Final Group

Assignment of
Management
  In the name of Allah, the Most Gracious and the Most
Merciful.
 All praises and thanks to Almighty Allah, Who bestowed His
mercy upon us and gave us
 vision, wisdom, and courage to complete this project.
 We would like to express our special thanks and gratitude to
our Teacher Mr. Qazi Waheed Zaman
 who made us understood the subject “Principles of
Management” very well
Acknowledgment  that we were able to do this magnificent project for the
enhancement of our skills.
 Special thanks to the management of Fedro Pharmaceutical
(Pvt) Ltd for allowing us
 to analyze their organization and for cooperating with us.

Muhammad Shoaib
Umar Abdur Rahim
Abbas Ali
Owais Ahmed Aman
Afan Qayum
Bashir -e- Sani
Introduction

 Fedro Pharmaceutical is Private Limited Company.

 Established in 1981.
 At Starting the company was having only two sections (liquid and Penicillin) but now
there are six sections.
 It is providing its service all over the Pakistan and also in Afghanistan.
 Currently 65 products of Fedro Pharmaceutical are in market.
 More than 100 Employees are working in different sections.
 Mission
Statement

Strategic Goals
(Organization as a whole)

Tactical Goals
(Major divisions, functions)

Operational Goals
Vision Statement

Our Vision is to become No.1 Brand in

Pharmaceutical Industry of the country
and start our operation at international
level by giving quality products to
enhance the life of humans.
Mission Statement

Our Mission is to deliver safe and effective

products to customers to maintain their health
and provide career opportunities to fresh
graduates to intensify their skills.
Core Values

 Quality
 Customer Focus
 Team Work
 Discipline
 Cleanliness
 Honesty
Organizational Goals

Strategic Goals of Fedro

Pharmaceutical

 To enhance the quality of product.

 To increase our resources required
to ensure the safety and credibility
of products.
 To increase our profit by 5% by
increasing the production and
reducing the cost.
 To give fresh graduates
opportunities on favorable terms
and conditions.
Tactical Goals of Plant Department

 To hire more employees so that production could be increased.

 To give Analysts and Section Incharge proper training so that faults can be
removed at maximum.
 To ensure the credibility of the each product.
 To use the innovative skills of fresh graduates.
Tactical Goals of Marketing Department

 To increase the span of our market.

 To hire and train new sales mans.
 To increase promotions and advertising of the firm.
 

Tactical Goals of Accounting Department

 To provide all the incentives to the employees on time.

 To decrease the liabilities on the firm by 7%.
 To recruit new accountants giving fresh graduates more opportunities.
Operational Goals:

 At Fedro Pharmaceutical Operational Goals are made on weekly basis.

 Operation Goals are deliver verbally by the Section Incharges to the employees at
Fedro Pharmaceutical.
 They mainly include percentage of work to be done by employees etc.
Growing Business on
International Level

 Fedro Pharmaceutical wants to extend its

business at international level.
 For this purpose application is submitted to
Drug Regulatory Authority of Pakistan
(DRAP).
 In this regard certification from International
Organization for Standardization (ISO 9001,
ISO 14001 etc) has been commenced, which
is one of the requirements for export.
 For this different inspections are conducted
and resources of the firm are analyzed.
 Expenses to fulfill the requirement are about
Rs 50 million.
 The task will be completed in the near future.
Organizational Hierarchy of Fedro
pharmaceutical
Organizational Hierarchy of Fedro
pharmaceutical (Pvt) Ltd
 Vertical functional approach
 Four main dept. i.e. Accounting, Marketing, R&D, Production
 Further divided into different dept. and Sections
 Fedro Pharma is a decentralized organization
 Every dept. make decisions independently
Organogram of Fedro pharmaceutical
(Pvt) Ltd
Chief Executive

Marketing Director Plant Manager R & D Manager Accounts Manager

Quality Control Manager Production Manager

Quality Control Analyst

Section Incharge Section Supervisor

Capsule Capsule Tablet Liquid Dry Penicillin

Section 1 Section 2 Section Section Section Section

Operators &
Workers
Hierarchy of Fedro pharmaceutical (Pvt) Ltd
 Chief Executive Officer (CEO)
 CEO of Fedro Pharmaceutical (Pvt) Ltd. is Junaid Altaf.
 He is also the owner of the company.
 Responsibilities of CEO include facilitation of the managers and to provide
resources
 Quarterly and annually, meetings of the organization are chaired by the CEO.
 Setting of corporate level goals and objectives
 Following departments are directly controlled by the CEO:
 Accounting
 Marketing.
 R&D
 Production
Main departments

 Accounting:
 This department is controlled by Account manager.
 Account manager is assisted by employees specialized in accounting.

 Responsibilities:
 Responsible for keeping records of cash flows,
 Managing the finance of company and
 Dealing with every transaction like maintaining distributer ledgers loan,
payment to suppliers etc.
Main departments

 Marketing:
 Headed by marketing Director.
 Marketing director is assisted by employee specialized in marketing
 Responsibilities:
 Making Marketing strategy
 To communicate with the distributer
 Advertising, promotion of products and market research
 Competitive pricing
 Observation of Competitor’s activities
Main departments

 Research & Development (R & D):

 Controlled by R & D Manager
 Responsibilities:
 Responsible for any innovation/ change
 Development of new product formulation
 Stability testing
 Main departments
 Plant
 Most important department of the
organization
 Controlled by Plant manager
 Responsible for Production & QUALITY
Control

 Responsibilities:
 Mainly responsible for the
manufacturing and testing of products
 Planning & maintaining the quality of
products
 Plant Manager also act as HR Manager.
 involve in hiring of technical and
nontechnical employees and in
promotion of all employees.
Sub departments under plant manager
Two departments working under Plant Manager are;
Production
Quality Control
Production
Headed by production manager
must have a documentation and formulation skills.
Assisted by section Incharge & supervisor
Responsibilities:
 Responsible for production & its planning
Quality Control.
Headed by quality control manager
Assisted by analysts
Responsibilities:
Ensuring the quality of products
Departments under
production manager

 Production manager control the

following departments ;
 Capsule
 General Capsule
 Tablet
 Liquid
 Dry Syrup
 Penicillin
Span of management

 Following figure shows the span of management of Fedro pharmaceutical

 Plant manager
 QC manager and production manager are answerable to Plant Manager
 Production manager
 There are 6 section Incharge and one section supervisor reporting to production manager


 Quality control manager

 In Fedro there are 10 analyst to report to quality control manager
 Section Incharge / supervisor
 There are 15 workers reporting to section Incharge and also 15 workers reporting to
section supervisor
Time span of management

 Management is mostly on permanent basis (not on contract basis)

 Promotion is given after specific time intervals.
 Managers are not terminated from the organization until and unless
something illegal or unethical is done by them.
Synergy

 All departments are working in coordination with each other.

 There is no communication gap between departments.
 Meetings are held regularly and
 Different committees are constituted to work in collaboration
Work Specialization

 There is work specialization for employees

 Technical work is given to specialized workers
 Like compression, filling and printing .
• STRATEGIC MANAGEMENT PROCESS
Strategic management process or strategic fromulation and implementation
process in which organization do to check its position in the industry.In this
process the top level management of the organization evaluate the current
mission,goals and strategies of the organization and then start to scan the
external environment that usually indirectlly influence the organization like,
(International,sociaculture,legal&political,Natural,technological,economical,cus
tomers,suppliers,pressure groups,labor forces)and internal environment that
directly influence the organization‘s day to day opperations like ,
(Managememt,culture and employees, core competence ,value creation etc ).
After scaning the external environment what they do is ,they conduct SWOT
analysis to identify the external strategic fectors (threats and oppertunities)
for the organization. Likewise they identify the internal strategic fectors
(strenghts and weaknesses) of the organization.after understanding the fectors
they redefine their mission,goals and strategies and formulate the strategies at
corporate level,business level and operational level. This ovell process is called
strategy formulation process.
SMP-CHART
• IMPLEMENTATION PROCESS

 When the managers define the new mission ,goals and strategies and
formulate the strategies at each level of the organizational hierarchy
then they become ready to implement the strategies via changes in
leadership,management,cultural structure,functional
departments(HR,Finance,Accounting,Marketing,R&D and sales)
Information and technology etc.
• SWOT ANALYSIS
 SWOT analysis is a process of scaning external and internal environment,it
includes a search for oppertunities and threats from external environment
and search strenght and weaknesses from internal environment.we obtain
external from variety of sources like internet, customers,financial
reports,government through business intelligent team etc. And same internal
environment information from management,functional departmens
,reports,financial statement etc.
• SWOT ANALYSIS OF FEDRO
PHARMACUITICAL
 STRENGHTS:
1. Supply chain: Fedro company has reliable and vast chain of suppliers and purchase
the goods from approved and authentic Suppliers, there is very good relation and
strong bond between company and suppliers, It enables FEDRO to buy good quality
raw materials on resonable prices.
2. Highly Qualified Proffessional management: Being a pharmaceutical industry ,it’s
necessary to have technical and qualified managers and workers both, At Fedro it‘s
very complusory for the managers to have degree in Pharma D and also degree in
management. So they have all well skillfull and qualifed management.
3. Decentralized Decision Making Process: Due to decentralized system more
decisions can be taken very sharp and timely by lower level managers to deal with
day to day operations,as a result productivity increase.
4. Start product: Fedralka is a star product of FEDRO company it has large matket share
in large business growth rate,its visible and earn lots of profitibility for the company
• WEAKNESSES

1. Out of 173 registered products ,only 65 products are manufuctured by this

company ,due to lake of splendid resources and lack of advanced
machinaries to give favourable condition to each product.
2. Due to geographically away from the target markets and target customers
the company span the distribution channels to reach the product to
ultimate customers,But this Company has slightly weak channel of
distributions, so it’s a weakness..
 OPPORTUNITIES

1. Government providing registration: Govt provides registration for the current

increasing deamand of Hydroxychloroquine Phosphate.
Durring the pandemic COVID-19 the govrnment pakistan invited Pharmaceutical industries to
take the registration .FEDRO company reacted to thus offer quickly and accepted it and
started production of the product.
2.Online service trend to the customers: As know online service trend is advancing
with the passage of time ,online shopping rate is also increasing in pakistan ,keeping in
mind this scenerio , FEDRO pharma is in progress to establish on online platform to
facilitate its customers.
• THREATS
1. Threat of SubStituted Product: Substituted product is a threat to alomost
every Industry, FEDRO Pharmacuetical also have the threat of competitors
products in the market
 For examaple: Fedralka syrup is a star product of FEDRO ,with similar
formulation Fedral a brand name from another company is introduced in
the industry ,This affected the profit of the company and created a great
threat to FEDRO company.
2.Government Strict policies: Different policies Of government are imposed
and new are made also, voilation of policies result in the heavy fines, license
cancellation and registration cancellation of products.
 For example: packaging and color of the product matching with a product
of another company ,and also in the current scenerio SOPs for prevention
of COVID-19 are also imposed and strict rules from govt have beem
imposed.
BCG MATRIX
BCG Matrix stands for Boston Consulting Group Matrix.
 this evaluates strategic business units with respect to the
dimensions of business growth rate and market share. 
 STAR PRODUCT

 In this category product have high market share and

high growth rate.
 In Fedro Pharmaceutical Fedralka Syrup is star
product.
 The Company is investing large portion of its budget
on it to maintain and increase its growth rate and
market share and to convert it in cash cow. 
 CASH COW
PRODUCT

 This category product have high

market share but low growth
rate.
 One of the example of cash cow
in Fedro Pharmaceutical is
Almasim Suspension.
 It has positive cash flow and the
profit from Almasim is invested in
question mark.
DOG PRODUCT
 Dog product is a burden for company, having
low growth rate and low market share.
 It means that company is on breakeven
point, neither loss nor profit.
 Mostly loss is higher
 Fedramol Tablets (Paracetamol) is a dog
product for Fedro Pharmaceutical.
 It is not giving company large profits but
they have kept it in the market.
 But the production of Fedramol is kept low
and only as per demand it is produce so
Company can avoid loss.
QUESTION MARK PRODUCT

 Question Marks are high

growth rate business with low
market share.
 It can be turned into star and
it also can become a dog
product

 The Question Mark for Fedro

Pharmaceutical is
hydroxychloroquine
phosphate.
 The Company has invested
highly on its production and it
will be introduced in the
market in Feb 2021.
 Due to increase in its demand
its growth rate will be high.
DIVERSIFICATION :
  Fedro Pharmaceutical is a
diversified company.
 It is also working in a new line
of business by running a shopping
and Retail Business named as
“Kids Town” situated in
University Town, Peshawar, KPK.
 It is unrelated diversification.
BUSINESS INTELLIGENCE :

  Most of the information about the new product or upcoming products or

substitute product of another company is taken from the market, pharmacies
and medical Stores.
 Marketing department collects all these information and is shared with Plant
Manager and CEO.
How a new product is launched and its
pricing is done?
 The department of Marketing through Market research analyze that which product
demand is high.
 they deliver this report to the management of the Fedro Pharmaceutical.
 If the Product registration is available with company the company increase its demand
but if the product is not registered by company they take registration from Ministry of
Health by fulfilling their conditions.
 After getting registration of the product its production in initiated and then it is kept
in buffer zone for some time to check is quality.
 All the cost in the production of that product is shared with Ministry of Health and
then Ministry of Health approved a price as per policy on which the product will be
sold in the market.
 The price set by Ministry of Health cannot be exceeded, however, low price may be
selected to facilitate the customer.
External
Environment of

Pharmaceutical
The External Environment
All elements existing outside the
organization’s boundaries that have the
potential to affect the organization
The environment includes
 Competitors
 Resources
 Technology
 Economic condition
 The External
Growth
Environment of
Fedro
Pharmaceutical
 Every Industry is effected either in
positive or in negative way by factors
from the Environment
 These factors affect the of company
 directly
 or
 indirectly
The organization’s external environment can
be further
conceptualized as
General
Environment
 Natural:
 Natural calamities
have effected Fedro
Pharmaceutical in the
past also recently
COVID-19 have also
influenced the
Company
 In March 2020 during
the start of
 The company closed
for 40 days
 sales decreased
 later on when company was
opened and medical stores
were also opened the company
again started making profit
 Fedro Pharmaceuticals have
also got registration for
hydroxychloroquine Phosphate
during this phase due to
increase in demand so this
might make more profit to the
Company
 Care for nature
 Recycle waste
 According to the Environment
Protection Agency
Legal

 Pharmaceutical companies have to face many legal issues

 manufacturing sensitive products related to health
 Government policies strictly followed at Fedro Pharmaceutical
 all the SOPs designed by the government were enforced and are still followed
Economics

 The economic
dimension represents
the general economic
health of the country or
region in which the
organization operates
 At Fedro Purchasing Power
Pharmaceutical the
department of
Accounting deals it with
the collaboration of
marketing department
information
Sociocultural

 Fedro Pharmaceutical is
operating keeping in mind the
norms and culture of the society.
 There is no superiority of
religion, race, color etc. at
company.
 Everyone is treated equally.
Task Environment
Suppliers
 Firms face issues when there is
single supply of chain
 Fedro Pharmaceuticals have
multiple suppliers
 due to which they have multiple
advantages
 select favourable suppliers.
Labour Market
Labour Market issues were faced by Fedro Pharmaceutical in the past but
the management have made a committee to solve their issues as well as
many facilities are provided to them
 Medical Facilities
Education

Like
Salary Through Banking
Education
Medical Facilities
8 hours duty time
There are competitors in every industry.

For FEDRO there are also competitors

and the biggest threat is substitute product.

A competitor launched a product of similar formulation as of the Star

Product (Fedralka Syrup) of Fedro Pharmaceutical.

Most of the information about the new product or upcoming products or

substitute product of another company is taken from the market, pharmacies
and medical Stores Through business Intelligence as explained by Awais
 Customers

 Customers are considered as a boss in every successful industry.

 Fedro Pharmaceutical’s main goal is to provide best service to their
customers.
 Any complaint or product demand from customers is treated as high priority
issue and actions are taken to satisfy customers.
Open System Organization

In this modern world FEDRO The Marketing team is Customer Complaints

any organization pharmaceutical has an playing key role in and Feedbacks are
without having an open system where this regard at Fedro taken and given high
open system will go every worker is Pharmaceutical priority during the
for failure allowed to discuss the meetings and steps
problem with the are taken for their
manager satisfaction
Criteria of Selection of new managers and
promotion of existing managers at different
hierarchy levels at Fedro Pharmaceutical
 At Fedro Pharmaceutical new recruitment is
done by Plant manager who also act as HR
manger.
 During the selection of new managers
 Promotion is given after certain time on the
basis performance and reports
 Promotion on basis of performance and
seniority
 No favouritism and nepotism
Internal
Environment of

Pharmaceutical
Internal Environment
Employees
 Fedro Pharmaceutical
provide its employee’s a
suitable environment
 The selection of
employees is done
through interview so that
management can analyze
that for which section this
person is suitable.
 new employees are given
proper training
  Specified 8 hours is duty
time.
  in case of overtime, more
incentives are given
   As there is decentralization in Fedro
Pharmaceutical so the decision taken by
management are supported by
Decentralization employees because the manager of a
section knows its employees individually
so he/she can take decision accordingly.
   As there is decentralization in Fedro
Pharmaceutical so the decision taken by
management are supported by
Decentralization employees because the manager of a
section knows its employees individually
so he/she can take decision accordingly.
 Management
 In Fedro Pharmaceutical
as there is
decentralization so the
management at each
hierarchy level is
independent up to large
extent to take decisions
related to its
departments. Due to this
there is positive impact
on management and they
bring innovative ideas to
help the Company grow.
  There is a type of
Culture friendly bond
between
management and
employees at
Fedro
Pharmaceutical
but during work
the task are
performed with
efficiency. Annual
Increment is given
to employees and
managers on the
basis of their
annual report
based on their
efficiencies
provided by
supervisors.
Managing through Uncertain
Environment
 Due to vigorous changes in the
environment, certainty and uncertainty,
priorities and also trends of the people are
changing day by day.
 Introduction of new diseases and virus
effecting every industry on large or small
scale, which also change the environment.
 At Fedro Pharmaceutical to cope with this
uncertain environment a committee is
constituted, headed by Plant Manager,
including one representative from
accounts and one representative from
marketing department.
 This three members committee meets
monthly in which different changes in
external environment and threats from
environment are discussed, possible
solutions to tackle them are suggested by
them and then actions are taken
accordingly.
 This enables the organization to stay in
touch with environment.
How Stable Formulation is attained for a
product?
 When a product or mainly a new product is made, the Quality Control
Department ensure its stable formulation. For this purpose the product is kept
in stability chambers to calculate the stability at different temperatures and
different conditions so that it can be assured that it will remain safe and good
in different climatic zones of Pakistan. On the basis of this expiry date of
product is also given.
Feel free to
ask any
Question
Thank you