hrm 380 2013 summer case 3 1 aci bangladesh
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7/27/2019 HRM 380 2013 Summer Case 3 1 ACI Bangladesh
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Author: Tajuddin Ahmed
Faculty: North South University, Dhaka, Bangladesh
Sayed Qayem Hussain was relaxing on his office desk, just after attending anoffice party hosted in his farewell at his Manhattan Office of Johnson &
Johnsons. His parent company has acquired Advanced Chemical Industries
Limited (ACI) of Bangladesh, and has assigned Hussain to lead a prosperous
company of a very promising industry of Bangladesh.
Bangladesh being a third world country is relieved from Patent Right of thePharmaceutical Industry, has a comparatively low labor cost and has Preferential
Export Right to many of the Developed Nation including the countries of the
European Union.
Johnson & Johnsons acquired ACI to explore the entire prospective horizon and
establish its market dominance in Bangladesh as a follow-up of its rivals, such as
Novartis, Roche, and other Pharma giants.
Hussain joined Johnson & Johnsons in the year 1998 after his MBA with a
Human Resource Management, and BBA in Finance major. He has been involved
in the same job of leading the first stage at Venezuela when Johnson & Johnsons
acquired a company there. Hussain pulled up all the files that was provided to himbefore his new assignment and began his investigation.
Background of ACI
ICI Plc of UK had a pharmaceutical business in Bangladesh. In 1992 the business
was sold to management and the name of the company changed to Advance
Chemical Industries Limited. ACI inherited the rich ICI culture of product quality,
customer service and social responsibility and continuous to nurture.
ACI is the first company in Bangladesh to obtain certification of ISO 9001 Quality
Management System in 1995. ACI is also the first Company in Bangladesh to get
certification of ISO 14001 Environmental Management System in 2000. ACI
employees are proud of their work culture, business ethics and environmental
consciousness.
ACI values are embodied in its vision and mission statements. ACI quality and
environmental concerns clearly state through declared policies.
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Faculty: North South University, Dhaka, Bangladesh
What was primarily a pharmaceutical business in 1992 with a turnover of tk.80million with stagnant growth, the new management brought about fundamental
changes in policies and has in year 2002 grown to over Tk. 2000 million in
turnover through diversified business interest including personal care products,
food products, animal health, agrochemicals and seeds in addition to gaining a
strong position in pharmaceuticals. The earning per share is increasing from 2000
to 2002, which was 3.97 and 6.75 respectively.
ACI represents principals like AstraZeneca, Eli Lilly, UCB, Searle and Fujisawa
in pharmaceuticals business; Colgate-Palmolive, Heinz and Dabur in Consumer
products sector; Synzenta in Agrochemicals; Ranbaxy, Dabur, Wockhardt, Sanofi
and Invesa in animal Health sector. It has five subsidiary companies and is one of
the largest conglomerates in Bangladesh.
The trading subsidiary of ACI represents in Bangladesh principals like ICI,
Exxon-Mobile, Bayer, and Stahl.
History of ACI Pharmaceutical Ltd
Bangladesh is a country with plenty of people. Actually, these people are a bank of
huge human resource. As the population grows the need for medications is
increased. And as the most of the people of our country are below the poverty line,
they always look for cast- effective and quality medications. To improve lives by
providing cost-effective high quality pharmaceutical products ACI stated theiroperation with this mission. It holds the eight positions in the Bangladeshi
Pharmaceutical market ACI Pharmaceutical Ltd. is one of the largest
manufacturers of quality medicines in Bangladesh.
In 1973, the UK based multinational pharmaceutical company, ICI plc,
established a subsidiary in Dhaka, known as ICI Bangladesh Manufacturers
Limited. In 1992 , ICI plc divested its share to local management , and the
company was renamed Advanced Chemical Industries [ACI] Limited.
ACI formulates and markets a comprehensive range of more than 125 products
covering all major therapeutic areas, which come in tablet, capsule, powder,
liquid, cream, ointment, gel and injection forms. ACI also imports products from
world-class multinational companies like ASTRAZENECA, UK; ELILILLY,
USA and UCB, BELGIUM and markets world-renowned brands like Diprivan,
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Faculty: North South University, Dhaka, Bangladesh
Fluothane, Nolvadex, Accolate, Meronem, Atarax, Humulin, Ceclor etc. inBangladesh.
ACI is actively engaged in introducing newer molecules and new drug delivery
systems to meet the needs of the future.
ACI introduced the concept of quality management systems by being the firstcompany in Bangladesh to achieve ISO 9001 certification in 1995 and follows the
policy of continuous improvement in all its operations.
ACI maintains a congenial and supportive relationship with the healthcare
community of Bangladesh, with the belief that business excellence can only be
achieved through pursuit of quality by understanding, accepting, meeting and
exceeding customer expectations.
The management of ACI, a competent team of professionals, thus operates with a
progressive attitude to provide effective solutions to satisfy the customers needs,
through its products and services of uncompromising quality.
It is engaged in resource and development, manufacture and marketing of
prescription and non-prescription pharmaceuticals. They realize that
pharmaceuticals are directly to human lives and thus feel that it has an incalculable
social liability of providing safe medicine.
ACI pharmaceutical Ltd is perceives to be one of the finest business entities by the
members with whom it interacts specially the physicians and other health care
professionals. Most of the products that it actively markets enjoy leadership
position demonstrating incomparable trust that it enjoys from the health care
professionals.
In 1992, this company entered in the international business arena with the exportof basic materials to UK It had to face many hindrances in the beginning.
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Now they export their products in different countries. Presently they export in the16 countries. Those are UK, USA, Germany, Holland, Italy, France, Hungary,
Japan, China, Korea, Thailand, Malaysia, Indonesia, India, Pakistan, Singapore
and Taiwan.
They face the economic and social challenges in this century and they preparethemselves to step in to that. Whatever the challenges they face, their motto of
providing both human and animal health care sector with the quality products will
never be compromised.
ACI pioneered in the launching of anti-migraine drug in Bangladesh. ACI motto is
contributing in the both human and animal health sectors by providing important
medications not available in our country.
The company also diversified into new entities in the fine chemicals. They
committed to achieve world class standards is not only limited to formulations but
also to its fine chemical business. This policy ensures supply of cost effective
quality materials to other local companies as well as for use in its own formulatedproducts.
After several years in this business, ACI realized the role of positive work ethic.
As they are in such a business where ethic and moral values are very much
needed.And regarding the pharmaceuticals business they are really following anethic. Finally it is their strength to get customer satisfaction.
Over the year of the company has acquires a high degree of the ability of
transforming technological know ledge into commercially viable products through
in house expertise and use of international consultant.
As they are new in the market and have good marketing channels and they are
producing good quality medicines, so there is a scope for them to expand. They
can increase the production capacity and try to make some new channels to covermore area and sell their product throughout Bangladesh. They can also increase
their product line. If they introduce some new brands in the market then there is a
chance to acquire good response from customers.
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Faculty: North South University, Dhaka, Bangladesh
Through its creation of subsidiaries and affiliation in overseas pharmaceuticalmarkets, ACI has been actively working towards the internationalization process
and building the brand image of the companys products worldwide. ACI has
established an international marketing network, which has made it the largest
exporter of pharmaceuticals from Bangladesh
Mission
ACI mission is to play a leading role in enhancing the quality of life and well
being of the people of Bangladesh through responsible application of knowledge
and skills.
Vision
To attain the vision ACI will devote its resources to provide products and
services of high and consistent quality, which ensure value for money to its
customers.
Endeavor to attain a position of leadership in each category of its business
To create an image for quality of its products and services, productivity of
its operations and innovative abilities of its employees.
To ensure superior return on investment through healthy and sustainable
growth of the company.
To contribute to the personal well being of their employees.
To encourage and support qualitative improvement of the services of or
distributors and suppliers.
To participate in selected government / NGO projects and in community
services for the attainment of social goals.
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ACI business divisions
ACI is concentrating in many businesses. The main business divisions are
following below:
Pharmaceuticals
Health CareConsumer Brands
Agribusinesses
Trade
Products
Diagnostics and Medical Devices
Name of the company
Flyban Insecticides Ltd.
ACI Trading Ltd.
ACI Formulations Ltd.
Mutual Trust Bank Ltd.Central Depository Bangladesh Ltd.
Computer Technology Ltd.
Apex Leather craft Ltd.
Tetley ACI (BD) Ltd.
Quality Policy
ACIs mission is to achieve business excellence through quality by understanding,
accepting, meeting and exceeding customer expectations.
ACI follows international Standards of Quality Management System to ensure
consistent quality of products and services to achieve customer satisfaction. ACI
also meets all national regulatory requirements relating to its current businesses
and ensure that current Good Manufacturing Practices (cGMP) as recommendedby World Health Organization is followed for its pharmaceutical operations.
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Their primary mission is to contribute to better health and quality of life forpeople.
The management of ACI commits itself to quality as the prime consideration in all
its business decisions. All employees of ACI must follow documented procedures
to ensure compliance with quality standards.
The pool of human resources of the company will be developed to their full
potential and harnessed through regular training and their participation on seeking
continuous improvement of work methods.
Environmental Policy
ACI Limited is committed to maintain the harmonious balance of our eco-system
and therefore constantly seeks ways to manufacture and produce product in an
eco-friendly manner so that the balance of nature remains undistributed and the
environment remains sustainable.
In pursuit of this goal, ACI will
Comply fully with all local and national environmental regulations
Conserve natural resources like water and energy for sustainable
development, and adoptEnsure appropriate treatment of all effluents prior to discharge, to
discharge, to prevent pollution or
Ensure appropriate communication and cooperate with internal and external
interested
Create awareness on environmental issue among their employees and
suppliers.
Adopt modern waste management technology.
Business Opportunities
Drug & Drug Discovery Service:
ACI Pharmas Drug & Drug Discovery Service offers contract services to:
Pharmaceutical manufacturers,
Biotech researchers, and
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Biopharmaceutical companies.
They are open for business development collaboration, strategic alliances and joint
venture. They offer quality services and support under one roof in the hands of
highly qualified professionals.
Their professionals are trained in some of the best laboratories in the world such as
MIT, Cambridge, USA; UC Berkeley, USA; Max Plank Institute, Germany; and
some of the best industrial organizations.
Quality and Reliability is our hallmark of success. Customer satisfaction is their
highest policy. All under an environment of high confidentiality. Helping to build
a healthier society is their mission for the elevation of human suffering?
Business Development
ACI Pharm's Business Development group works with the:
Business Development Department of leading pharmaceuticals andbiotechnology companies to acquire products for ACI Pharm's worldwide
pharmaceutical business.
Provides commercial input into the product development of leading
pharmaceutical companies on global basis.
To meet these objectives, ACI Pharm seeks to form alliances with
biotechnology companies, small to medium sized pharmaceutical
companies, academic institutions, and other organizations, which may have
products and/or technologies, which fit into ACI Pharm's business
objectives.
Licensing candidates and manufacturers with vision to reach global
customers are being sought in the areas of cardiovascular diseases,
oncology, bone disorders, gastoentrology, immunology, infections,hematology, and cerebrovascular diseases.
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Corporate Information
ACI Pharm is a highly regarded professional organization committed to quality
health care. We aim to provide sound health and longer enjoyment of life for users
of our products.
ACI Pharm is a science based pharmaceutical company committed to meet theneeds of its valued customers through:
Research,
Development,
Supply,
Distribution, and
Marketing of the highest quality healthcare products.
Since its inception, they have been striving to broaden our services and product
ranges to meet market needs.
As a team of Qualified Researchers, Production, Technical, Marketing,Management, and Sales force, they strive to accomplish the mission through their
commitment to high values and ethics in healthcare.
Consciousness on consumer-oriented strategies guided them to:
Futuristic research,
Commercialization of latest technologies,
Superior customer service,
Proficient distribution services,
Long-term strategic alliances, and
Advanced information technologies applications.
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Professionals at ACI Pharm have extensive and diverse pharmaceutical /healthcare industry experience and global business expertise. You will find us
uniquely qualified to help you meet the challenges of guiding a product through its
entire life cycle.
Financial Performance
Sales turnover increased by 25.4% and Gross Profit increased by 39.1%. Cost of
Goods Sold was reduced to 69.3% from 72.3% of last year. These improvements
are due to higher proportionate sales of pharmaceutical product than last year.
Profit after tax increased by 19.04% to Tk. 109.18 million over the previous year.
The Earning Per share (EPS) stood at 6075 this year against Tk. 5067 of last year.
Six Years Comparative Statistics 1997-2002
Taka
Particulars 1998 1999 2000 2001 2002
Authorised
Capital
500,000,000 500,000,000 500,000,000 500,000,000 500,000,000
Issued & Paid
Capital
161,700,000 161,700,000 161,700,000 161,700,000 161,700,000
Turnover
(Net)
963,316,614 1,199,463,566 1,410,616,965 1,637,408,231 2,052,913,536
Gross Margin 315,950,870 360,015,967 402,365,474 453,333,979 630,665,988
Profit Before
Tax
68,173,879 74,758,879 94,929,607 136,715,428 163,602,582
Profit After
Tax
52,673,879 58,258,879 64,129,607 91,715,428 109,180,668
Current
Assets
535,009,472 687,478,392 694,845,668 816,320,886 1,062,983,169
Net Current
Assets
296,407,292 273,778,940 236,216,896 206,400,779 192,222,033
Shareowners
Equity
499,230,444 508,573,073 516,107,680 547,185,608 590,383,526
Dividend 40,425,000 48,510,000 56,595,000 60,637,500 60,637,500
Current Ratio 2.16 1.49 1.52 1.34 1.22
Quick Ratio 0.89 0.51 0.49 0.57 0.54
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Return onEquity
10.55% 11.46% 12.43% 16.76% 18.49%
InventoryTurnover 1.8 2.2 2.2 2.5 2.7
Debtors
Period
17 18 20 24 23
W. C.
Turnover
3.3 5.3 6 7.9 10.7
F. A.
Turnover
4.9 5.8 6.5 7.7 8.8
Net Asset PerShare
30.87 31.45 31.92 33.84 36.51
Market Price/Share
42.54 27.29 50.45 55.31 54.19
Earnings /
Share
3.26 3.60 3.97 5.67 6.75
Dividend /
Share
2.50 3.00 3.50 3.75 3.75
Dividend
Ratio
25% 30% 35% 37.50% 37.50%
P E Ratio 13.05 7.58 12.71 9.75 8.03
Div. Payout
Ratio
77% 83% 88% 66% 56%
E Dividend
Rate
6% 11% 7% 7% 7%
No. of Emps 1,047 1,161 1,157 1,284 1,662
Production Capacity
Production capacity of the pharmaceutical unit 1 is 1,500,000-unit pack per 8hr/
month and current utilization is 136% and Production capacity of thepharmaceutical unit2 is 375,000 units per 8hr/month and current utilization is
82%. Production capacity of Animal Heath unit 4 is 175,00 unit 8hr/month and
current utilization is 30%.
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Medical information update
ACI will shortly introduce a flash mail service and its website updates for the
members of medical profession with latest information for their professional
practices.
In Bangladesh, ACI introduced the concept of quality management by being the
first company in Bangladesh to achieve ISO 9001 certification that reflects its
commitment to quality in every aspect of business.
ACI wishes to introduce a flash mail service that will update whenever latest
information important for their professional practices becomes available.
The efficient management and expertise strengthen the industry being well
equipped with modern machineries and equipments. The commercial production
started in April 1992 with 8 (eight) antibiotic products. During end of 1996 the
production range expanded up to 41 numbers. Recently ACI Pharmaceuticals Ltdachieved ISO 9001 for its Production, Distributions Marketing, Quality Control,
and Sales.
ACI covers the health care community of whole Bangladesh based in both urban
and rural markets, through its 18 strategically located depots.
Markets
International market
To fuel the continuous growth of ACI, the company has started exploring
international markets. The quality of ACI products, strengthened by its ISO 9001
certification, has brought immediate success in Sri Lanka, Yemen and Myanmar.
Product registration in Singapore has just been completed.
Domestic market
Being a developing country, the pharmaceuticals market and at the same time, the
pharmaceuticals industry of Bangladesh is growing. In this growing market, ACI
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has been able maintain its growth above the market growth through its innovativemarketing strategies as well as products and services of uncompromising quality.
Scientific seminars
ACI frequently arranges seminars and symposia covering a wide range of medical
topics attended by members of health care community. The faculty of theseprograms usually consist of both reputed medical experts and experts from
marketing team of ACI and its international principals.
Continuing medical education of physicians and surgeons
ACI regularly arranges CME programs of both physicians and surgeons all overthe country. These programs cover medical problems frequently faced by the
practitioners, update their knowledge, and make them aware of the new therapies
and medical technologies.
Responding to doctors queries
It is the most regularly performed task of the marketing team of ACI. The
company has developed a postage paid business reply care attached to every
literature in which the doctors usually send their queries. ACI tried to provide a
comprehensive answer to the queries of the physicians covering all the details. TheACI is also planning to provide more specialized services to doctors of various
disciplines. So doctors will prescribe more medicine of ACI. The medical
department is also planning to publish helpful and practical handbooks or
guidebooks of different disciplines.
Medical illustration and audiovisual aids
ACI is ready to assist in preparing presentation packages including computer
slides, transparencies and printed text whenever medical experts wish to sharetheir experiences and results of their research with the health care community.
Reprint services
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ACI provides the doctors with reprints of selected publications on topics that canassist the doctors in their professional practices.
Facilities
The plant is well designed and well equipped with all latest facilities and state-of-the-art technologies. The responsibility team of plant workers, supervisors,
officers and managers strictly follow cGMP recommended by WHO and In-
process Quality control methodology for production and meets all national
regulation requirements. All the departments of ACI Pharmaceuticals have well
experienced professional parsons. The present sales are showing upward trend and
it is expected that within next two years the sales will reach over 20 million Taka
per month. This project is self financed and the factory has over 5 acres of land forfurther expansion and modernization.
Thus the total endeavor is aimed at the welfare and good health of the people so as
to present a healthy society.
Prescription Drugs
Prescription drugs are drugs that are not locally available without a physician's
prescription.
Anti-convulsant Drugs
Anti-Angina Drugs
Anti-Fungal Drugs
Anti-Itch Drugs
Anti-Viral Drugs
Anti-Diabetic Drugs
Anti-Asthmatic Drugs
Anti-Hypertensive Drugs
AntibioticsAnti-Migraine Drugs
Anti-Rheumatic Drugs
Anti-Protozoal Drugs
Tricyclic Anti-depressants
Anti-Arrhythmic Drugs
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Anti-nausea DrugsAnti- Parkinson Drugs
Anti-Psychotic Drugs
Muscle Relaxants
Digitalis Drugs
Anti-Gastroesophageal Reflux Drugs
Anti-Retroviral DrugsAnti-Tuberculosis Drugs
Anti-Ulcer Drugs
Anti-Hemorrhoid Drugs
Anti-Spasmodic Drugs
Anti-malarial Drugs
Non-steroidal Anti-inflammatory Drugs: Some can be bought over the
counter; others are available only with a prescription from a physician ordentist.
Immuno-Suppressant Drugs
Anti-Insomnia Drugs
Anti-helminthic Drugs
Central Nervous System StimulantsDecongestants: Some decongestant products require a physician's
prescription but there are also many non-prescription (over-the-counter)
products.
Anti-Coagulant Drugs
Bone Disorder DrugsInfertility Drugs
Topical Antibiotics: Some topical antibiotics are available with a
prescription only.
Diuretics
Vasodilators: In the forms used for treating high blood pressure (tablets or
injections), these drugs are available only with a physician's prescription.
Blood-viscosity Reducing Drugs
Beta BlockersExpectorants: Some products that contain are available only with a
physician's prescription
Anti-histamines: Some Anti-histamine products are available only with a
physician's prescription.
Penicillins
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BarbituratesLaxatives
ACE inhibitors
Anti-anxiety Drugs
Urinary Anti-infectives
MAO Inhibitors
Opioid AnalgesicsBronchodilators
Ophthalmic Antibiotics
Smoking Cessation Drugs: Some products are available only with a
prescription.
Protease Inhibitor
Anti-depressant Drugs
Alpha1-adrenergic BlockersTetracyclines
Products
ACI Pharm's Herbals and Nutraceuticals division is engaged in developing,
producing and marketing herbal medicines, nutraceuticals and food supplements.They apply scientific knowledge of medicinal plants and herbs to meet the
growing demand for natural health products. They use proprietary technologies toimprove the efficacy of natural substances and conducts clinical studies that
follow the rigorous guidelines of the pharmaceutical industry to provide empirical
evidence of health benefits.
The company employs experts in the fields of ethnobotany, nutrition, and various
medical disciplines and works closely with major hospitals, patient groups and the
food and health regulatory agencies. All products are manufactured in compliance
with GMP standards of high quality control.
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ACI veterinary Science specializes in the development, manufacture, andmarketing of original veterinary and nutritional products. The company has a
broad range of nutritional, antibiotic, anthelmentics, blood protozoan disease,
ruminotonic, flukicides, and Vitamin supplements to enhance animal health and
productivity.
Products are marketed around the world and include:
Antibiotics
FlukicidesRuminotonic
Anthelmentics
Corticos Steroides
Anti-Mycoplasmic Drugs
Inflammary Infusion for Mastitis
Drugs for Blood Protozoan Diseases
Vitamins Supplements & Nutritional Products
Service
Supply Management
For Pharmaceutical customers: Supply management resource provides you theservices of order management, supply management, and distribution support for
pharmaceutical and medical-surgical supply needs. Supply Management offers
advanced order management capabilities including full catalog searches, customer-
specific pricing, product availability, and order status - all provided with up-to-
the-minute, real-time accuracy. ACI Pharm is an important link between suppliers
& buyers on global basis. Associate companies of ACI Pharm manufacture quality
pharmaceutical products and are involved in Research and Development. They area young, dynamic and growing
company focused on supply chain management (distribution, supply, and
marketing pharmaceutical products).
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Pharmaceuticals Marketing & Management
ACI Pharm. Inc, provides a full spectrum of market development, product
development, sales force management, direct-to-consumer advertising, global
product launches, and product life cycle management and targeted
communications services in support of product launch.
They provide technical expertise in regulatory affairs, industry training, sales and
marketing training, international business development, registration,
commercialization and management consulting. Their market chemicals,
laboratory reagents,diagnostics,pharmaceuticals,nutraceuticals, herbaceuticals, and
health food supplements. They also help companies and organizations to focus
their efforts in order to capture niche markets. They maintain excellentpartnerships with consumer product companies in understanding the regulatory
hurdles and help us in market development.
Their strategic alliances and in depth market knowledge enable us to deliver a fullrange of innovative product commercialization, marketing, and distribution
offerings for many of the leading pharmaceutical manufacturers. With superb
management skill, sound financial strength, and capability to maintain the strategic
competitive advantage provide both the products and service of your choice. They
offer customized solutions to each associate company and its products in differentmarkets. Their people work closely with customers and professionals to
understand consumer's changing and devise strategies to support their business
objective. They commitment to meet the requirements of different types of
pharmacies ushered their to develop various types of marketing tools. In pursuit of
their vision for the future of healthcare, ACI Pharmaceutical offers a complete
package in supply, distribution, and marketing.
ACI Pharm's uniqueness is not only the breadth of service offerings, but also its
ability to help us drive market share and capitalize on business opportunities whenthey arise, whether it's accelerating adoption during product launch or increasing
market share from growth to maturity. Wherever your product is, and wherever
you need to take it, you'll see the value of working with strategic thinkers who are
committed to customized solutions- and a level of personal involvement that sets
them apart.
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Their day-to-day activities include:
Preparation of regulatory affairs documentation.
Registration of products with respective regulatory organization and
ministry.
Trade mark and brand name registration with respective ministry.
Market research and strategic marketing for associate companies.
Product concept to product development and clinical trails.
Obtain import licenses and temporary quotas for products.
Preparation of culture and language based customized marketingcommunication materials, e.g. detail kits, promotional literature,
advertising, seminars, etc..
Daily retail and wholesales customer visits by qualified professionals.
Pharmaceuticals markets and products database management and
supply.
Systems analysis and development of user specific software for
manufacturers, retailers, and hospitals.
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by Tajuddin Ahmed, Faculty North South University
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Author: Tajuddin Ahmed
Faculty: North South University, Dhaka, Bangladesh
The animal health division and the Present Problem
The animal health division of ACI Pharmaceutical started its journey in the year
2000with the purpose to supply animal health care products to the market. And
from the very beginning of their journey this division of ACI Pharmaceuticals was
performing well to satisfy their in-house customers. They have started with a very
small product line and within this short period of time they have increased theproduct line. At present they are having 50 different products including vitamin,
Feed Premix and antibiotic.
Although the animal health care division have some limitation but even though
they have shown a good performance and lastly it has been found that they have a
huge demand in the local market. These demands compel them to supply product
to the customers.
Unethical business policy of market
ACI is a one of the best leading Pharmaceuticals Company in our country. ACI is
also the first Company in Bangladesh to get certification of ISO 14001. ACI mottois to contribute in the both human and animal health sectors by providing
important medications which are not available in our country. They face the
economic and social challenges in our country. Whatever the challenges they face,
their motto of providing both human and animal health care sector with the quality
products will never be compromised. ACI employees are proud of their workculture, business ethics and environmental consciousness.
After several years in this business, ACI realized the role of positive work ethic.
As they are in such a business where ethic and moral values are very much
needed. And regarding the pharmaceuticals business they are really following an
ethic. But there are some unethical business policies in the medicine market that is
very unexpected. In our country every year almost one new pharmaceutical
company establish. For marketing their new products they follow the unethical
business policy. Some of the small companies give bribe to some doctors to writedown their medicines in the patients prescription. But it is very illegal according
to our countrys law and also condemnable acts. In this way they want to expand
their marketing. But it has a bad impact on medicine market. It will resist the
improvement of quality of the medicines. And public health will be harmful. So, it
Written and Structured for Case Analysis
by Tajuddin Ahmed, Faculty North South University
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7/27/2019 HRM 380 2013 Summer Case 3 1 ACI Bangladesh
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164273528.doc
Author: Tajuddin Ahmed
Faculty: North South University, Dhaka, Bangladesh
should be strictly protected. Government should take the necessary step to stopthese unethical businesses. By concerning of public it can resist.
Under rate crisis
In our country every year almost one new pharmaceutical company is being
established. For marketing their new products they follow the unethical businesspolicy. Some of the small companies give bribe to some doctors to write down
their medicines in the patients prescription and some of the companies are trying
to market their products under actual rates. They supply the medicines in the
marketing below the average market rates. In this way they want dumping and
influence into their products over other companies products. But it is very illegal
according to our countrys law and also condemnable acts. In this way they want
to expand their marketing. But it has a bad impact on medicine market.
In the case of promoting the product at present they do not have any promotional
activity. They only have the brochure where they try to introduce their products.
Besides the health care division does not have any separate marketing channel.
The management of ACI Pharmaceuticals by the time has found a favorable notion
from this animal health care Division. And for that reason they want to start a new
journey. But they are having some problem regarding the market potential. So they
need to justify the demand of the health care products. And for doing that they arefacing some problems.
Animal Health Care Products
Vitade
Oxin WS
Sulfamix+K
Enro 10
TylosVital C
Polymix WP 10 for Layer
Polymix WP 21
Polymix WP 22
Polymix Salinomicin-mix 12%
Written and Structured for Case Analysis
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Author: Tajuddin Ahmed
Faculty: North South University, Dhaka, Bangladesh
Polymix Amprol-Mix 25%Polymix CLS 1500 WS
Polymix SPS Super
Polymix Flavomycin-Mix 10%
Polymix Multivit Amino 26
Polymix SPT-5
Polymix Liquid DisinfectantLivasol WS
Daxolite
Medicines - an important material for commercial poultry farm
Unlike other countries, Bangladesh is also facing the problems of animal diseases.The diseases are affecting the Poultry Firms directly and indirectly. So, at any cost
farmers are maintaining the firms out from diseases otherwise starting from
epidemic to severe financial loss may incur. Usually Bacteria, Virus, Saprophytes,
Fungus, Malnutrition, Chemical Reaction and some other unknown diseases are
responsible for direct and indirect infections. Generally the Bangladeshi farmersdo not know that much about the poultry diseases. Farmers think about the
treatment after the diseases attack the poultry. Most of the cases small farmers do
not show interest to take prevention about diseases in order to avoid the cost.
Though some farmers has the vaccination, still they do not bother for the Chemical
Reaction, malnutrition and other diseases and as a result they become the victimwithout being aware of it. Infections are always a big threat for Poultry health.
Ranikhet, Gamboro, Faul Pox, Infectitous Broncataties, Coccideosis, Infectus
Coraiga, Aflatoxicosis, Eggdrop syndrome etc are having a direct effect on poultry
firms. If not controlled it can be turned into an epidemic. Also birds are affected
with malnutrition for feeding of low quality foods.
Medicines, Vaccines and Vitamins are very important among the other
ingredients. Most of these ingredients are imported from Europe, America, Korea,
Singapore, and India. There are some reputed companies who are importing andmarketing these medicines, vaccines and vitamins. Now vaccines worth have 16-
core and medicines worth of 60 core are available in Bangladesh but farmer are
being deceived because of the supply of some low quality products from some
companies. As small farmers are more dependent on dealers and agents, the
possibility of being deceived is higher for them.
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by Tajuddin Ahmed, Faculty North South University
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Author: Tajuddin Ahmed
Faculty: North South University, Dhaka, Bangladesh
The management of ACI Pharmaceuticals by the time has found a favorable notion
from this animal health care Division. And for that reason they want to start a new
journey. The animal health care division of ACI Pharmaceuticals thus has a good
prospect in the present market. This is indeed a great opportunity of ACI to in
crease their market.
Some of them are doing unethical practice by supplying the medicines at a high
rate, which is a huge waste of money. The farmers should be aware about them
and they should collect the medicines from the reputed companies but recently
farmers are becoming more aware about
the diseases and they are trying to learn about the diseases so that they can avoid
the situation.
Diagnosis of disease: an important activity to save the poultry industry
Disease creates problems in the good health of different parts of the body. Not
only for human being, it is applicable for all the animals of the earth, which is verytrue about the poultry chicken because they are very sensitive about any
mismanagement. They need some extra care as they grow in a sensitive
environment. They also may react in different weather and the diseases may attack
climate and the chickens and hens if the environment is not controlled. That's why
it very important to save them from any kind of diseases for marketing the poultry.Though generally farmers give vaccines to the poultry but it has been found that
the poultry are becoming sick and epidemic. The reason behind is farmers do not
check whether the vaccines are ineffective or not. Vaccines is use to protect the
poultry from the diseases and microbes are entered through the vaccines and if
microbes do not enter in sufficient amount and if the activity does not contain the
security then the vaccination will be a lost project. As farmers have least idea
about Ranikhet, Gamboro, Faul Pox, Infectitous Broncataties, Coccideosis,
Infectus Coraiga, Aflatoxicosis, Eggdrop and there is a very high possibility to be
infected by them, the farmers should have the clear concept about the diagnosis. If
the farmers can detect the diseases beforehand then by taking preventive measuresthey can save some abnormal loss and that's why it is very important to know
about the diagnosis of the diseases.
Written and Structured for Case Analysis
by Tajuddin Ahmed, Faculty North South University
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Author: Tajuddin Ahmed
Faculty: North South University, Dhaka, Bangladesh
As Bangladeshi farmers are weak in poultry management, in the same way theyhave lack of knowledge about the proper diagnosis of the poultry also. It is one of
the major reasons that epidemic takes place. To save the poultry from all the
diseases and infections the farmers should have a strict organic security and also
they have to monitor whether the poultry conducting any unusual behavior or not.
It's better to prevent them by taking the necessary action beforehand rather than
taking the action to feed the medicines after the infection. This willgive two advantage, one is it will save some unusual expenses and it will have less
indirect effect on human body. So it will be a profitable thing if farmers take care
about proper diagnosis of the poultry. That's why farmer should take necessary
training on diagnosis and should maintain a regular communication with the
diagnostic centers and if necessary there should special diagnostic zones adjacent
to the big farms. The officials of different diagnostic centers can visit the farms
often and through that the farmers can learn to diagnosis and to take the properhelp form the concerned department. Government, Private sector and other big
entrepreneurs can invest to establish diagnostic centers.
Foreign Investors can also be called for this. It is necessary to establish the latest
and scientific diagnostic laboratory in Bangladesh. There are few diagnosticcenters that are not sufficient enough to meet the demand of the poultry industry.
It is agreed that to make the poultry industry profitable, it is necessary to give
importance to the diagnosis sector and establish latest and scientific diagnostic
centers.
Animal health care products and ACI Pharmaceuticals
In Bangladesh private sector investment in rural based agro-industries is
significant enough. Established business houses are yet to divert their attention in
such non-traditional propositions. However, towards end 80's a huge number of
poultry farms have come up with keen interest in development of poultry sector
and subsequently became active as multidimensional conglomerate. As a result it
has been noticed that a strong demand has risen up for animal health care products
among which different types of veterinary items are mostly noticeable.
In Bangladesh per capita consumption of meat is below 1kg.Assuming that, if we
can increase this figure up to 1.5 kg then a dramatic change in our poultry sector
can be observed.
Written and Structured for Case Analysis
by Tajuddin Ahmed, Faculty North South University
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7/27/2019 HRM 380 2013 Summer Case 3 1 ACI Bangladesh
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164273528.doc
Author: Tajuddin Ahmed
Faculty: North South University, Dhaka, Bangladesh
To fulfill this gap in between high demand and poor supply of animal health care
products domestically ACI Pharmaceuticals has recently introduced a new product
line that gives much emphasis on Vitamins (different kinds of vitamins which are
required for the rapid growth of chicken) and Ox Tetracycline (a kind of medicine
used for preserving poultry feed) required for poultry farming. This recent project
follows up the company's new idea to establish a full-fledged animal health caredivision namely ACI health care division with its marketing infrastructure. The
company has set up its target to gain 25% to 30% market share of the domestic
market of animal health care products. Simultaneously, the project goal is to hold
the position among the top five companies in the related field by the year
2005/2006.
Within the next few months ACI Pharmaceutical is planning to launch their animalhealth based products in the market. As a result, in present days, they are passing
through a situation, which need information to make decisions regarding the
market of the products of animal heath care product line of the company. In this
respect, the company is in a need to figure out the market potential for animal
health based products.
As the prime products of this animal health care product line are Vitade (Vitamin
83Ad3E) and Oxin WS (Oxytetracycline Hydrochloride) the company is interested
to consider these two products for measuring market potential. Here market
potential has been defined as the current demand among the customers of ourcountry for animal health care products of ACI Pharmaceuticals.
Consumption of Animal Heath care products
In this case ACI only concentrate to the information about the Animal health care
products. Animal health care products increase in Consumption in many reasons:
Festivals Like Eid
Weather FluctuationSeasonality Effect
Temperature Fluctuation
Others
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by Tajuddin Ahmed, Faculty North South University
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Author: Tajuddin Ahmed
Faculty: North South University, Dhaka, Bangladesh
For these following-mentioned two generalized reasons the animal health careproduct will be getting popular day by day and that is why there is a market
potentiality for this product.
Increase in consumption for both the increases in demand during festivals, and
fluctuation of weather.
Increase in consumption during the pick season.
Written and Structured for Case Analysis
by Tajuddin Ahmed, Faculty North South University