An Analysis of Financial Performance of GlaxoSmithKline Bangladesh Limited

1.1 Introduction

The Pharmaceutical industry is the playing an important role in the economy of

Bangladesh. It is known as the most developed hi-tech sectors within the country’s
economy. After the promulgation of Drug Control Ordinance in 1982, the local
Pharmaceutical companies of country get rapid support for growth and development
of this sector was accelerated. There are now about 210 companies in this sector and
the total market size is about taka 76,500 million per year. This industry is now self-
sufficient in meeting the local demand. In addition, it is the second highest contributor
to the national economy after garments, and it is the largest white-collar intensive
employment sector of the country.

GlaxoSmithKline Public Limited Company (GSK) is a leading multinational;

healthcare company operating in Bangladesh for years. It concentrates on the
development, manufacturing and commercialization of Pharmaceutical and consumer
health related products.

1.2 Origin of the Study

The report entitled “Financial Performance Evaluation of GlaxoSmithKline

Bangladesh Limited” has been prepared as a fulfillment of partial requirements for
obtaining Bachelor of Business Administration degree from Dhaka City College
under National University.

1.3 Scope of the Study

As a student, it’s a matter of great pride and honor for me because I got the
opportunity to acquire the experience to work as an intern in a Multinational
Company in Bangladesh. During this 3 months internship program in GSK
Bangladesh Limited, I observed all the activities there. I had to work with “Core
Accounts and Finance” section which deals with issues of VAT, tax, costs, annual
report preparation and so many other things. It was difficult to collect all the
information relevant to my report because the employees were so busy with their

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 An Analysis of Financial Performance of GlaxoSmithKline Bangladesh Limited

scheduled task that they could not be able to provide me much time. Here I tried to
cover the financial performance of the company for last 5 years especially for 2016.

For the analysis of the financial performance of the company, I worked with different
financial statements such as balance sheets, income statements and all the important
data of accounts. I worked with the ratios, trends, common size analysis, segmented
income, growth etc.

1.4 Objectives of the Study

Objective of a report tells about the reason behind preparing the report. I have two
types of objective of my study. They are stated below.

1.4.1 Primary Objective

The primary objective of preparing this report is to fulfill the partial requirements of
obtaining Bachelor of Business Administration Degree from Dhaka City College
under the curriculum of National University.

1.4.2 Secondary Objectives

The broad objective of this report is to determine the financial performance of GSK.
To achieve this broad objective following specific objectives were set for conducting
this study:

 To apply theoretical knowledge in practical field.

 To understand the system and overview of Multinational FMCG company.
 To know the operations of a FMCG company.
 To evaluate the financial conditions of GSK Bangladesh Limited from
different segments such as liquidity, profitability and solvency.
 Recognize the respective years’ financial performance from different aspects.
 To determine the future prospective of the company.
 Determine the competitive position of the company with other companies of
pharmaceutical industry of Bangladesh.
 To identify possible areas of improvement of GSK Bangladesh Limited.

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 An Analysis of Financial Performance of GlaxoSmithKline Bangladesh Limited

1.5 Methodology of the Study

The report is descriptive in nature. For preparing a smooth and accurate study, both
qualitative and quantitative methods have used. For that I needed different qualitative
and quantitative data. The sources of these qualitative and quantitative data that I
collected for this particular study are from primary and secondary both.

1.5.1 Primary Sources Data:

The primary data were collected through

 Discussion.
 Interview.
 Direct observation.
 Practical desk job.
 In-depth study of selected cases.

1.5.2 Secondary Sources of Data:

 Annual reports of GSK Bangladesh limited and competitors.

 Journals and articles of GSK Bangladesh Limited Publications.
 Books and periodicals.
 Research reports
 Manuals of different divisions.
 Relevant file studies provided by the concerned officers.
 Website of the company, competitor companies and other third party websites.

1.5.3 Methods of Analysis:

To prepare this report I have used different types of chart like pie chart, column
graph, line graph and to calculate various performance measure I used ratio analysis,
vertical and horizontal analysis etc.

1.5.4 Tools Required:

I also have used some tools that helped me to complete the report in a more organized
manner. I have used MS Word, MS Excel, MS PowerPoint and some other software
applications to prepare this report.

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 An Analysis of Financial Performance of GlaxoSmithKline Bangladesh Limited

1.6 Limitations of the Study

Though a wholehearted effort was given to prepare this report and to bring a reliable
and fruitful result, I faced several limitations on the way of preparing the report. They
are as follows:

 In comparative analysis, I faced a problem of using different accounting

policies in different companies.
 The data I have analyzed was not the up-to-date data as because the annual
report of 2017 of GSK Bangladesh is not published yet.
 Complexity in strategies of internal operations of GSK Bangladesh limited
posed as a limitation.
 Limitation of time to prepare this study because three months is not enough to
study on five years performance of GSK Bangladesh limited and its
competitor companies.
 Unavailability of books, publications, facts and figures for the study.
 Tremendous workload of the company caused inability of the employees to
extend their co-operations properly.
 Lack of experience for carrying out such extensive study on a FMCG
company for the first time is also a great limitation of this study.
 For the strategic and comparative position of the company, it could not
disclose confidential information that might make the report more worthy.