Report

on
Strategic Planning Process of
ACI Ltd.
Course Title: Strategic Management
Course Code: FIN-6304

Submitted by
ID: M18150203716
ID: M18150203728
ID: M18150203733
ID: M18150203737
ID: M18150203739

Submitted to
Roushanara Islam
Assistant Professor
Department of Finance
Faculty of Business Studies
Jagannath University

Jagannath University
Date of Submission: 22nd July, 2019
Acknowledgement
We would like to start this report by acknowledging our gratefulness to the Almighty
Allah.
Individual efforts alone can never contribute in totality to a successful completion of
any venture. As a team we have made valuable contribution toward this report. First
of all, we are grateful to Roushanara Islam, Assistant Professor of Jagannath
University, Department of Finance, for her valuable instructions for preparing this
report.
Finally, we would like to give thanks to the authors, researchers, article writers and
our friends who helped us in every stage of the report by providing valuable
information and suggestion in respect of preparing this report.
Executive Summary

This report is prepared on Strategic Planning Process of ACI Pharmaceutical Ltd,

as required by the supervisor Roushanara Islam, Assistant Professor, Department of
Finance, Jagannath University. The main objective of this report is to identify and to
analyze the strategic planning process of ACI Pharmaceutical Ltd. Both primary &
secondary data are used to prepare this report.

In this report we highlighted our findings through the chapters. The First Chapter is
introductory part of our study; The Second Chapter is focused on ACI
Pharmaceutical Ltd’s history, corporate profile, product & services that are
organizational overview as the study required. The Third Chapter is about strategic
planning process, external analysis, internal analysis, Porter’s five forces model,
PESTEL Analysis and Internal Environment Analysis of ACI Pharmaceutical Ltd.
The Fourth Chapter is about Recommendation & Conclusion.

We have also mentioned some recommendations based on findings of the study.

Someof the recommendations are as follows: Strategic alliance and cooperative
partnership, to provide more value for the money, focused differentiation, technology
and innovation health, safety and environment, sustainable development.
 Table of Content
SL. No. Contents Page No.
Abstract
Executive Summary i
Acknowledgement ii
Table of Content iii
Chapter - 01: Introduction
1.1 Introduction 1
1.2 Objectives of the Study 1
1.3 Methodology of the Study 2
1.4 Limitations of the Study 2
Chapter - 02 : The Organization
2.1 ACI Limited 3
2.2 History 3
2.3 Vision, Mission & Values 4
2.4 Corporate Information 7
2.5 Organizational Structure 8
2.6 Products and Services of the Organization 8
Chapter - 03 : Strategic Planning Process
3.1 Strategic Plan of ACI 10
3.2 Strategic Business Units 10
Corporate Social Responsibility 11
3.3
Hierarchy Level of Strategy 13
3.4
3.5 External Analysis 15
3.6 Porter’s Five forces model 17
3.7 PESTEL Analysis of ACI Ltd. 20
3.8 Internal Environment Analysis 28
Chapter - 04 : Recommendation & Conclusion
4.1 Recommendations 36
4.2 Conclusions 37
References
46
1.0 Introduction:

ACI was established as the subsidiary of Imperial Chemical Industries (ICI) in the
then East Pakistan in 1968. After independence the company has been incorporated in
Bangladesh on the 24th of January 1973 as ICI Bangladesh Manufacturers Limited
and also as Public Limited Company. This Company also obtained listing with Dhaka
Stock Exchange on 28 December, 1976 and its first trading of shares took place on 9
March, 1994. Later on 5 May, 1992, ICI plc divested 70% of its shareholding to local
management. Subsequently the company was registered in the name of Advanced
Chemical Industries Limited. Listing with Chittagong Stock Exchange was made on
22 October 1995.

1.1 The objective of the report can be formulated in two forms:

i) General objective.

ii) Specific objective.

General objective

The general objective of the study is to prepare and submit a report on the topic of
Strategic Management Process of ACI Limited.

Specific objective

To find out the strategies of ACI Limited.

To monitor weather, the supply chain is working properly or not for ACI Limited.

To know the strategies of the competitors.

To find out the competitive edge.

To submit the work as a paper work that has been learned in the project of MBA
program.

To find out the resources and utilization capabilities of ACI Limited.

 1.3 Methodology:

This report is prepared by the interview method, Documentation and Observation.

The report discloses all the things that have been gathered information from the
employees of ACI Group Ltd. Also the conversation with the administration officer
has helped a lot.

Data collection

There are two categories for data collection methods:

Primary data

For making a gorgeous report, I collected a lot of information by taking some

interviews with some of the employees of ACI Group Ltd.

From where I got some important knowledge which made my report healthy and also
help to find information and necessary data primarily.

Secondary data

 Visiting the official website of ACI Limited.

 Annual report, organizational brochure, booklet, various books, lip let etc.
regarding present status facilities.
 Relevant journals and articles available in website.

1.4 Limitations:
ACI is a company which is growing up and its strategy related information is not
available in internet which made it so difficult for us to collect information. And the
HR Department of ACI Limited was not so co-operative to us which also made it
difficult for us.
2.0 The Organization

2.1 ACI Limited

Imperial Chemical Industries (ICI) Bangladesh Manufacturers Limited is a subsidiary

of renowned multinational pharmaceutical ICI Plc., established in Dhaka in 1973 and
was a listed Public Limited Company under Dhaka Stock Exchange on 1976. In 1992,
ICI Plc. divested its shareholding through a local management takeover and the
company name was changed to Advanced Chemical Industries (ACI) Limited. (ACI
Limited, 2016) ACI aims to follow International Standards on Quality Management
System to ensure the consistency in maintaining quality of the wide range of products
and services to attain consumer satisfaction. The company also meets all necessary
national regulatory requirements that relates to run all its current business and
confirms that company properly follows the current Good Manufacturing Practices
(cGMP) recommended by World Health Organization. This all possible for ACI
Limited as it has the aim to achieve business excellence through quality by
understanding, accepting, meeting and exceeding customer expectations. (ACI
Limited, 2016)

2.2 History
In 1926, Imperial Chemical Industries (ICI) was incorporated in the United Kingdom
as four companies namely Novel Industries Limited, British Dyestarts Corporation,
Brunner Mond and Company Limited and it merged with United Alkali Company.
Since then ICI Plc. has been operating worldwide as a multinational company. In the
year of formation, ICI started operation in the Indian subcontinent in the name of ICI
(India) limited. After separation of the India and Pakistan in 1947, the Karachi office
of ICI (India) Limited renamed to be ICI (Pakistan) Limited. After the independence
of Bangladesh, the company has been incorporated in Bangladesh on January 24,
1973 as ICI Bangladesh Manufacturers Limited and also as Public Limited Company.
The Company also got listed with Dhaka Stock Exchange on December 28, 1976 and
its first trading of shares took place on March 9, 1994. Later on May 5, 1992, ICI Plc.
divested 70% of its shareholding to local management. Afterwards the company was
registered under the name of Advanced Chemical Industries (ACI) Limited. On
October 22, 1995 ACI Limited was listed with Chittagong Stock Exchange.

ACI Limited with a multinational heritage today is one of the leading and largest
conglomerates in Bangladesh. The company is differentiated into four concentration
business groups and they

are: Pharmaceuticals, Consumer Brands, logistic (Swapno) and Agribusiness. (ACI

Limited, 2016)

In addition, ACI Limited is the first company in Bangladesh who achieved both
ISSO9001 certification of Quality Management System in 1995 and ISO14001
certification for Environment Management System in 2000. With the belief of
business excellence, 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. ACI has a competent team of professionals;
therefore the company is being operated with a progressive attitude to

provide effective solutions to satisfy the customers‟ needs and desires, through its
quality products and services. (ACI Limited, 2016)

2.3 Vision, Mission & values:

The main goal of ACI limited are providing a good quality product and services to the
customer and fulfill their needs. They also try to focused on increased the investment
value of shareholders and giving the highest possible benefits to the customer.

2.3.1 Mission of ACI

ACI’s mission is to achieve the business success through understanding the quality of
life of people, meeting the need of responsible application of knowledge and skills,
exceeding the technology and expectation of customers. ACI is providing high quality
products and committed for highest level of satisfaction to the customer. The
international standard of quality management system is followed by ACI for
achieving the customer’s satisfaction.

2.3.2 Vision of ACI

To realize the Mission, ACI will:

High and consistent quality of product should be providing, also value for money
should ensure to the customers.

Try to attain a leadership position in every category of our businesses.

Make development of employees by encouraging empowerment and rewarding

system.

Make a friendly environment which is preferable for learning and personal growth.

By using high-level technology and effective resource utilization provide the best
quality of product.

By encouraging the distributer and suppliers for improving their efficiency, help to
inclusive the growth.

Ensure superior return on investment through judicious use of resources and efficient
operations, utilizing our core competencies.

2.3.3 Values of ACI

 Quality: ACI always strive to provide the best possible quality for their
products and services in order to meet and exceed customer’s expectation.
 Customer Focus: ACI’s main focus is always their customers. They are
always to provide the finest products and services to their customers in order
to attract and retain customers.
  Fairness: ACI always attempts to maintain fairness in what they do and
produce. This helped them to gain customer’s faith and confidence and also to
operate successfully in the market with their competitors.
 Transparency: ACI maintains transparency by providing the desired goods
and services to their customers and sharing their goals with their employees.
 Continuous Improvement: ACI always attempts to make improvements in
their products and services in order to meet customer’s demands and cope with
the current trend. In this way, they are able to compete successfully in the
market in comparison to others providing the similar kind of products and
services.

2.4 Corporate Information

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 387 products
covering all major therapeutic areas, which come in tablet, capsule, powder, liquid,
cream, ointment, gel ,ophthalmic and injection forms. ACI also markets world-
renowned branded pharmaceutical products like Arimidex, Casodex, Zoladex, Atarax
etc. from world-class multinational companies like ASTRAZENECA, UK and UCB,
BELGIUM in Bangladesh.

ACI is actively engaged in introducing newer molecules and Novel Drug Delivery
Systems (NDDS) to meet the needs of the future.

ACI introduced the concept of quality management system by being the first company
in Bangladesh to achieve ISO 9001 certification in 1995 and follows the policy of
continuous improvement in all its operations.

Aligned with the concept that a pharmaceutical must ensure effective management of
environment, ACI complies with standard environment management policy, thus
adorned with EMS 14001 in 2000.
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 customer’s needs,
through its products and services of uncompromising quality.

2.5 Organizational Structure

Chairman

Managing Director
Head of Creative
Director, Corporate
Communication
Affairs

Executive Director,
Director, Business
Finance & Planning
Department

Secretarial Affairs
Head of Risk
New Venture Management &
Internal Audit

Chief Operating
Officer, Manager MIS
Pharmaceutical

Executive Director,
Consumer Brand

Executive Director,
Agribusiness
 Executive Director,
ACI Logistics

2.6 Products and services of the Organization

Products

ACI formulates and markets a comprehensive range of more than 387 products
covering all major therapeutic areas, which come in tablet, capsule, powder, liquid,
cream, ointment, gel ,ophthalmic and injection forms. ACI also markets world-
renowned branded pharmaceutical products like Arimidex, Casodex, Zoladex, Atarax
etc. from world-class multinational companies like ASTRAZENECA, UK and UCB,
BELGIUM in Bangladesh.

Services

i) 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 these programs
usually consists of both reputed medical experts and experts from marketing team of
ACI and its international principals.

ii) Continuing medical education of physicians and surgeons

ACI regularly arranges CME programs of both physicians and surgeons all over the
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.

iii) Clinical meetings

ACI arranges clinical meetings, covering case related medical problem faced by the
physician in their daily practice. Every meeting is being supported by audio-visual
media.
iv) 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 card attached to every literature in which
the doctors usually send their queries. ACI tries to provide a comprehensive answer to
the queries of the physicians covering all the details.

v) 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 share their
experiences and results of their research with the health care community.

vi)Reprint services

ACI provides the doctors with reprints of selected publications on topics that can
assist the doctors in their professional practices.

vii) Info Medicus

ACI publishes quarterly medical newsletter for the physicians with current medical
information particularly emphasizing common diseases.
3.1 Strategic Plan of ACI
The Entrepreneurs and business managers of ACI are often so preoccupied with
immediate issues that they lose sight of their ultimate objectives. That's why a
business review or preparation of a strategic plan is a virtual necessity. This may not
be a recipe for success, but without it a business is much more likely to fail. A sound
plan should:
 Serve as a framework for decisions or for securing support/approval.
 Provide a basis for more detailed planning.
 Explain the business to others in order to inform, motivate & involve.
 Assist benchmarking & performance monitoring.
 Stimulate change and become building block for next plan.

A strategic plan should not be confused with a business plan. The former is likely to
be a (very) short document whereas a business plan is usually a much more
substantial and detailed document. A strategic plan can provide the foundation and
frame work for a business plan.

A strategic plan is not the same thing as an operational plan. The former should be
visionary, conceptual and directional in contrast to an operational plan which is likely
to be shorter term, tactical, focused, implementable and measurable. As an example,
compare the process of planning a vacation (where, when, duration, budget, who
goes, how travel are all strategic issues) with the final preparations (tasks, deadlines,
funding, weather, packing, transport and so on are all operational matters).

3.2 Strategic Business Units of Pharmaceuticals

ACI carries the legacy of ICI- world renowned British Multinational in providing the
people of Bangladesh with quality medicines and healthcare products. Its state-of-the
art pharmaceutical plant represents Bangladesh's quest for a truly world class
manufacturing facility. ACI's rich heritage leads to innovative and higher value added
formulations.
The comprehensive product range of ACI pharmaceuticals include products from all
major therapeutic classes and in various dosage forms like tablet, capsule, dry
powder, liquid, cream, gel, ointment, ophthalmic and inject able. ACI Parma also has
state of the art plant on Novel Drug Delivery System (NDDS). It produces world class
Modified Release drug and medicine to cater the requirement of pharmaceutical
manufacturer of domestic and international market.

3.3 Corporate Social Responsibility

Societal Development through Educational Programs

ACI’s guiding principle in all its operations is to be a ‘responsible corporate citizen’.

Thus, Social Responsibility is a top priority for every individual at ACI. Our
endeavors toward discharging our social responsibilities have become more focused
since our adoption of the principles of the Global Compact.

Initiatives that have shown significant contribution to societal development are

Continued Medical Education (CME) for medical professionals and Children’s
Education Programs.

A dedicated team of medical graduates makes up the Medical Services Department

(MSD) in ACI, which carries out CME programs termed ‘Clinical Meetings’ all
across Bangladesh. These are essentially non-advertised meets of medical
professionals that serve as a training and knowledge-sharing forum, often conducted
by experts on the subject. Our partners in development for these programs are doctors,
medical associations and/or departments, and various study groups. The level of
involvement of ACI in these programs may range from only sponsoring the entire
program to providing all types of services and technical support to the presenter to
even conducting the program by an MSD doctor. Support from MSD include research
support for deliberations at the meet, literature and multimedia presentation for the
program, updates on new technology and thoughts in medical fields, and even
educational support to any participant in their area of interest.

ACI has also undertaken an English Education program in Faridpur, one of the
remotest districts of Bangladesh. This provides support to teach English Language to
school going children.
Outcome

Doctors in Bangladesh who are not living in the metropolitan cities have very limited
access to the Internet or any other sources of information. In order to keep them
updated on the developments in the medical practices regularly, the CME program
has been proven highly effective.

ACI believes that by promoting education of children, we are contributing to societal

development by shaping the minds of our future leaders.

Educating the farmers, with a focus on Environment Friendly Practices

ACI has undertaken extensive programs to educate crop farmers all over rural
Bangladesh in Good Agricultural Practices. We have a team of agricultural experts
working at the field level all across the country, holding a range of technical trainings
and field demonstrations. Their activities include

 Field demonstrations on various methods of crop protection, that pose the least
hazard for the environment
 Training on new technologies of cultivation, for higher yields and new crops
 Training to channel partners (e.g. retailers and agricultural extension workers)
and third parties (e.g. NGO workers)

ACI also has similar education programs for animal and poultry farmers. These
include

 Technical trainings on diverse aspects of farming, and on application of new

technologies
 Farmers’ group meeting for sharing of learning and experience
 Free visits to farms by veterinarians, to identify problems and give advices to
individual farmers.
Outcomes: The farmers are mostly illiterate having learnt the art and science of
farming by assisting their family on the fields. Our continuous endeavors to educate
farmers have given significant benefits on three fronts:

 Raising the level of awareness among farmers on improving their agricultural

output through application of new technology, encouraging them to share
experiences with neighboring farmers and, in the long run, developing
educated farmers.
 Raising the educational level and technical knowledge of channel partners and
third parties who act as advisors to the farmers.
 Most importantly, making the farmers aware of ways to protect the
environment from hazardous uses of chemicals on their farms, allowing them
the opportunity for informed decision-making.

ACI hopes to continue to play a leading role in promoting greater environmental

responsibility among farmers in Bangladesh.

3.4 Hierarchy Level of Strategy

3.4.1 Functional Level Strategy

The functional level of the organization is the level of the operating divisions and
departments. ACI Limited follows different type in strategies for different department.
The strategic issues at the functional level are related to business processes and the
value chain. Functional level strategies in marketing, finance, operations, human
resources, and R&D involve the development and coordination of resources through
which business unit level strategies can be executed efficiently and effectively.

 They adopt flexible manufacturing technologies, upgrade the skills of

employees through training and perform research and development function to
design products that are easy to manufacture.
  The products of ACI are more familiar to the customer, so the company tries
to innovate new product and modify the existing product for customer
attractiveness.
 They continuously innovate products, promotional activities, packaging and
distribution. This way they can respond quickly to customer demands.

Functional units of an organization are involved in higher level strategies by

providing input into the business unit level and corporate level strategy, such as
providing information on resources and capabilities on which the higher level
strategies can be based. Once the higher-level strategy is developed, the functional
units translate it into discrete action-plans that each department or division must
accomplish for the strategy to succeed.

3.4.2 Business Level Strategy

ACI is the popular manufacturer company that has get their success by following
different business strategies. Through the business level strategy the company present
a division, product line, or other profit center that can be planned independently from
the other business units of the firm. At the business unit level, the strategic issues are
less about the coordination of operating units and more about developing and
sustaining a competitive advantage for the goods and services that are produced. At
the business level, the strategy formulation phase deals with:
 ACI always determine their positioning in the business against rivals
 Anticipating changes in demand and technologies and adjusting the strategy to
accommodate them
 The company tries to influence the nature of competition through strategic
actions such as vertical integration and through political actions such as
lobbying.
 Using product features or services
 Increase market share by expanding the network Functional Level Strategies
 Focus is on efficiency, quality, innovation, and customer responsiveness.
 Focus on After Sales Service Human Resource.

3.4.3 Corporate Level Strategy

ACI Ltd. always give emphasis on Corporate level strategy that is concerned with the
selection of businesses in which the company should compete and with the
development and coordination of that portfolio of businesses.

ACI carries out the following corporate strategies:

 defining the issues that are corporate responsibilities; these might include
identifying the overall goals of the corporation, the types of businesses in
which the corporation should be involved, and the way in which businesses
will be integrated and managed.

 defining where in the corporation competition is to be localized. Take the case

of insurance: In the mid-1990's, Aetna as a corporation was clearly identified
with its commercial and property casualty insurance products. The
conglomerate Textron was not. For Textron, competition in the insurance
markets took place specifically at the business unit level, through its
subsidiary, Paul Revere.

3.4.4 Global Level Strategies:

 ACI Limited is using multi domestic strategies because it expanded its

telecom business under different countries with different name.
 Provides different strategies for different countries depend on the people
demands Corporate Level Strategies.
 Vertically integrated and concentrated on other field.
 They import the raw materials from the places where it is less costly, thus
achieve location economy.

3.5 External Analysis

The second component of the strategic management process is an analysis
of the organization’s external operating environment. The essential
purpose of the external analysis is to identify strategic opportunities and
threats within the organization’s operating environment that will affect
how it pursues its mission. Strategy in Action describes how an analysis
of opportunities and threats in the external environment led to a strategic
shift at Tine Inc.
Three interrelated environments should be examined when undertaking
an external analysis;

 Industry environment
 The country or national environment
 And the wider socioeconomic or Macroenvironment

3.5.1 Industry environment

This is about ACI’s own organization. Analyzing its internal environment means
looking at the systems, knowledge, resources, skills and activities of your
organization and its people. Taking a strategic approach to this environment means
considering how all these factors can be controlled and deployed to meet
opportunities in the market place, and even to shape and lead that market. This is the
one environment over which ACI as a whole has most control. Understanding and
managing the internal environment helps ACI both shape strategy, and organize and
direct resources to achieve what it want. However, to do so with any degree of
success requires an understanding of the world outside, that is the external
environments.

3.5.2 The country or national environment/ Domestic market 

Being a developing country, the pharmaceutical market and at the same time, the
pharmaceutical industry of Bangladesh is growing. In this growing market, ACI has
been able to maintain its growth through its innovative marketing strategies.
In Bangladesh, ACI introduced the concept of quality management system by being
the first company to achieve ISO 9001 certification that reflects its commitment to
quality in every aspect of business.
ACI covers the health care community of whole Bangladesh based in both urban and
rural markets, through its 18 strategically located depots.
3.5.3 International Environment
Organizations don’t exist in a vacuum. Organizational environments are constantly
changing and being aware of those changes is crucial for any manager. Developing an
understanding of your business industry environment is the first step towards
developing your strategy. Analyzing the information and intelligence you gather from
this understanding is the next step you need to take, to inform your business goal
setting. Find out more about business planning by reading our series on the subject,
starting with Business Goal Setting: Using the F-Plan.

After assuring its credentials in the pharmaceutical industry of the country, ACI
Limited began spreading its wings toward greater interaction, integration and
interdependence among people and organization across borders with trust on
becoming a global player in the international market. ACI Limited started exporting
medicine in 1999. The quality of ACI products, strengthened by its ISO 9001
certification, has brought immediate success in Sri Lanka, Myanmar, Vietnam and
Yemen.

3.6 Porter’s Five forces model

3.6.1 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

3.6.2 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 in this 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.

3.6.3 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 medicines will be playing significant
role as substitute products.

3.6.4 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.

3.7.5 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.

3.7 PESTEL Analysis of ACI Ltd.

PESTEL analysis of any industry investigates the important factors that affect the
industry and the companies operating in the industry. ACI has three different business
units which operate in different industries, so all the factors affecting these industries-
pharmaceutical, agribusiness, consumer brand and commodities, will altogether have
impact on the business performance of ACI Ltd. Although, factors affecting all these
industries will be discussed in a general way, but this analysis will have more focus
on the pharmaceutical industry than the others.

3.7.1 Political factors:

 Relatively Instable political environment

Political instability and political unrest of any country affects country’s business
operations. When political situation transforms, it affects the buyer-supplier
relationship and also political instability of a country negatively affects business and
consumer perception of the corporation. General strikes by opposite political parties
those caused huge loss to the businesses and industries are a regular part of political
life in Bangladesh.

 Strong Support of Government

Bangladesh government regards the pharmaceutical industry as one of the key sector
for foreign investment in the country. As the demand for Bangladeshi pharmaceutical
products grows, the government is paying increasing attention to the quality of drugs
in order to safeguard people’s health. The government’s drug-testing laboratories and
the Directorate General of Drug Administration (DGDA) have the monitoring and
supervision roles in this regard. The government has also taken necessary steps to
establish an Active Pharmaceutical Ingredients (API) Industrial Park at Gazaria,
Munshiganj, which will boost the industry’s competitiveness as well as exports. With
strong government support Bangladesh is developing a robust manufacturing and
technically experienced industrial base for this sector. ACI Pharmaceuticals Ltd is
being benefitted by the support of Government in many aspects as one of the
pharmaceuticals companies of Bangladesh along with all other pharmaceutical
companies in Bangladesh.

 Corruption and bureaucracy

Companies are still facing some corruption and bureaucracy issues when to do
business in Bangladesh. Due to bureaucratic government structure it is time
consuming to get any kind of government permission or license For example,
according to the World Bank report (2009) it requires 7 procedures and takes 44 days
to start a business there.

Impact of Political factors: Political factors of Bangladesh have negative impact for
all industries except the pharmaceutical industry. Although the political environment
is unfavorable, the focus and strong support from Government is helping the industry
to flourish to a great extent.

3.7.2 Economic factors:

 Positive and relatively higher economic growth and market demand
Economic growth of individual markets has its influence on businesses. For example,
rapidly growing economies provide higher standard of living and higher employment
rate. As a result, consumers’ disposable income increases and so does their purchase
power, ultimately benefiting business profits.
 Relatively higher inflation rate
Inflation rate is a measure of the increase in the cost of living that influence on many
parts of the economic confidence, and the stability. Higher inflation rate raises the
cost of living, erodes confidence in a country’s currency and spurs people to search
for better ways to store value. Lower inflation could be a good indicator for ACI’s
Bangladesh marketplace but prevailing higher inflation rate increasing the price of
raw materials is not a good influence on the company.
 Relatively higher unemployment rate
Unemployment depresses economic growth, create social pressures, and provoke
political uncertainly and thus cumulatively affecting any business.
 Larger Debt
The larger the total debt becomes, the more uncertain a country’s economy becomes.

 Unfavorable interest and exchange rates

The fluctuation in interest rate and exchange rate in market of Bangladesh generally
create disadvantages for investors.

 Unskilled Labor force and Cheap labor cost

Bangladesh has a huge labor force to enforce but a huge portion of the labor force is
not skilled adequately. Where being unskilled make our labor force a weakness, one
strong point is, the cost of labor is cheap in Bangladesh. Cheap labor cost makes the
cost of production relatively less than other countries thus profiting more locally as
well as when exporting.

Impact of Economic factors: Despite the higher inflation rate, unfavorable interest
rate, exchange rate, unemployment rate- the economic factors exert a positive
influence on the business operation of Bangladesh. The benefit from higher economic
growth and cheap labor outmaneuvers the negative impact of all other economic
factors.
3.7.3 Social Factors:
 Higher population growth rate

Higher population growth rate of Bangladesh is a favorable factor for most of the
businesses. Larger population will have more daily needs to be satisfied. And all the
industries can be profited from that. Such as, a growing population signifies a
growing need for medicines hence increase the sales of medicine.

 Age

The age composition is a important factor for the sale of any product. Preference of a
product varies according to the age of the consumer. So, manufacturers have to keep
in mind about the demand variation of consumers of different age.

 Education

Improvements or rather increase in education will decrease the dependency of the less
educated rural population on alternative sources of medicines such as faith healing
which will also lead to increased sales of of medicines.

 Use of Alternative medication

There is a long tradition of self-medication in Bangladesh as many of its population

cannot afford to see health professionals when they fall ill. Majority of population are
still using complementary and alternative medicine (CAM) in the country (Islam &
Farah 2008).Alternative medicine refers to health practices, approaches, knowledge
and beliefs incorporating plant, animal and mineral based medicines, spiritual
therapies, manual techniques and exercises, applied singularly or in combination to
treat, diagnose and prevent illnesses or maintain well-being.

 Religion

The religious belief and practices have influence and impact on national/international
business that is seen in a culture’s values and attributes toward entrepreneurship,
consumption and social organization. The pharmaceutical companies need to consider
these religious factors to do the business in Bangladesh. Like, Muslims are forbidden
from the consumption of pork and alcohol. So, manufacturers have to be careful about
what ingredients to use.

 Spending pattern and consciousness

Spending pattern and consciousness of the consumers controls the decision of buying
a product. A consumer conscious about protecting the environment will use product
which is least likely to harm environment. A health conscious people will try to buy
healthy product. And, if a consumer is more conscious about health, s/he may like to
reserve more savings for health care purpose than to expend in luxury item.

Impact of Social Factors: Age, religion and spending pattern & consciousness
impose constraints on manufacturer and also give opportunities for business of every
industry. On the other hand, higher population growth and higher level of education is
most likely to have a positive effect on the business profit. But, among all the
industries, pharmaceutical industry endures more losses due to religious restrictions.
So, it can be said that social factors have both positive and negative impact on ACI
ltd.

Technological Factors:

 Research and development

According to the World Bank report (2008), pharmacists of Bangladesh have been
trained for quality assurance and skilled engineers for reverse engineering and
manufacturing but its workforce has lack of new research and innovation skills, which
is very important for innovative drugs. Bangladeshi pharmaceutical firms target
mainly lower-end branded generics. Despite the country possessing huge
manufacturing capabilities of domestic need, the complete lack of R&D in domestic
companies could cause the market to be idle. According to the Kostermans’s (2008)
report, universities and government research is currently under funded in Bangladesh
and the pharmaceutical industry here currently invests about 1% in R&D.

Bangladesh also lacks behind in terms of capital investment in to state of the art
technology in terms of tools, equipments, and machineries. Already established firms
are reluctant to invest in newer technology because of their high cost, and because
many such equipments will require expansion of facilities or changes in structure that
the firms deem too costly to pursue.
  Automation & Supply chain Managements
Emergence of technology particularly popular with in the retail sector such as RFID
(Radio Frequency Identification), and online and mobile shopping, has immensely
benefited corporations. RFID helps businesses to reduce their cost of operations
through inventory shrinkage, smart labeling, self-stocking, efficient checkout process
etc.
Further on easy access to retailer’s online stores provides enormous selling
opportunities for the seller. In addition, technological innovations in the retail sector
like consumer mobile payment, and mobile gift cards promises consumer to
experience easier, and reliable means of payment.
On the contrary, in other industries, some older establishments are prevented from
going in to automation, due to their agreements with trade unions which prevents
them from firing the workers who will become redundant once the machines arrive.
Impact of Technological Factors: Although automation has improved supply chain
management and improved selling opportunities, firms are not technologically
equipped adequately. The access to technology is low for most firms due to their lack
of resources and low innovation skills.

3.7.4 Environment/Ethical Factors:

 Natural disaster and epidemic
Bangladesh is extremely vulnerable to natural disasters such as cyclones, earthquakes,
tidal surges, tornadoes, floods, river bank erosions, droughts, and cold waves. The
extent of any natural disaster impact on the country is usually massive and often
exceeds the capacity of local coping mechanisms. Natural disaster has hove positive
and negative impact on the business. These natural disasters come along with
diseases and these diseases affect a large number of people who need immediate
medical attention and medicines to survive. This gives huge scope for the
pharmaceutical sector to expand their business as well as contribute to the nation. On
the other hand, natural disasters interrupt the daily operations of a business making
the business to have loss.
 Waste Management
The National Drug Policy 2005 of Bangladesh states that the pharmaceutical plants
must need to comply with environmental legislation like disposal of waste streams.
Environment may have hazardous impact if the wastages of manufacturing plants are
not managed properly. Novartis takes care of all their toxic and non toxic waste to
make sure that all the disposable water is properly treated and disposed.

 Environmental Agenda and community awareness

Due to mass campaign against forestry consumption, presentation of consequences of

global warming and other reinforcement properties of natural forestry, consumer
preference is shifting and demand products that are environment friendly.

Impact of Environmental Factors: Most of the environmental factors create a threat

to the business by imposing various laws but also gives opportunity by creating a new
horizon to attract the environment friendly customers. Pharmaceutical industry
benefits most from these environmental factors, since, where the arrival of a natural
disaster negatively impact the business of other industries’ companies, pharmaceutical
companies get the scope to expand business.

3.7.5 Legal Factors:

 Advertising Laws

Pharmaceuticals companies do not have the right to advertise their drugs using media
in Bangladesh. This is a huge constraint for the pharmaceutical companies.

 Labor laws of Bangladesh

The labor laws were adopted for enforcement of law in the field of employment and
particularly relating to wages, benefits, compensation for injuries and weekly
holidays, working hours, maternity benefit for women workers, legal provision made
for trade union activities, workers participation fund, fixation of minimum wages in
informal sectors and the like. The labor laws of Bangladesh are quite supportive of
business and industry as well as the economy as a whole.

 Existing Laws and Government Policies

Other than labor law, there are many other existing laws and government policies that
may affect a particular industry. Such as, for pharmaceutical industry, The
Bangladesh government’s Director of Drug Administration (DDA) has an essential
monitoring and supervisory role on all activities related to import, procurement of raw
materials, production and import of finished drugs, export, sale, pricing, etc. for all
kinds of medicine. The National Drug Policy (2005) states that the WHO’s current
Good Manufacturing Practices (GMP) should be strictly followed and that
manufacturing units will be regularly inspected by the DDA. The local entrepreneurs
found a golden opportunity in the new drug policy. The new ordinance made it policy
that common medicines like vitamins, cough syrups, and antacids were not allowed to
be made by the multinational.

Liberal government's policy in agribusiness and consumer market is supportive for

respective industries. Lower chance of imposing strict laws in consumer,
pharmaceuticals and agribusiness sector mostly goes in favor of the manufacturers.

 Liberal regulatory framework

The Directorate General of Drug Administration (DGDA) under the Ministry of
Health and Family Welfare is the drug regulatory authority in the country. But despite
extensive rules, the pharmaceutical market remains under-regulated due to lack of
capacity at DGDA. Its effectiveness is further complicated due to complexities of
multiple administrative bodies and committees involved in the regulatory process.
Other factors that adversely affect exports include weak enforcement of quality
regulations and strict foreign exchange controls. (World Bank, 2013).

 Liberal tax and fiscal policy.

The level of corporate tax and consumer taxation regulated by political authorities of
any country affects corporation’s after-tax income. The rate of corporate impacts
profits, hence lowering after-tax income. Addition to corporate tax, tariff and trade
barriers also impact businesses. Some of the major reasons for imposing tariffs and
trade barriers such as protecting local employment, new industries, consumers,
retaliation and national security, tariffs increase the prices of imported product into
the country. For example, tax and trade barrier is not that strict for pharmaceutical
industry. The pharmaceutical sector has been among the high-priority ones in
Bangladesh export policy since 2006. These sectors are entitled to income tax
exemption for export earnings, export credit at reduced rates, assistance in marketing
abroad through participation in export fairs etc. In addition, the government reduced
or exempted duties on some capital machinery and raw materials imported for
pharmaceutical production. The sector also enjoys a tax holiday and ‘duty drawback’
scheme.

Impact of Legal Factors: Due to liberal regulatory framework, laws, regulations, tax
and tariff policies, every industry enjoys certain amount of advantage but Lax
enforcement of regulations has allowed local companies to fall below the standards
necessary for the stringently regulated export markets. And among all the industries
associated with ACI ltd., pharmaceutical industry suffers a little more due to the
restriction in advertising of drugs.

3.8 Internal Environment Analysis

For a strategy to succeed, it should be based on a realistic assessment of the
firm’s internal resources and capabilities. An internal analysis provides the
means to identify the strengths to build on and the weaknesses to overcome
when formulating strategies. The internal analysis process considers the
firm’s resources; the business the firm is in; its objectives, policies, and
plans; and how well they were achieved.

All organizations irrespective of their size, nature, and scope of business

perform the functions of finance, production, marketing, and human
resource development. For efficient strategic management, careful planning,
execution, and coordination of various functions -- marketing, production
and operations, finance and accounting, research and development, and
human resource management -- is highly essential.

All organizations irrespective of their size, nature, and scope of business

perform the functions of finance, production, marketing, and human
resource development. For efficient strategic management, careful planning,
execution, and coordination of various functions -- marketing, production
and operations, finance and accounting, research and development, and
human resource management -- is highly essential.

The management can be evaluated on the basis of the organizational profile

of strengths and weaknesses in light of what it has or has not done, or what
it has or has not achieved. Similarly, the role of the board of directions
should also be analyzed. An organization’s culture (shared values) should
have a good fit with its strategy and other factors such as structure, systems,
management style, and human resources (staff and their skills), as depicted
in the McKinsey 7-S framework. If the existing culture will not be suitable
for a desired strategic alternative, the management has to decide whether it
will be feasible to change the culture, and how much time and other
resources would be required to achieve this culture change.

Value chain analysis divides a firm’s activities into two major categories --
primary and support activities. Primary activities are those activities that are
involved in the physical creation of the product (inbound logistics,
operations, and outbound logistics), marketing and sales, and after-sales
support. Firm infrastructure, human resource management, technology
development, and procurement are the support activities.

3.8.1 Value chain Analysis of ACI

Value chain analysis (VCA) is a process where a firm identifies its primary and
support activities that add value to its final product and then analyze these activities to
reduce costs or increase differentiation.

Value chain represents the internal activities a firm engages in when transforming
inputs into outputs.
Ensuring that patients receive the correct medicine, at the appropriate time and from a
convenient location, ACI Pharma is involved in a complex value chain involving
three major components:

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.

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.

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.
3.8.2 Comitative advantages of ACI Pharmaceutical
Competitive advantages are conditions that allow a company or country to
produce a good or service of equal value at a lower price or in a more desirable
fashion. These conditions allow the productive entity to generate more sales or
superior margins compared to its market rivals. Competitive advantages are
attributed to a variety of factors including cost structure, branding, the quality
of product offerings, the distribution network, intellectual property, and
customer service.

Motivating high performance in pharmaceutical sales teams is a growing issue in the

pharmaceutical industry. There are many Pharmaceuticals in our country. ACI
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, ACI
capture over 25% of the market.

ACI 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 ACI 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. ACI Pharmaceuticals has 1,100 representatives and ACI 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.

3.8.3 SWOT Analysis of ACI Pharmaceutical

Strengths

i) High Quality Product: ACI is the first company in Bangladesh to

obtain certification of ISO 9001 Quality Management System in 1995.

ii) Environmental Policy: ACI is the first Company in Bangladesh to get

certification of ISO 14001 Environmental Management System in
2000. The company is committed to maintain the harmonious balance
of our eco-system and therefore constantly seeks ways to manufacture
and produce products in an eco-friendly manner so that the balance of
nature remains undisturbed and the environment remains sustainable.

iii) Product Development: This creative team of professionals is engaged

in developing new formulations and dosage forms with competitive
advantages and strong product differentiation. ACI is actively engaged
in introducing newer molecules and Novel Drug Delivery Systems
(NDDS) to meet the needs of the future.
Weaknesses
i) Extreme reliance on imports: Around 80% of Bangladesh's total need
of API is being met through imports. The company can earn more
revenue if it uses the locally produced API for production.

ii) Unethical Competitors: Although quality assurance is one of the major

aspects of Pharmaceutical industry, only the top 15 to 20 percent
producers follow the guidelines. Unethical competitors may produce at
cheaper price. Price sensitive customers may be attracted to these low
quality products.

iii) World Economic Recession: Since the company eyes more on export
market, it becomes more prone to be hit negatively by world economic
events.

Opportunities
i) Extension of Patent Provision: Least developed countries have an
extension until 2016 to implement the pharmaceutical patent
provisions of the TRIPS Agreement under the Doha Declaration on
TRIPS and Public Health.

ii) Potential domestic and international market: Apart from domestic

market, ACI is exporting to nine different international markets,
namely Sri Lanka, Myanmar, Vietnam, Yemen, Somalia, Afghanistan,
Guatemala, Hong Kong, Bhutan. The company is also developing
markets in another five countries, namely Nepal, Kenya, Sudan,
Cambodia, Macau.

iii) Establishment of API: Bangladesh government established Active

Pharma Ingredient (API) Park in Munshiganj in May 2008 to promote
production of API. This backward integrated API or raw material
 industry will make pharmaceuticals companies of the country
competitive in export markets.

Threat:
i) Maximum Retail Price: Under the Drug Control Ordinance of 1982,
the government fixes the maximum retail prices (MRP) of 117
essential drug chemical substances while the non-essential drugs are
priced through an indicative price system.

ii) Environmental Regulation: The Corporation will develop the

infrastructure with state of-the-art facilities including a central effluent
treatment plant (ETP) and incinerator for solid and liquid waste-
management.

ii) Capital Intensive Research and Development: After the expiry of

patent provision in 2016, pharmaceuticals companies may face
difficult time to deal with capital intensive research and development
for drug discovery. This may greatly affect their export and may
restrict their growth.

3.8.4 Competitive environment:

According to Bangladesh Association of Pharmaceutical Industries (BAPI) and
Directorate General of Drug Administration (DGDA), approximately 257 licensed
pharmaceutical manufacturers are operating in Bangladesh and about 150 are
functional.
.

 SQURE PHARMA is the market leader of pharmaceutical industry

 in Bangladesh with 17.73% market share.
 Advanced chemical industries Limited (ACI), one of the leading
pharmaceuticals company with 4.43% market share.
 Renata Pharmaceuticals Limited with 4.97% market share.
  Beximco Pharmaceuticals Limited with 8.39% market share.
 Acme Laboratories Limited, another leading pharmaceuticals company
with 3.91% market share.

So, it’s very known that the market of this sector is very competitive.

4.0 Recommendation & Conclusion

4.1 Recommendations

 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,
ACI Pharmaceuticals Ltd should take initiative for strategic alliance with big
foreign reputed companies. This is more easier for ACI Pharmaceuticals Ltd
for developing cooperative partnership, as it has already some connections
and associations with some major foreign companies. This strategic move
will enable ACI Pharmaceuticals Ltd to understand cross-cultural
boundaries, which is a vital competitive advantage for international business.

 On the other hand, ACI Pharmaceuticals 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 ACI Pharmaceuticals Ltd to become the
one of the renowned players in the global pharmaceuticals.

 To provide more value for the money, ACI Pharmaceuticals Ltd has two
options – reduce the price maintaining the same quality or maintain the price
increasing the quality. As ACI Pharmaceuticals 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, ACI Pharmaceuticals Ltd has to consider it and implement this strategy
for the short-term. To maintain its leadership position stronger and long
lasting, ACI Pharmaceuticals 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 ACI 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.
ACI 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 ACI to maintain its leadership position in a business.
  Focused Differentiation: In a focused differentiation strategy ACI 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.

4.2 Conclusions
The flourishment of any organization requires combined efforts and co-operation
from several parties. Social, political and macroeconomic environment play pivotal
role in this regard. But taking human resource division the company’s betterment
purpose the report surely suggest about structuring it’s employee management tactics
for optimizing cost, improving performance of its work force. The framework of
business laws and legal procedures should facilitate in managing employee
performance in a timely and cost effective manner. In Bangladesh, the establishment
of a market driven private system is linked to achieving higher employment, increased
productivity, more efficient use of resources and more rapid economic growth. But
the ACI Limited still faces extreme challenges competing with other multinational
companies. ACI Agribusiness is contributing the country and serving the nation in
different ways. If it can up hold it’s much toward advancement, it will be able to set a
role model in our country as a leading company.

If the above recommended strategies fail to achieve desired objectives and incur
financial losses due to unforeseeable events ACI should dump the above strategies
and adopt a focused differentiation strategy. In a focused differentiation strategy
ACI 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 ACI to charge
a premium price in the market and also export to the quality conscious western
countries to a certain extent.