Overall Company Performance of Glaxosmithkline (gsk) in Bangladesh

PART - I

INTRODUCTION

1.1 INTRODUCTION

GlaxoSmithKline (GSK) is a world leading research-based pharmaceutical company with a powerful combination of skills and resources that provides a platform for delivering strong growth in today's rapidly changing healthcare business environment.

This reports concerns the financial analysis of the disclosures presented by the company yet as well as the most recent one, which has not been published yet. It also covers the mission, vision, strategy of the company and the organizational structure of the company, its functions and departments.

1.2 OBJECTIVE OF THE STUDY

1. General Objective

The general objective is to gain overall practical knowledge about the company and its current functions and discussing and analyzing some problematic issues faced by the company.

2. Specific objective

To be more specific, this study entails the following aspects:

 Historical background of the company

 Mission, vision and strategy of the company

 Organization structure

 Company's disclosure and details of it

 Analyses regarding operations & profitability

 Problem issues and solutions to them

1.3 SCOPE OF THE STUDY

The scope was provided properly and I didn't face too many problems collecting the required data from different departments of the company, especially from the Finance, Internal Audit and Marketing department. Also the previous disclosures and the websites helped me out quite a lot. The only problem occurred while I was collecting data about the problem issues.

1.4 METHODOLOGY

Data Collection

To carry out the study, both primary and secondary data were used.

1.4.1 Primary Sources

I have interviewed several personnel inside the company to gather primary data on several issues among which there is Mr. Md. Anisuzzaman (Management Reporting Manager) and Mr. Abdur Rahim (Internal-Audit Manager).

1.4.2 Secondary Sources

As the secondary sources of the required data, I mainly used the disclosures published by the company in the years 2004 and 2005 and the draft of the annual report 2006, which has not been published yet but soon to be so.

1.5 LIMITATIONS OF THE STUDY

While preparing this report, there were several obstructions, which halted my work time to time like the availability of proper data at the right time, the availability of the right person to help me out with information and the problem issues. The limitations those I encountered most of the time are:

 The available information was not always fully helpful for doing a proper financial analysis. And collecting them was quite a task.

 Another limitation that I faced is GSK is very conservative and restrictive about sharing their internal data, especially those that has not been yet or might not be disclosed even in the future.

 GSK, like any other company, does not have a healthy opinion about sharing their problem issues with anyone and interns are not an exception.

PART - II

PHARMACEUTICAL: INDUSTRY ANALYSIS (BANGLADESH)

2.1 HISTORY OF THE PHARMACEUTICAL SECTOR IN BANGLADESH

Through the emergence of Bangladesh in 1971, the country inherited a poor base of pharmaceutical industry. For several years after liberation, the government could not increase budgetary allocations for the health sector. Millions of people had very little access to essential life-saving medicines.

In 1981, there were 166 licensed pharmaceutical manufacturers in the country. But local production was dominated by eight multinational companies (MNCs), which manufactured 75% of all the healthcare products. There were 25 medium-sized local companies, which manufactured 15% of the products and other 133 small local companies produced remaining 10%. All these companies were mainly engaged in formulation out of imported raw materials.

The value of locally produced medicines rose from tk1.1 billion in 1981 to tk16.9 billion in 1999. At present, more than 95% of the total demand of medicinal products is met by local production. Local companies (LCs) increased their share from 25% to 75% on total annual production between 1981 and 2005.

2.2 CONTRIBUTION OF LOCAL AND MULTINATIONAL PHARMA-CEUTICAL COMPANIES

The national pharmaceutical companies account for more than 75% of the pharmaceutical business in Bangladesh. However, among the top 20 companies of Bangladesh, 6 are multinationals. Some of the local pharmaceutical companies improved range and quality of their products considerably through the following of Drug (Control) Ordinance of 1982. Almost all the life saving imported products and new innovative molecules are channeled into and marketed in Bangladesh through these companies. Multinational and large national companies generally follow current good manufacturing practices including rigorous quality control of their products.

2.3 DEVELOPMENT OF LOCAL MANUFACTURING CAPABILITY

The