Você está na página 1de 32

Chapter One

1.0 Introduction

1.1 Title of the Assignment


The Title of the assignment is- A Brief Analysis of Novartis Pharmaceuticals Ltd.

1.2 Background:
In Bangladesh the pharmaceutical sector is one of the most developed hi-tech sectors which are contributing in the country's economy. After the promulgation of Drug Control Ordinance - 1982, the development of this sector was accelerated. The professional knowledge, thoughts and innovative ideas of the pharmacists working in this sector are the key factors for these developments. Due to recent development of this sector it is exporting medicines to global market including European market. This sector is also providing 97% of the total medicine requirement of the local market. Leading pharmaceutical companies are expanding their business with the aim to expand export market. Recently few new industries have been established with high tech equipments and professionals which will enhance the strength of this sector. Novartis International AG is a multinational pharmaceutical company based in Basel, Switzerland. According to the Fortune Magazine (July 20, 2009 issue) it was the sixth largest Pharmaceutical Company in terms of revenue

1.3 Origin of the Report


This report on A Brief of Novartis Pharmaceuticals Ltd. is prepared as a partial requirement of the course principal of Management, Code: 103, instructed by Shobod Deba Nath, Lecturer, Department of International Business, University of Dhaka.

1.4 Rationale
To get a clear idea about functional activities of Novartis Pharmaceuticals Ltd. where the findings help to take appropriate steps for betterment of the system and improve the overall performance of Novartis Pharmaceuticals Ltd.

1.5 Objective
This report aims to specify the overall analysis of. Novartis Pharmaceuticals Ltd. The specific objectives are to To have an idea about Pharmaceuticals sector in Bangladesh. To know the activities of functional department of Novartis Pharmaceuticals Ltd. To have an idea about corporate information of Novartis Pharmaceuticals Ltd. To know the vision and Mission of Novartis Pharmaceuticals Ltd. To have an idea about SWOT analysis.

1.6 Methodology
Area of Study: The area of the study encompassed the functional department of Novartis Pharmaceuticals Ltd. Target Group: Departmental heads, concerned officials had been consulted to get the required data.

1.7 Sources of Data:


Information will be collected to furnish this report is both from primary and secondary in nature. Primary data Primary data sources will be scheduled survey, informal discussion with professionals and observation while working in different desks. We have also consulted with a Liaison Officer of Novartis Pharmaceuticals Ltd. assistance. Secondary data To prepare the report, we collected secondary data. We collected the information of Novartis Pharmaceuticals Ltd. from internet. We also visited the website of Novartis Pharmaceuticals Ltd. for collecting necessary information. for

1.8 Limitations
While preparing the report we faced some constraints and limitations Due to time constraint, we could only analyze all the information. The website of Novartis Pharmaceuticals Ltd does not provide all the necessary information. The officer also does not show all necessary information.

In spite of the limitations we tried our best to make the analysis representative.

Chapter Two

2.0 Novartis (Bangladesh) Limited - Caring and curing- An overview 2.1 Background
Novartis is a Swiss based healthcare company, a world leader in research and development with core businesses in pharmaceuticals, consumer health, generics, eyecare and animal health. Headquartered in Basel, Switzerland, Novartis employees about 70,000 people and operates in over 140 countries around the world. The name Novartis is derived from the Latin word novae artes which means new skills. It reflects their commitment to research and development that lead to innovative products and services that improve health and well being in the communities they serve worldwide. Novartis was created in 1996 by the merger of Ciba Giegy and Sandoz. It has been working in Bangladesh since 1973. As a visionary leader in the healthcare industry, Novartis offers its employees an environment of challenge and exceptional opportunities for discovery and contribution. They encourage their workers by providing world-class state of the art facilities. In addition, they reward those who embrace responsibility and leadership, thus stimulating daily and long term professional and personal growth. Novartis values work-life balance and encourage diversity. Few companies in any industry can match them in these commitments.

Sandoz Novartis International AG Traded as Industry

Public AG

SIX: NOVN, NYSE: NVS Pharmaceuticals

Founded Headquarters Key people

1996 (from merger) Basel, Switzerland Daniel Vasella (Chairman), Joseph Jimenez (CEO) Pharmaceuticals, generic drugs, over-the-counter drugs, vaccines, diagnostics, contact lenses, animal health (list...) US $ 50.624billion (2010)[1] US $11.526 billion (2010)[1] US $9.969 billion (2010)[1] US $123.32 billion (end 2010)[1] US $69.769 billion (end 2010)[1] 119,418 (FTE, end 2010)[1] Ciba Vision, Sandoz, Alcon Novartis.com

Products

Revenue Operating income Net income Total assets Total equity Employees Subsidiaries Website

Overview
On 7 March 1996, an earthshaking announcement was made to the business world: Sandoz and Ciba-Geigy, the two Swiss-based chemical/life sciences giants, had agreed to become one. Novartis, as the new company was called, was at that time the result of the largest corporate merger in history. Both Sandoz and Ciba-Geigy already had a rich history of their own.

Geigy, Ciba and Sandoz (1758-1970)


First there were three companies: Geigy whose history goes back to the middle of the 18th century, Ciba, founded around 1860, and Sandoz, which was set-up in 1886.

Ciba-Geigy and Sandoz (1970-1996)


In 1970 Ciba and Geigy merged. The newly created Ciba-Geigy Ltd. and Sandoz continued to follow separate paths for two and a half decades.

Novartis (1996-present)
In 1996 Sandoz and Ciba joined to form Novartis in one of the largest corporate mergers in history. Since then, Novartis has been marked by many interesting events and success stories.

Novartis Bangladesh Limited -Company History:


The state-of-art manufacturer plant of Novartis (Bangladesh) Limited was established in 1989 with an annual capacity of producing 200 mio tablets/capsule. In 2002 production facility expand and with this expansion of the plant the capacity increased to annual production of 500 mio tablets / capsules. From early 1970, Novartis - then known as Ciba-Geigy - engaged in trading with various chemical and healthcare products in Bangladesh. The Bangladesh group company was incorporated in 1973 with the 40% participation of Bangladesh Chemical Industries Corporation (BCIC). In a first joint venture agreement of both partners in 1980 the investment in a crop protection formulation plant in Chittagong was implemented. In a second joint venture agreement in 1988 NBL and BCIC invested in a pharmaceuticals production plant in Tongi, which operated as from 1990 with lifesaving products fitting the needs of the country. In 2000 Novartis decided on a global basis to spin-off the agro business and henceforth to concentrate on healthcare. This affected also the Bangladesh group company. The former crop protection business of NBL at present continuing with the business partner BCIC, under the authority of Syngenta as a separate legal entity. The Sandoz Business Unit of NBL is the owner of this Plant. The plant is located about 20 Km north of Dhaka city and cover an area of about 36,634 m2. The site is surrounded in the north 10 m wide road beyond that a village of Tongi, in the west bordering on fields, in the east to a pharmaceutical factory of Eskayef, and in the south and southwest the site is adjacent to the river Turag. The site comprises of buildings for pharmaceutical production, Quality Control and

IT, for warehouse, for engineering support, for product development, for animal health production for office and canteen, for storage of inflammable substances, for diesel storage of generator, for catering,for pump house, for gate, for waste water treatment plant, for car workshop, for Training Center and guard barrack. For scrap yard for retention sample storage. The first buildings were raised in 1989 and commercial manufacturing was initiated in 1990. Pharmaceutical Production comprises of two sections dealing with Manufacturing and packaging. Most of the active substances used in manufacturing are supplied by Novartis Basel, Austria and China. Most of the auxiliaries used for production are bought from approved supply source of Novartis AG, Basel, Switzerland and Sandoz GmbH Austria. Packaging materials are bought from third parties. Apart from producing globally developed research & generics drugs, traditionally Tongi Plant was instrumental in local development of finished pharmaceutical products e.g. Famotodine, Ciprofloxacin, Omeparazole, Sparfloxacine etc. Since 1997, Tongi Plant is in the export market after expansion the Plant became the global supply point for Novartis generics. NBL Tongi Plant is instrumental in transferring res and are also acting as a competent center for the products coming out from Tongi Plant. Scope of business: Sales office Name: Head Office: Phone: Fax: E-mail Website Shareholders: Plant Phone Fax Human pharmaceuticals, Animal health products and Consumer health products. Country wide 11 Sales office Novartis (Bangladesh) Limited House 50. Road 2A, Dhanmondi R.A. Dhaka-1209 (8802) 8615302-08 (8802) 8623489 novartis@bol-online.com hhtp://www.novartis.com.bd Novartis international AG, Switzerland (60%) Bangladesh Chemical Industries Corporation (40%) Novartis Bangladesh Limited, Tongi Plant Cherag Ali Market, Tongi Gazipur (8802) 9800561-4 (8802) 98004245

Novartis Business
Our complementary healthcare businesses address the changing needs of patients and societies worldwide. With innovative pharmaceuticals at the core, we are also a global leader in generics, vaccines and consumer health products. We believe this targeted portfolio best meets the challenges and opportunities in a dynamically changing healthcare environment.

Pharmaceuticals Innovative medicines with improved efficacy and fewer side effects. Sandoz Affordable, high-quality generic treatment options following the expiry of patents. Vaccines and Diagnostics Products to fight vaccine-preventable viral and bacterial diseases, as well as diagnostic tools. Consumer Health Empowering patients with various consumer products that enable healthy lifestyle choices. Plant Background Novartis (Bangladesh) Limited: joint venture company with Novartis AG, Switzerland (60%) and Bangladesh Chemical Industries Corp. (40%). 1973: Incorporated as Ciba Geigy (Bangladesh) Limited. Start-up business pharmaceuticals, crop protection and chemicals. 1989: Tongi Plant established to meet local regulatory legislations to maintain local business. Commercial manufacturing initiated in 1990. Loan extended by Novartis AG 1.6 Mio BDT. 1995: Export business launched from Tongi Plant. First supply to Singapore worth 11.9 Mio BDT 1996: Following merger, local Sandoz trading operation merged and Novartis (Bangladesh) Limited established. 2001: EU GMP certification obtained. 2002: Production facility expanded to meet EU supply. Average usage currently of Tongi Plant capacity based on all work centres: 60% domestic, 40% export business. The invested value of Tongi Plant is 700 Mio BDT / 15 Mio USD (at current exchange rate). All from local financing except for 1.6 Mio USD from Novartis AG and 0.5 Mio BCIC. 2008 August book value the Plant is at 379 Mio BDT / 5.48 Mio USD. Tongi Plant currently produces domestic volume of Sandoz, Sandoz OTC Pharma, and Animal Health. Tongi Plant produces domestic business requirement of: Sandoz - 100% Pharma - 65%, AH - 50%. And technology to other menu.

2.2 Corporate Information


Novartis International AG is a multinational pharmaceutical company based in Basel, Switzerland. The company was founded in 1996 through the merger of reputable Swiss companies Ciba-Geigy and Sandoz Laboratories. Companys current CEO is Joseph Jimneze and Daniel Vessella is the chairman. The company ranks number three in industry worldwide with respect to sales. Companys sales were recorded 36.173 billion US Dollars in year 2008. At present, Novartis is the sixth largest pharmaceuticals company in terms of revenue which was calculated 41.5 billion US dollar in year 2009. The company has three subsidiaries Siba Vision, Sandoz and Alcon with 119,418 employees total in year 2010. Novartis produces medicines under the categories of pharmaceuticals, generic drugs, over the counter or consumer drugs, vaccines, diagnostics, animal health and contact lenses. Some of the famous drugs produced by Novartis include Comtan, Diovan, Tegretol, Zometa, Tavist, Voltaren, Ritalin, Femara, and Clozaril.

2.3 Branches
Novartis operates its sales operations in Bangladesh through their official distributer Juellig pharma. They do not have branches here.

2.4 Employees
Total workers in Bangladesh is around 1000.

2.5 Mission And Vision


Wants to discover, develop and successfully market innovative products to cure diseases, to ease suffering, and to enhance the quality of life. They also want to provide a shareholder return that reflects outstanding performance and to adequately reward those who invest ideas and work in the company. Aspirations Novartis wants to be recognized for having a positive impact on people's lives with their products, meeting needs and even surpassing external expectations. They strive to create sustainable earnings growth, ranking in the top quartile of the industry and securing long-term business success. They want to build a reputation for an exciting workplace in which people can realize their professional ambitions. They strive for a motivating environment where creativity and effectiveness are encouraged and where cutting-edge technologies are applied. In addition, They want to contribute to society through our economic contribution, through the positive environmental and social benefits of our products, and through open

dialogue with our stakeholders.

Scientific Operations Mission Statement:


Educate key opinion leaders on advances in standards of care, unmet medical needs and the appropriate utilization of Novartis' products in clinical medicine. Establish relationships and present disease and product information to healthcare decision makers in key managed market organizations. Collaborate with Clinical Operations and other US CD&MA colleagues to optimize placement of phase II-IV research studies with capable investigators and facilitate review of strategically-aligned third party proposals. Generate insight from the medical community from early in the clinical development process to help shape strategy on key development and commercial programs. Share market intelligence and monitor key competitors' product-development activities. Serve as an internal medical/technical resource for strategic planning, scientific education, and Novartis colleague training.

2.6 Products
1. Consumer Health
The Consumer Health division focuses on creating, developing and manufacturing a wide range of competitively differentiated products that restore, maintain and improve the health and well being of the consumers. In Bangladesh the Consumer Health division is comprised of the following business units: (i) (ii) Animal Health Business Unit Over the Counter

(i)

Animal Health Business Unit The Animal Health business unit in Bangladesh is dedicated to maintaining and improving the health of farm animal since 1977. Animal health industry is one of the promising sectors of the country

and demands close attention and nurturing. As the only multinational animal health pharmaceutical operation in the country, we manufacture and market quality poultry, dairy and aqua products. Our aim is to provide extensive range of leading brands and meet the needs of farm owners, and farmers.The Animal Health Business Unit concentrates mainly on three business areas namely; Poultry, Dairy and Aqua.

(ii)

Over the Counter Considerable evidence suggests that adopting and improving the nutritional status of people help prevent future health problems and for patients speed up recovery especially in a country like Bangladesh where nutrition deficiency is rampant. Since 2002 our OTC business has been operating as a standalone business unit in the country. We market solutions to home treatment and prevention of medical conditions and ailments. These products with global standards meet the varying needs of Bangladeshi patients ranging from different mineral supplements to cough medication, mineral supplements etc. Our aim is to reinforce leadership position in the local market by tailoring varied needs of the patients and building awareness on nutritional solutions. The OTC business, with head quarter in Basel, Switzerland, employs around 4000 people globally.

Products Anafranil (Clomipramine hydrochloride) Trycyclic Antidepressant. Used for depression of varying aetiology and symptomology; obsessive compulsive syndromes; phobias and panic attacks; cataplexy accompanying narcolepsy; chronic painful conditions and nocturnal enuresis. - Available in 25mg tablets Aclasta (Zolehronic acid) Anti-resorptive drug. Indicated for the treatment of Postmenopausal Osteoporosis, Male Osteoporosis & Pagets disease. Taken once annually and can increases the bone density in the Spine & Hip. It has been proved through large clinical trials that it significantly reduces fracture risk of fracture prone key sites. - Available in 5mg 10ml IV Infusion

Cataflam (Diclofenac potassium) Nonsteroidal anti-inflammatory drug. Used for short term treatment of acute dental pain. - Available in 25mg and 50 mg tablets Famvir (Famciclovir) Oral antiviral agent. Used for the treatment of acute herpes zoster, including ophthalmic zoster and to decrease the duration of association of association postherpetic neuralgia (PHN). It is also used for the treatment of genital herpes and to suppress reoccurrences of genital herpes. It is indicated in immunocompromised patients with herpes zoster or herpes simplex infections. - Available in 125mg and 250mg tablets

Femara (Letrozole) Nonsteroidal aromatase inhibitor (inhibitor of oestrogen biosynthesis); antineoplastic agent. Used as an extended adjuvant treatment of early breast cancer in postmenopausal women who have received prior standard adjuvant tamoxifen therapy, first line treatment in postmenstrual women with hormone-dependent advanced breast cancer, treatment of advanced breast cancer in women with natural or artificially induced postmenopausal status, who have previously been treated with anti oestrogen and as preoperative therapy in postmenopausal women with localized hormone receptor-positive breast cancer, to allow subsequent breast conserving surgery in women not originally considered candidates for this type of surgery. - Available in 2.5mg tablets

CoartemTM (Artemether and Lumefantrine) Blood schizontocide agent. Used for stand-by emergency treatment of malaria, for the treatment of malaria in multi-drug-resistant areas and non immune patients; for the treatment of drug-sensitive parasites. - Available in 20/120mg tablets (pack size 3 X 8 and 2 X 8)

Co-Diovan (Valsartan and hydrochlorothiazide) Antihypertensive agent. Used for the treatment of hypertension in patients whose blood pressure is not adequately controlled by monotherapy. These fixed dose combinations should be used as second-line therapy for both Stage 1 and Stage 2 hypertension. - Available in 80/12.5mg and 160/25mg tablets (pack size 2 X 14) Comtan (Entacapone) Catechol-O-methyl transferase inhibitor. Used as adjunct to levodopa/benserazide or levodopa/carbidopa treatment in patients with Parkinsons Disease and end-of-dose motor fluctuations, who cannot be stabilized on those combinations. - Available in 200mg tablets

Diovan (Valsartan) Antihypertensive agent. Used for the treatment of hypertension and indicated to improve survival following myocardial infarction in clinically stable patients with signs, symptoms or radiological evidence of left ventricular failure and/or with left ventricular systolic dysfunction. - Available in 40mg, 80gm and 160mg tablets Elidel (Pimecrolimus) Nonsteroidal anti inflammatory dermatological cream for cutaneous use. Used for the short term treatment and long term management of the signs and symptoms of atopic dermatitis (eczema) in infants, children, adolescents and adults. - Available in 15g cream Efomoline (Flouromehtolone and Tetrahydrozoline HCl) E/D Anti-inflammatory and decongestant combination. Used for acute allergic noninfectious conjunctivitis and keratitis, non-infectious inflammation of the anterior segment of the eye and postoperative inflammation following squint, cataract and glaucoma operations. - Available in 5mL dropper bottles

Exelon (Rivastigmine) Brain-selective cholinesterase inhibitor. Used for the treatment of patients with mild to moderately severe dementia of the Alzheimer type. - Available in 1.5mg, 3mg, 4.5mg and 6mg capsules Glivec (Imatinib mesylate) Protein-tyrosine kinase inhibitor. Used for the treatment of patients with chronic myeloid leukemia (CML), as well as for the treatment of patients with CML in blast crisis, accelerated phase, or in chronic phase after failure of interferon-alpha therapy and it is used for the treatment of adult patients with unresectable and/or metastatic malignant gastrointestinal stromal tumours (GIST). - Available in 100mg capsules

HypoTears Gel (Vitamin A palmitate and Carbomer 980) Eye gel, Artificial tears. Used as a substitute of tear fluid in the management of dry eye conditions including Kerato-conjunctivitis sicca (as a tear fluid substitute in case of unstable tear film or insufficient moisture of the eye surface). - Available in 10g tube HypoTears Plus (Polyvidone and electrolytes) E/D Eye drops, Lubricant/Moisturiser. Used for the symptomatic treatment of dry eye conditions including Kerato-conjunctivitis sicca and for unstable tear film or insufficient moisture of cornea. - Available in 10mL dropper bottles Lescol, Lescol XL (Fluvastatin sodium) HMG-CoA reductase inhibitor. Used as an adjacent to diet for the reduction of elevated total cholesterol (total-C), low-density lipoprotein cholesterol (LDL-C), apolipoprotein B (apo-B) and triglyceride (TG) levels and for the increase of highdensity lipoprotein cholesterol (HDL-C) in patients with primary hypercholesterolaemia and mixed dyslipidaemia (Fredrickson Type IIa and IIb). It is also used to slow progression of coronary atherosclerosis in patients with primary hypercholesterolaemia, including mild forms and coronary heart disease. - Available in 20mg and 40mg capsules (Lescol) and 80mg capsules (Lescol XL)

2.9 Functions of Management:

Just as no two organizations are alike, no two managers functions are alike. In the early part of the twentieth century, a French industrialist named Henry Fayol first proposed that all managers perform five functions: planning, organizing, commanding, coordinating and controlling. In the mid 1950s, a management textbook first used the functions of planning, organizing, staffing, directing and controlling as a framework. Today most management textbooks still continues to be organized around the management functions, although they have been condensed to four basic and important ones: planning, organizing, leading and controlling.

Planning:
Planning means setting an organizational goal and deciding how best to achieve them. In broad sense, planning involves defining the organizations goals, establishing an overall strategy for achieving those goals, and developing a comprehensive set of plans to integrate and coordinate organizational work. Its concerned with both ends (whats to be done) and means (how its to be done). Moreover planning can either be formal or informal.

What is to be accomplished?

The The planning planning function function consists consists of: of:

How is it to be accomplished?

Planning involves two important elements: (i) (ii) Goals Plans Elements of planning

Goals

Plans

Goals:

Goals are designed outcomes for individuals, groups, or entire organizations. Goals are objectives, and we use the two terms interchangeably. They provide the direction for all management decisions and form the criteria against which actual work accomplishments can be measured.

Plans:
Plans are documents that outline how goals are going to be met including resource Allocations, schedules, and other necessary actions to accomplish the goals. Types of Plans: Plans can be classified in four ways: Breadth, Time Frame, Specificity and Frequency of Use. The following figure shows the different types of plans.

Planning in Novartis (Bangladesh) Limited:


The core essence of Novartis as an organization is its entrepreneurial spirit in every sphere of its management. In light of this spirit the task of establishing goals is carried out through mutual discussion between employees of each department and the higher management. Accordingly, formulating a strategic plan to achieve those goals also involves both the management and the employees as well. Novartis follows Strategic Management to set goals and plans and implement the formulated strategies. There are uncontrollable, external factors that constantly affect a company both positively and negatively. Depending on the circumstances, these external factors may cause to adjust course of action in accomplishing certain goals. This is referred to as strategic planning.

External External Analysis Analysis

Identify Identify current current goal goal

SWOT

Formulate Formulate Strategy Strategy

Implement Implement Strategy Strategy

Evaluate Evaluate result result

Internal Internal Analysis Analysis

Goals and objectives:

To strive for a consistently high standard in marketing and communication, thereby securing the image and credibility of Novartis as a leading, ethical healthcare company.
To support the appropriate use of our products according to the product information as approved by the competent local health authority. To establish common standards for the release of all promotional measures, and to ensure that the CPOs of Novartis are responsible for their own promotional activities.

Strengths: Wide product range. Superb portfolio of young fast growing medicines. Have seven drugs in current registration. Market leader in terms of sales.

SWOT
Weaknesses: FDA charged the company with unethical advertising practices. No special drug formulation for children. Lack of resources to exploit prominent opportunities

Opportunities: Revenue growth opportunity attached to Sandoz and vaccine elements of business will mitigate patent expiry risk associated to Rx portfolio. Potential to establish Sandoz subsidiary as leading manufacturer of bio-similar. High market growth rate due to increasing rate of diseases because of pollution and other environmental factors.

Threats: Patent expiry for Diovan and CoDiovan franchise in 2011 or 2012. Uncertain political environment worldwide. Long term patent expiry risk for Glivec. This patent will expire in year 2015.

Strategies:
Novartis has adopted several Corporate Level Strategies regarding growth and market focus based on the SWOT analysis with the view to achieving organizational goals. As a part of their strategy they decided to expand their business in Bangladesh to be competitive. Moreover, they decided to extend their patent contract, adapt with current political environment. They have a plan to formulate drug for children.

Competitive Advantage:

Business level strategies developed by Novartis help them to earn competitive advantage through their quality products, superior services, and outstanding customer relationship. Innovation strategies have been the key to their success both in product differentiation and in product promotion. Novartis also believes in Focus Strategy and concentrates on a particular segment of the market. They strive to retain existing customers as well as to attract new ones. Novartis has developed unique customer service through their Unbiased Medical Service. Novartis has also developed superior human resource for earning competitive advantage in the market.

Principles Followed:
Developing plans in a dynamic environment demands critical analysis of the situation and strict adhering to the organizations core principles. Several basic principles are followed by Novartis while developing plans. The principle of centralization is applied by involving employees in decision making. Initiative is followed as a principle to encourage employees to originate and carry out innovative plans.

Organizing:
Organizing is defined as the process of creating an organizations structure. Traditional approaches to organizing work are being questioned and reevaluated as managers search out structural design that will best support and facilitate employees doing the organizations work- one that can achieve efficiency but also have the flexibility thats necessary for success in todays dynamic environment. In determining the internal structure, management must look at the different divisions or departments, the coordination of staff, and what is the best way to handle the necessary tasks and disbursement of information within the company. Management will then divide up the work that needs to be done, determine appropriate departments, and delegate authority and responsibilities. Organizational Structure is the formal arrangement of jobs within an organization. Developing or changing an organizations structure is known as Organizational Design. In response to marketplace demands for being lean, flexible and innovative managers finding creative concepts like Matrix Organization Structure to structure and organize work and to make their organizations more responsive to the needs of customers, employees and other organizational constituents.

Figure: A Matrix Organization Advantages: (i) (ii) (iii) Works smoothly under strong pressure from the environment. Appropriate when a large amount of information need to be processed. Works better when there is pressure for shared resources.

Organizing in Novartis:
Internationally Corporate HSE and Business Continuity Management (BCM) is part of the Corporate Country Management and External Affairs function, and exercises governance on behalf of the Executive Committee of Novartis (ECN). But it is completely governed and maintained by a corporate body. The chief of the organization
is Country Head and the total organization is divided into three division 1. Sandoz 2. Pharma 3. Animal Health. Every division has a head and their activities are divided into five departments which are given below: 1. Marketing 2. Portfolio 3. 4. Director of finance H.R

5. Marketing service

Every department stated above has a department manager and under every manager there are executive, officer and worker. Novartis corporate level is decentralized and middle and lower level is centralized.

Hierarchy of Novartis (Bangladesh):

Country Head

Sandoz Head

Pharma Head

Animal Health Head

Marketing Manager Manager Manager Manager

Portfolio Manager

Executive

Executive

Executive

Director of Finance

Officer

Officer

Officer

Head of H.R. Worker Worker Worker

Head of Marketing Services

Motivation:
Motivation is the driving force which help causes us to achieve goals. The advantage of having Management by Objective (MBO) system is that everyone becomes Self-motivated. Everyone is motivated to achieve, to perform. The only challenges is to keep the employees moral high in times of failure. In NOVARTIS, one of the tasks of the management is counseling. Managers are there to help the employees to achieve the goals, which in turn keep the employees motivated. Apart from creating a healthy working environment and ensuring employee Empowerment, NOVARTIS offers a number of benefits to keep them motivated. The benefits offered by the company are given below: 1. Benchmarking salary package. 2. Excellent & Safe working environment. 3. Permanent job facility. 4. Leave facilities. 5. Yearly Employee Awards. 6. Promotion. 7. Foreign Travel with Family Offers. 8. Social commitment. 9. Baby Creech (for breast feeding mothers). 10. Subsidize lunch. 11. Celebrating all national & international occasions (like Pohela Boishakh / Mothers Day). 12. Giving pensions after retirement. Principles Followed: To lead and motivate employees NOVARTIS follows Maslows Hierarchy Needs Theory. This helps NOVARTIS to ensure their employees satisfaction.

Abraham Maslows Hierarchy of Needs. Staffing (HRM):


The selection & training of individuals for specific job function, charging them with the associated responsibilities. Human Resource Management: The set of organizational activities directed at attracting, developing & maintaining an effective workforce. Novartis believes the true differentiation comes from within the Organization, from its people. With this in mind, Novartis has developed a well designed human resource management process that follows the following steps: Human Resource Planning: Having a low employee turnover rate, human resource planning of Novartis involves mostly future expansion plans of the company. The HR department manages the process through a participative management approach with all the department of the organization. Requirement & Skills Novartis posses: Educational: Pharmacist, Chemist, Business graduate , P.H.D, Masters with science background (for the post of medical representative only) ,worker(minimum HSC). Skills: Leadership, Communication, competency & potentiality. Selection: Novartis is an equal opportunity employer and selects human resources strictly on the basis of merit and nothing else. As selection device Novartis arranges both written tests and interview. While written exams test the candidates intellectual ability and aptitude, interviews test their intelligence and integrity that Novartis values most.

Orientation: Novartis provides orientation to its newly hired employees in order to introduce them with their jobs and the organizational culture. Employees at managerial positions are provided with organizational orientation as well as departmental orientation and workers at plant facilities get Work unit orientation.

Strategic Human Resource Management In Novartis.

HR planning Recruitment Selection Orientation Training and Development Performance review Compensation Labor relations

Robbins et al., Fundamentals of Management, 4th Canadian Edition 2005 Pearson Education Canada, Inc.

FOM 9.3

Training: In order to develop superior human resource Novartis provides its employees with training which is a vital part of their HRM process. Being a learning organization Novartis relies more heavily on on-the-job practical training rather than on external theoretical training. However it does arranges professional training programs for its employees both in home and abroad. Performance Review: At Novartis appraisals are done by the Self-appraisal system. Goals are set by participative management approach and performance is evaluated quantitatively against those previously set objectives. Managers appraise the performance of their subordinates through 5 points Graphic Rating Scale. The total appraisal process is completely transparent to everyone within the organization. Compensation & Benefits: Novartis employees are generally satisfied with the fair and appropriate compensation they receive. The basis for compensating at Novartis is job skills. Here an employees job performance is valued over his/her age or seniority. Novartis employees also enjoy a number of benefits and rewards. Principles Followed:

Organizing involves a number of basic principles to consider. At NOVARTIS the principles of Division of Work, Authority, Unity of Command and Direction and Scalar Chain are used while designing organizational structure. In the process of Human Resource Management the principles of remuneration and Stability of Tenure of Personnel are applied.

Technology Used: For organizational communication, apart from networked computer system Novartis follows a strictly formalized Intranet based electronic communication system. It also uses internet based electronic communication system as external communication.

Leading:
The set of processes used to get members of the organization to work together to further the interests of the organization. Organizational success is determined by the quality of leadership that is exhibited. "A leader can be a manager, but a manager is not necessarily a leader," says Gemmy Allen (1998). Leadership is the power of persuasion of one person over others to inspire actions towards achieving the goals of the company. Those in the leadership role must be able to influence/motivate workers to an elevated goal and direct themselves to the duties or responsibilities assigned during the planning process. Leadership involves the interpersonal characteristic of a manager's position that includes communication and close contact with team members. Leading in Novartis Pharmaceuticals: Novartis believes in participative management and knows that, true participation is possible only when everyone has the authority for his tasks. In this light, Novartis is encourages each of its employees to be the leader of his /her zone of actions.

Controlling:
The process that guarantees plans are being implemented properly is the Controlling process. Gemmy Allen stated that Controlling is the final link in the functional chain of management activities and brings the functions of management cycle full circle. This allows for the performance standard within the group to be set and communicated. Control allows for ease of delegating tasks to team members and as managers may be held accountable for the performance of subordinates, they may be wise to extend timely feedback of employee accomplishments. Controlling in NOVARTIS Pharmaceuticals: Novartis believes that the best way to control failure is to prevent before it occurs. This is done by continuous participation between the management and the employees. The total controlling is auto-regulated, where the employee performance is controlled

in terms of pre-set objectives and the product quality is controlled by two specialized departments.

Controlling Employee Performance: Goals are broken down into short term objectives for the employees and all the objectives are continuously monitored and followed. The prime role of the management is to help employees achieve the objectives. Performance is measured against those objectives and then corrective steps are taken. Controlling Product Quality: The two specialized departments, Quality Assurance (QA) and Quality Control (QC) are responsible for controlling product quality. Whereas Quality Control emphasizes testing and blocking the release of defective products, Quality Assurance is about improving and stabilizing production and associated processes to avoid or at least minimize issues that the two specialized departments, Quality Assurance (QA) and Quality Control (QC) are responsible for controlling product quality. Whereas Quality Control emphasizes testing and blocking the release of defective products, Quality Assurance is about improving and stabilizing production and associated processes to avoid or at least minimize issues that 1. Measuring Actual Performance 2. Comparing Actual Performance against Standard 3. Taking Managerial Action led to the defects in the first place. Any kind of deviation in manufacturing process is reported directly to the CEO and corrective measures are then taken. Principles Followed: For controlling the principles of Discipline and Order are strictly followed. In this process the total process becomes auto-regulated, everyone achieves their target and as an accumulative result the organization achieves its organizational objective. Technology Used: For quality control the software SPC XL is used. SPC XL is the tool for statistical analysis in Microsoft Excel to create control charts. For enterprise analysis the software STATISTICA Enterprise analyses product data, testing data, and R&D data to give output.

3.0 SWOT Analysis:


SWOT an acronym that stands for strength, weakness, opportunities, and threats. SWOT analysis is one of the most important steps in formulating strategy. Using the organizations mission as a context, managers assess internal strength (distinctive competencies) and weakness as well as external opportunities and threats. The goal is then to develop good strategies that exploit opportunities and strengths, neutralize threats and avoid weaknesses.

Fig: SWOT analysis

Strengths Excellent reputation in developing first class Rx pharmaceuticals that maintain high entry barriers to new entrants and competitors Wide product range

Well developed and rapidly expanding research and development centers in Basel, Shanghai and Boston (Ross, 2010). Superb portfolio of young fast growing medicines Led industry with thirteen new drugs approved between 2000 to 2004 Have seven drugs in current registration Diversified business model comprising core Rx pharmaceuticals units supported by generic drugs, vaccines, consumer health care and ophthalmology offerings (Mark, 2010). Second largest maker of generic drugs in the world Second largest biotech company in the world Market leader in terms of sales Good return providing company to the investors. ROI was 18 percent in year 2004 Huge investments and research in oncology

Weaknesses FDA charged the company with unethical advertising practices Charged by US federal prosecutor for paying illegal kickbacks to healthcare professional which damaged the companys name Failure of Galvus to position Novartis in the diabetes market Lack of resources to exploit prominent opportunities Opportunities Revenue growth opportunity attached to Sandoz and vaccine elements of business will mitigate patent expiry risk associated to Rx portfolio Potential to establish Sandoz subsidiary as leading manufacturer of bio-similar. Strong research and development base can help in considerable movement to multiple sclerosis and respiratory markets (Thomasson, 2010). High market growth rate due to increasing rate of diseases because of pollution and other environmental factors

Low threat of new entrants/high competition because of huge investments required to setup a major pharmaceutical firm

Threats Considerable risk of late stage pipeline attrition, lifted by these products accounting for noteworthy portion of year 2013s forecasted sales Patent expiry for Diovan and Co-Diovan franchise in 2011 or 2012 Long term patent expiry risk for Glivec. This patent will expire in year 2015 Uncertain political environment world wide

4.0 Problems encountered:


i. ii. iii. iv. v. vi. vii. Companys name harmed because of illegal kickbacks to health care professional it is damaged companys current market. Using unethical advertising practice also harmed companys fame. Company could not put Galvus in diabetes market properly which brought failure of this product. Company does not possess enough resource to exploit its opportunity. Company is facing uncertainty in some countries because of unstable political environment. Patent expiry of Diovan as well as Co-Diovan and Glivec in 2011, 2012 and 2015 respectively can be a upcoming threat for the company. ACI pharmaceutical is producing Xeldrin (omeprazol), Xcel (paracitamol) Square pharmaceutical is producing Seclo (omeprazol), Ace (paracitamol). Novartis has also this product in their production. This could be a challenge to the company to increase the market of these products against those companys products.

5.0 Recommendations:

i. ii. iii. iv.

Novartis should be conscious about those activities which already harmed its brand name. Novartis should not use unethical advertising further. It can use different market strategy to strong the market of Galvus. Company should invest more to increase its economic strength. In order to strong it economic base it can make a reserve account from its net profit every year. Novartis can make some sort of strategies which can pace with uncertain political environment. Company should extend the patent contract in order to continue the production of those products. Novartis must concentrate more on its product advertising to cover more market around the country. Taking social responsibility could be a good form of advertising.

v. vi. vii.

6.0 Conclusion
Pharmaceutical Industry has grown in Bangladesh in the last two decades at a considerable rate. The sector consistently creates job opportunities for highly qualified people. Pharmaceutical companies are either directly or indirectly contributing largely towards raising the standard of healthcare through enabling local healthcare personnel to gain access to newer products and also to latest drug information. As one of leading pharmaceutical manufacturer Novartis (Bangladesh) Limited plays a vital role in the industry as well as in the national economy. To be successful, relentless contribution and dedication of the organizations management is very much needed. To compete in local market in adverse situation the managers work has become much more difficult in todays ever changing business environment. Developing plans in a dynamic situation demands critical analysis of the situation and strict adhering to the core principal of the organization. With the development of healthcare infrastructure and increase of health awareness and the purchasing capacity of people, this pharmaceutical industry is expected to grow at a higher rate in future. Healthy growth is likely to encourage the pharmaceutical companies to introduce newer drugs and newer research products, while at the same time maintaining a healthy competitiveness in respect of the most essential drugs. So, it is a great responsibility for Novartis (Bangladesh) limited as well as other companies in this industry to concentrate on quality product and quality service to take this industry towards further success. The Bangladesh government should also be considerable and cooperative to help the businesses flourish.

7.0 Bibliography 1. Ricky W. Griffin- Management 8th edition. 2. Stephen P. Robbins and Mary Coulter- Management 8th edition. 3. Novartis (Bangladesh) Limited ( www.novartis.com.bd)

Você também pode gostar