Management Analysis of Novartis Bangladesh Ltd PDF

Preview

Summary

Download Management Analysis of Novartis Bangladesh Ltd PDF

Description

A Brief Analysis of Novartis Pharmaceuticals Ltd.

A Brief Analysis of Novartis Pharmaceuticals Ltd.

Prepared for: Shobod Deba Nath Lecturer Dept. of International Business University of Dhaka Prepared by: Group Name Roll No. Faria Islam 23 Syeda Marzana Mahbub 26 Fazlay Rabbi 49 Asma Khatun 55 Dept. of International Business University of Dhaka

Date of Submission: May 2, 2011

Letter of Transmittal

2 May, 2011

To Shobod Deba Nath Lecturer Department of International Business The University of Dhaka.

Subject: A Brief Analysis of Novartis Pharmaceuticals Ltd.

Dear Sir, Here is the report on “A Brief Analysis of Novartis Pharmaceuticals Ltd. you asked me to conduct on 2nd May, 2011. We are very delighted to inform you that, we have completed the report on “A Brief Analysis of Novartis Pharmaceuticals Ltd. We enjoyed preparing this assignment and it helped us to gain deep knowledge about the practical corporate work. Thank you for providing us the opportunity to participate in this topic. We are also very grateful for your kind help and advice. We are really obliged to you for giving us the scope to prepare this Report under you. Besides, we have finished this task in a friendly environment and the entire group worked very hard while preparing this report. We aspire that this study will fulfill your suggestion and expectation. If you need any further assistance to interpret this study, please inform us. It will be our pleasure to clarify your questions.

Sincerely, On behalf of the group 4th Batch, BBA Department of International Business The University of Dhaka

Acknowledgement

First of all we would like to thank Almighty whose gracefulness let us complete this report. Besides, a comprehensive work like this must owe credit to a multiple of people. Certainly, we should thank those kind ones whose help & kind support enable us to complete this report.

Especially we are indebted to our Course teacher Shobod Deba Nath who helped us both forming & editing this work.

During this task each of our group members worked really hard. Our fellow classmates also shared their knowledge and experience with us, which helped greatly to recover different obstacles during this study.

We would also like to thank Novartis Head of Human Relations A.B.M. Yusuf Ali Khan for providing necessary information about the company.

Table of Contents Topic Executive Summary CHAPTER 1: INTRODUCTION 1.1 Title of the Assignment 1.2 Background of the Assignment 1.3 Origin of the Assignment 1.4 Objectives of the Assignment 1.5 Rationale of the Assignment 1.6 Methodology of the Assignment 1.7 Sources of Data 1.8 Limitations of the Assignment CHAPTER 2: Novartis Pharmaceuticals Ltd. An overview 2.1 Background 2.2 Corporate Information 2.3 Organizational Structure 2.4 Number of branches 2.5 Number of Employees 2.6 Vision 2.7 Mission 2.8 Product Scheme 2.9 Functional Department Activities a. Planning and Decision making b. Organizing c. Motivation d. Staffing ( HRM) e. Leading f. Controlling

CHAPTER 3: SWOT Analysis CHAPTER 4: Problems encountered CHAPTER 5: Recommendation

Page v

CHAPTER 6: Conclusion CHAPTER 7: Bibliography CHAPTER 8: Appendix

Executive Summary Management is the core of administration in any organization. It is simply act of getting people together to accomplish desired goal. Any organization whether new or old, small or big needs to follow management function to run the organization smoothly towards the pre determined goal. The four functions of management are: Planning, Organizing, Leading, Controlling. At present time managers do some additional functions like Human resource management, motivation; but function of management is mainly bounded by those four functions and additional functions are extension of those functions.

Novartis (Bangladesh) Limited, one of the leading edge pharmaceutical company based in Switzerland, is acclaimed for its outstanding product quality, world-class manufacturing facilities, product development capabilities and outstanding professional services. Its strategic strengths include strong recognition of brands. Being a matrix organization its total department is run by a skilled managers, executive and workers. As a well planned organization it is moving swiftly towards its goal, moreover high motivation to the skilled work force working as fuel. In this report, we have tried our best to exemplify how the basic functions of management are exercised in Novartis (Bangladesh) Limited. We have analyzed Novartis‟s four managerial functions planning, organizing, leading, and controlling, from the view of theoretical definition, practical application, basic principles followed and technology used in each of the functions. We also discussed the human resource management of Novartis under organization function and motivating under leading function.

Analyzing the SWOT of Novartis we have tried to show some problems of Novartis and regarding those problems we also suggested some possible way to sort these problems in the final part of the report. We hope possibly it could be helpful for Novartis to prevail over the mentioned challenges and problems.

Chapter One

1.0 Introduction

1.1 Title of the Assignment The Title of the assignment is- A Brief Analysis of Novartis Pharmaceuticals Ltd.

1.2 Background: In Bangladesh the pharmaceutical sector is one of the most developed hi-tech sectors which are contributing in the country's economy. After the promulgation of Drug Control Ordinance - 1982, the development of this sector was accelerated. The professional knowledge, thoughts and innovative ideas of the pharmacists working in this sector are the key factors for these developments. Due to recent development of this sector it is exporting medicines to global market including European market. This sector is also providing 97% of the total medicine requirement of the local market. Leading pharmaceutical companies are expanding their business with the aim to expand export market. Recently few new industries have been established with high tech equipments and professionals which will enhance the strength of this sector. Novartis International AG is a multinational pharmaceutical company based in Basel, Switzerland. According to the Fortune Magazine (July 20, 2009 issue) it was the sixth largest Pharmaceutical Company in terms of revenue

1.3 Origin of the Report This report on A Brief of Novartis Pharmaceuticals Ltd. is prepared as a partial requirement of the course principal of Management, Code: 103, instructed by Shobod Deba Nath, Lecturer, Department of International Business, University of Dhaka.

1.4 Rationale To get a clear idea about functional activities of Novartis Pharmaceuticals Ltd. where the findings help to take appropriate steps for betterment of the system and improve the overall performance of Novartis Pharmaceuticals Ltd.

1.5 Objective This report aims to specify the overall analysis of. Novartis Pharmaceuticals Ltd. The specific objectives are to

To have an idea about Pharmaceuticals sector in Bangladesh.



To know the activities of functional department of Novartis Pharmaceuticals Ltd.



To have an idea about corporate information of Novartis Pharmaceuticals Ltd.



To know the vision and Mission of Novartis Pharmaceuticals Ltd.



To have an idea about SWOT analysis.

1.6 Methodology 

Area of Study: The area of the study encompassed the functional department of Novartis Pharmaceuticals Ltd.



Target Group: Departmental heads, concerned officials had been consulted to get the required data.

1.7 Sources of Data: Information will be collected to furnish this report is both from primary and secondary in nature. 

Primary data Primary data sources will be scheduled survey, informal discussion with professionals and observation while working in different desks. We have also consulted with a Liaison Officer of Novartis Pharmaceuticals Ltd.

for

assistance. 

Secondary data To prepare the report, we collected secondary data. We collected the information of Novartis Pharmaceuticals Ltd. from internet. We also visited the website of Novartis Pharmaceuticals Ltd. for collecting necessary information.

1.8 Limitations While preparing the report we faced some constraints and limitations

Due to time constraint, we could only analyze all the information.



The website of Novartis Pharmaceuticals Ltd does not provide all the necessary information.



The officer also does not show all necessary information.

In spite of the limitations we tried our best to make the analysis representative.

Chapter Two

2.0 “Novartis (Bangladesh) Limited” - Caring and curing”- An overview 2.1 Background Novartis is a Swiss based healthcare company, a world leader in research and development with core businesses in pharmaceuticals, consumer health, generics, eyecare and animal health. Headquartered in Basel, Switzerland, Novartis employees about 70,000 people and operates in over 140 countries around the world. The name Novartis is derived from the Latin word novae artes – which means new skills. It reflects their commitment to research and development that lead to innovative products and services that improve health and well being in the communities they serve worldwide. Novartis was created in 1996 by the merger of Ciba Giegy and Sandoz. It has been working in Bangladesh since 1973. As a visionary leader in the healthcare industry, Novartis offers its employees an environment of challenge and exceptional opportunities for discovery and contribution. They encourage their workers by providing world-class state of the art facilities. In addition, they reward those who embrace responsibility and leadership, thus stimulating daily and long term professional and personal growth. Novartis values work-life balance and encourage diversity. Few companies in any industry can match them in these commitments.

Sandoz Novartis International AG

Public AG

Traded as

SIX: NOVN, NYSE: NVS

Industry

Pharmaceuticals

Founded

1996 (from merger)

Headquarters

Basel, Switzerland

Key people

Daniel Vasella (Chairman), Joseph Jimenez (CEO)

Products

Pharmaceuticals, generic drugs, over-the-counter drugs, vaccines, diagnostics, contact lenses, animal health (list...)

Revenue

US $ 50.624billion (2010)[1]

Operating income

US $11.526 billion (2010)[1]

Net income

US $9.969 billion (2010)[1]

Total assets

US $123.32 billion (end 2010)[1]

Total equity

US $69.769 billion (end 2010)[1]

Employees

119,418 (FTE, end 2010)[1]

Subsidiaries

Ciba Vision, Sandoz, Alcon

Website

Novartis.com

Overview On 7 March 1996, an earthshaking announcement was made to the business world: Sandoz and Ciba-Geigy, the two Swiss-based chemical/life sciences giants, had

agreed to become one. Novartis, as the new company was called, was at that time the result of the largest corporate merger in history. Both Sandoz and Ciba-Geigy already had a rich history of their own.

Geigy, Ciba and Sandoz (1758-1970) First there were three companies: Geigy whose history goes back to the middle of the 18th century, Ciba, founded around 1860, and Sandoz, which was set-up in 1886.

Ciba-Geigy and Sandoz (1970-1996) In 1970 Ciba and Geigy merged. The newly created Ciba-Geigy Ltd. and Sandoz continued to follow separate paths for two and a half decades.

Novartis (1996-present) In 1996 Sandoz and Ciba joined to form Novartis in one of the largest corporate mergers in history. Since then, Novartis has been marked by many interesting events and success stories.

Novartis Bangladesh Limited -Company History: The state-of-art manufacturer plant of Novartis (Bangladesh) Limited was established in 1989 with an annual capacity of producing 200 mio tablets/capsule. In 2002 production facility expand and with this expansion of the plant the capacity increased to annual production of 500 mio tablets / capsules. From early 1970, Novartis - then known as Ciba-Geigy - engaged in trading with various chemical and healthcare products in Bangladesh. The Bangladesh group company was incorporated in 1973 with the 40% participation of Bangladesh Chemical Industries Corporation (BCIC). In a first joint venture agreement of both partners in 1980 the investment in a crop protection formulation plant in Chittagong was implemented. In a second joint venture agreement in 1988 NBL and BCIC invested in a pharmaceuticals production plant in Tongi, which operated as from 1990 with lifesaving products fitting the needs of the country. In 2000 Novartis decided on a global basis to spin-off the agro business and henceforth to concentrate on healthcare. This affected also the Bangladesh group company.

The former crop protection business of NBL at present continuing with the business partner BCIC, under the authority of Syngenta as a separate legal entity. The Sandoz Business Unit of NBL is the owner of this Plant. The plant is located about 20 Km north of Dhaka city and cover an area of about 36,634 m2. The site is surrounded in the north 10 m wide road beyond that a village of Tongi, in the west bordering on fields, in the east to a pharmaceutical factory of Eskayef, and in the south and southwest the site is adjacent to the river Turag. The site comprises of buildings for pharmaceutical production, Quality Control and IT, for warehouse, for engineering support, for product development, for anima health production for office and canteen, for storage of inflammable substances, for diesel storage of generator, for catering,for pump house, for gate, for waste water treatment plant, for car workshop, for Training Center and guard barrack. For scrap yard for retention sample storage. The first buildings were raised in 1989 and commercial manufacturing was initiated in 1990. Pharmaceutical Production comprises of two sections dealing with Manufacturing and packaging. Most of the active substances used in manufacturing are supplied by Novartis Basel, Austria and China. Most of the auxiliaries used for production are bought from approved supply source of Novartis AG, Basel, Switzerland and Sandoz GmbH Austria. Packaging materials are bought from third parties. Apart from producing globally developed research & generics drugs, traditionally Tongi Plant was instrumental in local development of finished pharmaceutical products e.g. Famotodine, Ciprofloxacin, Omeparazole, Sparfloxacine etc. Since 1997, Tongi Plant is in the export market after expansion the Plant became the global supply point for Novartis generics. NBL Tongi Plant is instrumental in transferring res and are also acting as a competent center for the products coming out from Tongi Plant. Scope of business: Sales office Name: Head Office: Phone: Fax: E-mail Website Shareholders: Plant Phone

Human pharmaceuticals, Animal health products and Consumer health products. Country wide 11 Sales office Novartis (Bangladesh) Limited House 50. Road 2A, Dhanmondi R.A. Dhaka-1209 (8802) 8615302-08 (8802) 8623489 [email protected] hhtp://www.novartis.com.bd Novartis international AG, Switzerland (60%) Bangladesh Chemical Industries Corporation (40%) Novartis Bangladesh Limited, Tongi Plant Cherag Ali Market, Tongi Gazipur (8802) 9800561-4

Fax

(8802) 98004245

Novartis Business •

•

Our complementary healthcare businesses address the changing needs of patients and societies worldwide. With innovative pharmaceuticals at the core, we are also a global leader in generics, vaccines and consumer health products. We believe this targeted portfolio best meets the challenges and opportunities in a dynamically changing healthcare environment.

Pharmaceuticals Innovative medicines with improved efficacy and fewer side effects. Sandoz Affordable, high-quality generic treatment options following the expiry of patents. Vaccines and Diagnostics Products to fight vaccine-preventable viral and bacterial diseases, as well a diagnostic tools. Consumer Health Empowering patients with various consumer products that enable healthy lifestyle choices. Plant Background  Novartis (Bangladesh) Limited: joint venture company with Novartis AG, Switzerland (60%) and Bangladesh Chemical Industries Corp. (40%).  1973: Incorporated as Ciba Geigy (Bangladesh) Limited. Start-up business pharmaceuticals, crop protection and chemicals.  1989: Tongi Plant established to meet local regulatory legislations to maintain local business. Commercial manufacturing initiated in 1990. Loan extended by Novartis AG 1.6 Mio BDT.  1995: Export business launched from Tongi Plant. First supply to Singapore worth 11.9 Mio BDT  1996: Following merger, local Sandoz trading operation merged and Novartis (Bangladesh) Limited established.  2001: EU GMP certification obtained.  2002: Production facility expanded to meet EU supply.  Average usage currently of Tongi Plant capacity based on all work centres: 60% domestic, 40% export business.  The invested value of Tongi Plant is 700 Mio BDT / 15 Mio USD (at current exchange rate). All from local financing except for 1.6 Mio USD

from Novartis AG and 0.5 Mio BCIC.  2008 August book value the Plant is at 379 Mio BDT / 5.48 Mio USD.  Tongi Plant currently produces domestic volume of Sandoz, Sandoz OTC Pharma, and Animal Health.  Tongi Plant produces domestic business requirement of: Sandoz - 100%  Pharma - 65%, AH - 50%. And technology to other menu.

2.2 Corporate Information Novartis International AG is a multinational pharmaceutical company based in Basel, Switzerland. The company was founded in 1996 through the merger of reputable Swiss companies Ciba-Geigy and Sandoz Laboratories. Company‟s current CEO is Joseph Jimneze and Daniel Vessella is the chairman. The company ranks number three in industry worldwide with respect to sales. Company‟s sales were recorded 36.173 billion US Dollars in year 2008. At present, Novartis is the sixth largest pharmaceuticals company in terms of revenue which was calculated 41.5 billion US dollar in year 2009. The company has three subsidiaries Siba Vision, Sandoz and Alcon with 119,418 employees total in year 2010. Novartis produces medicines under the categories of pharmaceuticals, generic drugs, over the counter or consumer drugs, vaccines, diagnostics, animal health and contact lenses. Some of the famous drugs produced by Novartis include Comtan, Diovan, Tegretol, Zometa, Tavist, Voltaren, Ritalin, Femara, and Clozaril.

2.3 Branches Novartis operates its sales operations in Bangladesh through their official distributer Juellig pharma. They do not have branches here.

2.4 Employees Total workers in Bangladesh is around 1000.

2.5 Mission And Vision Wants to discover, develop and successfully market innovative products to cure diseases, to ease suffering, and to enhance the quality of life. They also want to provide a shareholder return that reflects outstanding performance and to adequately reward those who invest ideas and work in the company. Aspirations Novartis wants to be recognized for having a positive impact on people's lives with their products, meeting needs and even surpassing external expectations. They strive to create sustainable earnings growth, ranking in the top quartile of the industry and securing long-ter...