SPIMACO is a large Saudi pharmaceutical company with over $1.2 billion in capital. A SWOT analysis identified strengths like revenue growth and new product introductions, but also weaknesses such as declining earnings per share, gross profit margins, and net profit margins. Opportunities exist in mergers and acquisitions, utilizing local Saudi workers, and data analytics to improve customer insights. Threats include investor resistance due to low EPS, ensuring local workers are adequately trained, and competitive product pricing. Recommendations include focusing on top customers, reducing costs, innovating products, strengthening customer relationships, and using digital transformation to improve efficiency.

1. Executive MBA
(CRKC7001)
Mid-Term Assessment (C )
Deadline date: Oct 10th, 2021
STRATEGIC MANAGEMENT

2. Table of Contents
Introduction..................................................................................................................................... 2
SWOT............................................................................................................................................. 2
Detail SWOT Analysis.................................................................................................................... 3
Recommendations........................................................................................................................... 7
List of references............................................................................................................................. 7
Introduction
Saudi Pharmaceutical Industries & Medical Appliances Corporation (SPIMACO) is a Saudi
Joint - Stock company with a fully paid capital of SR 1,200,000,000. It was founded in 1986.
SPIMACO Addwaeih's core business is the pharmaceutical and pharmaceutical industry, which
includes the development, production and marketing of pharmaceutical products and medical
equipment. In addition, SPIMACO also owns joint venture companies with limited liabilities
within and outside the State. SPIMACO has developed a strong position in Saudi Arabia and is
well positioned to sustain its growth and has a sound platform for working in export markets.
SPIMACO believes that resources are the most important resources that have the greatest
impact on production and are regarded as the cornerstone in organizing organizational strengths
and help to develop needed skills and increase capacity to deal with current and future
challenges. In addition, it helps to find the best use of the current and expected personal
component, which contributes significantly to achieving the company's goals and objectives.
SWOT

3. Let us try to understand more about the organization through SWOT matrix which is a
simple tool for a systematic analysis and are considered internal influences while opportunities
and threats are considered external factors.
Here based on the SPIMACO financial reports, income statement and comparing them to
their competitors give us valuable insights in line to the SWOT matrix.
S - Strength
 Revenues
 New Products
 Global Recent Business deal
W – Weakness
 Decrease in EPS (Earnings Per
Share)
 Subsequent decrease in the Gross
Profit Margin
 Lower Net Profit Margin

O – Opportunities
 Merger & Acquisitions
 Saudization – Locals Workers
 Data Analytics –To know customer
behaviour for better insights to
increase the sales
T – Threats
 Resistance of Investor
 Local workers Readiness
 Competitive Product Cost
Detail SWOT Analysis
S - Strength
Given that Consistency is the Master of Business and earnings, keeping debt low, growing
payroll from time to time and spending less money on any business are good news. In addition,
cutting costs means more money in the shareholder's pocket.

4. However, in terms of Revenue, which exceeds the growth rate in terms of the 2020 financial
results which is a good indicator of the company's financial health and strengthening
SPIMACO's key role across the state while maximizing the contribution of local pharmaceutical
industry to the state's 2030 vision.
Introduction of a new product used to treat Rheumatoid arthritis, Psoriasis, and other
autoimmune diseases. The drug is registered with the US Food and Drug Administration (FDA)
and the European Medicines Agency (EMA) and has been successfully marketed in many
European countries, which will lead to future commercial sales and financial stability.
The Saudi medical giant expects the agreement to reflect positively on its future financial
results because of the recently concluded international trade agreement.
W - Weakness
We have seen in reports that SPIMACO Q1 2021 EPS (Riyals) is lower than 2020. It shows
that a higher EPS shows a higher value because investors will pay more for the company's
shares if they think the company has a higher profit in terms of its share price. This means that
the company needs to focus on strategies to increase its EPS by increasing revenue or decreasing
the total number of remaining shares. In addition, the maximum amount of revenue will depend
on rising revenue or the lower costs associated with that income.
The revenue generated from each share is an important metrics for investors because it can
be used primarily to track company performance and profits over time. In addition, EPS plays
its role as part of the PE measurement, which is one of the most common price metrics, which
investors use to assess stock value.

5. The ratio of each share can be very flawed because it can be easily diverted to various
accounting methods or shared through repurchase plans. As most companies know that
investors tend to look at the revenue generated by each business share over time, businesses can
always try their best to increase EPS over time, even if that can lead to negative consequences
over time.
The company's Gross Profit Margin is low which is 31.23% which is certainly not a good
sign as Margin Gross over 40% is a good indicator as a sixth rule. Simply put, more sales mean
more revenue.
The Q1 2021 profit margin is 5.74% which is also lower than the sixth control if the net
margin is generally 20%, says the strongest financial statement. These are the top three reasons
when we see that a company should prioritize to improve as soon as EPS, Gross Profit and Net
Profit Margin.
O- Opportunities
Merger & Acquisitions is a hot topic in today’s market; indeed, it is in the minds of all
business leaders. Opportunities help and benefit the organization whether in acquiring high-
level employees or additional skills, knowledge of your field or sector and other business skills.
Access fees or essential assets for a new development will improve a business if the business is
not performing well. Acquiring a broad customer base and increasing your market share will
help and enhance the financial well-being of the organization.
With data analysis, it is a good idea to know how to conduct customer behavior and increase
overall productivity through analytics, digital collaboration, and technological advances.

6. Opportunities for local people in Saudi Arabia will also increase with the use of new
technologies and business growth practices.
Threats
As we have seen in the financial reports that the EPS is low which is why there will be
resistance for the Investor because when the PE Ratio is more than 50 the company is ranked
higher which means the investor will show resistance to the investment. The company also
needs to see the potential of local workers which could be a barrier if local people are not
properly trained in the future challenges they will take and ensure the growth of the organization
because foreign workers will cost. Competitive company costs will also be important because
the company must keep this cost factor in mind and offer the product at cheaper prices than its
competitors as their global competitors will try to bypass their footsteps in local markets.

7. Recommendations
As we have done an in-depth analysis of SWOT analysis to better understand the organization,
we would like to recommend that the company needs the following to increase the total profit
margin.
1. Customers Top 100 customers identified to increase sales
2. Enhance a complete margin by reducing costs (e.g., obtaining cheaper resources)
3. Reduce operating costs and increase profits.
In addition, I would like to recommend that Increasing the market share of sales and improving
the company's competitiveness
1. Product Innovation or introducing new technologies to the market that competitors will
still offer.
2. Strengthening customer relationships by focusing on customer satisfaction.
3. Promote high quality standards
By using Digital Transformation Technology and IT to develop commercial services to the
highest standards, marketing and distribution standards that will improve the efficiency and
quality of the process to ensure consumers receive high quality products.
List of references
https://www.argaam.com/en/company/financial-updates/
http://www.spimaco.com.sa/investors/financial_reports