Assignment 2

Human Capital Impact Statement- beacon pharmaceuticals Bangladesh

FACULTY: DR. MOHAMMAD THOUFIQUL ISLAM

Professor, North South University

COURSE CODE & SECTION NO: HRM 660.1

SUBMITTED BY:

TANJILA MANAR SULTANA (2125241660)

NISHAT NAILAH (2225322660)

SHOHANA TANZIM ANIKA (2125063660)

SABRINA PRITI (2215476660)

KAZI ABU SALEH MD. FAHIM (2125305660)

Date: 11-Feb-2023
Beacon Pharmaceuticals Limited is a Bangladeshi pharmaceutical company that develops
generic versions of medications. Beacon manufactures more than 200 generic drugs and 65
oncology products. Beacon is the first company in Bangladesh to start exporting cancer drugs.
The company is exporting its products to Asia, Africa, Europe, and Latin America. Beacon is a
public limited company listed in the Dhaka and Chittagong stock exchanges. About 2000 people
are working in this company.

Below is a table of the human capital statement of Beacon Pharmaceuticals Bangladesh from
the years 2020 to 2022. Here, we did TCOW analysis, and this provided an overview of their
strategy and positioning of their business.

Human Capital Impact Statement - Beacon Pharmaceuticals Bangladesh

Particulars 2020 2021 2022 Variance Variance

(2021-2020) (2022-2021)
Revenue
Revenue 5,590,790,317.00 7,121,152,785.00 8,022,736,306.00 1,530,362,468.00 901,583,521.00
Total Workforce Headcount (FTE) 2,000.00 2,354.00 3,691.00 354.00 1,337.00
Revenue per FTE 2,795,395.16 3,025,128.63 2,173,594.23 229,733.47 -851,534.39
Costs
Total Expenses 2,530,960,435.00 2,431,902,747.00 2,804,416,450.00 -99,057,688.00 372,513,703.00
Total Operating Expenses 2,529,653,717.00 2,265,106,526.00 2,465,035,491.00 -264,547,191.00 199,928,965.00
Total Cost of Workforce (TCOW) 300,708,778.00 275,253,023.00 281,479,000.94 -25,455,755.00 6,225,977.94
TCOW percent of Revenue 5.38 3.87 3.51 -1.51 -0.36
TCOW percent of Expenses 11.88 11.32 10.04 -0.56 -1.28
TCOW percent of OPEX 11.89 12.15 11.42 0.26 -0.73
Profit
EBITDA 184,503,417.00 1,198,163,031.00 1,292,967,761.00 1,013,659,614.00 94,804,730.00
Net Operating Profit 342,692,277.00 1,421,623,726.00 1,681,909,541.00 1,078,931,449.00 260,285,815.00
Profit per FTE 171,346.14 603,918.32 455,678.55 432,572.18 -148,239.77
ROI of Human Capital
Human Capital ROI ratio 9.18 16.64 18.74 7.46 2.10
Return on Human capital investment 113.96 516.48 597.53 402.52 81.05

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From the above table, we can see that profit per FTE increased from 2020 to 2021 but
decreased again in 2022.

700
2022
600
2021
500

400

300

200
2020
100

0
Return on Human capital investment

The total cost of the workforce as a percentage of revenue, expense and opex has been
calculated based on total expense and operating expense. We can see that even though
revenue has gone up, the TCOW percent of revenue has a decreasing trend.

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Total operating expense in the year 2020 was much higher at 2,529,653,717.00, which came
down in 2021. Yet it goes up in the following year.

From the above, we can compare the TCOW percent of expenses and the TCOW percent of
OPEX. Here we can observe that, operating expenses are high overall for beacon
pharmaceuticals, though they are showing a decreasing trend over the year.

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From the analysis, we have noticed that even though the total cost of the workforce has gone
up, that has also increased the return. Human capital ROI has a sharp increasing trend of
beacon. Return on human capital investment has also increased a lot in year 2022 than year
2020.

From the above analysis, we can say that Beacon is spending on their business and on their
workforce, and this is eventually giving them a higher return, and thus their business will grow
more.

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