It was our final project to make a report on any listed company. We chose to work on Abbott. We prepared a detailed strategic report in which we analyzed internal as well as external environment. We identified what strategies they are following. We analyzed the financial position of Abbott as well as Abbott's key competitor and compared it with industry ratios. By using different matrixes, we proposed two strategies to Abbott Pakistan.

1. PRESENTATIONON

2. Danish
Ahmed
Huda
Ghulam
Nabi
Muhammad
Zubair
Zeeshan Ali
Khan
2

3. PESTEL
ANALYSIS
PORTER 5
FORCES
STRENGTHS
WEAKNESSES
EFE MATRIX
IFE MATRIX
INDUSTRY
MATRIX
SWOT
MATRIX
CURRENT
STRATEGIES
PROPOSED
STRATEGY
IMPLEMENTA
TION ISSUES
CONTROLLING
Outline

4. Industry Overview
There are 600 active pharmaceutical companies in
Pakistan with over 100,000 numbers of employees.
There are 47000 registered drugs. There are 1100
registered molecules. Pakistan pharmaceutical
industry market size is $2.07 billion. Local
pharmaceutical companies hold 57% of the total
market size and multinational companies hold 43%
of the total market size. 70% of the pharmaceutical
product demand is being met by Pakistan
pharmaceutical industry. Pakistan pharmaceutical
industry grew at 15.1% in 2012.
4

5. About Abbott Laboratories (Pakistan) Ltd
 On July 02, 1948, Abbott started its operations as a
marketing affiliate in Pakistan. In 1982, Abbott got
listed as public limited company in Pakistan
 Abbott Pakistan has more than 1500 employees
 It has two manufacturing plants in Karachi located at
Landhi and Korangi
5

6.  Abbott Pakistan has market share of 6.5% in
pharmaceutical industry
 Overall Abbott Pakistan Grew at 18.5% in 2012 and
retained its position as the world’s 2nd largest
research based pharmaceutical company in Pakistan
 One of the best global companies in terms of
operational excellence
6

7. 7
Abbott
Mission
Statement
• “To deliver
consistently superior
products and services
which contribute
significantly to
improving the quality
of life for consumers”

8. Analysis of Mission Statement:
8
•Components Evaluation
• Customers Yes
• Products or services Yes
• Markets No
• Technology No
• Concern for survival, growth,
and profitability
No
• Philosophy Yes
• Self-concept Yes
• Concern for public image No
• Concern for employees No

9. Proposed Mission Statement:
“Abbott is committed to provide the highest quality (7)
pharmaceutical (2) products globally(3), to build healthier
and happier moment in our consumers’ (1) life, we have
highly motivated employees(9) and we consider them as our
asset (6). Through state of the art technology (4), we make
sure the highest quality that helps to present the strong
financial position (5) to our stakeholders. Abbott is also
committed to play its part in the betterment of the society
(8)”
9

10. Evaluations of Proposed Mission
Statement
10
Components Evaluation
• Customers Yes
• Products or services Yes
• Markets Yes
• Technology Yes
• Concern for survival, growth,
and profitability
Yes
• Philosophy Yes
• Self-concept Yes
• Concern for public image Yes
• Concern for employees Yes

11. 11
Corporate Structure of Abbott
SHAREHOLDERS
BOARD OF
DIRECTORS
HUMAN
RESOURCE
COMMITTEE
SHARE
TRANSFER
COMMITTEE
BANKING
COMMITTEE
AUDIT
COMMITTEE
INTERNAL AUDIT
CEO
MANAGEMENT
NUTRITIONAL PHARMACEUTICALS OTHERS
DIABETES CARE DIAGNOSTICS
GENERAL HEALTH
CARE

12. Corporate Social Responsibility
In 2012, Abbott came to know that community
school does not have basic infrastructure and lack of
facilities near their Korangi plant. Abbott Pakistan
and its employees got engaged in improvement
project. After the completion of the project, there
was a positive drastic change in new admission and
student attendance
12

13. Corporate Governance
Board of Directors
 Munir A. Shaikh (Chairman) (Non Executive Director)
 Arshad Saeed Husain (Chief Executive Officer)
(Executive Director)
 Kamran Y. Mirza (Non Executive Director)
 Thomas C. Freyman (Alternate Director Anis A. Shah)
(Executive Director)
 Syed Anis Ahmed (Executive Director)
 Angelo Kondes (Non Executive Director)
 Shamim Ahmad Khan (Non Executive Director)
13

14. Corporate Board policies
Director Independence and Qualifications
Director Responsibilities
Board and Committee Meetings
Board Committees
Director Access to Management and Independent Advisors
Director Compensation and Indemnification
Director Orientation and Continuing Education
Management Evaluation and Succession
Annual Performance Evaluation of the Board
Stock Ownership Guidelines
Code of Business Conduct
14

15. Functional Department of Abbott Pakistan
Human Resource Department
Supply & Distribution Department
Finance Department
Operations Department
Information System Department
Marketing Department
Research and Development Department
15

16. Strategic Objectives of Abbott Pakistan
To reduce cost by improving supply and distribution
To increase earnings per share
To improve productivity and eliminations of waste
To gain market share by acquiring competitor
To improve the quality of existing products
16

17. Proposed Objectives
To gain market share from 6.5% to 11% in three years
To increase revenue by 23% per year for next three year
To maintain and supply the innovative and quality products to our
customers
17

18. 18

19. Political Analysis
 Changes in tax laws
If the tax is increased, industry will have to pay more
taxes and their profit margin will go down.
 Pakistan-India relationships
There is high tension on border of India and Pakistan. It
can have a negative impact on pharmaceutical industry
because pharmaceutical companies import raw material
as well as finish good from India.
If Pakistan gives most favorite nation (MFN) to India,
Pakistan’s pharmaceutical industry will suffer. They
won’t be able to compete with Indian pharmaceutical
products because their prices are relatively low.
19

20.  Lobbying activities
In an interview, we found that there is a high level of
lobbying. Local companies have strong relations with
government. It will have negative impact on fair
competition in pharmaceutical industry.
 Political instability
Political instability is one of the issue that Pakistan facing
for last 65 years. Recently Pakistan is facing high level of
political instability in sense of terrorist attacks and also
political party’s strikes. Due to this the whole operations
gets disturbed which results in heavy losses.
20

21. Economic Analysis:
 Interest rates
Interest rate has been increased from 9.5% to 10%. It
will have a negative impact on pharmaceutical
industry. It will increase their interest payment
expense.
 Stock Market Trends
Karachi stock exchange was ranked among top 10
best performing stock market in the world. It will
have a positive impact on pharmaceutical industry.
They can raise capital easily because investor
confidence is very high.
21

22.  Inflation rates
There is an increase in inflation rate from 8.07% to
10.9% during Jan-Nov 2013. It will have a negative
impact on the cost of pharmaceutical industry
products.
 Foreign Remittances
During 2012-2013 foreign remittances has been
increased from $10,876.99 million to
$11,569.82million. It will have positive impact on
pharmaceutical industry. Families will have more
money to spend on health.
22

23.  Value of the dollar
Pakistani rupee value has been depreciated by 7.1%
against dollar during 2012-2013. It will have
negative impact on pharmaceutical industry because
they import material from different countries and
make payments in dollar. It will increase their cost
and decrease their profit margin.
23

24.  Income differences by region and consumer
groups
Income difference is high in Pakistan. It will have a
negative impact on pharmaceutical industry. Low level
income people won’t be able to buy their products
 Foreign countries economic conditions
If economic conditions of Sri Lanka, Afghanistan and
some African countries get worst, it may have negative
impact pharmaceutical industry export. Pakistan exports
pharmaceutical products to these countries.
24

25. Social Analysis
 Number of births
Birth rate is 26.80 per thousand in 2012-2013. It was
27.20 in during 2011-2012. That’s a negative sign for
pharmaceutical industry. Demand of certain
products will go down (Maternity and new born child
pharmaceutical products).
 Number of deaths
Death rate is 7.0 per thousand in 2012-2013.
Numbers of deaths are not too much. It will be a
good sign for pharmaceutical industry to provide
products to large number of people for long time.
25

26.  Population:
Pakistan population is 190,291,129 (July 2012 est.)
.Pakistan is a big market for pharmaceutical industry
to market their products and increase revenue.
 Life expectancy rates
Life expectancy rate has been increased from 66.1 to
66.5 (female) and 64.3 to 64.6 (male) in 2012-2013.
It’s a good sign for pharmaceutical industry. Aged
people mostly have health issues so demand of
pharmaceutical products will increase.
26

27.  Number of Doctors
There is a increase in number of doctors from 152,188 to 160289.
Demand of pharmaceutical industry products will increase because
more doctors will prescribe medicine to their patient.
 Urban Population Growth
Urban population has been increased from 67.5million to 69.87
million. It’s a good sign for pharmaceutical industry. They will be
able to serve more people easily and make more revenue.
 Rural Population Growth
It has been increased from 113.1million to 114.4 million. It’s an
opportunity for pharmaceutical industry to develop or penetrate
into rural areas. It will increase their revenue.
27

28.  Per Capita Income
Per capita income increased from Rs.118, 085 to Rs.
131,543 during 2012-2013. It will have positive impact on
pharmaceutical industry. People will have more income
to spend on health.
 Major Cities Population
Pakistan major cities like Karachi have 13.125 million;
Lahore 7.132 million; Faisalabad 2.849 million;
Rawalpindi 2.026 million and Islamabad 832,000.
Pharmaceutical industry can increase revenue by making
strong distribution network in above mentioned cities.
28

29.  Age structure:
 0-14 years:
 34% (male 33,774,720/female 31,967,787) of the population are aged between 0-14 years. That’s an
opportunity for pharmaceutical industry because children get more affected from viral diseases. It will
increase revenue of pharmaceutical industry.
 15-24 years:
 21.6% (male 21,560,699/female 20,223,691) of the population are aged between 15-24years. Young
population is also suffered from different viral diseases; it will help pharmaceutical industry to
increase their revenue.
 25-54 years:
 35.1% (male 35,272,193/female 32,587,417) of the population are aged between 25- 54 years. It’s a big
opportunity for pharmaceutical industry to increase their revenue.
 55-64 years:
 5% (male 4,767,260/female 4,832,047) of the population are aged between 55-64 years. Revenue of
pharmaceutical industry will increase because aged people have health issues.
 65 years and over:
 4.3% (male 3,877,418/female 4,375,636) of the population are aged 65 years and over. It will have
positive impact on pharmaceutical industry revenue because people age of 65 and over have critical
health situation.
29

30.  Traffic congestion
Pakistan’s major cities roads are highly congested with
traffic. It will have negative impact on pharmaceutical
industry. Industry won’t be able to market their products
on time. and their transportation expense will increase.
 Retail and wholesale Sector
During 2012, Market size of retail and wholesale sector in
Pakistan is US$ 40 billion and it has been growing at
5.3%. It will have a positive impact on industry revenue.
When retail market grows, automatically revenue will
increase.
30

31.  Malaria & Dengue Fever
Out of 500,000 people, 50,000 are died because of malaria. It’s an opportunity for
pharmaceutical companies to produce and market their malaria related products to
increase revenue.
One in four malaria sufferers get treatment in Pakistan. It is an opportunity for
pharmaceutical industry. Demand of malaria related products will increase.
 Diabetes
7.1million people are suffering from diabetes in Pakistan. It’s an opportunity for
pharmaceutical companies. Revenue from diabetes products will increase.
It is estimated that by 2025, 13.8 million people will be suffered from diabetes. It
will have positive impact on pharmaceutical companies. Demand of diabetes
products will increase.
 Hepatitis
There are around 12.3 people who are affected with hepatitis B and C. It is an
opportunity for pharmaceutical industry to increase revenue by providing related
pharmaceutical products to large number of people.
31

32.  HIV & Aids
Human Immunodeficiency Virus (HIV) cases have
been increased in Pakistan during 2001-2012. It will
have positive impact on industry. Demand of HIV
treatment products will increase.
 Heart Diseases
30% to 40% deaths are occurred due to
cardiovascular diseases (CVD). It will have positive
impact on Pakistan pharmaceutical industry.
Demand of related products will be increased.
32

33. Technological Analysis
 Shift of R&D Centers from USA to China
There is a shift of innovation from America to China.
China is putting more and more investment in R&D
as compare to America. Chinese companies are
registering more for patent as compare to china. It
will have positive impact on Pakistan pharmaceutical
industry because Pakistan has strong relation with
china. Pharmaceutical industry can get patent from
china.
33

34. Legal
 Rules and regulations by DRAP
Pharmaceutical companies are affected by Drug Regulatory
Authority of Pakistan (DRAP) rules and regulation. Drug act
2012 is one the reason to exports local medicine. Because of it
companies cannot improve their financial health.
 Pricing Issues
Pharmaceutical industry is not supposed to increase prices
because of drug regulatory agency. Their profit margin will go
down.
 Import–export regulations
Section 12 of drug act is a major hurdle towards export. There
will be a negative impact on industry’s export. Revenue will
also fall.
34

35. Environmental
 Natural Disaster
Pakistan is facing natural disaster every year. Every
year flood hits many parts of the Pakistan. Several
diseases occur because of it like water-borne ones
such as diarrhea and typhoid. Demand of prescribed
medicine has crossed market supply. Companies are
unable to meet market demand. Companies need to
expand their businesses.
35

36.  Water Pollution
Only 1% of wastewater is treated. Remaining 99% is
discharged directly into rivers and drains. 62% of urban
population and 84% of rural population do not treat
water. Because of it numerous diseases like diarrhea,
typhoid, intestinal worms and hepatitis affects them. It is
estimated that around 250,000 child deaths occur each
year in Pakistan due to water-borne diseases. It is
estimated that around 40% of annual death occurs due to
polluted water in Pakistan. Demand of many
pharmaceutical products will increase and revenue will
also increase.
36

37. 37

38. Rivalry among Competing Firm
 High Number of Competing Firms:
There are number of pharmaceutical firms operating
in Pakistan. That’s why rivalry among competing
firms is very high. Both local and multinational
companies have their operations in Pakistan.
38

39.  Similar capability of firms competing
Local as well as MCN companies have same
capabilities. On this basis we can say rivalry among
competing firm is high.
 When consumers can switch brands easily
Consumer can switch brand easily. Switching cost is
almost ignorable which shows there is high rivalry
among competing firms.
39

40. Threats of New Entrants
 Capital Requirements
Capital requirement in pharmaceuticals industry is
very high. so threats of new entrant are low.
 Economies of Scale
In Pakistan pharmaceutical industry, to achieve
economies of scale quickly is very difficult due to lack
of technology and human resources. So threats of
new entrant are low.
40

41.  Government Regulatory Policies
Drug Regulatory Authority Pakistan (DRAP) has
strict rules and regulation regarding drugs pricing,
drug quality assurance, drug supply system and drug
production. Pharmaceutical companies are not
allowed to increase prices for last 10 years. Due to
high rules and regulation threat of new entrant is
low.
41

42. Threats of Substitute
 Relative Prices of Substitute Products:
Homeopathic medicines are first choice Pakistani
people because prices of these medicines are low. So
threats of substitute are high in pharmaceutical
industry.
42

43. Bargaining Power of Supplier
 Number of Suppliers:
Local Suppliers
 There are numerous suppliers of pharmaceutical
products in Pakistan so bargaining power of supplier
is low.
International Suppliers:
 It is found in an interview the companies import raw
material and finish goods items from different
countries around the world. It means bargaining
power of supplier is low.
43

44. Bargaining Power of Customers
 Inexpensively Switch to Competing Brands or
Substitutes:
Switching cost for costumers is low. Pakistan is
importing medicine from different countries. To
switch from local brand to imported brand is
becoming common in Pakistan.
44

45. Abbott EFE matrix
Key internal Factors Weight Rating
Weighted
Score
Opportunities
1. Foreign Remittances increasing 4.00% 4 0.16
2. Increasing population 9.00% 4 0.36
3. Increasing life expectancy rate 10.00% 4 0.4
4. Increasing patient of different diseases like
dengue, malaria etc. 12.00% 4 0.48
5. Increasing natural disaster 6.00% 4 0.24
6. Water pollution 7.00% 3 0.21
7. Increasing no of doctors 2.00% 4 0.08
8. Increasing heart diseases 10.00% 4 0.4
Threats
1. Government rules and regulations 5.00% 3 0.15
2. Tax laws 9.00% 3 0.27
3. Political Instability 6.00% 4 0.24
4. High inflation rate 3.00% 3 0.09
5. Changes in patent laws 7.00% 4 0.28
6. Pricing Issues 10.00% 4 0.4
Total 100.00% 3.76

46. Market Commonality and Resource Similarity
 Appendix A (1) Shows those companies have market commonality because all companies have
their operations and distribution in Pakistan.
Appendix A (2) clearly shows that 9 companies have market commonality in terms of products.
All mentioned companies in the table offer products in the following category,
 Analgesics, antipyretics, NSAIDs, antigout, and antirheumatics (Category - 2)
 Anticonvulsants and Antiepileptics (Category - 5)
 Anti-infective drugs (Category - 6)
 Drugs affecting the blood (Category - 10)
 Cardiovascular drugs (Category - 12)
 Gastrointestinal drugs (Category - 17)
 Hormones and other endocrine drugs and contraceptives (Category - 18)
 Psychotherapeutic drugs (Category - 24)
 Drugs acting on the respiratory tract (Category - 25)
 Vitamins, minerals, tonics, and other susbstances (Category - 27)
46

47. Segments
In pharmaceutical industry, companies have same
segments for same product category. If one company
offering diabetic medicine, that company will have
the same segment as their competitors have.
47

48. Strengths
Weaknesses
48

49. Strengths
 Abbott has market leadership in pain management, anesthesia, medical
nutrition and anti-Infective.
 Abbott Pakistan is best global company in terms of operational excellence.
 Abbott is ranked No. 1 as the most preferred employer in the
pharmaceutical industry in Pakistan.
 Abbott is pioneer and market leader in mosquito repellant products in
Pakistan.
 Abbott is the market leader in Immunoassays. It is used to diagnose HCV
Core Ag.
 Abbott Pakistan has the best workplace practices, recognized by “National
Forum for Environment and Health”.
 Abbott Pakistan has strategic depot in all four provinces of Pakistan.
 Abbott Pakistan has strong supply chain network.
 Abbott manufacturing plants are equipped with state of the art technology.
49

50. Weaknesses
 Development of new product is very slow.
 Extremely centralized decision making.
 Most of the patents are near to expire.
 Don’t have much products related to heart diseases which
causes 30%-40% deaths in Pakistan.
 It takes too much time to launch a new product.
50

51. Abbott IFE matrix
Key internal Factors Weight Rating Weighted
Score
Strength
1. Leadership in pain management, anesthesia 13.00% 4 0.52
2. Best in operational excellence 8.00% 4 0.32
3. The most preferred company by employee. 3.00% 4 0.12
4. Pioneer and market leader in mosquito repellent 12.00% 4 0.48
5. Market leader in immunoassays 8.00% 4 0.32
6. Best workplace practices 5.00% 4 0.2
7. Has strategic depots in all 4 provinces 9.00% 4 0.36
8. Strong Supply Distribution network 16.00% 4 0.64
Weaknesses
1. Slow new product development 8.00% 2 0.16
2. Extremely centralized decision making 7.00% 3 0.21
3. Patents are near to expire 3.00% 3 0.09
4. Does not have heart disease products 8.00% 2 0.16
Total 100.00% 3.58

52. Industry Matrix
Key Success Factors Weight Abbott
Rating
Abbott
Weighted
Score
GSK
Rating
GSK
Weighted
Score
Sonafi
Aventis
Rating
Sonafi
Aventis
Weighted
Score
Wyeth
Rating
Wyeth
Weighted
Score
Price
competitiveness
9.00% 4 0.36 3 0.27 3 0.27 3 0.27
R&D 25.00% 4 1 4 1 4 1 4 1
Product quality 13.00% 4 0.52 4 0.52 4 0.52 4 0.52
Customer / Doctor
Loyalty
16.00% 4 0.64 4 0.64 3 0.48 4 0.64
Distribution 9.00% 4 0.36 3 0.27 4 0.36 3 0.27
Marketing 16.00% 3 0.48 4 0.64 4 0.64 3 0.48
Total 100.00
%
3.72 3.82 3.63 3.66

53. 53
A SWOT Matrix for Abbott Pakistan
Strengths Weaknesses
1. Leadership in pain management,
anesthesia
2. Best in operational excellence
3. The most preferred company by
employee.
4. Pioneer and market leader in mosquito
repellent
5. Market leader in immunoassays
6. Best workplace practices
7. Has strategic depots in all 4 provinces
8. Strong Supply Distribution network
1. Slow new product development
2. Extremely centralized decision making
3. Patents are near to expire
4. Does not have heart disease products
Opportunities S-O Strategies W-O Strategies
1. Foreign Remittances
2. Increasing population
3. Increasing life expectancy rate
4. Increasing different diseases like
dengue, malaria etc
5. Increasing natural disaster
6. Water pollution
7. Increased no of doctors
8. Increasing heart diseases
 Build new plants (S3, O2)
 Make a specialized R&D team for disease
like dengue and malaria (S4, O4)
 Make contingency plan as natural
disasters have increased for last five years
(S8, O5)
 Start awareness program to reduce water
pollution (S6, O6)
 Increase product line related to heart
diseases(W4, O8)
 Add four new researchers in R&D (W1,
O2, O3)
Threats S-T Strategies W-T Strategies
1. Government rules and regulations
2. Tax laws
3. Political Instability
4. High inflation rate
5. Changes in patent laws
 Increase number of warehouses to avoid
stock out (S8,T3)
 Penetrate into the market to get
economies of scale (S7, S8, T6)
 Parent taking decision from American
headquarter (W3, T5)

54. Current Strategies of Abbott Pakistan
1. Corporate Strategies
Horizontal Integration
 Abbott Pakistan acquired Legacy Solvay brands in
2012
 In 2010, Abbott acquired Solvay pharmaceuticals
 In 2004, Abbott acquired TheraSense Inc. and EAS
Inc
 On September 13 2013, all leading Pakistan’s
newspaper revealed that Abbott Pakistan is willing to
buy some assets of Johnson & Johnson.
54

55. 2. Related Diversification
Abbott Pakistan did related diversification in
nutrition products. As the trend is shifted in the
society that most of the parents are willing to give
their children powdered milk and supplements as
they consider the dairy milk to be unhealthy as
compare to powder milk. For this Abbott has
launched ensure milk in different flavors so that
children can also drink happily.
55

56. Business Strategies – Pharmaceutical
Differentiation
The company has adopted the differentiation
strategy as the large number of competitors giving
the same products with the same formula. So the
company decided to change the formula of their
existing products as well as packaging of their
products to create differentiation.
56

57.  Functional Strategies
 R&D
Improve formula of existing products
 Supply Chain
Strategic Depots
 Marketing
New Packaging
 Finance Department
Generate finance through equity
57

58. Proposed Strategies
 Corporate Strategies
 Market Penetration
Market penetration strategy will be proposed to Abbott Pakistan to follow.
Why Market Penetration?
The reason is that industry is growing. In 2012, Industry grew at 15.1%.
Abbott can get benefit of that opportunity. Numbers of patients are
increasing every year. Natural disasters are coming every year. Population
is being increased at the rate of 2%. Through intense distribution, Abbott
Pakistan can place their products to affected area. All reasons support in
favor of market penetration. This will help Abbott to increase its market
share and achieve its proposed objectives.
How will it be done?
Abbott has strategic depots in all four provinces of Pakistan. Abbott has
strong distribution network. Abbott also has exceptional marketing team. It
also have specialized workforce team. Marketing efforts will be increased by
Abbott Pakistan.
58

59.  Divisional Level Strategy - Pharmaceutical
 Cost Leadership (Type2: Best Value)
Cost leadership type 2 (best value) strategy is proposed to Abbott Pakistan.
How will it be done?
Abbott manufacturing plants are highly innovative in the industry. Abbott
Pakistan has state of the art equipment. Abbott Pakistan will improve its
value chain activities and it will use its value chain activities more
effectively and efficiently. It will be very difficult for any competitor to
match or copy the method that will be used by Abbott Pakistan.
Why cost leadership?
 Cost leadership (best value) strategy will be effective because:
 Price competition is high among rival sellers
 Products are identical
 There are few ways to achieve product differentiate
 Customer can switch to another seller because switching cost is low
59

60.  Functional Strategies
 Marketing
Pricing
 Penetration pricing method will be used. Abbott Pakistan will
be able to lower its prices through its business process
reengineering
60

61. 61
Distribution
Raw Material
Warehouse
Manufacturing Location
Warehouse
Depots
Retailers
Consumers
Distributor
Retailers
Consumers

62.  Promotion
Integrated marketing communication campaign will be used to increase sales.
Advertising
 Television
 Public service announcements approach will be used in our television commercials like “How you can protect yourselves
from dengue”. In the end we will show related products like Mospel.
 Radio
 In the same manner we will run public service messages on national as well as regional radio channels.
 Billboards
 Corporate advertising approach will be used in which we will highlight that Abbott has been working for happy and
healthier life of Pakistani since 1948. At the right side of billboard, we will place Abbott famous brands.
 Print Advertisement
 We will place print ads in all leading newspaper. Public service messages as well as products advertisement approach will
be used. For example, 7 April is world health day. We will place public service message in print media to create health
care awareness
 Public Relations
 Awareness in public and patient regarding illnesses, diseases, and what drugs treatments are available
 Abbott Pakistan will contribute to patient-advocacy groups (Government hospitals)
 Abbott sales team will go to doctor to educate them about the product and motivate them to prescribe Abbott’s products
to patients.
 Social Marketing
 Abbott Pakistan will get engage through social networking sites like Facebook. Abbott Pakistan will keep updating
Pakistanis about latest development in pharmaceutical industry as well as company performance
 Free Sampling
 Free samples will be given to consumers through doctors.
62

63.  Supply chain
We will focus on the improvement of our whole
distribution network. We will launch decentralized
warehouses. We will integrate with our suppliers to
avoid stock outs of raw material. Furthermore we
will follow vendor inventory program in which we
will maintain the stocks of our customers. In this
way we can predict our sales and production easily as
we will be directly getting data from the customers as
we will be maintaining their shelves.
63

64.  Processes
We will try to first eliminate non value added
activities in our organization. We will re-engineer
our whole processes and will try to implement lean
manufacturing. Through this we will be able to get
the best quality products and will minimize the cost
as well.
64

65.  Human Resources
Human resource department will be responsible to
recruit and train new employees for marketing
department. New employees will be placed in sales
department. Human resource department will design
new training sessions for sales force team to educate
them about new ways of marketing in 21st century.
Training and development sessions will be
conducted throughout the year. We will make new
programs to motivate our employees to achieve
Abbott objectives.
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66.  R&D
This department will be asked to redesign the chemical formula of
the existing product and try to minimize the cost of the product.
 Finance
There will be a need of finance. There are multiple options for
Abbott Pakistan to generate finance and allocate it on different
project. These options are: Equity (Common stock or Proffered
Stock), Debt (Short term or long term) and issue of bond. Interest
rate in Pakistan is very high. If Abbott goes with debt, their
interest expense will increase. They will be bound to pay interest
rate. On the other hand, Abbott Pakistan can generate finance
from issuing stock. Abbott Pakistan will generate finance through
equity.
 Information System
 All information will be timely shared to every department. It will
help Abbott Pakistan to make corrective decision, if required.
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67. Implementation Issues
• The labor union will resist as in the process of re-engineering we will
have to fire the extra employees that are present in the company
• The employees are the main part of the organization. Most of the
employees are habitual of doing the work in the old processes. So
they will also resist the new processes as they are not comfortable of
it.
• We will also face problems at the time of generation of finance as we
will need large amount of finance to support are changing activities.
• The HR issues will also be there as we are planning to penetrate in
the market. So we will need more workforces to accomplish our
task.
• We will also have to align our workforce to our new strategies as it
becomes very difficult to align our workforce to accomplish the
targets which are being set in the strategy
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68. Strategy Review, Evaluation and Control
After formulating and implementing the strategy,
Abbott Pakistan will need to evaluate and control the
strategy. It refers to three basic activities:
 Examining the underlying bases of a firm’s strategy
 Comparing expected results with actual results
 Taking corrective actions to ensure that performance
conforms to plans
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69. Abbott Pakistan will make sure to make corrective action on time, if
required. In order to examine the underlying bases of abbot’s
strategy, following framework will be used.
 A Strategy-Evaluation Assessment Matrix
We will propose it because it gives alternative answers of key
questions. The basic purpose of this matrix is to continuously
evaluate eternal environment. It also evaluates the internal
environment of the company. Through this matrix, Abbott Pakistan
will be able to make corrective action.
In order to examine the measuring organizational performance,
Abbott Pakistan will use a framework that will highlight, what
actual results are and what results were being expecting. Is there
any variance? If there is any variance, what action is needed?
Revenue, sales growth, market share, profits and return on
investment are some factors that will be evaluated.
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70. Thank You 
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