COMPANY: AGP PHARMA (PRIVATE) LIMITED

GROUP MEMBERS

SYEDA AYESHA HASNAIN

FARAZ AHMED

SYED ZAIR HASAN

COURSE: STRATEGIC MANAGEMENT

SUBMITTED TO: SIR NAEEM BHOJANI

DATED: 10-APRIL-2018

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OBJECTIVE

 To Research about the gap analysis of AGP pharmaceutical.

 To know about the marketing and financial strategies.

 To give the suggestion about strategies with expected outcome.

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 ACKNOWLEDGEMENT
We would like to express our special thanks to SIR NAEEM BOJHANI who gave us the golden
opportunity to do this Project, which also helped us in doing a lot of research and we came to
know about so many new things we are really thankful to him.

Secondly, we would also like to thanks SYED JAWAID HUSSAIN (Deputy Manager Human
Recourses) who have helped us for the successful completion of this project.

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Contents
INTRODUCTION TO AGP PHARMA PVT LTD .................................................................................................. 5
VISION ........................................................................................................................................................... 6
MISSION ........................................................................................................................................................ 6
SWOT ANALYSIS ............................................................................................................................................ 7
STRENGTH: ................................................................................................................................................ 7
WEAKNESSES:............................................................................................................................................ 7
OPPORTUNITIES: ....................................................................................................................................... 7
THREATS: ................................................................................................................................................... 7
PESTEL ANALYSIS:.......................................................................................................................................... 9
Political:..................................................................................................................................................... 9
Economical: ............................................................................................................................................... 9
Social: ........................................................................................................................................................ 9
Technological: ........................................................................................................................................... 9
porter five forces: ....................................................................................................................................... 10
Bargaining Power of Customers: ............................................................................................................ 10
Threat of Substitutes: ............................................................................................................................. 10
Threat of New Competitors: ................................................................................................................... 10
Gap: ............................................................................................................................................................. 10

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INTRODUCTION TO AGP PHARMA PVT LTD
AGP began its commercial operations in 1989 as an independent pharmaceutical manufacturing
company in Karachi, Pakistan. It has steadily grown through manufacturing and marketing
products under licensing arrangements with many companies of international repute and also
through manufacturing and marketing its own brands. Today, it is one of the largest
pharmaceutical companies in Pakistan, providing a broad range of pharmaceutical services. The
determination to upgrade the pharmaceutical resources of Pakistan and improvement of the
quality of life of a common man was the key motivating factors in the inception of AGP.

The operations of AGP include manufacturing, marketing and sales of pharmaceuticals and
healthcare products in the domestic and export market. The delivery of AGP’s products, across
the country, is managed by one of the largest and state of art pharmaceutical distribution set
ups in Pakistan.

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VISION

AGP vision is based on quality and professionalism. Our people and resources are dedicated to
providing quality products and ethical services to meet the needs of customers in a responsible
manner.

MISSION

Create value for our customers, employees and shareholders, through effective use of available
resources, by manufacturing and marketing healthcare products in an ethical manner
confirming to international quality standards, whilst leveraging company’s brands, market
standing and image.

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SWOT ANALYSIS

STRENGTH:
AGP focuses on the strong Research & Development department and it is busy in
exploring new markets.

WEAKNESSES:
The illegal drugs or the abuse of drugs can affect the image of the company.

OPPORTUNITIES:
It is need of time to increase awareness among the people about their health care needs.
There is consistent demand to solve the quality healthcare issues.

THREATS:
The regulatory environment of the products is becoming harsh and severe.
Various other competitors are also working in the market, which can be great threat for
the company.

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HISTORIC OVERVIEW – COMPANY FINANCIALS

(PKR
2013 2014 2015 2016 2017E
Millions)

Turnover 2,699 3,110 3,338 3,748 4,250

Gross 1,573 1,811 1,906 2,162

2,444
Profit

Profit 686 809 873 643

1,003
after Tax

Total 1,380 1,887 2,192 8,351

8,436
Assets

Equity 1,068 1,555 1,248 3,190 4,193

AGP GROSS PROFIT MARGIN = 58%

NET PROFITMARGIN = 24%

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PESTEL ANALYSIS:
Political:
 Pricing regulations
 Taxation - tax rates and incentives
 Wage legislation - minimum wage and overtime
 Mandatory employee benefits
 Industrial safety regulations
 Product labelling requirements

Economical:
 Unemployment rate
 Inflation rate
 Interest rates
 Economic growth rate
 Labour costs
 Exchange rates & stability of host country currency
 Efficiency of financial markets
 Infrastructure quality
 Type of economic system in countries of operation

Social:
 Demographics
 Class structure
 Education
 Culture (gender roles, etc.)
 Attitudes (health, environmental consciousness, etc.)

Technological:
 Recent technological developments
 Technology's impact on product offering
 Impact on cost structure

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Porter five forces:
Bargaining Power of Customers:
 Limited buyer choice
 Product is important to customer
 Intensity of Existing Rivalry

Threat of Substitutes:
 Substitute product is superior
 High cost of switching to customer
 Limited number of substitutes

Threat of New Competitors:

 Strong brand names are important
 High capital requirements
 Advanced technologies are required

Gap:
 applicable regulations and guidelines
 product profile and stability information
 shipping procedures
 primary and secondary packaging processes and procedures
 documentation management
 warehouse and storage area monitoring
 personnel training
 transport procedures and policies
 transport security
 and many other critical elements

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 PERFORMANCE SHEET OF GROUP MEMBERS

MEMBER NAME ACTIONS TARGET DATE RESPONSIBILITY STATUS

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