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Transcript of Abbott laboratories
ABBOTT LABORATORIES
Prepared by:Syeda Zeerak (BM-35240)Yusra Siddiqui (BME-1909)Anum Rasheed Khan (BM-26037)Rida Faheem (BM-26035)
About AbbottCEO Dr. Wallace Abbott
Founded 1888
Head Quarter Chicago
Global Expansion 150 countries
Employees 74000
Slogan A promise for life
History1888: Dr. Wallace Abbott begins
manufacturing alkaloid pills1894: Abbott Alkaloidal Company1907: Expansion in London1916: First antiseptic medicine,
Chlorazene1922: Development of anesthesia,
Butyn1929: Listed on Chicago stock
exchange1942: Developed antibiotic,
Penicillin1959: Adopt logo
History (cont.)1964: Acquires M & R Dietitic lab.1972: ABA-100 blood chemistry
analyzer1985: Diagnostic test for AIDS1998: Introduction of Glucerna2002: FDA approves Humira.2010: Largest pharma industry in
India2015: Expands in more than 150
countries world wide.
Abbott PakistanIn Pakistan 1948
In Karachi Landhi and Korangi
Permanent Employees
Approx. 1460
Competitors GSK, Getz, Sanofi, Wyeth, etc.
VisionTo be premier health care company in Pakistan.
MissionTo deliver consistently superior products and services
with contribute significantly to improve the quality of life of the consumers. This will be achieved while
ensuring that the interests of all stakeholders including healthcare providers, employees,
shareholders and communities are secured. Abbott Pakistan will comply at all times with applicable local laws and regulations conform to highest standards of local CGMP/EHS and ether to the
Corporate Code of Business conduct and Ethics.
Products DivisionAbbott pharmaceutical productsAbbott nutritional productsAbbott diagnostics servicesAbbott diabetes care
Products Division (cont.)
Pharmaceutical: Arinac, Klaricid, Brufen, Citro-soda, Cremaffin, Mospel, Daycor, Flexin etc…
Nutrition: Ensure, Pediasure, Similac, Glucerna etc.
Diagnostics: CELL-DYN, Architect, immunoassay chemistry tests etc.Diabetes: Freestyle.
PESTLE AnalysisPolitical Environment
- Changes in tax laws- Pakistan india relationship
Economical environment - Interest rates
- Stock marketSocial analysis
- Number of births- Number of doctors
PESTLE Analysis (cont.)Technological environment
- Shift of R&D from USA to China
Legal environment- Pricing issues
Environmental analysis- Natural disaster
Internal Factor Evaluation– (IFE)
Key Internal Factors Weight Rating Weighted Score
StrengthsBrand image 0.2 3 0.6 Product quality 0.15 4 0.6
Antibiotic producers 0.05 2 0.10
Diverse product line 0.18 3 0.54
Immunoassays 0.07 2 0.14
WeaknessesSlow production 0.09 2 0.18Few cardiac and anti-epliptic medicines
0.12 3 0.36
Centralized decision making 0.06 1 0.06Lack of advertisement 0.08 2 0.16Total 1 2.74
External Factor Evaluation - EFE
Key Internal Factors Weight Rating Weighted Score
OpportunitiesIncreasing population 0.2 2 0.4Increasing different diseases 0.24 3 0.72Increasing number of doctors 0.1 1 0.1Water pollution 0.09 1 0.09ThreatsTax laws 0.07 2 0.14Political instability 0.3 1 0.3High inflation rate 0.15 4 0.6Competitors 0.05 1 0.05Total 1 2.4
Competitive Profile Matrix – (CPM)
Critical Success Factors
Weights
Abbott Getz Pharma Evo
Rate
W.S Rate
W.S Rate
W.S
Brand Image 0.08 3 0.24 2 0.16 2 0.16
Technology 0.14 3 0.42 2 0.28 1 0.14
Quality 0.14 3 0.42 1 0.14 2 0.28
Strong Image 0.07 2 0.14 2 0.14 1 0.07
Price 0.06 3 0.18 2 0.12 2 0.12
Product Line 0.09 4 0.36 2 0.18 2 0.18
Productivity 0.09 3 0.27 1 0.09 2 0.18
Market Share 0.12 4 0.48 1 0.12 2 0.24
Customer Loyalty 0.15 3 0.45 2 0.30 1 0.15
Advertisement 0.06 2 0.12 1 0.06 1 0.06
Total 1 3.08 1.59 1.58
SWOT Analysis
Weaknesses- Development of new product is very slow.
- Few cardiac medicines are available in market.
- Centralized decision making.
- Lack of advertisement.
Opportunities- Increasing population.
- Increasing different diseases.
- Increasing number of doctors.
- Increasing heart diseases.
Threats- Tax laws
- Political instability
- High inflation rate
- Large pharmaceutical industry (i.e. competitors)
SWOT
S-O Strategies- Antibiotics may help to overcome different
diseases. (S3, O2)- Advantage of diverse product by subscription
of more medicines to patients. (S4,O3)W-O Strategies
- Increase new researchers in R&D. (W1,O1)- Increase cardiac medicines. (W2, O4)
S-T Strategies- High inflation rates will have an impact on
company’s profit margin as company has a diverse product line. (S4, T3)
W-T Strategies- Lack of advertisements will provide an
opportunity to the competitors to overcome the market. (W4,T4)
Boston Consulting Matrix (BCG Matrix)
Star Question Mark
- Brufen - Similac Mom- Surbex Z - Mospel
- Ensure
Cash Cow Dog
- Somogel - Dijex
- Burnol - Froben
Space MatrixInternal Strategic
PositionExternal Strategic
PositionFinancial Strength
Competitive Advantage
Environmental Stability
IndustryStrength
Return on investment
+3 Market share
-3 Technology -2 Growth potential
+3
Working capital
+2 PLC -2 Rate of inflation
-3 Profit potential
+2
Cash flow +4 Customer loyalty
-1 Competitive pressure
-2 Productivity
+5
Inventory turnover
+2 Control over suppliers & distributors
-4 Risk involved in business
-3 Financial stability
+4
Total 11 -10 -10 14
Average 2.75 -2.5 -2.5 3.5
Grand Matrix
Quadrant 11
Quadrant 1
Quadrant 111
Quadrant 1V
WeakCompetitiveposition
StrongCompetitiveposition
Rapid Market Growth
Slow Market Growth
Internal External Matrix
The IFE total weighted scores
The EFE total weighted scores
Strong3.0 to 4.0
Average2.0 to 2.99
Weak1.0 to 1.99
High3.0 to 4.0
Medium2.0 to 2.99
Low1.0 to 1.99
1 11 111
1V V V1
V11 V111
X1
Quantitative Strategic Position Matrix
Integration
Intensive
Key factors Weights
AS TAS AS TAS
StrengthsBrand image. 0.2 3 0.6 3 0.6Product quality. 0.15 3 0.45 3 0.45Diverse product line. 0.18 2 0.36 2 0.36Market leader in immunoassays. 0.07 1 0.07 2 0.14Antibiotic producers. 0.05 1 0.05 2 0.10
WeaknessesSlow production. 0.09 2 0.18 3 0.18Few cardiac medicines. 0.06 1 0.06 1 0.06Centralized decision making. 0.08 2 0.16 3 0.24Lack of advertisement. 0.12 1 0.12 4 0.48Total 1
Quantitative Strategic Position Matrix (cont.)
Integration
Intensive
Key factors Weights
AS TAS AS TAS
OpportunitiesIncreasing population. 0.2 2 0.4 3 0.6
Increasing different diseases. 0.09 1 0.09 2 0.18
Increasing number of doctors. 0.24 2 0.48 4 0.96
Increasing heart diseases. 0.1 3 0.3 4 0.4
ThreatsTax laws 0.07 - - - -
Political instability 0.15 1 0.15 2 0.30
High inflation rate 0.1 1 0.1 2 0.2
Competitors 0.05 3 0.15 4 0.20Total 1 3.72 5.45
Conclusion It can be concluded that
comparatively Abbott should focus on the marketing of its product and also increase its productivity. Positive points include the brand image and loyalty of the customers who trust their products and use them in the availability of the large number of substitutes.
RecommendationAbbott should focus on the growth of new
products specially related to the medicines of the heart and epileptic patients.
In order to create awareness Abbott should focus on the advertising strategy.
As Abbott is widely spread globally so decentralized decision making should be followed so as to take the decisions quickly in order resolve the issues as soon as possible.
Market development strategy and as a contingency plan horizontal strategy would help to create innovations in the lacking area of the company.