An Appraisal of Glaxo SmithKline Bangladesh Limited

Abstract

GlaxoSmithKline is a world leading research based pharmaceutical Company, committed to improve the quality of human life by enabling people to do more, feel better and live longer. Pharmaceutical industry is one of the most complex and highly regulated industries in Bangladesh as elsewhere in the world. Although there is a price ceiling on the controlled priced products set by the government, still GlaxoSmithKline contributes around 100 crore Taka to the national exchequer and the amount is programming in an upward trend. The company has one of the most diversified marketing networks and efficient financing policies by which it ensures the availability of its products to the ultimate consumer and at the same time ensures good fund management. The Company always sets a selling target each year and tries to attain the goal. The Company also enjoys competitive advantage on its brand name. The Company has established 11 DMOs(District Marketing offices) in 11 districts, medicines are allocated to different demand oriented areas from these DMOs. The Company views Information System as a corporate resource and includes it as part of the strategic planning process. The maintenance of quality is a long-term fundamental aspect of the Company and they achieve it through their commitment to high international standards in every aspect of their business. GlaxoSmithKline is among the few companies in Bangladesh, which conducts their own research on millions of molecules to produce new medicines, for which they have some patent products. As far as the pharmaceutical industry is concerned, it is a highly competitive market and up to some extent, infact a great extent there is also the presence of a complex monopolistic market. Under these conditions the company has to set different sort of marketing and financing strategies. Over the years, we have observed that the Company's financial performance is likely to improve and currently the Company is in a good financial position.