MGT212 REPORT

ON
BEXIMCO PHARMA LTD.

TEAM BLUE
Organizational Behavior (MGT212) Section-10 FALL-20
Report: BEXIMCO PHARMA LTD.
Submission Date: 15/01/2021
Submitted to:
Md Asif Hossain
Lecturer
Department of Management
School of Business and Economics
North South University
Bashundhara, Dhaka-1229
Submitted By:
GROUP FIVE
Md Nasib Rahman Ratul 2012741630
Lamisa Tasnim 1931014030
Tultul Jannath 1931048630
Afia Ebnat Ruponty 1931116030
Nazmul Hasan Ifty 1931320030
Safin Haque 1931320030
Md Abdullah Bin Islam 1511123030
Letter of Transmittal
Date of submission: 15.01.2021

MD ASIF HOSSAIN

Member of Faculty

School of Business,

North South University,

Bashundhara, Dhaka.

Subject: Submission of Group Report.

Dear Sir,

It is an immense pleasure to submit our report titled “Analysis company report of Beximco
Pharmaceuticals Limited. “Our main incentive was to prepare this report according to your guidelines
and following your directions. We have tried our best to do the work according to your instruction. We
hope that we have done a satisfactory job considering our level of experience and capability and can
relate the fundamental things with practical applications.

Moreover, we are incredibly thankful for the opportunity you gave us to express our ability, and we
intently hope that you will like the work that we have done.

Sincerely yours,

Md Nasib Rahman Ratul, Abdullah Bin Islam, Lamisa Tasnim, Afia Ebnat Ruponty, Safin Haque, Nazmul
Hasan Ifty, Tultul Jannat.
3.Executive Summary
The report is based on management practice analysis at Beximco Pharmaceuticals Ltd, titled in:
"Analysis Company Report of Beximco Pharmaceuticals Limited."
This report explains how Beximco Pharma summarizes its overall business strategy and its work
to implement its chosen plan. From the very beginning, the company has successfully
generated increased demand for its products, which ultimately justifies local production.
Accordingly, Appropriation Inc. of the United States of America manufactures its products
under a pharmaceutical manufacturing facility license. It was designed and built-in 1980 under
technical supervision. BPL has now become one of the leading pharmaceutical companies in
Bangladesh, supplying more than 10% of its total pharmaceutical demand. At the beginning of
this report, we give an overview of Beximco pharma. Then we use SWOT analysis to identify the
company's strengths, weaknesses, opportunities, and threats. Our research and interview
identify Beximco pharma's overall management practice and determine how they implement
their management. The most substantial aspect of this report is that each part of this report
demonstrated the effects of COVID-19 in the time available. Some achievements of Beximco
pharma are also given in this report. The research source is referred to at the end of the story
to verify the statement's full integrity. The report reveals that Beximco Pharmaceuticals Ltd., a
leading pharmaceutical company, provided the necessary information and provided some
possible solutions to the company's
Problems

4.introduction
Pharmaceuticals companies are playing a significant role in our country's economy. Beximco
Pharmaceuticals Ltd (Beximco Pharma) is a leading manufacturer and exporter of medicine in
Bangladesh. The company was founded in 1976 and started operation in 1980. In the late 70s,
Beximco pharma began as a distributor, and they were importing products from Multinational
global corporations like Bayer, Germany, Upjohn, USA, and selling them in a local market.
Which were later manufactured and distributed under a licensing arrangement. Since then, the
journey has continued, and today Beximco pharma is one of the largest exporters of the world
of medicine in Bangladesh. The company continues to hold to the global standards. Its
manufacturing facilities have been certified by the USA, Europe, Australia, Canada, Latin
America, and South Africa. They are winning five times the National Export Trophy, and it's a
massive achievement for a pharmaceutical company. In 2020 they won Digital CPhI Pharma

Awards for innovation in response to covid-19. (Beximco pharma introduces the world's first
generic remdesivier name Bemsivir)
4.1 Mission statement
Since the 80s, they have been working towards their mission to manufacture contemporary and
affordable medicine for everyone and follow the global quality standards. They continually
strive to improve their core capabilities to address the patient's unmet medical needs, give
employees a friendly environment for a better outcome, and deliver outstanding results for
their shareholders.

4.2 Vision statement

Their vision is to turn into a believed medical care organization to guarantee better well being
for everybody, all over. They are useful in accomplishing their objective since they have
dispatch 300 generics with 500 different presentations. The broad portfolio encompasses all
vital therapeutic categories, including antibiotics, analgesics, anti-diabetic, respiratory,
cardiovascular, central nervous system, dermatology, gastrointestinal, etc. And even in covid-19
pandemic time, they have successfully made the vaccine name 'Bemsivir.' this is an antiviral
drug recently granted Emergency use Authorization by US FDA for the treatment for covid-19.
This is an outstanding achievement not for the BPL's and also for Bangladesh. For this, they
were winning the Digital CPhI pharma awards in 2020. Beximco pharma has a perfect
management hierarchy due to which they control 4,523 employees appropriately, which is one
of the reasons for their success. They have the marketing department, Administrative
department, Finance department, H.R. department, Commercial department, Business
development department, supply chain department, Engineering Department for development
of each department. Every department has an individual manager, and they maintain a proper
hierarchy. Beximco has one completely operational plant at Dhanmondi R/A and has a
corporate headquarter, and is registered in Dhanmondi. It's a plus point for the company, and
they can directly supervise.
 Figure 1: Market Position, share, growth.

5. Officers of the Company & Organogram

An organogram is a diagram or chart that graphically shows an organization's structure by
establishing the relation of one official and another. Organograms are highly useful for gaining
insight into an organization's inner workings and understanding the existing chain of command.
The organogram of the top, middle, and first-level managers of Beximco Pharmaceuticals
Limited is given below.

5.1 Top Managers:

Mr. Ahmed Sohail Fasihur Rahman is the Chairman and founder of Beximco Group. As a
chairman, he holds the responsibility of providing leadership and governance to the board. The
Chairman also has the power to arrange meetings between managers and directors to solve
complex issues. The estimated salary is around 20,000,000BDT.
Mr. Salman Fazlur Rahman MP is the co-founder and vice-chairman. The vice-chairman has to
establish communications and create an environment that benefits discussions. It is their
responsibility to ensure the board works effectively to strategize policies and implement them
properly. The estimated salary is around 12,000,000–15,000,000BDT.
Nazmul Hassan occupies the position of Chief Executive Officer, Director & M.D. The CEO leads
the management in the day-to-day running of the organization's business. It is also their
responsibility to maintain communications with stakeholders, including shareholders. The
estimated salary is around 3,600,000–10,000,000BDT.

5.2 Middle Managers:

M A Arshad Bhuiyan is the current General Manager of Beximco Pharmaceuticals Ltd. A general
manager's role is to train low-level managers and staff, creating and managing budgets, hiring
employees, etc. The estimated salary is around 1,200,000–2,800,000BDT.
The Board of Directors of Beximco Pharmaceuticals Ltd consists of Mr. Osman Kaiser
Chowdhury, Mr. Abu Bakar Siddiqur Rahman, Mr.Iqbal Ahmed, Ms. Quamrun Naher Ahmed,
and Ms. Reem H Shamsuddoha. The directors' role is creating dividend policies, supporting
executives and their teams, maintaining company resources, setting general company goals,
etc. They are tasked with creating long term plans and set the course for the company. The
salaries are estimated 1,300,000-5,400,000BDT.
Professor Mamtaz Uddin Ahmed and Mr. Shah Monjurul Hoque are the independent non-
executive directors. The role of independent non-executive directors is to improve the
corporate credibility and governance standards of the organization. Their responsibilities
include overseeing the financial reporting process, ensuring compliance with legal
requirements, etc. They play a vital role in risk management. The salaries are estimated
1,000,000-2,400,000BDT.

5.3 First Line Managers:

The first line managers work directly with the employees on a ground level. Assistant managers
ensure schedules and objectives are met by employees and coordinate operations of the
organization. Deputy managers typically have responsibilities related to budgeting and
allocating the distribution of budget to the respective departments. Project Management
Officers ensure that projects are completed within specified time frames and under the
established budget. The salaries of first-line managers can vary vastly depending on experience,
ranging from 120,000-900,000BDT.
The organizational design of Beximco Pharmaceuticals Ltd is very specialized. The organization
has several departments, each holding unique responsibilities. There are separate departments
for manufacturing, transportation, quality assurance, etc. The employees in these departments
are trained to work efficiently following the division of labor. Beximco Pharmaceuticals Ltd also
follows a strict chain of command. The organizational hierarchy has not changed much in the
decades of its operation. The managers answer to the board of directors, which are overlooked
by the Chairman and vice-chairman. There is no obstruction in the flow of Communication and
authority across the various levels of management. This is reinforced by the tall structure of the
control span, enabling top-level management to further oversee the company's operations.
Beximco Pharmaceuticals Ltd can be considered a highly centralized company since the lower-
level managers and employees do not significantly influence the decision-making process of the
company. Since the organization is also highly formalized, there is no need for sudden changes
to the policies or practices. The few top-level managers hold power, and they govern the
company's course through the advice of the board of directors.

6. Situation Analysis
The environment of a company is the amalgamation of all the factors and elements that affect
the company. These factors can be both internal and external. The internal environment is
typically dictated by the corporate culture, management practices, employee values, etc. The
external environment can be anything that is not directly related to the company but is
significant enough to affect it. Using PESTLE, we analyze the business environment of Beximco
Pharmaceuticals Ltd below.

i) Political: The political condition of a country rarely affects the internal environment of a
company. However, in Beximco Pharmaceuticals, the political landscape plays a vital role
because many top management members are also related to the government. Political
instability will throw the management of the company in jeopardy. Tax policies, trade tariffs,
etc., are some political aspects of its external environment.
ii) Economical: The economic factors of the internal environment include salaries and insurance
of employees. Beximco Pharmaceuticals has seen a significant increase in stock market price
due to COVID-19 vaccine deals. This rapid increase in share price shows a favorable external
environment.
iii) Social: Corporate culture and values are included in the social factors of the internal
environment. The social climate of Beximco is quite formal, and there is barely any chance of
conflict. The external elements include urbanization, the spread of disease, the trust of the
public, etc. Beximco Pharmaceuticals has taken many initiatives to improve the literacy and
nourishment of people worldwide, notably with the JAAGO foundation.
iv) Technological: The technological factors are relatively weak in the internal environment of
Beximco. They are still utilizing old technology and techniques to produce, which negatively
impacts their efficiency. The external elements are that people find it more accessible to buy
products online during the pandemic.
v) Legal: Corporate governance, financial transparency, and credibility are legal factors of the
internal environment. Beximco has employed independent directors to attend to these needs
and maintain the clarity of the company. The external elements are drug regulatory laws, MRP
laws, etc.
vi) Environmental: Maintaining a healthy environment is essential for any company in the long
run. Pharmaceutical plants produce a lot of toxic waste and plastic that is extremely harmful to
the ground. Beximco has taken many green initiatives, including measures to reuse water and
generating their electricity.

7. Swot Analysis of Beximco Pharma Limited

SWOT analysis is a process that identifies an organization's strengths, weaknesses,
opportunities, and threats. It is a strategic planning tool that Beximco Company managers use
to do a situational analysis for the company. The technique is used to estimate or understand
the present Strengths (S), Weaknesses (W), Opportunities(O), and Threats (T) of the current
business environment.
Beximco Pharmaceuticals Limited is one of the leading organizations in their industry. It
maintains a dominant position in the market by disapprovingly reviewing and analyzing the
SWOT analysis. SWOT analysis an immensely interactive process and requires effective
coordination among various departments within the company, such as – finance, marketing,
operations, management information systems, and strategic planning.
 Strengths Weaknesses Opportunities Threats

1. Strong 1. High attrition rate 1. New environmental 1. Changing

distribution in the workforce policies consumer buying
network behavior from
2. Need more 2. Opening up of new
online
2. Strong Brand investment in new markets because of
Portfolio technologies government agreement 2. currency
fluctuations
3. High level of 3. The marketing of 3. Lower inflation rate
customer the products left a lot 3. Rising pay level
4. The new technology
satisfaction to be desired.
provides an opportunity 4. New Entrants in
4. Strong dealer 4. The profitability the market.
community ratio and Net
Contribution % of
Beximco.

7.1 Strengths
Beximco Pharmaceuticals Limited is a well-known company in our country. It is distributed
locally all over in our country. The company has a strong brand portfolio with too many
different options for different products. They also have intense customer satisfaction. People of
every age starting from baby to old age people buy products of this company. They have
products for every age. Their dealer community is also robust.
7.2 Weaknesses
Along with great strengths, Beximco Pharmaceuticals Limited also got some weaknesses.
Weaknesses are mainly an internal element of a company. Beximco Pharmaceuticals Limited
has a high attrition rate in the workforce.
. Which is working hostile for them. As they are an old company, they generally use ancient
techniques to make their product, leaving them behind other companies. So, they need more
investment in new approaches to cope up with the latest market. The percentage of their
profitability ratio and Net Contribution is also lacking behind. They also have to work on their
profitability and Net Contribution.

7.3 Opportunities
In the pandemic situation, people are focusing more on online purchases rather than shopping
from a shop. So, the company got so many opportunities to improve their market. The options
mainly work on the external environment in the market. The new environmental policies, like
reducing plastic usage of recycling them will benefit them to grow. Opening up a new market
because of government agreement will be satisfied for them. The lower inflation rate will also
help them to profit more than before. The new technology is mainly the online-based business
will help to grow its customer base more.
7.4 Threats
Threats are mainly external elements that affect the company. Beximco Pharmaceuticals also
got some threats from their external environment. During the Covid-19 pandemic, customers
focus more on online purchases as it is not convenient to go outside in this pandemic. The
company should work more on online purchase techniques than on shop purchases. They
should also focus on the changing currency fluctuations during the pandemic. They should set
their price by having in mind the currency rate. The rising pay level will also work as a threat to
the company. The profit will be lower if the pay level rises. The main danger of them is the new
entrants in the market. If they want to make a profit, they have to focus on their product
quality and price.

8.HRM strategy
BEXIMCO company has some processes and features for recruiting and selecting their
candidates and involving them. They are searching for some necessary qualities in the candidates
such as, They find mental strength of the candidates and search for practical knowledge. Then
they take the Panel interview by the head of H.R., Head of SBM (Marketing), and any other
specific personnel as required.
They take resources for recruitment from campus, experts, referrals, internal task positions, and
the internet. They take a written test for posts of Officer cadre and Management trainee. Clinical-
fitness is a pre-requisite for all jobs in Mexico. Rejected candidates can apply for the same or any
other positions within the next year from the last application date. The company does not follow
any discrimination based on age, gender, ethnicity, religion, and so on, and it's unbiased.
H.R. department is working to make a team of qualified and suitable candidates for the
company. The function of the recruitment of BEXIMCO is bellowed: First, they need
assessments, defining the position description. After that they do advertisements. Then in a row,
they do screening and short-listing applicants, written test, selection interview, pre-employment
medical checkup, Offer letter, Orientation, Placement, and Follow up.
The Human Resource Department team of BEXIMCO currently follow the bellow processes for
maintaining their human resources to do all its activities:
• Planning and Requisition.
• Selection.
• Orientation.
• Training.
• Appraisal and Evaluation.
• Compensation and Benefits.

(Communication of Mexico) (bex)

9.Team and Communication

The H.R. professional of Human Resource Management of BEXIMCO company said that he had
developed an adequate interpersonal communication skill among the employees, ensuring quick
learning and adapting capabilities, maintaining deadline meeting ability, and earning a clear
understanding of the organizational structure. So that the employees can do their work correctly
and they can also communicate with each other fluently. Because if the communication system is
not sound, the company cannot succeed.

10.Motivation and leadership

The motivation and leadership provided by Beximco are adequate. BPL has an advantage as
they have a Management by Objective (MBO) system, which means employees are self-
motivated when it comes to performance. The only complicated part is keeping the employee's
morale high when things go downhills. The management has to deal with tasks like counseling
too. When it comes to achieving goals, the government always provides help, which plays an
essential role in keeping employees motivated.
In this crucial time of the pandemic, Beximco Pharmaceuticals signed the open pledge from
global manufacturers of generic medicines against COVID-19. They have joined other leading
pharmaceutical manufacturing companies worldwide by signing this pledge and assuring their
engagement and support for COVID-19 treatments. They have committed to work with the
Medicines Patent Pool (MPP) so that treatments can be available in middle income and low-
income countries. They have shown their support for SUCCESS ( Sustainable Universal access
through Collaboration, Coordination, Emergency measures, Scale, and Speed). Furthermore, a
strict work environment is maintained by all the employees working in Beximco; they have
taken all types of safety measures to fight against COVID-19 by providing a safe work
environment. Beximco is a pharmaceutical company. Its employees are well motivated as they
know they are all fighting this virus as a team. To adapt to this pandemic where everything was
shutting down, they had many of their employees working from home, and they have also
provided them their salaries. They have prioritized their employee's health and well being very
well.
BPL also benefited from this whole situation as their stock went up 12.8% by the end of 2020.
According to "The Daily Star," "Beximco Pharma has been the top choice for stock investors in
the last few weeks as they believe the drug producer will make higher profits in the days to
come with the administering of a Covid-19 vaccine in Bangladesh.” (Habib, 2021, #)

Monitoring the work environment: The managers visit each sector, and the weak sectors
are handled with extra attention. It is made sure employees are wearing masks and maintaining
other safety measures.

Detecting employees' weaknesses: The BPL managers figure out the flaws and
incompetence of the employees and help them overcome them under their supervision by
providing proper motivation and direction.

Acknowledgments: Events and ceremonies are arranged for rewarding employees who
deliver a good performance.

Benefits and Rewards: When it comes to gifts, BPL provides several services for its
employees, including indirect financial and nonfinancial payments.
Such benefits are:
• Supplemental Pay benefits.
• Insurance Benefits
• Vacations and Holidays
• Sick Leave
• Parental Leave and Family Leave
• Medical Leave
• Retirement Benefits

Health & Safety: Selected people have to go through a Pre-employment medical checkup that
will guarantee that they are physically fit and eligible to perform the job successfully. A medical
practitioner carries out physical capability analysis to assess the candidate against each role's
physical capabilities for each position conducts the medical checkup.
Health Insurance Policy: Management staff can benefit from health insurance for self,
spouse, and two children up to 21 years for hospitalization only. Delta Life provides insurance,
and BPL pays the premium.

11.control (SHORT)
What control measures does the company take?

Beximco Pharmaceuticals employs a wide variety of measures to monitor and effectively manage critical
processes within the company. Stated below are some of the steps they take concerning the KPI that is
measured:

Product Quality: To ensure that the products released are of the best quality, Beximco has many
different analyses conducted post-production. Most of these methods are numeric, such that they get a
value for each test result, which indicates a particular characteristic of the product. However, it is not
always possible to attribute numerical values to a feature. This is why some statistical methods are used
to measure some critical aspects of the products, which cannot be done numerically. These statistical
references are known as control charts. The use of control charts is just one of Mexico's ways to ensure
the best quality products are released.

Customer Satisfaction:

Amongst the five core values of Beximco, customer satisfaction is one of them. This goes to show how
seriously Beximco takes Customer Satisfaction. With a dedicated C.S. team and a 24/7 helpline, Beximco
ensures that all their customers are always provided with help and information whenever it is needed.

Higher production capacity: Beximco owns the most modern technology when it comes to
pharmaceuticals, but more importantly, they have a lean method of producing goods. The engineers
achieve the best synchronization between order intake and delivery at Beximco. Beximco can roll out 6
million units of creams and ointments with state of the art machinery while producing 10 million units of
suppositories per day.

Employee satisfaction and turnover rate: With around 65000 employees in Beximco, the company
ensures that the internal customers are working satisfied by providing proper HRM practices. With
regular mentor meetings, H.R. pieces of training, and company events, the employees are always kept
engaged with the company, explaining the low turnover rate of employees as the company manages to
retain all of them.
12.managment issue
What management issues are the company facing right now, and how can they be
solved?

Improve efficiency and effectiveness of the firm, action plan, risk factor to consider

To succeed in business, one needs to aim for continuous improvement. To do that, the company must
establish firm management principles for sustainable growth. Given below are some of the issues that
are faced by Beximco in regards to their management.

1. Due to a hierarchy based organizational structure, decision making takes longer than it needs to be.

2. Employees lack general motivation apart from their salaries, and it is difficult for managers to inspire
them.

3. The employees' general safety is not being maintained regularly, and it is difficult for EHS managers to
ensure social distancing, public safety, etc.

4. Due to the pandemic, it is difficult to measure work hours, making the supervisors' job very tough.

5. Managers find it difficult to provide witness protection or anonymity for cooperative employees.

6. Conflict resolution amongst teammates is challenging to conduct by the managers.

7. Due to the pandemic, the overall workflow of production is being hampered. With rising raw material
prices and other costs, if the management of Beximco is not done efficiently, the company can increase
its product prices to meet the company profit requirement.

Although there are many ways Beximco can improve its management hurdles, some of the proposed
ways are suggested below.

1. Decision making can be made easier by establishing flat organizational structures within the
company's departments.

2. Managers should be more mindful of employee needs and take training courses to inspire their team
better.

3. Establish a penalty system for those who violate general safety rules and regulations.

4. Introduce more automation by establishing IoT devices to better help monitor work processes and
roster system due to the pandemic

5. Provide training to managers and assistant managers to hold meetings and regular mdis via virtual
software such as Google Meets.

6. Improve conflict resolution between teammates by involving H.R. in severe issues and hold regular
team-building exercises to increase bonding between employees. Managers should also be taught how
to handle disputes and solve them accordingly.
7. Before hiring any recruit, the managers should have a formal discussion where all the terms and
conditions of the job are cleared before they enter active duty within the company.

13.Conclusion
The pharmaceutical industry in Bangladesh is highly competitive. Everybody wants to increase
its market share by providing various products to the customer. As a result, companies should
further develop effective business strategies and policies to enhance their position in the
industry further. Beximco pharma is no different from that. After study and research, we have
gathered knowledge about the excellent company. We have learned about their essential
functions, history, company structure, and organogram. Their organogram gives us an idea
about how a company can operate in a well-organized environment and its benefit. Then we
have analyzed their internal and external environment, their competitiveness, their recruitment
policy and process, their communication method in both general and current pandemic
situation, their motivation and leadership skills, how they assure the quality of their products,
what problems they are facing about and all of this. Their growth rate may be said to be
satisfactory over the years. The management of BPL always tries to maintain steady growth by
delivering their quality product across the country. In the analysis, we found that Beximco
pharma follows a different strategy to gain its market share. Their function level strategy is
more focused on improving product quality and increasing distribution network. Incorporate
level, they are more focused on getting more recognition globally. However, in the business
level strategy, they try to increase their domestic sell. With its overall design, the company is
competing in the pharmaceutical industry successfully. However, they are always ready to
adjust their strategy in any situation through their efficient employee and management.
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