abbott pharma ppt

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ajeetkumar_2008@yahoo.com We present this presentation with group on date 30 November 2013 at SZABIST Karachi.

abbott pharma ppt

  1. 1. Ajeet Kumar 1325145 Manesh Kumar 1325162 Kanwal 1325158 Shakeel Ahmed 1325177 Bakhat Hussain 1325151 November 30, 2013
  2. 2. Overview Brief History
  3. 3. Brief History • Abbott Laboratories is a diversified pharmaceuticals and healthcare products company. Abbott was founded in 1888 by Chicago Doctor, Wallace C. Abbott • 6th largest global pharmaceutical provider Wallace C. Abbott • Headquartered in Abbot Park, illinois • 90,000 Employees in more than 130 Countries • One of oldest most successful pharmaceutical companies in the U.S. • Major operations in the US, Netherlands, Germany, Japan, Italy, France, Canada, UK and Spain. 1st location – Abbott’s Home
  4. 4. Abbott Laboratories At a Glance        In 2011 Revenue: $38.851 Billion Operating Income: $5.751 Billion Net Income: $4.728 Billion Total Assets: $60.276 Billion Total Equity: $24.526 Billion growth – last 10 years
  5. 5. Brief Descriptions of Products & Services
  6. 6. Products and Services of the Company Pharmaceuticals : Localized Innovation Nutrition: Worldwide Leader In Nutrition Diagnostics: Pioneering Medical Diagnostic Animal Health Products Medical Devices
  7. 7. Major Business Components • PHARMACEUTICALS – Arinac,Bejectal, Burnol, Cecon, Klaricid, Lucrin, Protium, Surbex Trividox, Tronolane • DIAGNOSTICS – Assays (AIDS, hepatitis,cancer, thyroid, fertility, Clinical Chemistry, Hematology, etc.) & instruments (e.g, AxSYM) – Glucose monitoring • Medical Devices – Anesthetics, delivery systems, injectables generics, IV solutions, imaging, blood vessel surgical closure devices • NUTRITIONALS – Similac, Isomil, Ensure, Glucerna, Pedialyte
  8. 8. Vision &Mission
  9. 9. Vision To be the Most Admired Healthcare Company in Pakistan. Mission To deliver consistently superior products and services which contribute significantly to improving the quality of life for consumers. •Product & Service, •Customers, •Concern for public image, •Concern for Survivalgrowth •Philosophy
  10. 10. Modified Mission Statement: To deliver consistently superior products and services globally through combination of R&D ( advanced technology) and positive workforce, which contribute significantly to improving the quality of life for consumers Missing Components Market Technology Employees Self Concepts
  11. 11. Space Matrix:
  12. 12. Space Matrix: Financial Strength (FS) Return on Investment Leverage Liquidity Working Capital Cash Flow Financial Strength (FS) Average 5 4 5 6 4 Environmental Stability (ES) Rate of Inflation Technological Changes Price Elasticity of Demand Competitive Pressure Barriers to Entry into Market 4.8 Environmental Stability (ES) Average Competitive Advantage (CA) Market Share -3 Product Quality -2 Customer Loyalty -3 Technological Know-how -3 Control over Suppliers and Distributors -3 Industry Strength (IS) Growth Potential Financial Stability Ease of Entry into Market Resource Utilization Profit Potential Competitive Advantage (CA) Average -2.8 Industry Strength (IS) Average y-axis = FS + ES = 6.0 + (-3.2) = 2.8 x-axis = CA + IS = -2.8 + (+5.2) = 2.4 -3 -3 -2 -5 -3 -3.2 6 6 4 5 5 5.2
  13. 13. FS Conservative Aggressive 6 5 4 3 2 1 CA -6 -5 -4 -3 -2 -1 1 2 3 4 -1 -2 -3 -4 -5 -6 Defensive ES Competitive 5 6 IS
  14. 14. Competitive Profile Matrix
  15. 15. Competitive Profile Matrix CPM Critical Success factors Abbott GSK Pfizer Weight Rating Score Rating Score Rating Score Advertising 0.06 2 0.12 3 0.18 3 0.18 Product Quality 0.09 3 0.27 3 0.27 3 0.27 Price Competitiveness 0.07 2 0.14 3 0.21 3 0.21 Management 0.12 3 0.36 3 0.36 3 0.36 Financial Position 0.08 2 0.16 3 0.24 3 0.24 Customer Loyality 0.06 2 0.12 3 0.18 3 0.18 Global Expansion 0.10 3 0.3 3 0.3 4 0.4 Market Share 0.08 2 0.16 3 0.24 3 0.24 Research & Developnent 0.17 2 0.34 2 0.34 3 0.51 Employee Turnover 0.07 3 0.21 4 0.28 3 0.21 Brand 0.10 2 0.2 3 0.3 4 0.4 Totals 1.00 2.38 2.9 3.2
  16. 16. INTERNAL FACTOR EVALUATION MATRIX & EXTERNAL FACTOR EVALUATION MATRIX
  17. 17. INTERNAL FACTOR EVALUATION MATRIX STRENGHTS WEIGHT RATING WEIGHTED AVERAGE 1. Global presence 2. Strategic alliances and acquisitions 0.10 0.15 4 4 0.40 0.35 3. Diversified portfolio 4. High margins 5. Over 100 year experience 6. Strong research and development 0.07 0.07 0.08 0.07 4 4 4 3 0.30 0.25 0.26 0.20 7. Innovation Leader 8. Strong brand name 0.07 0.06 3 4 0.20 0.28 1. R & D investment not to the level of competitors 2. Marketing expenses lower than competitors 0.05 2 0.10 0.05 2 0.10 3. Labor turnover 4. Expiring patents 5. Declining market share 6. Allegations of illegal marketing 0.07 0.05 0.06 0.05 1 2 2 2 0.05 0.10 0.10 0.10 WEAKNESSES TOTAL 1 2.79
  18. 18. EXTERNAL FACTOR EVALUATION MATRIX OPPORTUNITIES WEIGHT RATING WEIGHTED AVERAGE 1. Population growth 2. “Quality of life” demand 3. Scientific discoveries 4. Treatment required for diseases like cancer, aids etc 0.12 0.07 0.07 0.06 2 3 3 3 0.30 0.20 0.20 0.25 5. Health care sector expansion in Pakistan 0.05 4 0.20 6. Market growth 7. Internet utilization for sales purpose 0.05 0.07 3 3 0.15 0.15 8. Half of the population have no access on modern medicines. THREATS 1. Strict regulations 2. Intense competition 3. Competition from generic products 0.08 4 0.15 0.05 0.07 0.07 2 2 3 0.10 0.15 0.21 4. Law and order situations 5. Copy products 6. Threats of substitutes like herbal and homeopathic products 7. Increasing raw material costs TOTAL 0.06 0.08 0.05 3 2 2 0.25 0.14 0.15 0.05 1.00 2 0.15 2.75
  19. 19. SWOT MATRIX
  20. 20. SWOT MATRIX 1. 2. 3. 4. 1. 2. 3. SO STRATEGIES Through R & D find solutions for the diseases like cancer and aids with the help of scientific discoveries. ( S6, O3, O4) Innovative and effecitve products having less side effects will be helpful in meeting the demands of customers. (S7,O2) Develop new research products to take the advantages of increasing market growth ( S6, O6) Expand the distribution to access the demand for modern medicines ( S2, O6) WO STRATEGIES 1. Expansion in health care sector will help in increasing the revenue which can be utilized on R & D and marketing. (W1, W2, O5) 2. Social sites can be used for promotion & marketing. (W2, O 7) 3. Spent more money on research and development for the development of new products to capture the market share. (W1,O6) 3. More CSR activities should be done for the promotion (W6,O6 ) ST STRATEGIES WT STRATEGIES Lower the margins to overcome the issue of 1. Increase the marketing & promotional expenditure to increasing raw material cost. face the issue of copy products. (S4,T7) (W2,T5) Lower the prices to beat the competition. (S4, T2) 2. Relaunch the patent expired products with some Develop the products having negligible side effects modifications to beat the competition. to face the competition from herbal and homeopathic (W4, T5) products. ( S6, S7, T6)
  21. 21. BCG Matrix
  22. 22. BCG Matrix
  23. 23. Financial Analysis
  24. 24. Financial Analysis Ratios 2012 2011 Sales 15,216,253 12,946,968 NPM 13.7 12.7 31.7 31.2 22.4 22.2 C.R 2.71 2.42 NI 2,090,095 1,644,586 EPS 21.35 16.80 ROE ROA
  25. 25. Blue Ocean Strategy
  26. 26. Blue Ocean Strategy HIV protease inhibitors were first invented by researchers working for the pharmaceutical companies. Abbott Laboratories and Merck & Co Inc. HIV protease inhibitors are used in the treatment of patients with AIDS and were considered the first breakthrough in over a decade of AIDS research.
  27. 27. Business Model
  28. 28. Business Model Element ABBOT Value Proposition committing to the highest standards of quality, excellence in personal relationships, and behavior characterized by honesty, fairness and integrity. Pharmaceuticals, Nutrition, Diagnostics. B2B Owned distributors, Selling by retailers. Customer Segments Channels Customers Relationship Revenue Streams Key Resources Providing manual with each product, Seminars, Personal Assistance by skilled employees, FAQs online. Varies by countries, and according to cost of investment, Most advanced Technology, Penetration business with potential growth.
  29. 29. Key Partners Global and Innovative, Related business, Cost Structures High, due to advance technological, to achieve economies of scale, global investment. Research on latest and innovative life healthy production, also focus on devices to easily diagnosis. Key Activities
  30. 30. Conclusion
  31. 31. Conclusion The company should come up with new research products to beat the competition from copy products as well as to avail the opportunities like population and market growth. The company should access new geographical areas to enhance the sales. Company should also take steps to avoid the labor turnover.
  32. 32. Thank You

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