Strategic Management Report

1. Introduction to the industry:

Martin Dow is a pharmaceutical industry that is positioned to create long term value for
the society. Martin Dow Pharmaceutical is a Pakistani multinational pharmaceutical
company which is based in Karachi, Pakistan and its subsidiaries are Seatle (Pvt.) Ltd.,
Martin Dow Marker and Martin Dow Healthcare. Martin Dow is currently operating in
healthcare as well as in pharmaceuticals.

2. Introduction to the company:

Martin Dow is a Pakistani multinational pharmaceutical company which is based

in Karachi, Pakistan and healthcare group in Pakistan with an international presence, a
status achieved through rigorous efforts of its management and employees. It was
founded in 1995 and is one of the leading pharmaceutical companies in Pakistan. It has
more than 60 brands and over 1000 employees. Its products are manufactured in Karachi
at its cGMP compliant manufacturing plant. Martin Dow engaged in activities of
manufacturing, marketing, import & export of high quality branded generic
pharmaceutical products. At Martin Dow, a key imperative of our Leadership Philosophy
is to create leaders from within. Looking back at days gone by, we find new reasons for
our people to experience success with experience, skills & training needed to advance
with benefits & stability.

3. Office/Factory/Plant Locations:
 Martin Dow has six manufacturing facilities in Pakistan and one in France. Martin Dow
office is located in Nice Trade Orbit Building, PECHS, Block VI Sharjah-e-Faisal,
Karachi.

4. Number of total employees:

Martin Dow has 1000+ number of employees.

5. Organizational Hierarchy:

6. Mission and Vision:

 MISSION:
Martin Dow is one of the most ethical pharmaceutical group of companies in Pakistan
and our mission is:

 To be one of the most admired companies

 To be amongst the fastest growing healthcare companies

 VISION:
Martin Dow Pakistan is a Corporate Force that is positioned to create long term values
for the society and its stakeholders.

7. Corporate Strategy:
Corporate Identity:
We have launched a new corporate theme for Martin Dow. The new theme is depicted
through fingerprints and is based on the concept of us having a unique identity, which is
essential for every organization to make its mark. Fingerprints represent our distinction in
the industry. To involve employees, we also conducted an activity whereby fellow
colleagues from the Head Office and Field Force were picked out through their employee
codes by their respective division heads. After being chosen randomly, their fingerprints
were taken on a paper and then scanned and printed on the canvases at the Head Office.
The colorful canvases keep reminding us of our corporate identity, as well as provide a
refreshing look to the Head Office.
STRATEGIC ROADMAP:
 Technological advancement
 Operational finesse
  Strategic focus towards growth oriented markets/growth driving product profile
 Customer centric approach for providing quality healthcare solutions
 Enhanced feedback and communication with all stakeholders
 Aggressive growth and innovative marketing strategies

8. Evaluation of company’s external environment

PESTAL ANALYSIS
1. POLITICAL FACTOR: Political factor has huge impact upon the Martin Dow
pharmaceuticals because in Pakistan as the government policies are not stable, which can
effect upon business like increase in business tax and regulations imposed by government
authorities. As in 2016 according to Income Tax Act 2001, pharma industry was allowed
only 5% of exemption from taxes and any expense above than that will not be exempted
and will be considered taxable for all the promotional expenses in the industry.

2. ECONOMIC FACTOR: Pharma industry contributes only 1% in the GDP of

Pakistan besides the facts that it entails a huge number of national and multinational
companies and according to PPMA (Pakistan Pharmaceutical Manufacturer’s
Association) the industry is continuously growing. During 2008-2012, it contributed 12%
annually. But due to increasing life expectancy rate, spending pattern in the healthcare
will also increase which sounds favorable for Martin Dow pharmaceuticals and there lies
an opportunity keeping in view the intense competition of locals approaches to almost
53% of the industry where multinationals account for only 47% and Martin Dow
pharmaceuticals having only 11.6% of market share.

3. SOCIOCULTURAL FACTOR: In Pakistan OTC selling is high; most of the

medicine is being sold by shopkeepers, who don’t have any pharmacy degree. And the
education is increasing in Pakistan so in future if the OTC stop so there may be decrease
in sell of few products like Voltaren, Panadol and other products that sell at OTC. As
educational trend is increasing Pakistan so in future there may be buyer ask for the
pharmacy degree. In this factor Martin Dow pharmaceuticals focus upon the population
of Pakistan and the culture of Pakistan is different many communities and families living
in their own life style, the demographic of Pakistan involve the ages of people’s child;
young, old people lived in different areas in Pakistan. Martin Dow pharmaceuticals has
also seen the rural areas of Pakistan.

4. TECHNOLOGICAL FACTOR: Upgrading the system with the technology has been
the policy of the Martin Dow pharmaceuticals since its inception. Today Martin Dow
pharmaceuticals is using the latest information technology to keep the contact with the
market team and for market analyst, that allow them to save the travelling cost and
travelling time from one place to another because they use the video conferencing and
audio conferencing to contact with their team. By using the latest art of technology they
are maintaining the quality management system in the company and maintaining the
quality of product. Using QMS they are controlling the unintentionally accident like fire
or other and save the human lives because Martin Dow pharmaceuticals do cares for their
employee.

5. ENVIRONMENTAL: Martin Dow pharmaceuticals Pakistan believes that “Do more,

Feel better and live longer”. They make to positive image contributing in community by
investing in health and educational programs; they also focus upon the wastage of water
and through their resource with innovation to develop a water management system. Their
consumption cutback programs have resulted 17% decrease in consumption of water and
energy. Martin Dow pharmaceuticals boosts environment welcoming ways at work. To
align our operations with the supervisory philosophies on ecological protection and
resource/energy preservation, we have assumed the subsequent initiatives in 2015.
1. Installation of High Efficiency Motors (HEM).
2. Variable Speed Drive (VSD)
3. Compressor to reduce energy consumption
4. Replacement of Air Handling Units (AHUs) for improved equipment efficiency &
energy consumption.
5. Optimization of boiler operation, Steam system survey.
6. Natural Gas Consumption Reduction Program.
7. Steam Generation & Distribution System Optimization Program.
 6. LEGAL: Since the inception in Pakistan, we are following all the rules and regulation
of Pakistan law and the entire legal act. In 2016 Martin Dow pharmaceuticals has paid the
tax of Rs.282.93 million taxes to the government of Pakistan that is 30% from the profit.
As the legal policies in the Pakistan has been improving and making it more strictness for
the companies to operate. Any policy for the patent can have positive or negative impact
on the company because in upcoming five years company is losing the 10 patent and they
have lose many patent in the past many years.

9. Resource & Capability Analysis:

10. Micro-Environment & Five Forces Model:

PORTER 5 FORCES

THREAT OF RIVALRY: There are about 800 pharmaceutical companies operating in

Pakistan of which 25 are multinational and 400 manufacture drugs themselves and fulfills
almost 70% of the company’s demand and market share is equally divided in national and
multinational companies. Therefore we can say there is intense competition in market and
threat from rivalry is very high.

THREAT OF SUBSTITUTION: According to PPMA (Pakistan Pharmaceutical

Manufacture’s Association) there are more than 800 pharmaceutical companies operating in
Pakistan including various local as well as international companies and most of the local
companies produce the counterfeit drugs. Most of the local companies buy from the same
seller put their own label and name and market accordingly. Therefore threat of substitution
is extremely high.

BARGAINING POWER OF CUSTOMERS: As Martin Dow Pharma is one of the 5 top

pharmaceutical companies all over the Pakistan, its extensive research and development is its
core strength to enjoy its own prices. It is one of the oligopolistic markets to produce high
quality drugs, it controls prices and customers have low influence in industry
BARGAINING POWER OF SUPPLIERS: As the company has its own manufacturing
plant and it manufactures its drugs and medicines itself, so threat of suppliers to Martin Dow
is low.

THREAT OF NEW ENTRANTS: Entering in pharma industry of Pakistan was quite easy
before 2007 but after those Government policies and its regulations has restricted companies
to enter the market. Moreover, now it requires heavy costs and investments to enter the
market as continuous huge research and development is required in this industry due to
expiry of patents and new diseases. However, recent changes in pharma industry are resulting
in new mergers and acquisitions and some joint ventures which can be a threat for Martin
Dow. To conclude we can say there is moderate threat of entrants.

11. Swot Analysis

STRENGHTS:

Martin Dow pharmaceuticals has good brand image and sustain their position in the list of
top 5 best pharmaceutical companies in world along with that in Pakistan too. Because of that
they get success in achieving their targeted, according to the report of 2016 MARTIN DOW
PHARMACEUTICALS sales has increase by 17% with the account of Rs.27, 564 million in
the region of Pakistan. MARTIN DOW PHARMACEUTICALS is investing heavy amount
and has strong focus in the research and development and exploring the new market.
MARTIN DOW PHARMACEUTICALS is very strong in financial with Rs.2, 762 million
profits and 19.53% return on equity according to the report of 2016 that has increased by
1.54% from the preceding year 2015. Along with it MARTIN DOW PHARMACEUTICALS
is also strong enough in human resources with the employees of 99300. Using the latest
production technology and information technology to produce the high quality product and
make continuous contact with the distributor and market team that allow them to save the
travelling cost and time.

WEAKNESESS:
OPPORTUNITIES:
Awareness of public toward the healthy life is increasing. According to the report of world
health organization the expenditure on health was 2.6% from GDP. Strategic agreement with
medical colleges, universities and pharmaceutical companies to boost up the research.
Increasing demand for quality health care solutions and also increasing awareness regarding
health care needs. Pakistan is among the high ranking countries where people are still get
affected of preventable diseases which is a good things as Martin Dow have a diverse brands
as to cater the locals need. Utility crises in Pakistan have adversely affected the business such
as energy and fuel crises, present government have taken corrective measure to end the crisis
in near future which would smoothen the operations Pakistan exports of pharmaceutical
products are seen as a potential area Since Martin Dow is involved in exports this could
create a major opportunity for the company.

THREATS: 
Risk of failure of new product in the market that will lead of waste of investment in all
research and production. Risk in slowdown in the Pakistan economy and unstable political
and environment situation of Pakistan that may affect negatively in the sale of our product in
the Pakistani market. Inflation rate is increasing so our research and production cost May
increase. Inflation rate is 9.74% in Pakistan. Medicine in Pakistan are smuggled to
Afghanistan since medicine are fragile item with low shelf life, use of such medicine could
harm the patients hence could damage the reputation and law suits.

12. BCG Matrix (Market share vs. market growth rate)

We have analyzed all the segments of Martin Dow - Pharmaceuticals, Vaccines, and
Consumer HealthCare Segments - and after that, we got some of the data by interviewing
one of the Martin Dow manager.
We have put market growth rate on y-axis and market share on x-axis.
Make a picture as shared below:

Star Product: We have a lot of star products but there is a most popular and award winning
product is Zantac which is the no 1 leading products for Stomach disease. Another star
product is Betnovite Cream which is used for skin care and it competes with other company’s
brand.

Cash Cow Product: As you are using Panadol, Augmentin, in hillers in your daily routine to
take relief on immediate basis, they are our cash cow and they are used by people every day
also these products are Stars as well.

Question Mark Products: We have a list of products which are not even using in international
market but in Pakistan we are making it because doctors are giving it to our customer and
here is the biggest example of Septrone which is known in locally “Ghora Marka” which is
obsolete by us but people are still willing to purchase it for their fever/flu and another
product which has been question mark is “Seritite”
 Dogs Product: There are too many products which we are making in no profit no loss and
often we will be in loss to make these products which are listed below, Polyfax & Ladossprin

13. Space Matrix (strategy formulation especially as related to the competitive position
of the company)

Purpose of Implementation Planning:

Our company is Martin Dow pharmaceuticals and the strategy we have proposed is product
development the reason of this plan is to implement this strategy by Martin Dow and likewise
to assist allocating the resources to staff so that the work can be carried out smoothly.
Additional purpose is to attain the anticipated goals that were planned in the business.
Why Strategy needs to be implemented?
After going through the company profile and report we are formulating the strategy that is
product development. If we overlook to the SWOT Analysis Company has great potential in
the upcoming time period. As the world is growing the pollution is growing that lead to new
diseases that need solution. The literacy rate is increasing so the awareness of people toward
healthy product is increasing. Health conscious public needs a product that needs to be free
from the side effects.
Implementation Objectives:

 To get the anticipated goals and objectives

 To propose Martin Dow this implementation plan and assist them in execution
 To allocate and arrange proper resources and divide tasks to key workers and to do it
timely with effectiveness and efficiency
Constraints:
 As we are the medical manufacturing firm, we cannot go for marketing of our products
(market penetration) because it is restricted by law.
 Financial Barrier is may be there although company is financially string yet cots of R&D
is very high.
 There are like 800 competitors operating here already locally, so that can be the threat
to our firm and we face the problems of counterfeits just because of intense local and
multinational competition.

PLANNING:
We will implement the product development strategy in our business company for which
assistance and cooperation of our main employees; research specialists and expert chemist to
do more and more research so as to develop new formulae and chemicals to produce new
drugs. Also we require resources, finances, and research labs, to carry out all the activities
smoothly and then a new marketing plan just to make people aware about the new products
and why the company adopted this change in strategy.
14. Conclusion with Gap Analysis