Strategic Management Term Paper on ACME Pharmaceutical

Submitted To
Prof. Dr. Mahmodul Hassan
Faculty of MBA & EMBA Program
American International University, Bangladesh

No.
Name
ID
Signature
1
Haque,Kazi Mahfuzul
12-95395-1

2
Arif, Md Rezwanul
14-97434-1

3
Shafi, Sayeed Abrar
14-97864-2

4
Mondal Sharmistha
14-97481-1

5
Abbasi Md. Rashidun Afsar
13-97291-3

DATE OF SUBMISSION: 19th April, 2015

19th April 2015

Prof. Dr. Mahmodul Hassan
Faculty of MBA & EMBA Program
American International University, Bangladesh

Subject: Submission of Term Paper on Acme Pharmaceuticals.

Dear Sir,
With great gratification we are submitting our term paper on "Acme Pharmaceuticals" that you have assigned to us in your Strategic Management course for MBA program this spring, 2014-15 at AIUB. It is really an enormous prospect for us to congregate vast information and grasp the subject matter in an appropriate way. We have found the research activity quite interesting, beneficial & insightful and tried our level best to prepare an effective & creditable report.

Our anticipation will assist to provide a clear idea about the Acme Pharmaceuticals. And through extensive secondary and some primary research we have gathered the necessary information that would facilitate the strategic analysis of the Company and their overall functioning. Through systematic analysis, we have formulated a set of key recommendations which Acme Pharmaceuticals may adopt for strategic planning and implementation which will be worth for all the labor we have put in it. We welcome your entire query & take pride to answer them.
Sincerely yours,

No.
Name
ID
Signature
1
Haque,Kazi Mahfuzul
12-95395-1

2
Arif, Md Rezwanul
14-97434-1

3
Shafi, Sayeed Abrar
14-97864-2

4
Mondal Sharmistha
14-97481-1

5
13-97291-3

Letter of Authorization
19th April, 2015

Dear Reader,
This report has been conducted to fulfill the course requirement of Strategic Management of the American International University, Bangladesh. This is a secondary research work done by us. As a result, before using any information or data of this report, permission is strictly required from us. The authorization of this report is valid until any further notice from us.
Thanks for your time.
Sincerely,

No.
Name
ID
Signature
1
Haque,Kazi Mahfuzul
12-95395-1

2
Arif, Md Rezwanul
14-97434-1

3
Shafi, Sayeed Abrar
14-97864-2

4
Mondal Sharmistha
14-97481-1

5
13-97291-3

Executive Summery
Strategy is the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations. The name of term paper is "Term Paper on Acme Pharmaceuticals". ACME is one of the leading pharmaceuticals company in Bangladesh. The drug market of ACME is possessing huge market shares in Bangladesh ACME laboratories. The ACME is a local and export oriented Pharmaceuticals Company situated at Dhaka, incorporated as a proprietorship firm in 1954.
Strategic management of Acme Pharmaceuticals involves strategy development, which is comprised of five stages of modern strategic management theory (2011-2015±). PESTEL analysis stands for "Political, Economic, Social, and Technological, Environmental and Legal analysis" and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. SWOT Analysis of ACME Pharmacy. In BCG matrix Acme's position is in dogs. Bangladeshi firms generate 82% of the market in pharmaceuticals; locally based MNCs account for 13%, and the final 5% is imported. The top 30 to 40 companies dominate almost the entire market; the top 10 hold 70% of domestic market share; and the top two, Beximco and Square, capture over 25% of the market. Acme has 3% market share in the pharmaceutical industry. The industry structure is relatively concentrated. EFE matrix of Acme Pharmaceutical weighted score is 2.75 which is one average.CPM analysis of pharmaceutical Industries is 3.15 which indicate minor strength of Acme pharmaceuticals. In Break even analysis If ACME wants to make a target profit, it must sell more than 208,333 at Tk. 14 each. If ACME invested Tk. 40,00,000 and wants to set price to earn a 20 percent return or Tk. In QSPM analysis of Acme Pharmaceutical we focus the strategy in globally one is Alternative 1(Exploration in South Asia) another one is Alternative- 2 (Exploration in North America). We choose Alternative-1.Because the Total Attractive score of alternative-1 is 5.10 and Total Attractive score of alternative-2 is 4.95. Total Attractive Score of alternative-1 is greater than the Total Attractive score of alternative-2. That's why we choose Alternative-1.
Table of Content
Page No
Chapter 1
Definition of Strategy

01
Chapter 2
Company detailed profile and Mission & Vision

02-05
Chapter 3
Strategic Management Model
PESTEL Analysis
Porter's Five Forces
SWOT Analysis
06-13
Chapter 4
SWON Analysis
TOWS Analysis

14-15
Chapter 5
Value Chain Analysis

16-18
Chapter 6
SMARTER MODEL
GREAT Model

18-21
Chapter 7
Visa Model & PURE objective

21-24
Chapter 8
The BCG Chart

25-26
Chapter 9
Market analysis including Market segmentation

26-28
Chapter 10
EFE matrix
CPM matrix
29-31
Chapter 11
Financial Analysis

31-32
Chapter 12
Competitor Analysis

32-34
Chapter 13
Break Even Analysis
QSPM Analysis

34-38
Chapter 14
KSF analysis

38-39
Chapter 15
Strategy evaluation
Contingency plan

40-43
Chapter16
Recommendation

44
Chapter17
Conclusion

45
Chapter 18

References
46
Definition of Strategy
Strategy is the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations.
Strategy is often the difference between:
success and failure, between mediocrity and excellence
a great manager and average managers
stumbling through life and moving ahead with purpose

Strategic Management (Theory : 2000 – 2010)
Strategic Management can be defined as (1) the art and science of formulating, (2) implementing, and (3) evaluating cross-functional decisions that enable an organization to achieve its objectives.
Strategic Management focuses on integrating management, marketing, finance/accounting, production/operation, research and development (R&D) and computer information systems to achieve organizational success.

Strategic Management (Theory : 2011 – 2015 ± )
Strategic management involves strategy development, which is comprised of five stages:
discovery,
strategic thinking,
strategic planning,
strategy roll-out,
Strategy tune-up/adjustment.

Company Detailed Profile including Mission & Vision

ACME is one of the leading pharmaceuticals company in Bangladesh. It is one of the top most pharmaceuticals companies that have large contribution in the society and controls. The drug market of ACME is possessing huge market shares in Bangladesh ACME laboratories. The ACME Laboratories Ltd. is a local and export oriented Pharmaceuticals Company situated at Dhaka, incorporated as a proprietorship firm in 1954. The founder of the ACME organization was late Hamidur Rahman Sinha. The firm was converted into a private Limited company in the year 1976. Commercial operation at the modernized plant equipped with sophisticated and advanced facilities began toward the end of 1983. Many challenges were overcome successfully to transform the company from a small unit to what it is today.
ACME Pharmaceutical is one of the leading and diversified global conglomerates in Bangladesh, with offices in all major cities, employing over 3000+ employees and dedicated to bringing the highest quality products and services to our customers. We have an annual turnover of US $60 million with diversified interests in Pharmaceuticals, FMCG, Information Technology Services, Aviation Services, Printing & Packaging Services, Trading Services, C & F Services, Apparels and more. The conglomerate has an outstanding record of all around excellence and growth in the relevant business activities.
The ACME Laboratories Ltd, the pharmaceutical major and the flagship Company of the ACME Group, is a Manufacturer and Global exporter of Human, Herbal and Veterinary Pharmaceutical products. Our comprehensive Product List ranges from Antibiotics to Histamines to Vitamins. Certifications include: ISO 9001:2008.
The ACME Laboratories Ltd. continuously seeks to expand its production facilities, add employees and increase its sales and marketing efforts. According to the latest statistics, out of about 300 Pharmaceutical companies in the country, The ACME Laboratories Ltd. is one of the top four.

Vision
A vision statement is the statement or the outline that a company wants to achieve trough the business. Vision statement sates the purpose and the values of the company. ACME pharmaceuticals have its individual vision that they want to achieve. The vision of ACME is to ensure "Health, Vigor and Happiness for all and is on a Perpetual quest for excellence."
Mission
Our holistic approach is to ensure Health, Vigour and Happiness for all by manufacturing ethical medicines of the highest quality at affordable prices and expanding in the local and global market. We view ourselves as partners with the doctors, healthcare professional, all other customers, our employees and harmonize with environmental issue.
Company Organogram
Chairman
Chairman

Managing Director
Managing Director

Deputy Managing Director (ARS)Deputy Managing Director
Deputy Managing Director (ARS)
Deputy Managing Director

Directors
Directors

Fig: Board of Directors

Strategy of Acme Pharmaceuticals

Strategic management of Acme Pharmaceuticals involves strategy development, which is comprised of five stages of modern strategic management theory (2011-2015±)
Discovery: Their company strategy, at the core, is based on a diversified approach to the business – one that does not rely or depend on any particular product type, geology or geography. Their diversified portfolio has helped them continue operating long-term business without the need to react to short-term market volatility. With a steady stream of production from legacy assets, conventional and unconventional opportunities in development drilling programs, major project startups across the portfolio, and an extensive inventory of exploration prospects, they are well positioned to deliver organic growth. They believe this is the right formula for a company of our substantial size.

Strategic Thinking: They run their business under a set of guiding principles that are called their SPIRIT Values. These set the tone for how they behave with all their stakeholders, internally and externally. They are shared by everyone in their organization, distinguish them from competitors and are a source of pride.
Safety- They operates safely.
People- They respect one another, recognizing that their success depends upon the commitment, capabilities and diversity of their employees.
Integrity- They are ethical and trustworthy in their relationships with stakeholders.
Responsibility- They are accountable for our actions. They are a good neighbor and citizen in the communities where we operate.
Innovation- They anticipate change and respond with creative solutions. They are agile and responsive to the changing needs of stakeholders and embrace learning opportunities from their experience around the world.
Teamwork: The "can do" spirit delivers top performance. They encourage collaboration, celebrate success, and build and nurture long-standing relationships.

Strategic planning: Acme Pharmaceuticals remain committed to our 5 strategic priorities:

Maintain a relentless focus on safety and execution.
Offer a compelling dividend.
Deliver 3 to 5% compound annual production growth.
Deliver 3 to 5% compound annual margin growth.
Achieve ongoing improvements in financial returns.

Strategy roll-out: To achieve these goals we continue investing in projects and programs that deliver long-term production and margin growth. In 2013, we funded a $16.3 billion capital program for continuing operations and prepaid a $2.8 billion obligation to our 50% owned FCCL business venture. The 2013 budget allocated approximately 10% of this capital toward maintenance of our legacy base assets, 45% to development drilling programs, 30% for major growth projects, and 15% for exploration and appraisal programs. We expect our 2014 capital to have roughly the same allocations.

Strategy tune-up/adjustment: If the plan is not according to the schedule then they evaluate it and adjust for the betterment and this continuous process of improvisation remains present all the year.

Most Strategic Management Models

PESTEL analysis:
PESTEL analysis stands for "Political, Economic, Social, and Technological, Environmental and Legal analysis" and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management.
PESTEL ANALYSIS

POLITICAL

ACME Pharma has a long-standing commitment to comply with the law wherever they operate and to conduct all business activities with the highest ethical standards which is critical for their continued success in the global marketplace.
The ACME Pharma governance body ensures the company serves the interests of shareowners and other key stakeholders with the highest standards of responsibility, integrity and compliance with all laws.
Customers, community groups, political organizations and others regularly approach ACME Pharma to support civic and political activities.
Growing political focus and pressure on healthcare.
Government interest in ensuring healthcare for all and solicit savings
Harmonization of healthcare across the industry

ECONOMICAL

ACME Pharma common stock is listed on the Dhaka Stock Exchange (DSE).
The Board places a premium on aligning the interests of executives with those of the Company's stockholders. The Human Resources and Compensation Committee shall adopt , and annually monitor compliance with, stock ownership guidelines applicable to directors and senior executives
Global economic crisis
Reduction in individual disposable income
Increased number of buying groups putting pressure on price
Reluctant of consumers to spend in healthcare
Increased pressure from shareholders

SOCIAL/SOCIO-CULTURAL

Patient awareness and changing expectations
Increasing age of population and growth in obesity.
Market likely to grow with increasing health concerns
Patient public and social media activism is also increasing through networking technologies.
Increased need of customer service and price transparency.
They consider their people are their most important asset and the key to their success. That's why they respect one another, and consistently demonstrate honesty and commitment in their words and actions.
By demonstrating visible and active leadership in communities where they operate, ACME Pharma creates and maintains inclusive, honest, and mutually-beneficial relationships with those who are impacted by their business or who have the ability to impact their business.
TECNOLOGICAL

They continue applying new technology and fresh medical knowledge to both enhance existing resource.
Customized treatment
Direct to patient advertising
Direct patient communications
More responsive service facilities
Developing and applying innovative technology is a key component of their future success and social license to operate. They focus on applying the most leveraging technologies where they can create the most value, anticipating change and responding with creative solutions.

ECOLOGICAL/ ENVIRONMENTAL

ACME Pharma implement high environmental standards in order to ensure that their actions today will not only provide the energy needed to drive economic growth and social well-being, but also secure a stable and healthy environment for tomorrow.
Growing environmental agenda and community awareness
Identify eco opportunities in the market
Market demand of herbal products
LEGAL/ REGULATORY

Change to advertising law
Increased litigations
Quality become the key
Key ACME Pharma operating policies include:
Code of Business Ethics and Conduct
Health, Safety and Environmental Policy
Political Support Policy and Procedures
Political Contributions
Substance Abuse Policy

Five Forces Model

Porter's Five Forces Analysis

As we know, Michael Porter's analysis of five primary competitive forces is the key to analyze the state of competition in the industry. Following are the brief of the competitive forces that contribute to shape pharmaceutical business in Bangladesh.

Rivalry among competing sellers:
The competition among companies in this industry ranges from moderate to high. There are more than 150 product categories where price limit is set and controlled by the government. So the competition between firms in pharmaceutical industry is based mostly on non-price factors like brand preference and customer loyalty, product quality etc. The nature of rivalry among pharmaceutical industry can be explained in terms of following factors:
Rivalry in the industry is intense as significant numbers of companies are operating in this industry. There are around more than 150 companies inthis industry among which the top 30 companies control more than 90% of the market, which makes the industry consolidated in nature.
As the government is controlling and setting the price for the product class of around
150 products, the competition is mainly based on other marketing activities instead of price. Only top 10-15 companies are marketing all these product categories and rivalry is mainly exist in these products class and among these 10-15 companies.
Competition is not that intense in those product classes for which the government is not controlling and setting up the prices. Moderately expensive molecules where demand is coming usually from the affluent and urban classes, competition is getting high these days as increasing number of companies are coming up to cover these segments of the market.
Rivalry is strong in the market as the demand for the product is growing slowly. There are many companies who are offering in the same markets for their products. Rivalry is also strong because the customers' cost of switching the brands is low. Doctors are flexible to prescribe different products for their availability in the market.
Rivalry tends to be vigorous as the exit barriers are very high due to requirement of huge capital and other investments. Rivalry increases because strong companies of the other business are acquiring weak firms in the industry and aggressively launching the pharmaceutical business.
Competitive firms are using price cuts and other competitive weapons to boost unit volume and to realize the economies of scale which is also causing intensive rivalry.

Potential Entry of new competitors:
Entry barriers in pharmaceutical industry is high for foreign companies as the govt. rules does not permit foreign companies to enter the market without joint venture with a Bangladeshi firm owning at least 50% share of the company. Initial capital requirement, brand preference and customer loyalty, strict government rules and regulations to match with and qualify for entering this market etc. are also playing as high entry barriers for the potential competitors. Even though there are high entry barriers in the industry, threats from potential new entrants in this industry are also significant because of the industry profitability and the rapid growth of the market.
Following are the factors that can be considered as entry barriers of this industry:

Economies of Scale:
As the scale economies deter entry in this industry and cannot be achieved at the beginning of operation, potential new entrants have to start on a large scale which is a costly and perhaps a risky move. Sustainable profitability certainly depends on the scale of the operation and production of large volume. Potential entrants have to encounter scale-related barriers in this industry not just in production but in advertising, marketing and distribution and raw material purchasing as well.

Brand preference and customer loyalty:
As mass media advertising is not allowed in the pharmaceutical industry, Promotional and advertisement activities are done through physicians, chemists or retailers. In case of physicians it's done through direct contact, providing free samples, arranging seminars, providing necessary information etc. In case of chemists or retailers it's done through discounts, commissions etc. Usually the end user of the products must follow the physician's prescription, so they don't have any choice in brands. So brand preference and loyalty of the consultant class is playing a
vital role in establishing relative market share in this industry. It's very hard for any new entrant to build preference and loyalty to these special segments within a short period of time.

Distribution channel:
The distribution channel in the industry is not that much organized and therefore all the big companies have to develop their own channel by their own work force, which is very difficult and time consuming for new entrants.

Capital requirement:
High capital is required to set up manufacturing facility in the pharmaceuticals industry. As the economies of scale is present in the industry, high investment is required to start minimum production for keeping the price low and make the product competitive. Products are also required to fulfill the standard prescribed and controlled the regulatory authority, so high investment is required to maintain the standard of the facility. High cost is also required because of the high cost of machinery and equipment.

International trade restrictions:
International trade restrictions and government regulation played a major role to impose high barriers for foreign companies in Bangladesh market. Under the existing related law, foreign companies can only export or sell medicine in the local market without affiliation with a local company, but for manufacturing it must go for fulfilling the local law. This has increased the entry barriers for foreign companies but reduced the same for local companies.
Threat from substitute products:
Three factors play vital role in strengthening the competitive pressure from substitute products which are whether attractively priced substitute products are available, how satisfactory the substitute products are in terms of quality, performance and other relevant attributes, and the ease with which buyers can switch to substitutes. Although there is no direct substitute for pharmaceuticals products, there are some cases where limited substitutes are available. The substitute for general antibiotic is Ayurvedic and Homeopathic and Herbal medicine. In Bangladesh the rural people who constitute large share of population highly depend on Ayurvedic and Homeopathic medicine. In urban areas the trend is more toward medicines with herbal ingredients rather than chemical. So, in rural areas affluent people pay good money for Ayurvedic and Homeopathic medicine. They are also very cheap, as they are not scientifically produced. The rural people being ignorant and uneducated are unaware about the consequences of taking these medicines. They buy them as they offer cheaper price. Sometimes fake village doctors use religious believes as a backdrop for selling false medicine and reject the medicines produced by pharmaceutical companies. As long as the people of our country don't educate themselves these false medicine will be playing significant
role as substitute products.

Bargaining power of suppliers:
Bargaining power of suppliers in this industry is moderately low. Most of the manufacturers in this industry import raw materials directly from abroad which constitute low dependency on the raw materials suppliers. Also the number of suppliers is very high in the industry and the purchase volume is big, which are playing positive role for the buyers to bargain over suppliers. Therefore, the dependency on suppliers and the switching cost to other suppliers are relatively low in this industry.

Bargaining power of buyers:
As the end-consumers are not the decision maker here, the buyer characteristics in pharmaceutical industry are somewhat different from other consumer products. The decision makers are mainly physicians and chemist or retailers. There are around
120,000 physicians around the country to whom the competitors visit regularly to promote their products. Almost all promotional expenditures of the firms, a very big portion of any firm's yearly sales revenue, is utilized to convince these segments. Also as most of the products in this industry are nearly identical and there are significant numbers of brands existing in this market, the bargaining power of buyers is very high. The unique power of physicians to make any band establishment and in some case, unethical practices of sharing mutual benefits among physicians and firms have increased this bargaining power even higher.

SWOT Analysis

SWOT Analysis of ACME Pharma
Strengths
Weaknesses
1.Big brand image and strong market position
2.High level of marketing activities
3. Large pool of qualified technical personnel
4. Competitive price in local and foreign market
5. Wide range of product offering
6. Products are perceived as quality product in the market
1.Cost of treating environmental hazards
2. Dependency on imported raw materials.
3. Inadequate knowledge on international business and trade related affairs
4. Absence of updated testing and clinical facilities.
5. Accused of Pollution

Opportunities
Threats
1. Large potential for export market expansion
2. Liberal Govt. policy for the foreign investors for joint venture projects
3. Domestic market is gradually increasing with the hike in GDP
4. Scope of new product development in herbal and animal health care segment

1.Government regulations
2. Negative impact on export due to exchange rate variation
3.High labor costs
4. Cheaper medicine from China and India.
5. The fluctuation in raw imported material price

SWAN Analysis of ACME Pharma
Strengths
Weaknesses
1.Big brand image and strong market position
4. Absence of updated testing and clinical facilities

Achievements
Next Step
One of the leading and diversified global conglomerates in Bangladesh
Employing over 3000+ employees
Annual turnover of US $60 million
Business Expansion in FMCG, Information Technology Services, Aviation Services, Printing & Packaging Services, Trading Services, C & F Services, Apparels and more.
An ISO 9001:2008 certified company

ACME Pharma have a plan to continue excellence and growth in the relevant business activities.
Currently exporting successfully to 11 countries World-Wide and plan for developing new market
Developing Health Care awareness Serving
Continue manufacturing quality products & services

TWOS Analysis

TWOS analysis of ACME Pharma
Details
Score
External Environment

Opportunities
1. Big brand image and strong market position
Threats
1.Government regulations
2. Negative impact on export due to exchange rate variation
3.High labor costs
EFE Score-2.75
Internal Environment

Strengths
1. Large potential for export market expansion
2. Liberal Govt. policy for the foreign investors for joint venture projects
3. Domestic market is gradually increasing with the hike in GDP
4. Scope of new product development in herbal and animal health care segment

Weaknesses
4. Absence of updated testing and clinical facilities

CPM Score-3.15

Value chain Analysis:

Ensuring that patients receive the correct medicine, at the appropriate time and from a convenient location, ACME Pharma is involved in a complex value chain involving three major components:

1. Manufacturing of the medicine: In order in produce a medicine, a number of steps are involved, from the initial research and development phase, to gaining regulatory approval which allows a medicine to be sold in a market to the final commercialization phase. The specific steps and requirements will differ between types of medicine, manufacturers and countries.

2. Distribution to the dispensing point: This step includes the transportation and handling of the medicine from the manufacturer to the end user, whether this is a retail pharmacy (retailer), hospital or dispensing doctor. The complexity of this journey will differ depending on manufacturer location, the need for importation of the medicine, the nature of special handling requirements, and the geographic location of the end user which will vary between large urban centers and remote rural villages.

3. Dispensing to the end user: Providing the correct medicine dosage and form, to the right patient, in a convenient and timely manner is the final step in the value chain. This step can also involve a number of additional activities, including checking for potential interactions, providing advice, and processing reimbursement claims, each of which is intended to ensure the patient receives the full benefit and value from the medicines they receive.

Figure: Value Chain of ACME Pharmaceutical

Scope:
Provides historical production or capacity data on ACME Pharma's operation.
Analyses and forecasts output for major oil and gas assets to 2020.
Critical analysis of ACME Pharma's strengths, weaknesses opportunities and threats and positioning on the value chain.
Provides summary analysis of key revenue lines and strategy.
Details on ACME Pharma's history, key executives, business description, locations and subsidiaries as well as a list of products and services and the latest available company statement.
Product and brand updates, strategy changes, financial events.
Latest mergers and acquisitions, partnerships or financings of ACME Pharma including debt, equity or venture finance.

Reasons to buy:
Research your competitor's business structure, strategy and prospects.
Assess your competitor's major energy assets and their historic and forecast performance.
Identify and assess potential corporate and asset investment opportunities
Support sales activities by understanding your customers businesses better.
Qualify prospective partners and suppliers.
Obtain up to date company information.

SMARTER MODEL
ACME Pharma short-term objective is sustainable development throughout the organization.

S-SPECIFIC
ACME Pharma aim is to maintain the Sustainable Development. Key performance metrics are updated every year.
For ACME Pharma, Sustainable Development is about conducting business to promote economic growth, a healthy environment and vibrant communities, now and into the future.

M- MEASURABLE
ACME Pharma Ltd is the largest pharmaceutical company in Bangladesh and it has been continuously in the 2nd position among all national and multinational companies.
The sales turnover of The ACME laboratories LTD was more than US$ 60 million in the year 2014.

A-ACIEVABLE

It is their mission to protect civilization, and they will achieve this with an entrepreneurial spirit and unmatched passion for innovation.

R- REALISTIC
Each of ACME Pharma' businesses is responsible for integrating sustainability issues into day-to-day operations, project development and decision making. They are held accountable through an annual goal-setting process and report progress to the appropriate committees of the board of directors. They try to figure out the points to do the things better for the people, stakeholders, company and the planet.

T- TIME
ACME Pharma is one of the successful industries. They have talent workforce those are responsible to do the work effectively and efficiently in timely. Good time management is their one of the key success factor.

E- ENCOMPASSING
ACME Pharma is assessing and inventing technologies for essential drugs, and is leveraging expertise, intellectual property and physical assets in pursuit of economically viable business opportunities.

R- REVIEWED
A career with ACME Pharma is a rewarding one. They value their people and ensure that the rewards and benefits are comprehensive, competitive in the markets where they operate and designed to recognize each individual's contribution.

GREAT MODEL:

G
Goals:
increase sales growth
increase productivity
increase profit margin
improve company image & customer satisfaction and
ensure continual improvement

R
Results:
ISO 9001:2008 standard
WHO cGMP standard and
Best practices that are proven effective
Achieve average 25% growth rate compared to the 13% registered by pharmaceutical sectors.

E
Expectations:
The main objective of the company is to achieve the maximum market share along the whole country within very short time by utilizing good reputations and providing better quality products.

ACME's wanted to ensure Health, Vigor and Happiness for all by manufacturing ethical medicines of the highest quality at affordable prices and expanding in the local and global market.

A

Accountabilities:
Customer Focus : ACME anticipate their customer's needs and make it easy for them to do business with us.

Team spirit: ACME believes in teamwork.

Desire to win: ACME believes "Everything is possible." That gives us an edge over our rivals.

Pro-activity : Anticipate future changes in the industry and we take proactive moves to seize the future opportunities and take measures to resolve possible problems.

T
Timing:
Growth from product and geography should contribute to margin growth over time.
Talented workforce those are responsible to do the work effectively and efficiently in timely.
Good time management is their one of the key success factor.

VISA Model

Vi-vision
ACME Pharma's holistic approach is to ensure Health, Vigour and Happiness for all by manufacturing ethical medicines of the highest quality at affordable prices and expanding in the local and global market. They view themselves as partners with the doctors, healthcare professional, all other customers, our employees and harmonize with environmental issue.
The main objective of the company is to achieve the maximum market share along the whole country within very short time by utilizing good reputations and providing better quality products.

S-Strategies
Key objectives:
ACME wants to discover, develop and successfully market innovative products to cure diseases, to ease suffering and to enhance the quality of life.
It wants to be recognized for having a positive impact on people's lives with our products, meeting needs and even surpassing external expectations.
It strives to create sustainable earning growth. Ranking in the top quartile of the industry and securing long-term business success.
It wants to build a reputation for an exacting workplace in which people can realize their professional ambitions.
ACME strives for a motivating environment where the creativity and effectiveness are encouraged and where cutting-edge technologies are applied.

A-Action Plan:

Customer Focus: They always focus on their Customers. They listen to and connect with their customers. They anticipate their needs and make it easy for them to do business with us. They keep promises. They offer them value and quality services to enrich lives and enhance business success. They treat customers with dignity and respect.
Team spirit: They believe in teamwork. They know that by working together as a team with common goals they can achieve greatness. They recognize, respect and value diversity in a team so that they can develop & maintain a culture of sharing, accepting and rewarding better ideas. Teamwork is the secret of ACME's success.
Desire to win: They know how to make things happen and they know how to win in the battlefield called the market place. They believe "Everything is possible." That gives them an edge over their rivals.
Pro-activity: They anticipate future changes in the industry and they take proactive moves to seize the future opportunities and take measures to resolve possible problems. They adapt quickly with the changes.
Integrity: ACME's stakeholders' confidence on them drives them to become more responsible about commitments. They value all their stakeholders, customers, employees, the community we live in and the society at large. They strive to deliver their best so that they can be preeminent in the industry. They take responsibilities for all their actions.
Personal Excellence: They achieve leadership and superior performance through the pursuit of personal excellence. They are committed to doing and being the best. They seek continuous improvement and take pride in what they do. They do things to the highest possible standards. They acknowledge potential of the individual and create opportunities for all to grow and excel.
PURE OBEJECTIVE

P-Positive:
ACME is one of the leading pharmaceuticals company in Bangladesh.It is one of the top mostpharmaceuticals companies that have large contribution in the society and controls.
ACME has a clear vision to become a leading research based form manufacturing with global presence within a short period of time.

U-Understood:
Performance: The ACME Laboratories Ltd. continuously seeks to expand its production facilities, add employees and increase its sales and marketing efforts.
Style: Innovation and usage of technology in almost all of the operations.
Culture: Diverse & engaging as well as it values safety, collaboration and transparency.

R-Recorded:
According to the latest statistics, out of about 300 Pharmaceutical companies in the country, The ACME Laboratories Ltd. is one of the top four.

Achieve average 25% growth rate compared to the 13% registered by pharmaceutical sectors.

E-Ethical:
ACME's approach is to ensure Health, Vigor and Happiness for all by manufacturing ethical medicines of the highest quality at affordable prices and expanding in the local and global market.
ACME's view ourselves as partners with the doctors, healthcare professional, all other customers, our employees and harmonize with environmental issue.

Business Growth Rate (Market Growth)The BCG Matrix
Business Growth Rate (Market Growth)
BCG STARS ()
(high growth, high market share)

BCG QUESTION MARKES (?)
(high growth, low market share)

BCG CASH COWS ($)
(low growth, high market share)

BCG DOGS
(low growth, low market share)
ACME
ACME

High

Low
Relative Position (Market Share)High Low
Relative Position (Market Share)

Interpretation
Domestically, Bangladeshi firms generate 82% of the market in pharmaceuticals; locally based MNCs account for 13%, and the final 5% is imported. Although 235 pharmaceutical companies are registered in Bangladesh, only about 85 are actively producing drugs. The top 30 to 40 companies dominate almost the entire market; the top 10 hold 70% of domestic market share; and the top two, Beximco and Square, capture over 25% of the market. Acme has 3% market share in the pharmaceutical industry. The industry structure is relatively concentrated.

Market growth
CUSTOMER'S CHOICE OF BRAND NAME Brand Name Respondent (in %)
Square 38
Beximco 24
Incepta 16
Glaxo SmithKline 8
Acme 6
SK-F 4
Others 4

Market analysis including market segmentation
The Bangladesh pharmaceutical marketplace is predominantly a branded generic marketplace. Pharmaceutical firms in Bangladesh can either sell to the private sector pharmacies, to the government and its public health care facilities, or to international organizations operating in Bangladesh (e.g. UNICEF).

Bangladesh pharmaceutical industry is mainly dominated by domestic manufacturers. Of the total pharmaceutical market of Bangladesh, the local companies are enjoying a market share reaching around 97%, while the MNCs are having a poor market share. Out of the top ten pharmaceutical companies in Bangladesh, all are local pharmaceutical companies. The top two domestic manufacturers, namely Square and Incepta Pharma are having a combined market share of more than 30% of the total pharmaceutical market of the country.

Sales of Square Pharmaceuticals, the market leader, were Tk 1,270 crore in 2010,Beximco grew faster than other companies at a staggering 33 percent in 2010 with Tk 523 crore sales. Incepta's sales and growth rate were Tk 665 crore and 31 percent respectively, followed by Acme's Tk 600 crore and 17 percent. Eskayef logged Tk 426 crore in sales and the growth rate was 27 percent, the third highest pace in the 2010. Zenith Pharmaceuticals, established in 1952, Zenith Pharmaceuticals Ltd is one of the sturdiest growing Pharmaceutical Company committed to produce medicine strictly under GMP compliance and extended its services to all the valued Customers. The company complies with GMP at its plant, where validation and documentation ensures the position in accordance to international standard.

Top Ten Pharmaceuticals and market share

Market segmentation of ACME

Acme operates in a single industry segment, it has its own manufacturing facilities, the principal activities of the company are formulation, manufacturing and sales drugs in home and aboard, the overseas offices and associates of ACME are Srilanka,Myanmar and the exports outlets are Bhutan, Hong Kong, Iraq, Kenya, Nepal, Pakistan, Singapore, Taiwan, Thailand, Vietnam, Philippines, East Timor, Belize, Ethiopia Etc.

EFE matrix of Acme Pharmaceutical
Key External Factors
Weight
Rating
Weighted Score
Opportunities

1. 1 Large potential for export market expansion
2. 2. Liberal Govt. policy for the foreign.
3. 3. Domestic market is gradually increasing with the hike in GDP
4. 4.. Scope of new product development in herbal and animal health care segment

0.20
0.15
0.05

0.10
3
1

2

4

0.60
0.15

0.10

0.40
Threats

1. 1. Government regulations
3. High labor costs.

0.05
0.15
0.10
0.20
2
3
1
4

0.15
0.45

0.10

0.80
=4 the response is superior
=3 the response is above average
=2 the response is average
=1 the response is poor

Rating
Total
1.00

2.75

CPM Analysis of Pharmaceutical Industries

Acme
Square
ACI
Critical Sucess Factors
Weight
Rating
Score
Rating
Score
Rating
Score
Advertising
0.15
4
0.60
4
0.60
4
0.60
Quality of Service
0.20
3
0.60
4
0.80
3
0.60
Price
Competitiveness
0.05
2
0.10
3
0.15
4
0.20
Management
0.15
3
0.45
3
0.45
2
0.30
Financial Position
0.10
4
0.40
4
0.40
3
0.30
Global Expansion
0.05
2
0.10
3
0.15
4
0.20
Customer Loyalty
0.20
3
0.60
3
0.60
3
0.60
Market Share
0.10
3
0.30
3
0.30
2

0.20
Total
1.00

3.15

3.45

3.00
4=major strength; 3=Minor Strength;
2 Minor Weakness; 1=Major Weakness

Financial analysis of Acme Pharmaceutical

Particulars (millions Tk.)
2009
2010
2011

Net income
3,192
2,033
1,751

Total assets
29,931
42,375
98,098

ROA
5.44%
5.38%
3.50%

ROA is decreasing, year by year indicating inefficient use of assets.

2009
2010
2011

EBIT
450
607
910

Total assets
29,931
42,375
98,098

ROI
1.50%
1.43%
1.00%

ROI is decreasing, year by year indicating poor efficiency in the use of investments.

2009
2010
2011

Net income
3,192
2,033
1,751

Equity
596
1,209
5,832

ROE
27.31%
18.83%
5.90%

ROE is decreasing, year by year indicating declining profitability.

2009
2010
2011

Net income
3,192
2,033
1,751

Dividends P/S
40.00
45.00
34.00

EPS
7.98
4.51
5.15

EPS is decreasing year by year indicating declining profitability.

Competitor Analysis

Motivating high performance in pharmaceutical sales teams is a growing issue in the pharmaceutical industry. There are many Pharmaceuticals in our country. Acme Pharmaceuticals is one of them. The challenges facing the pharmaceutical industry in motivating sales teams are compounded by a variety of factors that many other industries do not face including: government regulation of sales practices, non-direct tracking of sales results, and the impact of managed care on sales performance.
The companies deal in both up upstream and downstream operations. Upstream operations involve exploration and production while downstream operations include refining and marketing About 80% of the drugs sold in Bangladesh are generics and 20% 5 registered brands which have 8,300 different forms of dosages and strengths. The top 30 to 40 companies dominate almost the entire market; the top 10 hold 70% of domestic market share; and the top three, Beximco Square, acme capture over 25% of the market.
ACME pharmaceutical products on the market are of world-class Standards, others are less so. Medical professionals and pharmacists interviewed voiced strong opinions on the quality levels of different brands. Although further comprehensive and systematic analysis is required to assess Acme pharmaceutical quality, some anecdotal reports exist of lower quality drugs. Bangladesh's drug distribution marketplace is composed of small independent pharmacies. This structure combined with an under-regulated industry, few firms manufacturing pharmaceuticals, and companies competing to sell branded generics based on brand names provides ample opportunity for the sale of low-quality drugs at higher 11 significantly in Bangladesh. Acme Pharmaceuticals has 1,100 representatives and
Acme Pharmaceuticals has 950 representatives visiting pharmacies. None of the pharmacies visited restock any medicine that does not sell well. The small pharmacies report only keeping a medicine for a maximum of six months. As its first move towards internationalization, Bangladesh entered a few overseas markets exporting a wide range of pharmaceutical products covering all major therapeutic classes and dosage forms including some developed markets. High-tech specialized products like inhalers, suppositories, nasal sprays, indictable and infusions are also being exported.

The following are the export manufacturers: Square, Novartis, Opsonin, Acme, Beximco, Aristropharma, Eskayef, ACI, Renata, Orion, Jayson and Hudson. Overseas retail buyers apart, these companies are also supplying pharmaceutical products to some world-renowned hospitals and institutions like Raffles Hospital of Singapore, Jinnah Hospital of Pakistan, MEDs of Kenya, SPC of Sri Lanka and KK Women & Children Hospital of Singapore according to BAPI. Another diversification strategy is to focus on a comparatively large number of niche market drugs rather than blockbusters. Whether by accident or design a number of European companies appear to have followed this strategy. While their total sales of pharmaceuticals place them in the first rank of pharma companies they have perhaps only one or two drugs of blockbuster status. Selling a broad range of drugs clearly lessens dependence on the discovery of new blockbusters, but development and marketing costs need to be watched for the smaller markets to be economic.
The price of products under the controlled category is determined by the Government. At present the list of essential drugs contains around 209 items, which are in controlled category. While the manufacturing companies are allowed to fix prices of their products that are under decontrolled category. According to the Government regulation, the pharmacies/chemists are entitled to get 16% retail margins on top of the trade prices of products. Most of the leading pharmaceutical manufacturers have their own distribution network and ensure supply of products up to retail level. Companies that do not have their own distribution networks have to distribute their products through distributors/wholesalers. In that case they usually fix the distributors margin as mutually agreed.

Break Even Analysis

The break-even point is the sales level at which revenue equals total costs. This means that at the break-even level of sales, there is neither a profit nor a loss.

To illustrate markup pricing we consider the following cost and expected sales of unit produced by ACME Laboratories Ltd.

The figure shows break-even chart of ACME Laboratories Ltd. fixed costs are Tk. 1000,000 regardless of sales volume. Variable costs are added to fixed cost to form total costs, which rise with volume. The total revenue curve starts at zero and rises with each unit sold. The slope of the total revenue curve reflects the price of Tk. 14 per unit.The total revenue and total cost curves cross at 357,143 units. This break-even volume means at Tk. 14 ACME must sell at least 208,333 units to break-even.

If ACME wants to make a target profit, it must sell more than 208,333 at Tk. 14 each. If ACME invested Tk. 40,00,000 and wants to set price to earn a 20 percent return or Tk. 8,00,000 then they must sell at least 3,42,857 units at Tk. 14 each.

QSPM of Acme Pharmaceutical

Key Factors
Alternative 1
(Exploration in Afganistan,Srilanka South Asia)
Alternative 2
(Exploration in Algeria, Libya North Africa)

Weight
Attractiveness Score
Total
Attractiveness
Score
Weight
Attractiveness
Score
Total
Attractiveness
Score
Strengths

1. 1. Big brand image and strong market position
2. 2. Wide range of product offering
4. High level of marketing activities
0.20

0.05
0.10

0.15

3

4
2

1

0.60

0.20
0.20

0.15
0.15

0.10
0.05

0.20
3

4
1

2
0.45

0.40
0.05

0.40
Weaknesses

1. 1. Dependency on imported raw materials
2. 2. Absence of updated testing and clinical facilities
3. 3. Accused of Pollution
4. .Increasing demand for gas and products
0.20
0.15

0.05
0.10
2
2

4
1
0.40
0.30

0.20
0.10
0.15
0.20

0.10
0.05
2
1

4
2
0.30
0.20

0.40
0.10
Sum Weights
100%

100%

Opportunities

1. 1 Large potential for export market expansion
2. 2. Liberal Govt. policy for the foreign.
3. 3. Domestic market is gradually increasing with the hike in GDP
4. 4.. Scope of new product development in herbal and animal health care segment

0.15
0.10

0.20
0.05
3
4

3
2

0.45
0.40

0.60
0.10
0.20
0.10

0.15
0.05
2
4

3
1
0.40
0.40

0.45
0.05
Threats

1. 1. Government regulations
3. High labor costs.

0.20
0.15
0.10
0.05
3
2
4
1
0.60
0.45
0.30
0.05
0.15
0.20
0.05
0.10
3
3
4
1
0.45
0.60
0.20
0.10
Sum Weights
100%

100%

Sum Total Attractiveness Score

5.10
>
4.95
Attractiveness Score
1=Not acceptable
2=Possibly acceptable
3=Probably acceptable
4= Most acceptable
0=Not relevant

We choose Alternative-1.Because the Total Attractive score of alternative-1 is 5.10 and Total Attractive score of alternative-2 is 4.95.So the Total Attractive score of alternative-1 is greater than the Total Attractive score of alternative-2. So we choose Alternative-1.

KSF analysis (Key success factors)
Following are the key success factors of the ACME pharmaceutical:
Technology Related KSFs:
Technological superiority in manufacturing process.
Research expertise in introducing new products
Advance technology in marketing, distribution and production system
Capability to utilize the internet technology in product research, marketing and distribution
Advanced systems and telecommunications infrastructure to support all kinds of manufacturing and distribution process.
Manufacturing related KSF's:
Low production cost by achieving scale economies, learning and experience curve effects.
Maximum utilization of fixed assets because of the nature of high fixed-cost industry.
Availability of skilled labor.
Low cost product design and engineering
Distribution related KSF's:
Broad network of wholesales and distributors.
Short delivery time.
Low distribution costs.
Having company owned retail outlets.

Marketing Related KSF's:
Efficiency of marketing department.
Superior customer service.
Wide product line.
Attractive styling of packaging
Skills-related KSF's:
Superior workforce in manufacturing and quality control department
Quality control know how
Other KSFs
Convenient locations and overall low cost
Favorable reputation and image with buyers
Pleasant and courtesies employees
Providing safe and healthy workplace

Strategy Evaluation

In order to maintain ACME Laboratories Ltd.'s long term growth and performance, in a very competitive market

It is suggested that ACME Laboratories Ltd should apply a best-cost provider strategy where it will be able to offer a better quality with the same market price, or a better price with the same quality. As one of the ACME Laboratories Ltd.'s main strategic objective is to maintain its product quality high and also keep the existing market share, this best cost provider strategy would definitely help ACME Laboratories Ltd to maintain its high quality as well as marinating its status of industry leader.

Vertical integration strategy: reducing dependency on inputs and enhancing distribution network. One of ACME Laboratories Ltd.'s major difficulties are to effectively use the inbound and outbound logistic sectors of its value chain activities. A huge cost is incurred while marinating these value chain activities. Due to global and local macro environmental instability (strike, demand-supply movement, exchange rate, natural calamities), it has to pay more unforeseen direct and indirect costs. This is certainly a major constraint to keep the market dominancy. ACME Laboratories Ltd has to apply progressive strategy to gain strong control over its inputs. ACME Laboratories Ltd must put more resources to improve its production of raw materials to reduce absolute dependency on suppliers. This step will also reduce its duty expenditure; therefore direct contribution to its profitability. ACME Laboratories Ltd also has to find ways to enhance its distribution network, both local and foreign. Strong distribution network is a vital competitive advantage in pharmaceutical business, which must be realized to maintain the leadership position. Instead of depending on outside distributors, ACME Laboratories Ltd should put more emphasis on running direct sales centers or expanding forward integration by acquiring major distributor of Pharmaceuticals products. Due to only relatively weaker distribution channel, ACME Laboratories Ltd is losing its potential sales prospects. Due to weaker presence of traditional readily available distribution channel, higher involvement of self-operated company owned distribution channel represents a unique nature of the industry.

Reduction of overhead cost by increasing the production capacity. One way to reduce or keep cost of operation low is to increase the production capacity. It is suggested that ACME Laboratories Ltd must go for utilizing its full capacity to reduce its overhead cost. The full utilization of the capacity will give significant benefit for the company in terms of reducing overall cost and to expand its sales in more geographical areas. The fixed assets would be utilized properly and efficient employees will help to reduce the total cost for the company. The company can also subcontract its distribution channels for delivering products. The company may also supply products to other companies to reduce its overhead costs further.

Cooperative strategy: strategic alliances with foreign companies. In this globalization era and in a competitive marketplace companies in all types of industries and in all parts of the world have elected to form strategic alliances and partnerships to complement their own strategic initiatives and strengthen their competitiveness in domestic and international markets. ACME Laboratories Ltd has to think of a better cooperative strategy. ACME Laboratories Ltd has already started entering foreign market and to explore more foreign country and to cover more geographic region, ACME Laboratories Ltd must find out suitable partner oversees to enter new market. In domestic market, it has already matured. Lot of new competitors is operating with different competencies with different strategies. It is also important for ACME Laboratories Ltd to find ways in local market to explore this type of strategic alliances with foreign company in terms of R&D, product improvement, new production facilities or even improving the marketing activities.

Expand geographical coverage and maintain international standard. As we have found ACME Laboratories Ltd has potential to increase its production capacity while maintain the product standard, ACME must aggressively increase its geographical coverage with all the products across the countries. ACME Laboratories Ltd has already achieved much progress in exporting its products in neighboring countries and gains much confidence in entering new markets, the company should give much attention to explore the new areas and maintain the international standards of the products. The higher geographical coverage will lead to more demand for the products as well as reduce the overhead costs of the company Expand geographical coverage and maintain international standard. As we have found ACME Laboratories Ltd has potential to increase its production capacity while maintain the product standard, ACME must aggressively increase its geographical coverage with all the products across the countries. ACME Laboratories Ltd has already achieved much progress in exporting its products in neighboring countries and gains much confidence in entering new markets, the company should give much attention to explore the new areas and maintain the international standards of the products. The higher geographical coverage will lead to more demand for the products as well as reduce the overhead costs of the company

Diversify business:Another alternative strategy ACME Laboratories Ltd should seriously pursue is to diversify in profitable related business. As we know ACME Group of Industries has gained tremendous successes by diversifying its business in all profitable related and unrelated business, ACME Laboratories Ltd Pharmaceuticals can explore this experience and diversify its own business in more profitable related business.

Contingency Plan

Focused Differentiation-
In a focused differentiation strategy ACME will concentrate on producing the best quality product in the industry and sell it to a group of sophisticated and conscious customers.

Technology and Innovation-
They have invested in technology to develop efficient, economical and environmentally sound ways to find, produce and market medicine.

Health, Safety and Environment-
Increase emphasis on process safety, risk management, emergency preparedness and environmental performance while retaining intense focus on occupational safety.

Sustainable Development-
Update their strategies and action plans for these important issues and focused on goals such as reducing waste and emissions.

If the above recommended strategies fail to achieve the objectives and incur financial losses due to unforeseeable events, ACME should give up those strategies and adopt the following

Recommendation

To achieve the objectives of keeping the status of market leader and the high growth trend by further increasing the market share and to expand the export to more geographic regions by entering to more foreign countries, a complete package of a number of alternative strategies developed in the previous section has been recommended as follows:
Strategic alliance and cooperative partnership: Helping to get world recognition
To make the way smooth while entering more world market, ACME Laboratories Ltd should take initiative for strategic alliance with big foreign reputed companies. This is more easier for ACME Laboratories Ltd for developing cooperative partnership, as it has already some connections and associations with some major foreign companies. This strategic move will enable ACME Laboratories Ltd to understand cross-cultural boundaries, which is a vital competitive advantage for international business.
On the other hand, ACME Laboratories Ltd can utilize the strategy of strategic alliance by getting direct entry in valuable skills, technology and management quality of their foreign partners. Implementing this strategy effectively can significantly change ACME Laboratories Ltd to become the one of the renowned players in the global pharmaceuticals.
To provide more value for the money, ACME Laboratories Ltd has two options – reduce the price maintaining the same quality or maintain the price increasing the quality. As ACME Laboratories Ltd must maintain the current quality, it has to reduce the price slightly to make its products more competitive in the market. Even if this step reduces the profitability of the firm, ACME Laboratories Ltd has to consider it and implement this strategy for the short-term.
To maintain its leadership position stronger and long lasting, ACME Laboratories Ltd has to be prepared for strengthen the position in local market and aggressively expand geographic coverage by increasing the export. In order to do that ACME has to reduce its dependency over raw materials and gain control by finding ways to produce some category of raw materials locally. It should also enhance the current distribution network, both local and foreign to enlarge the market coverage. ACME must take these initiatives. Moreover, a backward integration will increase its ability to reduce the cost and increase their control over price, which is necessary for ACME to maintain its leadership position in a business.

Conclusions

If the above recommended strategies fail to achieve desired objectives and incur financial losses due to unforeseeable events ACME should dump the above strategies and adopt a focused differentiation strategy. In a focused differentiation strategy ACME will concentrate in producing the best quality product of the industry and sell it to a group of sophisticated and conscious customers. This will enable ACME to charge a premium price in the market and also export to the quality conscious western countries to a certain extent.
And ACME should also reduce its operating cost by cutting down the distribution network and withdrawing the backward integration activities. This strategy will reduce ACME's overall sales revenue, but it also will increase the profit margin.

References

http://www.acme pharma.com/investor-relations/Company%20Reports/_Annual_Report_CR.pdf
http://en.wikipedia.org/wiki/acmepharma

http://www.mba-tutorials.com/strategy/mission-vision/1702-acmepharma-vision- mission-

http://csimarket.com/stocks/growthrates.php?code=COP

http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker= dataset=cashFlow&period=a currency=native
http://www.acmepharma.com/sustainable-development/Documents/2013.11.7%201200%20SD%20Final.pdf

http://www.researchandmarkets.com/reports/612871/acmepharma_analysis_ _

Strategic Management Term Paper on ACME Pharmaceutical

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