A Managerial Perspective1

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    Management Perspective

    BY: Muhammad Bilal Khawaja - 13893Muhammad Noman Khan - 13836

    S.M. Zeeshan 13910

    G l a x o S m i t h K l i n e

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    Agenda

    Pakistan Pharmaceutical Industry

    GSK at a glance

    History

    Market Share

    Objectives Problems and issues

    SWOT Analysis

    Action programs

    Action plans

    Financial projections

    Milestones

    Controls

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    Pakistan Pharma Industry

    Major Pharma Companies

    Johnson & Johnson

    Pfizer

    GSK

    Roche

    Novartis

    Sanofi-Aventis

    Abbott Laboratories

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    GSK at a glance

    As no. 1 pharmaceutical company in Pakistan

    With mission

    Do more | Feel better | Live longer

    Deals in

    PHARMACEUTICAL

    BIOLOGICS VACCINES

    CONSUMER HEALTHCARE COMPANY

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    VisionThe Opportunity to make a difference to the lives

    of the billions of people

    Values Transparency

    Integrity

    Respect for People

    Patient Focus

    GSK at a glance

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    GSK Products

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    History

    1947 Glaxo operations organized in Pakistan

    at Independence

    1949 SK&F came to Pakistan under the name

    of Pharmaco limited 1952 Glaxo became public limited.

    1954 Beecham incorporated in Pakistan

    1955 Glaxo established manufacturingfacilities in Pakistan.

    1955 Wellcome incorporated in Pakistan

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    History

    1956 Wellcome established manufacturing

    facilities in Pakistan

    1979 Wellcome Pakistan Became Public Limited

    1996 Glaxo and Wellcome merged to becomeGlaxo Wellcome

    2002 Glaxo Wellcome, Beecham And Sk&f

    Integrated As a result Of Global Merger To

    Form GlaxoSmithKline

    2009 Stiefel (dermatological pharmaceutical)

    was acquired by GlaxoSmithKline

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    Achievements

    2005 Excellence Award in Best Practices by

    Occupational, Health and safety by

    Employers Federation of Pakistan

    2006: 50 Star Rating from the Global

    internal Audit, Highest in the Industry

    2007: Most Prefered Pharmaceutical

    Company, by Pakistan Society for Human

    Resource Manager

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    Achievements

    Also Received for Best Management

    Practices by the management association

    of Pakistan

    2009: Annual Environment Excellence

    Award in recognition of its policies on safe

    guarding health

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    Market Share

    Names Market ShareGSK 13.80%

    Sanofi-Aventis 4.10%

    Getz Pharma 3.90%

    Abbott Lab 3.80%

    Roche 3.10%

    Merck 2.90%

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    Market Share

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    Objectives

    Expansion

    Consistent Price across the board

    Research Based Product Launches

    Growth with Sustainability

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    Organizational Chart

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    Problems and Issues

    Increased Competition

    Changing consumer profile

    Rupee Depreciation

    Decreasing Consumer Influence

    Policies and Guidelines Implementations

    Security Issue

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    SWOT Analysis

    STRENGTHS

    Strong infrastructure

    Industry-leading early to mid-stage R&D pipeline

    Life-cycle management strategies

    Strong business fundamentals and robust balancesheet

    Demonstrated ability to drive cost elimination

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    SWOT Analysis

    WEAKNESSES

    Mature portfolio of marketed products

    High dependence on low growth/highly

    competitive Failure of R&D pipeline

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    SWOT Analysis

    OPPORTUNITIES

    Potential for inspired R&D pipeline

    Enhanced vaccine offering Movement into high growth oncology market

    Movement into biologics

    Continued cost elimination Strong cash position facilitates

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    SWOT Analysis

    THREATS

    Launch of new generics by competitors

    Counterfeiting

    Unethical practices by competitors

    Pricing control

    Changing Consumer Profile Decreasing consumer influence

    Policies and Guidelines Implementations

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    Competitive Forces

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    External Environment

    Competitive Forces

    Potential Development of Substitute Product

    Bargaining Power of Supplier

    Bargaining Power Of Consumers

    Economic Forces

    Social and Demographic Forces

    Technological Forces

    Political Forces

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    Action Programs

    Developing strategies

    Grow a diversified global business

    Deliver more products of value Simplify the operating model

    Create a culture of individual empowerment

    Building trust

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    Action Plans

    Implementation of generics in Pakistan

    Launching new products

    Futuristic plan

    Focus on Research

    Aggressive Marketing And Promotion

    Traditional marketing Digital marketing

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    Financial Projections

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    Milestones

    Augmentin became the first ever 3 billion products

    in Pakistan during 2011.

    GSK is ranked no.1 in terms of value

    GSK is ranked no.1 in terms of volume GSK is ranked no.1 in terms of prescription

    GSK has 8 products in the top 20 products in terms

    of value.

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    Milestones

    GSK has 10 products in the top 20 products in

    terms of volume

    GSK has 6 products in the top 20 products in terms

    of prescription Approx. 600,000 prescriptions are written every

    day for GSK products in Pakistan

    Approx. 10 million GSK tablets are consumed each

    day in Pakistan

    Approx. 4.3 million teaspoons of GSK products are

    consumed each day

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    Controls

    Feedback Mechanism

    360 Degree Review Process

    Control Mechanism

    Internal Control

    Audit Committee

    Corporate Governance

    Financial Reporting

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    Questions