Company Profile of Glaxosmith Kline Ltd. -Edit

7/27/2019 Company Profile of Glaxosmith Kline Ltd. -Edit

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Course title: REAL ESTATE FINANCE

Course code: BBA-4123

Assignment On:

IMPACT ON REAL ESTATE SECTOR IN

BANGLADESH ECONOMY

Submitted To: TANVIR MOHAMMAD AL SHAMSLecturar

Dept. of Finance

Asian University of Bangladesh

Submitted By:MD.HADAYETUL ISLAM

ID. 201010301BATCH .38

th

SECTION: (C)AUB

Date of Submission- 30th

SEPTEMBAR, 2013.


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AcknowledgementFirst of all we want to give thanks to Almighty god for giving us the opportunity to complete this

assignment. Then we would like to express our grateful thanks to our honorable parents.

After that we would like to express our gratitude to our teacherAysha AshrafLecturer, Dept. of

Finance. Her advice helped us a lot to prepare a complete assignment and he never hesitate to

give us valuable time while preparing the assignment whenever we needed.

We also want to give thanks to all of them who have given a lot of valuable suggestions and

moral support to us.

Background of the company

In 1949 the Company commenced its journey in Bangladesh with its corporate identity as Glaxo

in Chittagong as an importer of products from the Glaxo Group Companies. It started spreading

its spectrum from being an importer to a manufacturer by establishing its own manufacturing

unit at Chittagong in 1967. The facility till date is considered as one of the Centres of Excellence

in Global Manufacturing & Supply Network of the Group.

The Companys principle activities include secondary manufacture of pharmaceutical products

and marketing of vaccines, pharmaceutical healthcare products and healthfood drinks

The global corporate mergers and acquisitions has seen the evolution of the Companys identity

in the past 6 decades. In line with mergers and acquisitions the identity changed from Glaxo to

Glaxo Wellcome Bangladesh Limited following the Burroughs Welcome acquisition in 1995


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and finally to GlaxoSmithKline Bangladesh Limited during 2002 after merger withSmithKlineBeecham in December 2000. The mega merger of the Company enables it to deliver

cutting edge advancements in health care solutions. The relentless commitment, setting of

standards of ethical standards and quality backed leading edge technology of the Company hasbuilt a strong relationship between the stakeholders and GSK Bangladesh. With the ever

committed 615 numbers of personnel all over the country GSK Bangladesh, which now

comprises of both Pharma and Consumer, continually strive to meet the GlaxoSmithKlinemission to improve the quality of human life by ensuring healthcare products, health drinks and

different corporate social responsibility programs.


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CORPORATEDIRECTORY


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Our Mission:

As a research based pharmaceutical company our mission is to improve the quality of human life

by enabling people to do more, feel better and live longer. We believe that through our productswe make a valuable contribution to society by developing and marketing medicines which

improve peoples lives. We believe and follow the philosophy that we will need to work closelyin the communities we operate in-locally, nationally or globally. As we are closely linked with

the communities, we work and support the community and make a positive contribution.

Our Vision:

The company also has a vision to attain their avowed mission of assuming the above duty and

responsibility. They envisage for a more beautiful tomorrow for the country, for the region and

for the whole world.


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Our Commitment to the Environment:

Our company is very committed to preserve a healthy and pollution-free environment. It has a

very efficient waste collection and disposal system. In order to reduce air pollution by exhaust ofgas from engine-generators, it maintains a costly plant that uses the exhaust gas to generate

steam for chilling unit. Above measures not only help keep the water & air free from pollutionbut also help save cost of water treatment & air conditioning. Your company uses only AZO-freedyes and is dedicated to ensure a healthy and eco-friendly environment.

Porter's Five Forces Model


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Porter explains that there are five forces that determine industry attractiveness and long-runindustry profitability. These five "competitive forces" are

- The threat of entry of new competitors (new entrants)

- The threat of substitutes

- The bargaining power of buyers- The bargaining power of suppliers

- The degree of rivalry between existing competitors

Threat of New Entrants

New entrants to an industry can raise the level of competition, thereby reducing its attractiveness.The threat of new entrants largely depends on the barriers to entry. High entry barriers exist in

some industries (e.g. spinning) whereas other industries are very easy to enter (e.g. jute). Key

barriers to entry include

- Economies of scale

- Capital / investment requirements

- Customer switching costs- Access to industry distribution channels

- The likelihood of retaliation from existing industry players.

Threat of Substitutes

The presence of substitute products can lower industry attractiveness and profitability because

they limit price levels. The threat of substitute products depends on:


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- Buyers' willingness to substitute- The relative price and performance of substitutes

- The costs of switching to substitutes

The Substitutes product of Apex spinning is jute product, hand made cotton etc.

Bargaining Power of Suppliers

Suppliers are the businesses that supply materials & other products into the industry.

The cost of items bought from suppliers (e.g. raw materials, components) can have a significantimpact on a company's profitability. If suppliers have high bargaining power over a company,

then in theory the company's industry is less attractive. The bargaining power of suppliers will be

high when:

- There are many buyers and few dominant suppliers

- There are undifferentiated, highly valued products

- Suppliers threaten to integrate forward into the industry (e.g. brand manufacturers threateningto set up their own retail outlets)

- Buyers do not threaten to integrate backwards into supply

- The industry is not a key customer group to the suppliers

Bargaining Power of Buyers

Buyers are the people / organizations who create demand in an industry

The bargaining power of buyers is greater when

- There are few dominant buyers and many sellers in the industry- Products are standardized

- Buyers threaten to integrate backward into the industry

- Suppliers do not threaten to integrate forward into the buyer's industry- The industry is not a key supplying group for buyers

Intensity of Rivalry

The intensity of rivalry between competitors in an industry will depend on:


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- The structure of competition - for example, rivalry is more intense where there are manysmall or equally sized competitors; rivalry is less when an industry has a clear market leader

- The structure of industry costs - for example, industries with high fixed costs encourage

competitors to fill unused capacity by price cutting

- Degree of differentiation - industries where products are commodities (e.g. steel, coal) havegreater rivalry; industries where competitors can differentiate their products have less rivalry

- Switching costs - rivalry is reduced where buyers have high switching costs - i.e. there is a

significant cost associated with the decision to buy a product from an alternative supplier

- Strategic objectives - when competitors are pursuing aggressive growth strategies, rivalry is

more intense. Where competitors are "milking" profits in a mature industry, the degree of rivalry

is less

- Exit barriers - when barriers to leaving an industry are high (e.g. the cost of closing down

factories) - then competitors tend to exhibit greater rivalry.

Social Responsibility:

The company has taken several steps in the past years in educational aspects, health and safety

issues as well as in environmental pollution control and many others. Some of the activities

under the mentioned steps have been high lightened below:

Adult Literacy Programme:

The Company continuing its formal educational programme for its staff and workers in order to

develop basic learning skills.

Industrial Visits:


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The Company encourages industrial visits to different educational and training institutions inorder to educate and create awareness of the companys production process and other business

activities amongst individuals. Further industrial visits are also encouraged to attract prospective

employees from the countrys reputed educational institutions.

Patient group funding

We publish information on all our work with patient groups in our US, Europe and Asia Pacific

and Emerging Markets regions, as well as information on our support for patient groups working

globally, including details of the funding received. See details of ourfunding for patientorganisations.

Payments to healthcare professionals

We publish quarterly reports of payments made to healthcare professionals in theUS for

speaking and advisory services. We are working towards disclosing payments made to individualHCPs outside the US. From 2013 we will report payments in the UK annually at an aggregate

level. This will cover payments made to healthcare professionals for speaking and advisory

services as well as sponsorship, starting with payments made in 2012.

Grants and donations to healthcare organizations

We publish quarterly reports of the grants anddonations we make in the US. We will publish

details of our grants and donations outside the US at an aggregate level to the same time frame asour payments to healthcare professionals, publishing figures in 2013 for grants and donations

made in 2012.

Graphically Present of RATIO ANALYSIS
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Current Ratio =Total current asset/Total current liabilities

Quick Ratio=(Total current assets-Inventories)/Total creent

liabilities

Decision:


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Inventory Turnover=Cost of goods sold/Inventories

Decision:

Average Collection Period=Account receivable/(Sales

revenue/360)


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Decision:

Fixed Asset Turnover=Sales Revenue/Net Fixed Asset

Decision:


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Total Asset Turnover

=Sales Revenue/Total Asset

Decision:

Debt Ratio =Total liabilities/Total Assets


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Operating Profit Margin =Operating Profits /Sales Revenue

Decision:

Net Profit Margin =Net profit after taxes/ Sales Revenue

Decision:

Return on Total Assets (ROA) = Net profit after taxes/Total

assets


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Decision:

ROE =(Net profit after taxes/Total assets)*(Total

asset/Stockholders equity)

Decision:


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Earnings Per Share =Earning available for common

stockholder/Number of common share

Decision:

Price/Earnings Ratio =End of year stock price/Earningper

share

Decision:


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DUPONT ANALYSISNet Profit AT/Sales = Net profit after taxes/ Sales Revenue

Decision:

Sales/Total AssetsSales/Total Assets = Sales Revenue/Total Assets


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Decision:

ROAROA = Net profit after taxes/Total assets


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Decision:

Net Profit AT/Total Assets=Net profit after taxes/Total

assets


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Decision:

Total Assets/Stockhldrs. Equity

Decision:

ROEROE =(Net profit after taxes/Total assets)*(Total

asset/Stockholders equity)


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Decision:

Company Profile of Glaxosmith Kline Ltd. -Edit

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