutical manufacturing. We will hire the labor from Faisalabad and Gujranwala. We provide training to the labor which is hire from the Gujranwala.
Business Partnership
This is a partnership business and all the capital invested by the partners. The total amount of capital is 10 million. The portions of the capital invested by the partners are Mr. Rasheed invests 2 million, Mr. Farooq Ahmed invests 3 million, Mr. Ali Raza and Mr. Saleem invest 1.5 million each, and Mr. Usman and Faisal invest 1 million each. Types of business partnership The type of our partnership is limited partnership which is formed under the Partnership act 1932 and registers it with the SMEDA a Pakistani regulatory authority as well as registered with the ministry of health. Mr. Farooq Ahmed has limited liabilities and other partners has unlimited liabilities. Because he is the sleeping partner and not taking an active role in the management of the partnership but he has a right to inspect the account of the firm any time. Other partners are active partners and participate actively in the management of the partnership firm. The new partner can be add by the consent of the active partners only who has unlimited liability. Purposes of business partnership The purpose of partnership is to acquire skills of the partners and make a group of expertise to share knowledge between the groups and to fulfill the requirements of the capital.
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FINANCIAL PLAN
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Financial Plan:
It is the most crushable portion of the project. Finance is the backbone of any organization. We start our business with the startup capital of 10 million. This capital is same for next 3 to 4 years because we decided not expand our business into the other cities of the Pakistan before three years. Initially we launch our business within the Gujranwala division but after the three years when our business built the reputation in the market we expand our business all over the Pakistan. For this purpose we need of capital of 2-3 million. Here is the initial costing of our business Initial Costing # 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Name of Item AC 1 ton Mitsubishi Ac 1.5 ton Mitsubishi Computers Dell Printers HP Fans Pak Fan 56'' Generator 15 KV Van Suzuki Pickup Motor Cycles Yamaha Doom Rotatory machine Double jacket machine Photo spectrometer Tablet Disintegration Apparatus Blister packing machine Cupboards Racks iron Racks glass Chairs Tables Long tables Sofas Special Chairs Computer Tables Side Tables Freezer Laboratory Equipments Digital Scale Quantity 4 4 6 3 12 1 1 2 1 1 1 1 1 6 1 1 24 4 2 2 6 5 2 2 1 2 Rate 38,500 60,000 28,000 12,000 3,800 280,000 500,000 55,000 690,000 120,000 1,600,000 240,000 620,000 5,000 70,000 3,000 900 5,000 8,000 12,000 3,000 5,000 3,000 24,500 80,000 8,000 Amount 154,000 240,000 168,000 36,000 45,600 280,000 500,000 110,000 690,000 120,000 1,600,000 240,000 620,000 30,000 70,000 3,000 21,600 20,000 16,000 24,000 18,000 25,000 6,000 49,000 80,000 16,000 FMAS
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27 28 29 30 31 32 33 34 35 36 37
Wall Clock Raw Material Rent Security First month rent Legal Expenditure IT structure Energy Savers Misclenious Expenses HR Expenses Furnishing of the Building Cash in hand & Bank Total Capital
8 1 1 1 1 1 40 1 1
300 1,000,000 200,000 45,000 180,000 100,000 140 200,000 100,000 200,000
2,400 1,000,000 200,000 45,000 180,000 100,000 5,600 200,000 100,000 200,000 2,784,800 10,000,000
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Source of Capital: We have six number of partners from which one partner named as Mr. M. Farooq is a sleeping partner. He will not be actively participating into the management affairs of the business. The investment of all the partners is mentioned below. Profit and loss are distributed according to the share capital invested.
No. 1 2 3 4 5 6 Name Mr. M. Farooq Abdul Rasheed Faisal Nadeem M. Usman Ali Raza M. Saleem Amount 3,000,000 2,000,000 1,000,000 1,000,000 1,500,000 1,500,000 10,000,000 Share 30% 20% 10% 10% 15% 15%
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Medicate Pharmaceutical Income Statement For the year ended 2012, 2013, 2014 PARTICULARS NOTE 2012 2013 # AMOUNT AMOUNT Rs Rs NET REVENUE 1 11,427,776 22,855,552 LESS: CGS GROSS PROFIT LESS: OPERATING EXPENSES: ADMINISTRATIVE EXPENCES: STAFF"S SALARY DEPRICIATION MAINTAINESS AND REPAIR RENT UTILITIES Fuel Expenses STATIONARY MARKETING EXPENDITURES: ADVERTISMENT EXPENDITURES SELLING COMMISION 1% Sales Commission to Distributer 6% MISCELLENEOUS EXPENDITURES DEFERED COST OPERATING PROFIT Profit before Tax Tax NET PROFIT 2 3,278,938 8,148,839 6,557,875 16,297,677
2014 AMOUNT Rs 29,026,551 8,328,501 20,698,050
3 4 5 6 7 8
3,828,000 672,780 140,000 540,000 1,224,000 315,000 15,000
4,306,500 869,405 180,320 540,000 1,576,512 405,720 17,250
4,844,813 869,405 232,252 540,000 2,030,547 522,567 19,838
9 11 12 13 14
1,436,315 114,278 685,667 100,000 262,667 9,333,706 (1,184,867) (1,184,867)
2,154,473 171,417 1,371,333 115,000 262,667 11,970,596 4,327,081 4,327,081 1,081,770 3,245,311
2,736,180 217,699 1,741,593 132,250 262,667 14,149,811 6,548,239 6,548,239 1,637,060 4,911,179
15 (1,184,867)
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Assets Long term Assets AC 1 ton Ac 1.5 ton Computers Printers Fans Generator Van Motor Cycles Rotatory machine Double jacket machine photo spectrometer Tablet Disintegration Apparatus blister machine Cupboards Racks iron racks glass Chairs Tables long tables Sofas Special Chairs Computer Tables Side Tables Freezer Laboratory Equipments Digital Scale Total Rent Security Current Assets Debtors Inventory Differed cost Cash in Hand & Bank Grand Total
Medicate Pharmaceutical Balance Sheet As on 2012, 2013, 2014 Note 2012 138,600 216,000 134,400 28,800 36,480 245,000 437,500 88,000 603,750 105,000 1,400,000 210,000 542,500 27,000 63,000 2,250 19,440 18,000 14,400 21,600 16,200 22,500 5,400 39,200 60,000 14,400 4,509,420 200,000 765,600 1,000,000 591,000 1,749,113 8,815,133
2013 123,200 192,000 100,800 21,600 27,360 210,000 375,000 66,000 1,181,625 205,500 1,200,000 180,000 1,061,750 24,000 56,000 1,500 17,280 16,000 12,800 19,200 14,400 20,000 4,800 29,400 40,000 12,800 5,213,015 200,000 861,300 1,000,000 394,000 3,567,951 11,236,266
2014 107,800 168,000 67,200 14,400 18,240 175,000 312,500 44,000 1,000,500 174,000 1,000,000 150,000 899,000 21,000 49,000 750 15,120 14,000 11,200 16,800 12,600 17,500 4,200 19,600 20,000 11,200 4,343,610 200,000 968,963 1,000,000 197,000 7,473,401 14,182,974
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Liabilities Equity Capital Profit & Loss Account Less: Cash Disbursement Net Equity Total
Note
2012
2013
2014
10,000,000 (1,184,867)
8,815,133 3,245,311
11,236,266 4,911,179
8,815,133 8,815,133
824,177 11,236,266 11,236,266
1,964,472 14,182,974 14,182,974
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Medicate Pharmaceutical Cash Flow Statement For the year ended 2012, 2013, 2014 NOT PARTICULARS E 2012 2013 # AMOUNT AMOUNT OPERATIONAL ACTIVITIES: Rs Rs NET INCOME (1,184,867) 3,245,311 ADD: DEPRICIATION 1 672,780 869,405 ADD:DEFERED COST OF THAT YEAR 3 197,000 197,000 LESS: INCREASE IN DEBTORS /STOCK 4 765,600 95,700 LESS:ENDING INVENTORY 5 1,000,000 LESS: Deferred Cost Total 788,000 (2,868,687 )
2014 AMOUNT Rs 4,911,179 869,405 197,000 107,663 -
NET CASH FLOW FROM OPERATIONS
4,216,016
5,869,922
INVESTING ACTIVITIES: LESS: PURCHASE OF FIXED ASSETS LESS: RENT SECURITY NET CASH FROM INVESTMENTS FINANCING ACTIVITIES: ADD:EQUITY LESS: CASH DISBURSMENT NET CASH FLOW FROM BUSINESS ADD: OPENING CASH FLOW NET CASH INFLOW 6 5,182,200 200,000 5,382,200 1,573,000 -
1,573,000
10,000,000 10,000,000 1,749,113 1,749,113
824,177 (824,177) 1,818,839 1,749,113 3,567,951
1,964,472 (1,964,472) 3,905,450 3,567,951 7,473,401
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Description of Notes Note # 1: Note for annual sales. Product name Mediclox 250mg Mediclox 500mg Amoxicate 375mg Amoxicate 625mg Propetocate 40mg Amitaxime 250mg Amitaxime 500mg Atnotol 50mg Atnotol 100mg Propranol 40mg Clathromine 250mg Clathromine 500mg Cefmid 250mg Cefmid 500mg Cefzox250mg Cefzox 500mg Omepracate 20mg Omepracate 40mg Estrazole 20mg Estrazole 40mg Loratamed Total
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Formula Ampiclox Ampiclox Co-amoxiclav Co-amoxiclav Propetocaine Cefotaxime Sodium Cefotaxime Sodium Atenolol Atenolol Propranolol Clarithromyci n Clarithromyci n ceftrixone sodium ceftrixone sodium Ceftizoxime Ceftizoxime Omeprazol Omeprazol Omeprazol + estrazenica Omeprazol + estrazenica Loratadine
Qt 20 20 6 6 30 10 10 14 14 30 10 10 10 10 10 10 10 10 10 10 10
Unit Price 41
Discou nt 15% 35
Discou nt 3% 34 59 43 66 124 148 272 70 117 103 99 161 181 313 123 179 58 107 80 143 49
No. of units sold 4,000 6,000 10,000 8,000 3,500 6,000 4,500 3,500 4,000 3,500 6,000 3,200 3,500 3,500 1,500 1,500 10,000 7,000 5,500 5,000 12,000
Total Sale
135,218 351,237 428,740 527,680 432,863 890,460 1,224,383 246,732 468,316 360,719 593,640 514,488 634,865 1,096,585 184,276 268,375 577,150 750,295 439,871 713,193 588,693 11,427,776 FMAS
71 60 52 44 80 68 150 128 180 153 330 86 142 125 120 102 195 166 220 187 380 149 217 70 130 111 97 82 173 60 147 51 323 127 184 60 281 73 121 106
Sales projections for three proceeding years: Particulars 2012 2013 2014 Calculations Amount RS 11,427,776 22,855,552 29,026,551
(11,427,776*2) (22,855,552*127/100)
Table # 1 shows the sales projections of the whole year. This table explains what number of units sold during the year for which tablet as well as this table also shows the sale price and discount given to the retailers. Cost of goods sold: Following table shows different cost of the relevant products. This cost includes the cost of raw material import from other country and reached to the factory. Every direct expense already added into this cost.
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Note # 2: Annual projection of cost of goods sold. Product name Mediclox 250mg Mediclox 500mg Amoxicate 375mg Amoxicate 625mg Propetocate 40mg Amitaxime 250mg Amitaxime 500mg Atnotol 50mg Atnotol 100mg Propranol 40mg Clathromine 250mg Clathromine 500mg Cefmid 250mg Cefmid 500mg Cefzox250mg Cefzox 500mg Omepracate 20mg Omepracate 40mg Estrazole 20mg Estrazole 40mg Loratamed total Formula Ampiclox Ampiclox Co-amoxiclav Co-amoxiclav Propetocaine Cefotaxime sodium Cefotaxime sodium Atenolol Atenolol Propranolol Clarithromycin Clarithromycin ceftrixone sodium ceftrixone sodium ceftizoxime ceftizoxime Omeprazol Omeprazol Omeprazol estrazenica Omeprazol estrazenica Loratadine + + Unit price 20 20 6 6 30 10 10 14 14 30 10 10 10 10 10 10 10 10 10 10 10 Cost 10.25 17.75 13 20 37.5 45 82.5 21.37 5 35.5 31.25 30 48.75 55 95 37.25 54.25 14 26 19.4 34.6 11.9 Units sold 4,000 6,000 10,000 8,000 3,500 6,000 4,500 3,500 4,000 3,500 6,000 3,200 3,500 3,500 1,500 1,500 10,000 7,000 5,500 5,000 12,000 Total 41,000 106,500 130,000 160,000 131,250 270,000 371,250 74,813 142,000 109,375 180,000 156,000 192,500 332,500 55,875 81,375 140,000 182,000 106,700 173,000 142,800
3,278,938
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CGS projections for three proceeding years: Particulars Total CGS 2012 Total CGS 2013 Total CGS 2014 Calculations Amount Rs 3,278,938 6,557,875 8,328,501
(24194400*2) (30484944*127/100)
CGS includes both variable and fixed cost but we only mentioned variable cost and fixed cost is mentioned with admin expenses. But for better understanding of our variable cost we mentioned here per unit CGS of some of the goods.
Cost Per Unit Mediclox 250mg Amoxicate 375mg Propetocate 40mg Variable Cost/unit 16 18 43 Fixed Cost/unit 9.39 9.39 9.39 Total Cost 25 28 52
In the above per unit cost of three of the products is mentioned. In this table variable cost includes Material cost, maintenance coat of the machinery and utility cost of the manufacturing process. Fixed cost includes depreciation of the machinery and some other cost related to the manufacturing process.
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Note # 3: Staff Salary DESCRIPTION Production Manager Purchase Officer Pharmacist Lab Assistant Machinery Operators Paker Total Marketing manager Assistant Sales persons Total NO OF SALARY/ EMPLOYEES EMPLOYEE PRODUCTION STAFF 1 1 1 1 3 2 9 MARKETING STAFF 1 1 10 12 FINANCE STAFF Finance Manager Assistant Total HR Officer Total Store Keeper Sweeper Security Guards Total Grand TOTAL 1 2 3 HRM STAFF 1 1 1 1 2 4 29 14,000 OTHER STAFF 8,000 6,000 7,000 8,000 6,000 14,000 28,000 96,000 72,000 168,000 336,000 3,828,000 14,000 14,000 168,000 168,000 20,000 10,000 20,000 20,000 40,000 240,000 240,000 480,000 20,000 10,000 10,000 20,000 10,000 100,000 130,000 240,000 120,000 1,200,000 1,560,000 25,000 14,000 20,000 10,000 8,000 7,000 SALARY/ MONTH 25,000 14,000 20,000 10,000 24,000 14,000 107,000 ANNUAL SALARY 300,000 168,000 240,000 120,000 288,000 168,000 1,284,000
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Salary projections for three proceeding years

Particulars
Calculations
2012 2013 2014 3,828,000*1.125 4,306,,500*1.125
Amount Rs 3,828,000 4,306,500 4,844,813
Note # 4: DEPRICIATION EXPENSE

Unit Cost 38,500 60,000 28,000 12,000 3,800 280,000 500,000 55,000 690,000 120,000 1,600,000 240,000 620,000 5,000 70,000 3,000 900 5,000 8,000 12,000 3,000 5,000 3,000 24,500 80,000 8,000 Total 154,000 240,000 168,000 36,000 45,600 280,000 500,000 110,000 690,000 120,000 1,600,000 240,000 620,000 30,000 70,000 3,000 21,600 20,000 16,000 24,000 18,000 25,000 6,000 49,000 80,000 16,000 Percentage 10% 10% 20% 20% 20% 12.50% 12.50% 20% 12.5% 12.5% 12.50% 12.5% 12.50% 10% 10% 25% 10% 10% 10% 10% 10% 10% 10% 20% 25% 10% Total Depriciaion 15,400 24,000 33,600 7,200 9,120 35,000 62,500 22,000 86,250 15,000 200,000 30,000 77,500 3,000 7,000 750 2,160 2,000 1,600 2,400 1,800 2,500 600 9,800 20,000 1,600 672,780 1 759,000 759,000 12.50% 94,875
AC 1 ton Ac 1.5 ton Computers Printers Fans Generator Van Motor Cycles Rotatory machine Double jacket machine Photo spectrometer Tablet Disintegration Apparatus Blister machine Cupboards Racks iron Racks glass Chairs Tables Long tables Sofas Special Chairs Computer Tables Side Tables Freezer Laboratory Equipments Digital Scale
4 4 6 3 12 1 1 2 1 1 1 1 1 6 1 1 24 4 2 2 6 5 2 2 1 2
Depreciation of 2012
Rotatory machine 72 Page
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Double jacket machine Blister machine
1 1
132,000 682,000
132,000 682,000
12.50% 12.50%
16,500 85,250 869,405 869,405
Depriciaion for 2013 Depreciation for 2014
1,573,000
In this table three different depreciation expenses are mentioned but we use strait line method for the purpose to calculate the depreciation. In strait line method the amount of depreciation calculated is same. The reason of different depreciation is we buy further three assets in the starting of 2nd year and this is the reason the depreciation of 1st year is different from the 2nd year. Note # 5: Maintenance & Repair Expenses Particulars
Generator Van Motorcycles Machinery furniture Other Assets Total
Amount Rs
25,000 20,000 10,000 30,000 5,000 50,000
140,000
Projection for three proceeding years: Years 2012 2013 2014 Calculations Amount Rs 140,000 180,320 232,252
140,000*1.15*1.12 180,320*1.15*1.12
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Note # 6: Rent Expense Particulars 45,000*12 Total rent for a year Amount 540,000 540,000
Rent Expense is fixed for next three years according to the rent agreement.
Note # 7: UTILITIES For 6 months (summer) For 6 months (winter) YEARLY(M*12) Total 1,140,000 48,000 36,000 1,224,000 80000*6 4,000*6 3,000*6
ELECTRICITY TELEPHONE GAS
110000*6
4,000*6
3,000*6
Projections for three years:

Years
Calculations
2012 2013 2014 12,24,000*1.15*1.2 1,576,512*1.15*1.2
Amount Rs 1,224,000 1,576,512 2,030,547
In the summer season the consumption of electricity increases because the use of air conditioner and fans increases but in the winter season this consumption is reduced. This is the reason there is the difference between amounts of summer and winter bills of electricity.
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Note # 8: Fuel Expenses Particulars

Generator Expenses Van Bike
Calculations
600/day * 300 300/day * 300 150/day * 300
TOTAL
Amount Rs. 180,000 90,000 45,000 315,000

Amount Rs 315,000 405,720 522,567
Years 2012 2013 2014
Calculations 315,000*1.15 405,720*1.15
Note # 9: Stationery Consumed.

Years
Calculations
Amount Rs 315,000 405,720 522,567
2012 2013 2014 315,000*1.15 405,720*1.15
The amount of stationary for the year is too low. The reason is that our most of the work is computer based only invoices or some reports at the end of the year are issued. So the use of stationary is low in our firm.
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Note # 10: Advertisement Expenditure Pamphlet Brushers Dairies Pads Pencils Samples Total 9.25*20000 2.8*30000 85*5000 18*20000 6*20000 8% of CGS 185,000 84,000 425,000 360,000 120,000 262,315 1,436,315
Projections for the next three years:

Years 2012 2013 2014 Calculations Amount Rs 1,436,315 2,154,473 2,736,180
1,436,315*1.5 2,154,473*1.27
Note # 11: Selling commission given to the Companies Representative (Medical Rap)
Years 2012 2013 2014 Calculations (1%*11,427,776) (0.75%*22,855,552) (0.75%*29,026,551) Amount 114,278 171,417 217,699
This commission is given on the basis of the sales done into the area given to the medical rap. This is the motivational factor for these persons. If the proportion of sales increases their proportion of commission also increases.
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Note # 12: Commission given to the Distributers

Years 2012 2013 2014 Calculations (6%*11,427,776) (6%*22,855,552) (6%*29,026,551) Amount Rs 685,667 1,371,333 1,741,593
Distributer is the consignee for us so his earning is according to the sales done. We give him 6% commission because in the industry same percentage of commission given to the consignees. Note # 13: Miscellaneous expenses
Years 2012 2013 2014 315,000*1.15 405,720*1.15 Calculations Amount Rs 315,000 405,720 522,567
Note # 14: Deferred Cost

Particulars Miscellaneous expenses Wall Clock Tube Lights IT Structure HR expenses LEGAL EXPENENCES Furnishing of Building TOTAL Amount Rs. 200,000 2,400 5,600 100,000 100,000 180,000 200,000 788,000
Years
Amount
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Calculations
2012 2013 2014 2015 788000/3 788000/3 788000/3 788000/3
Rs. 197,000 197,000 197,000 197,000
W is decided to write off our deferred cost within four years. So each year 197,000 must be written off. Note # 15: Tax Calculation
Year Operating Profit Tax Rate Tax Amount Rs. Percentage Rs. 2012 -1,184,867 0 2013 4,327,081 25% 1081770 2014 6,548,239 25% 1637060
Our firm is registered and there is lot of benefits of registered firm, one of them is tax relaxation. The tax rate on non registered firm is higher than that of registered firm. According to the income tax ordinance there are 5 buckets of tax on the basis of income. We are falling in the last bucket so the tax rate applied on our firm is 25%. Note # 16: Debtors
Particular Total debtors 2012 Total debtors 2013 Total debtors 2014 Calculations 15% of Sales 15% of Sales 15% of Sales Amount Rs 765,600 861,300 968,963
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Note # 17: Cash Disbursement

Years NET PROFIT Rs 2012 2013 2014 (1,184,867) 3,245,311 4,911,179 2,060,444 AMOUNT Rs 40% DISTRIBUTED 824,177 1,964,472 AMOUNT Rs 60% RESEERVE 1,236,266 2,946,708
According to the partnership agreement profit & loss is distributed between the partners according to the investment in shape of capital and 40% of the profit is distributed among the partners and 60% of the profit is reserve of the business.
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Critical Risk Analysis

Management Risks
Management risks are those which we can face while managing the working of our firm. Following are the management risks which we can face. First of the management risk which we can face is regarding to our planning means if we perform any function which is beyond our planning then it is difficult to manage. Mitigation If we are trying to secure from that type of risk it is important that we perform the activities according to our strategies and if there is any change required in the strategy there must be change the strategy. Second one is regarding the safety and welfare of employees. If we dont care our employees it will create management issues regarding their work. Mitigation There is proper safety provided the employees and again and again check the performance of the employees by conducting surveys. This process gives the feedback that the employees are satisfied or not. Another is regarding motivation of employees if they are de-motivated then they will never perform their work according to our expectation. Mitigation This is very critical situation for any organization. If their employees are demotivated, working of the organization will be reducing. For prevention of this risk it is very important that the positive needs of the employees must be fulfilled. Bonuses are the best tool to motivate the employees. If bonuses are properly given the employees are being motivated. If there is any change in the external environment it will change our strategy and is difficult to manage the work according to new strategy. Mitigation New strategy is difficult to adopt by the organization because sometimes the environment of the organization is rigid and most of the employees are restrict to
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adopt change. The solution of this problem is that we try to our organization more flexible which easily adopt change. Lack of coordination among employees. If there is no coordination between the employees, the horizontal communication will be stopped and the performance of the organization will be disturbed. Mitigation We mitigate this risk by creating friendly environment and reducing conflict rising between the employees.
Marketing Risks
Marketing is the part of your business that transforms production activities into financial returns. However, many unanticipated forces, such as weather, market trends and government actions, can lead to marketing risks. Following are the marketing risks that we can faced Increase in the competition or entry of new competitors in the market. Mitigation We are trying to minimize this risk by increasing our product line and by continuously improve the product quality which is help to improve our market share. Lack of availability of suppliers of our product in the market. There are only few countries which provide raw material for medicine. There is no any supplier locally available which made raw material. Mitigation With the passage of time when the good will of our company increased this threat of suppliers minimized. Because when the good will of our company increased the suppliers wants to work with us. Weak market strategy exploits strengths of business. Mitigation Marketing strategies are the strength of our business. Our business is mostly depends upon which type of marketing we done. So we are focus on marketing strategies and when any strategy feels to not suitable for our business we change this strategy as early as possible.
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Operational Risks
Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. Following are the major operational risks that can be faced by our firm. External fraud by supplier if they do not supply us the quality raw material due to which the medicine quality can be affected. Low quality raw material effect the quality of our product Mitigation When the raw material reaches to the factory, first of all we are checking the quality of the raw material. If quality is not good, the raw material gets back to the supplier. We use latest technology used for this purpose. Damage to any physical assets of our organization like machinery or building. The working of the organization stops which badly affect the organizational good will because the products are not reached to the market Mitigation Certain measure is adopted for the safety of the machines. Initially we have only one set of machines but in future we increase the number of machines which is helpful to remove this risk. During the process of recruitment if we hire ineligible candidates. These employees are very harmful for the organization. They can spoiled the machinery or disturb the other functions of the organization. Mitigation To avoid such a risk we will conduct a training program for the employees, in which employees learn all they know how about the machinery, by such a training the can operate the machinery more properly. Employees can conduct internal fraud by misbehaving or not performing up to the mark. Mitigation: Our organization will use the latest computer technology for monitoring the employees such as TTC cameras. When employees leave the factory the security guard will check the employees.
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Technology is also another risk for the management when the firm adopts new technology there is change required to use this technology but the management are resist this change. Mitigation We are trying to use technology to support people, not to replace people. Often it is best to work out a process manually before adding technology to support the process.
Financial Risks
Financial risks are associated with the financial structure of our business, the transactions our business makes and the financial systems we already have in place. Following are the financial risks faced by us; First of all if we extend credit to new customers then we can face financial difficulty in case of non-repayment. Mitigation This risk is very difficult to mitigate us because we are establishing a new business and for the purpose to increase sale it is important to give the credit to the customers. For the purpose to mitigate this risk we give discount to the customers. Get cash against of sales. I think it is suitable to mitigate this risk If we do not earn profit according to our expectations. Mitigation If we are failing to earn profit according to our expectations, we are change our strategies of distribution enter into the new market to increase our sales which ultimately increase our profit. At started we gave discounts to our customers but with the passage of time when the firm is established we reduced the discount margin which is also helpful to increase our profit. Change in inflation rate in market. Mitigation It is also a huge risk for us because the prices of pharmaceutical products are fixed within at least of five years. Now ministry of health allows the companies to increase their prices and ordered that these prices are fixed till 2018. But these prices are set by forecasting of inflation rate of the country. We also follow this strategy and set our prices by adjusting the inflation rate.
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Exchange rate will also cause financial risk because we have to deal with other countries. Mitigation Exchange rate is major threat for us and it occur when the currency value fluctuate. We take measures of currency swap to deal with this. We make future and forward contracts with our suppliers to minimize this risk.
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Exit Strategy:
Considering the fact that liquidity for Medicate pharmaceutical is low so we have proposed the following exit strategy In case of business failure: If in case we dont get success in our business then we would first remove that part of business in which we are bearing loss. If the business will be a complete failure we will dissolve the business and return would be distributed among all the partners as per their proportion in investment. If any individual partner decides to quit the partnership then the exit path for that partner is defined in the partnership deed as: The quitting partner cannot start a new business of this kind for up to four years and cannot use the brand name or patents of the business as well. The quitting partner will only be given his/her share of investment at that time excluding the current profit.
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References:
http://www.scribd.com/doc/23736756/Pharma-Industry-Pakistan-andHerbion-Pharma-Company-Swot-Analysis http://xa.yimg.com/kq/groups/18751725/1377877507/name/Pakistan+Pharma ceutical+and+Healthcare+Report++Q3+2010.pdf http://xa.yimg.com/kq/groups/18751725/1377877507/name/Pakistan+Pharma ceutical+and+Healthcare+Report++Q3+2010.pdf http://internationalbusiness.wikia.com/wiki/Medical_Industry_in_Pakistan http://www.google.com.pk/#hl=en&q=contribution+of+pharma+industry+to+ gdp+of+pakistan&oq=contribution+of+pharma+industry+to+gdp+of+pakistan &aq=f&aqi=&aql=&gs_sm=s&gs_upl=127425l152102l0l56l35l0l8l0l6l3502l 12692l2.0.1.2.0.2.8-4.1&fp=fe14e59af4796bfb&biw=1192&bih=587 http://www.health.gov.pk/ http://www.ppma.org.pk/Pakistan.aspx http://individual.utoronto.ca/adamlewinberg/Access/Box4.htm www.bus.indiana.edu/davidso/.../pharmaceutical %20industryaug12.doc http://www.imshealth.com/portal/site/ims/menuitem.d248e29c86589c9c30e81 c033208c22a/? vgnextoid=119717f27128b210VgnVCM100000ed152ca2RCRD http://en.wikipedia.org/wiki/Pharmaceutical_industry
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Appendix
Following are the items attach with the project in the appendix Visiting Card Brusher Sample Questionnaire Research work
Visiting Card:
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Questionnaire
We are the student of MBA in university of Gujarat and for completion of our degree we have to make a final project on the pharmaceutical company. To complete the prerequisite study we need your cooperation. Name__________________________ Qualification__________________________ Area of specialization_______________________________________________ Experience______________________ Number of patient visits in 1 weak______________________________
1. Do sufficient medicines available in the market for diabetes?

a) Strongly Agree b) Agree c) Not Sure d) Disagree e) Strongly Disagree
2. Do sufficient medicines available in the market for blood pressure?

3. Do sufficient medicines available in the market for stomach diseases?

4. Are the current medicines in the market having good quality?

5. Do you recommend the high potency medicine to the patients at initial?

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6. Do you recommend the medicines which are easily available in the market?
7. Did you recommend costly medicines to the patients?

8. Companys representatives are a big source of information about the product.

9. Are you satisfied from marketing strategies of companies?

10.
Will you shift your preference, if a better substitute is available?

c) Not Sure d) Disagree e) Strongly Disagree
a) Strongly Agree b) Agree
11.
Will you shift your preference on the base of low cost?

12.
Will you shift your preference on the base on quality?

13.
Will you shift your preference if the medicine is widely available?

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For the purpose to start a business there is the requirement to conduct the research for the reason to note that rather the business which we want to start will be successful in near future or not. This research is conducted from those respondents which are the future customers of this business.
Do sufficient medicines available in the market for diabetes? Frequency Valid Strongly Agree Agree Neutral Disagree Strongly Disagree Total Total 2 7 3 1 1 14 15 Percent Valid Percent 13.3 46.7 20.0 6.7 6.7 93.3 100.0 14.3 50.0 21.4 7.1 7.1 100.0 Cumulative Percent 14.3 64.3 85.7 92.9 100.0
As for as the survey for accessing the availability of drugs for Diabetes is concerned, 14.3 % of our participants were strongly agreed, while 50.0 % are agreed, 21.4% are neutral, 7.1 % are disagree, and 7.1% are strongly disagreed with our statement. This study reveals that there is still very much potential of a new pharmaceutical company. This statistical approach not only gave us the figures for opportunity but also works as an alarm for tough competition a head.
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Do sufficient medicines available in the market for blood pressure? Frequency Valid Strongly Agree Agree Neutral Disagree Strongly Disagree Total Total 3 4 3 3 1 14 15 Percent 20.0 26.7 20.0 20.0 6.7 93.3 100.0 Valid Percent 21.4 28.6 21.4 21.4 7.1 100.0 Cumulative Percent 21.4 50.0 71.4 92.9 100.0
This question helped us to analyze that 21.4 % of respondent were strongly agreed, 28.6 % are agreed, 21.4 % are Neutral, 21.4 % are disagreed, and 7.1 strongly disagreed with the statement. This analysis shows that market has great potential for drugs of blood pressure. It has specified demand which is increasing day by day.
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Do sufficient medicines available in the market for stomach diseases? Frequency Valid Strongly Agree Agree Neutral Disagree Total Total 3 3 1 7 14 15 Percent 20.0 20.0 6.7 46.7 93.3 100.0 Valid Percent 21.4 21.4 7.1 50.0 100.0 Cumulative Percent 21.4 42.9 50.0 100.0
This question helped us to analyze that 21.4 % of respondent were strongly agreed, 21.4 % are agreed, 7.1% are Neutral, and 50 % are disagreed, with the statement. This analysis exhibits that market has great potential for drugs related to stomach diseases to increase its sales margin and having a good repute in the market.
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Are the current medicines in the market having good quality? Frequency Valid Strongly Agree Agree Neutral Disagree Strongly Disagree Total Total 2 4 2 2 4 14 15 Percent 13.3 26.7 13.3 13.3 26.7 93.3 100.0 Valid Percent 14.3 28.6 14.3 14.3 28.6 100.0 Cumulative Percent 14.3 42.9 57.1 71.4 100.0
This question helped us to analyze that 14.3% of respondent were strongly agreed, 28.6 % are agreed, 14.3% are Neutral, 14.3 % are disagreed and 28.6 % are strongly disagreed with the statement. This analysis exhibits that market has great potential for quality drugs. Currently our valued customer is not satisfied with the quality of available drugs in the market. So it is a chance for any pharma to produce standard, quality medicine and capture the potential opportunity.
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Do you recommend the high potency medicine to the patients at initial? Frequency Valid Strongly Agree Agree Neutral Disagree 5 Total Total 1 2 6 1 4 14 15 Percent 6.7 13.3 40.0 6.7 26.7 93.3 100.0 Valid Percent 7.1 14.3 42.9 7.1 28.6 100.0 Cumulative Percent 7.1 21.4 64.3 71.4 100.0
This question helped us to analyze that 7.1% of respondent were strongly agreed, 14.3 % are agreed, 42.9% are Neutral, 7.1 % are disagreed and 28.6 % are strongly disagreed with the statement. This analysis exhibits that market do not need produce low potency drugs at beginning.
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Do you recommend the medicines which are easily available in the market? Frequency Valid Strongly Agree Agree Neutral Disagree Total Total 1 3 7 3 14 15 Percent 6.7 20.0 46.7 20.0 93.3 100.0 Valid Percent 7.1 21.4 50.0 21.4 100.0 Cumulative Percent 7.1 28.6 78.6 100.0
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Did you recommend costly medicines to the patients? Frequency Valid Strongly Agree Agree Neutral Disagree Strongly Disagree Total Total 4 4 2 1 3 14 15 Percent Valid Percent 26.7 26.7 13.3 6.7 20.0 93.3 100.0 28.6 28.6 14.3 7.1 21.4 100.0 Cumulative Percent 28.6 57.1 71.4 78.6 100.0
This question helped us to analyze that 28.6% of respondent were strongly agreed, 28.6 % are agreed, 14.3% are Neutral, 7.1 % are disagreed and 21.4 % are strongly disagreed with the statement. This analysis exhibits that market do not need highly priced drugs. It needs to produce low price drugs with high quality.
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Companys representatives are a big source of information about the product. Frequency Valid Strongly Agree Agree Neutral Disagree Strongly Disagree Total Total 4 4 4 1 1 14 15 Percent 26.7 26.7 26.7 6.7 6.7 93.3 100.0 Valid Percent 28.6 28.6 28.6 7.1 7.1 100.0 Cumulative Percent 28.6 57.1 85.7 92.9 100.0
This question helped us to analyze that 28.6% of respondent were strongly agreed, 28.6 % are agreed, 28.6 % are Neutral, 7.1 % are disagreed and 7.1 % are strongly disagreed with the statement. This analysis exhibits that medical representatives play great role in promoting a product.
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Are you satisfied from marketing strategies of companies? Frequency Valid Strongly Agree Agree Neutral Disagree Strongly Disagree Total Total 3 3 4 3 1 14 15 Percent 20.0 20.0 26.7 20.0 6.7 93.3 100.0 Valid Percent 21.4 21.4 28.6 21.4 7.1 100.0 Cumulative Percent 21.4 42.9 71.4 92.9 100.0
as far as the analysis of this query is concerned, 21.4% of respondent were strongly agree, 21.4 % are Agreed, 28.6 are Neutral, 21.4 % are disagreed, and 7.1 5 are strongly disagreed. This analysis shows that there is much potential for Medicate pharma to exploit the opportunities by using its marketing strategies. It shows great opportunity for us to market our product in a better way.
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Will you shift your preference, if a better substitute is available? Frequency Valid Strongly Agree Agree Neutral Disagree Strongly Disagree Total Total 3 5 2 3 1 14 15 Percent 20.0 33.3 13.3 20.0 6.7 93.3 100.0 Valid Percent 21.4 35.7 14.3 21.4 7.1 100.0 Cumulative Percent 21.4 57.1 71.4 92.9 100.0
as far as the analysis of this question is concerned it is more important to , 21.4% of respondent were strongly agree, 35.7% are Agreed, 14.3are Neutral, 21.4 % are disagreed, and 7.1 are strongly disagreed. This analysis shows that there is much space for a new firm to enter and shift the preferences of valued customer towards its products.
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Will you shift your preference on the base of low cost? Frequency Valid Strongly Agree Agree Neutral Strongly Disagree Total Total 4 6 2 2 14 15 Percent 26.7 40.0 13.3 13.3 93.3 100.0 Valid Percent 28.6 42.9 14.3 14.3 100.0 Cumulative Percent 28.6 71.4 85.7 100.0
This query shows us results as, 28.6% of respondent were strongly agree, 42.9 % are agreed, 14.3% are Neutral, and 14.3 % are strongly disagreed. This analysis reveals that market has much potential for pharmaceutical organization to grab the favor by producing low cost products. High quality at low cost always attracts customers because of its favorability.
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FMAS
Will you shift your preference on the base on quality? Frequency Valid Strongly Agree Agree Neutral Disagree Total Total 6 4 2 2 14 15 Percent 40.0 26.7 13.3 13.3 93.3 100.0 Valid Percent 42.9 28.6 14.3 14.3 100.0 Cumulative Percent 42.9 71.4 85.7 100.0
This question shows results as, 42.9 % of respondent were strongly agreed, 28.6 % are agreed, 14.3% are Neutral, and 14.3 % are disagreed. This analysis reveals that market has much potential for pharmaceutical organization to grab the favor by producing high quality products. High quality at low cost always attracts customers.
101 Page
FMAS
Will you shift your preference if the medicine is widely available? Frequency Valid Strongly Agree Agree Neutral Disagree Strongly Disagree Total Total 3 4 2 4 1 14 15 Percent 20.0 26.7 13.3 26.7 6.7 93.3 100.0 Valid Percent 21.4 28.6 14.3 28.6 7.1 100.0 Cumulative Percent 21.4 50.0 64.3 92.9 100.0
This question helped us to analyze that 21.4 % of respondent were strongly agreed, 28.6 % are agreed, 14.3% are Neutral, 28.6 % are disagreed, and 7.1 strongly disagreed with the statement. This analysis shows that market has much tendency for pharmaceuticals to catch the favor by providing product at every place through effective distribution channels. Availability always affects the sales.
102 Page
FMAS
Conclusion: According to PPMA there is huge potential in this sector but from the conducted research we found that is a little need of new medicines in the market. According to the physicians they recommend those medicines which are good quality and easily available in the market. So there is an opportunity existing in the market for new pharmaceutical firm because physicians shift their preferences on the base of quality, price and availability.
103 Page
FMAS

Medicate Pharmaceutical New

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Medicate Pharmaceutical New

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Medicate Pharmaceutical

Sir Adnan Bashir

Master of Business Administration

Number Of Employees Hired:

Vision & Mission Statement

Michael Porter provided a framework that models an industry as being influenced by

HUMAN RESOURCE MANAGEM ENT

Human Resource Management

Human Resource Planning:

Human Resource Department:

Sales and Marketing Department:

Msc Chemistry. MBA (marketing) MBA(HRM)

Note: there is 12.5% increase of salary every year.

2014 AMOUNT Rs 29,026,551 8,328,501 20,698,050

3,828,000 672,780 140,000 540,000 1,224,000 315,000 15,000

4,306,500 869,405 180,320 540,000 1,576,512 405,720 17,250

4,844,813 869,405 232,252 540,000 2,030,547 522,567 19,838

1,436,315 114,278 685,667 100,000 262,667 9,333,706 (1,184,867) (1,184,867)

824,177 11,236,266 11,236,266

1,964,472 14,182,974 14,182,974

2014 AMOUNT Rs 4,911,179 869,405 197,000 107,663 -

NET CASH FLOW FROM OPERATIONS

10,000,000 10,000,000 1,749,113 1,749,113

824,177 (824,177) 1,818,839 1,749,113 3,567,951

1,964,472 (1,964,472) 3,905,450 3,567,951 7,473,401

Salary projections for three proceeding years

2012 2013 2014 3,828,000*1.125 4,306,,500*1.125

Amount Rs 3,828,000 4,306,500 4,844,813

Note # 4: DEPRICIATION EXPENSE

Double jacket machine Blister machine

16,500 85,250 869,405 869,405

Depriciaion for 2013 Depreciation for 2014

Projections for three years:

2012 2013 2014 12,24,000*1.15*1.2 1,576,512*1.15*1.2

Amount Rs 1,224,000 1,576,512 2,030,547

Note # 8: Fuel Expenses Particulars

Amount Rs. 180,000 90,000 45,000 315,000

Years 2012 2013 2014

Calculations 315,000*1.15 405,720*1.15

Note # 9: Stationery Consumed.

Amount Rs 315,000 405,720 522,567

2012 2013 2014 315,000*1.15 405,720*1.15

Projections for the next three years:

Note # 12: Commission given to the Distributers

Note # 14: Deferred Cost

Rs. 197,000 197,000 197,000 197,000

Note # 17: Cash Disbursement

Critical Risk Analysis

1. Do sufficient medicines available in the market for diabetes?

2. Do sufficient medicines available in the market for blood pressure?

3. Do sufficient medicines available in the market for stomach diseases?

4. Are the current medicines in the market having good quality?

5. Do you recommend the high potency medicine to the patients at initial?

7. Did you recommend costly medicines to the patients?

8. Companys representatives are a big source of information about the product.

9. Are you satisfied from marketing strategies of companies?

Will you shift your preference, if a better substitute is available?

a) Strongly Agree b) Agree

Will you shift your preference on the base of low cost?

a) Strongly Agree b) Agree

Will you shift your preference on the base on quality?

a) Strongly Agree b) Agree

2012 2013 2014 3,828,0001.125 4,306,,5001.125

2012 2013 2014 12,24,0001.151.2 1,576,5121.151.2

Calculations 315,0001.15 405,7201.15

2012 2013 2014 315,0001.15 405,7201.15