Term Report for

Introduction to Business

Business Activities of
Abbott Laboratories (Pak) Ltd

Submitted to

Sanat Ullah

Submitted by

Adil Aziz (2938)

Khawer Atique (2934)
Syed Zaheer uddin Ashraf (2818)
Tabish Jawaid (2946)
 TABLE OF CONTENT

CONTENT PAGE NO.

ABOUT ABBOTT LIMITED 3
HISTORY 3
ABBOTT PAKISTAN 3
ABBOTT OPERATION IN PAKISTAN 3
ABBOTT MARKETING ARMS 4
VISION: 4
MISSION 4
ACHIEVEMENT 4
COMPANY PROFILE 5
PRODUCTS 6
ABBOT PHARMACEUTICAL PRODUCTS 6
ABBOT NUTRITIONAL PRODUCTS 6
ABBOTT INFRASTRUCTURE 7
DEPARTMENTALIZATION 7
DEPARTMENTALIZATION CHART OF ABBOTT
8
PAKISTAN
ABBOTT PAKISTAN DISTRIBUTION
8
DEPARTMENT
HIERARCHY OF ABBOTT SALES &
9
MARKETING
ABBOTT STRUCTURE & AUTHORITY 10
FIRST LINE MANAGERS 10
MIDDLE MANAGERS 10
TOP MANAGERS 10
HUMAN RESOURCE MANAGEMENT 10
RECRUITMENT & SELECTION 10
WAGES & SALARIES 10
TRAINING PROGRAMS 10
BENEFITS TO EMPLOYEES 10
HEALTH & SAFETY 11
SWOT ANALYSIS 11
COMPETITION 12
PRICING 12
PLACEMENT 12
PROMOTION 12
CLASSIFICATION OF BUSINESS ACTIVITY OF
13
ABBOTT PAKISTAN
PRODUCT LINE 13
STAGES IN THE PRODUCT LIFE CYCLE 13-14
REFERENCES 14

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 ABBOTT LABORATORIES (PAKISTAN) LIMITED

(A Promise for Life)

ABOUT ABBOTT LIMITED: -

Abbott is a global, broad-based health care company devoted to discovering new
medicines, new technologies and new ways to manage health. Abbott products span the
continuum of care, from nutritional products and laboratory diagnostics through medical
devices and pharmaceutical therapies. Abbott comprehensive line of products encircles
life itself – addressing important health needs from infancy to the golden years. With over
70,000 employees worldwide and a global presence in more than 130 countries, Abbott is
committed to improving people's lives by providing cost effective health care products
and services that consistently meet the needs of our customers.

HISTORY: -
Founded in 1888 by Dr. Wallace Abbott, a Chicago physician, Abbott is a broad-based
health care company that discovers, develops, manufactures and markets products and
services that span the continuum of care – from prevention and diagnosis to treatment and
cure. Abbott's principal businesses are global pharmaceuticals, nutritional and medical
products, including diagnostics and cardiovascular devices.

Headquartered in north suburban Chicago, Abbott serves customers in more than 130
countries, with an employee base of more than 68,000 at more than 100 manufacturing,
distribution, research and development, and other locations around the world.

ABBOTT PAKISTAN: -
Abbott Pakistan is part of the global healthcare corporation of Abbott Laboratories,
Chicago, USA. Abbott started operations in Pakistan as a marketing affiliate in 1948; the
company has steadily expanded to comprise a work force of over 1500 employees.
Currently two manufacturing facilities located at Landhi and Korangi in Karachi continue
to use innovative technology to produce top quality pharmaceutical products.

ABBOTT OPERATIONS IN PAKISTAN: -

Abbott Laboratories (Pakistan) Limited. is a public limited company. The Company is
incorporated in Pakistan and its shares are quoted on the Karachi, Lahore and Islamabad
stock exchanges. The Company is principally engaged in the manufacture, import and
marketing of research based pharmaceutical, nutritional, diagnostic, hospital and
consumer products.

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ABBOTT MARKETING ARMS: -
Abbott Pakistan has leadership in the field of Pain Management, Anesthesia, Medical
Nutrition and Anti-Infective. Company’s wide range of products is managed and
marketed through three marketing arms, which are as under:

Horizontal Integration: Acquired Knoll Pharma in 2001. Abbott Laboratories has to

compete in a growing industry with Knoll pharma so the company gains monopoly by
acquiring Knoll Pharmain 2001. This strategy was pursued to gain access to new
suppliers, distributors, customers, products and creditors.

Product Development: Abbott Laboratories has strong research and development

capabilities so the company seeks increased sales by improving present products such as
Klaricid ,Brufen and Ensure.

Horizontal Diversification: Abbott Laboratories can use present channels of distribution

to market the new products to current customers such as Tarka & strepsils with vitamin c.

VISION: -
To be premier health care company in Pakistan

MISSION: -
To 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
& the communities are secured. Abbot Pakistan will comply at all times with applicable
local laws & regulations conform to highest standards of local CGMP/EHS and adhere to
the Corporate Code of Business Conduct & Ethics.

ACHIEVEMENT: -
On June 29, 2005 Abbott Pakistan Achieved Class 'A' accreditation against the Oliver
Wight ABCD Check list. This was an outstanding achievement, which puts Abbott
Pakistan amongst some of the best global companies in terms of operational excellence.

A continuous process of innovation, research and development at Abbott's worldwide

facilities enables Abbott Pakistan to offer effective solutions for various healthcare
challenges, with products and services that are well focused, within the customer's reach
and contribute to improved health care of the people of Pakistan.

Abbott believes that Corporate Social Responsibility is fundamental to earning and

deepening the trust of the people it serves, an integral part of its commitment to improve
lives has contributed to a number of humanitarian causes and supported various
institutions in various fields including health and education. The promise of Abbott is in
the promise that our work holds for health and for life

4
COMPANY INFORMATION: -

BOARD OF DIRECTORS

KAMRAN Y. MIRZA LORI O CARLSON

EX Chairman & Managing Director (Alternate Mohammad A. Khan)
ASIF JOOMA
Active Chairman & Managing Director
GREG W. LINDER GARY P. COUGHLAN
(Alternate Farhat Qadeer Dar) (Alternate Ishaque H. Hashmi)
IMRAN A. HALAI ALI SHABBIR
MALLICK HASEEB UR REHMAN

SECRETARY
MOHAMMAD AMIN

AUDITORS
SIDAT HYDER QAMAR & CO.
Chartered Accountants

LEGAL ADVISERS
AZFAR & AZFAR
SURRIDGE & BEECHENO

BANKERS
ABN - AMRO BANK DEUTSCHE BANK
AMERICAN EXPRESS BANK LTD. HABIB BANK LIMITED
BANK OF AMERICA N.T. & S.A. MUSLIM COMMERCIAL BANK
STANDARD CHARTERED NATIONAL BANK OF PAKISTAN
GRINDLAYS BANK CITIBANK N.A.

NO. OF EMPLOYEES 1,350

REGISTERED OFFICE AND FACTORY

Opp: RADIO PAKISTAN TRANSMISSION CENTRE
HYDERABAD ROAD, LANDHI, KARACHI - PAKISTAN

DEPOTS
ISLAMABAD
PLOT NO. 136, STREET NO.9, 1.10/3 INDUSTRIAL AREA
ISLAMABAD - PAKISTAN

LAHORE
SHAHPUR KANJRA 16 K.M., MULTAN ROAD
LAHORE - PAKISTAN

MULTAN
HASSANABAD, GATE NO.2, NEAR: PAK ARAB FERTILIZERS
KHANWEWAL ROAD, MULTAN - PAKISTAN

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PRODUCTS: -
Abbott Products are been categorized in four divisions, which are as under:

Abbot Pharmaceutical Products

Abbot Nutritional Products
Abbot Diagnostics Services
Abbot Diabetes Care

ABBOT PHARMACEUTICAL PRODUCTS: -

 Abbutol,Abocain, Abocal, Abozole, Abrifam, Acyclovir, Arinac, Artifen, Atrelax

 Becefol, Bejectal, Bevidox, Brufen, Burnol
 Calcijex, Cecon, Cofco, Citro Soda, Cremaffin
 Dayalets, Daycor, Dijex, Dobutamine, Dopamine
 Enoxabid, Entamizole, Epival, Erybron, Erythrocin, Eryderm
 Flexin, Forane, Froben
 Ganaton, Gopten
 Hytrin
 Iberet, Isoptin
 Klaricid
 Lucrin, Lincomycin, Loftyl
 Mammo, Moculator, Mospel
 Neophage, Nicor
 Optilets-M
 Pentothal, Pramet - FA, Prothaiden, Protium
 Rambuzid, Rashni, Reducti, Rondec
 Savourane, Selsun, Silliver, Somogel, Sparaxin, Survanta, Surbex
 Tarka, Trividox, Tronolane
 Urixin
 Vancomycin, Vi-Daylin

ABBOT NUTRITIONAL PRODUCTS: -

Abbott Nutritional segment is engaged in the manufacture import and marketing of
pediatric nutritional products and medical nutritional products.

ABBOTT NUTRITIONAL PLAN FOR HEALTH CARE: -

Good nutrition leads to healthy growth. To grow properly, kids need to eat the right
amounts of protein, carbohydrates, fat, vitamins and minerals. For times when you're not
sure your child is getting adequate amounts of proper nutrition from regular food, look to
PediaSure. No matter which delicious flavor you choose, every can of PediaSure contains
25 essential vitamins and minerals and a balanced combination of protein, carbohydrates
and fat. With PediaSure, you can be confident your child is getting complete, balanced
nutrition.

6
Vitamins & Minerals
From bone growth to healthy skin to muscle development, vitamins and minerals are
essential for healthy growth. A diet that provides a wide variety of all the food groups can
provide the vitamins and minerals your child needs.

Protein
Mainly found in meat, poultry, fish, beans and eggs, protein helps build and repair cells in
the body.
Carbohydrates
Found in fruits, vegetables and grains, carbohydrates add fiber to your child's diet and
provide energy.

Fat
In small amounts, fat is essential for the development of a healthy nervous system. The
healthiest fats are mono- or polyunsaturated fats and come mainly from plant sources.

ABBOTT INFRASTRUCTURE: -

LAND:-
Abbott has five satellite warehouse in which two are manufacturing units both
manufacturing units is Abbott own property and three satellite warehouse are on rent.
Manufacturing plants are in Karachi one in Landhi and second in Korangi Industrial
Area. Both plants have also satellite warehouse. Rests of warehouse are in Multan,
Lahore and in Islamabad.

LABOUR:
Abbott has trained work force in which Manual workers, skilled workers and
management are all members of the workforce. They are paid wages or salaries for their
services.

CAPITAL:
Abbott is working as an incorporated company in Pakistan if company get loan then they
shows guarantee of head office at Chicago.

DEPARTMENTALIZATION: -
Abbott Pakistan operation is been divided into five basic departments, which are as
under: -

• Director Human Resource

• Director Production & Engineering
• Director Marketing
• Director Sale & Distribution
• Director Material Management
• Director Finance

7
 DEPARTMENTALIZATION CHART OF ABBOTT PAKISTAN

General Manager

Director Sales & Director Human Director Material Director Production

Director Marketing Director Finance
Distribution Resource Management & Engineering

ABBOTT PAKISTAN DISTRIBUTION DEPARTMENT

8
 Distribution Hierarchy
General Manager

Director Institution Director Distribution

Saletion Trade Sale

Institution Sale Co- Manager Trade Sale &

Institution Manager
coordinator Logistics

Distribution Services Distribution Services

Officer Manager Islamabad

Distribution Services
Distribution Officer Manager
Lahore

Distribution Services
Manager
Multan

Central Depot Manager

Warehouse Officer
Korangi Plant

9
 HIERARCHY OF ABBOTT SALES & MARKETING

General Manager

Director Sales Franchise Manger

Director Sales General Healthcare
Primary Care A,D,E
Primary Care B,C Director Marketing or Consumer
Specialty Care A
Specialty Care B,C
Hospital Division

Head of Sale Head of Sale Primary Head of Sale Primary

Head of Sale Head of Sale
Primary Care A Care B Specialty Car Care C Specialty Marketing Manager
Primary Care D,E Hospital Division
Specialty Care A B Care C

Sales Manager South Group Product

PCA, SCA Manager

DSM PCA Karachi Product Manager

Product Manager
DSM SCA Karachi

DSM PCA Product Manager

Hyderabad

DSM SCA Group Product

Hyderabad Manager

Product
DSM PCA Sukkur Manager

Product
DSM SCA Sukkur Manager

Sales Manger North

Product
PCA, SCA Manager

Sales Manager
Central PCA, SCA

10
ABBOTT STRUCTURE & AUTHORITY: -
Abbott Sales & marketing structure is tall & in line authority

FIRST LINE MANAGERS: -

District Sales Managers are the first line managers in Abbott Sales & Marketing
hierarchy. Their technical skills are high as this would required at this level

MIDDLE MANAGERS: -
Sales Managers & Head of Sales are the middles Managers in Abbott Sales &
Marketing hierarchy. Middle Managers have good human skills.

TOP MANAGERS: -
Directors & General Manager are the top managers in Abbott Sales & Marketing
hierarchy. Their conceptual skills are high.

HUMAN RESOURCE MANAGEMENT: -

Abbott Human Resource Management (HRM) is a set of organizational activities which
directing, attracting, developing and maintaining an effective work force. This
department takes place within a complex and ever-changing environmental context and is
increasingly being recognized for its strategic importance. HR live with touch with all
departments and follow up for job analysis and forecasting the demand for and supply of
labours, all department has a systematic analysis of jobs in organization. In Abbott the job
analysis is made up of two parts job description and job specification.

RECRUITMENT & SELECTION: -

Abbott has hired best suite employees with attracting and selecting the best candidates for
vacancies that arise. The effective recruitment will be taken by giving ad in newspaper,
then first line manager test the candidates and refer the selected candidates to middle
manager. After evaluation of middle manager the selected candidate are referred to Panel
interview which consist of Top Manager, Training Manager & HR Manager.

WAGES & SALARIES: -

Abbott pays attractive salaries and retained the right people and be sufficiently high to
motivate employees.

TRAINING PROGRAMS: -
Abbott gives basic training to newly induct employee. Further Abbott makes plans and
gives training as per requirement needs of employees and as per requirement of
employee’s designation. This should be linked to the future plans of the business.

BENEFITS TO EMPLOYEES: -
Abbott Pakistan has the following scheme to provide benefits to their permanent
employees:

Staff retirement benefits

- A recognized provident fund for all permanent employees who have
completed six months’ service; and

11
- An approved funded pension scheme for all its permanent employees
who have completed one year's service.

Provident fund
A recognized provident fund (defined contribution) scheme is in operation, which covers
all permanent employees who have completed six months' service. Equal contributions
are made by the Company and the employees.

Pension
Abbott operates a recognized, funded defined benefit pension scheme for all its regular
permanent employees drawing basic salary exceeding Rs. 1,000/- per month.
Contributions are made monthly to the fund on the basis of actuarial recommendations.
The scheme is administered by the trustees nominated under the trust deed. An actuarial
valuation is performed each year. The actuarial valuation was carried out using the
Projected Unit Credit Method. Under this method, the cost of providing pension is
charged to the income statement so as to spread the regular cost over the service lives of
the employees in accordance with the advice of qualified actuaries.

HEALTH & SAFETY: -

Abbott has law regarding his employees’ health and safety and provides them company
medical facilities.

SWOT ANALYSIS: -

STRENGTHS:
 Good company reputation.
 Strong distribution network.
 Strong brand positioning.
 Have deep roots in the Pharma business.
 Excellent professional management team.
WEAKNESSES:
 Comparatively high price.
 Lacking of deep rural penetration.
 Employee rededication - High Field Force turnover.
OPPORTUNITIES:
 Increase per capita income.
 High rate of population increase in Pakistan.
 Promotion intensive market.
 Increasing healthcare awareness.
THREATS:
 High inflation rate.
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  Foreign Exchange Rates
 Political conditions of Pakistan.
 Govt. restriction on price
 Low price local pharma product.

COMPETITION: -
Abbott main competitors are GSK, Novartis, Merck & Getz. Below is competitors profile
table.

ABBOTT GSK NOVARTIS

Critical Success Factor Weight Rating Score Rating Score Rating Score
Market Share 0.2 3 0.6 4 0.8 2 0.4
Price competitiveness 0.1 3 0.3 3 0.3 2 0.2
Financial Position 0.3 3 0.9 4 1.2 3 0.9
Product quality 0.2 3 0.6 3 0.6 2 0.4
Customer Loyalty 0.2 2 0.4 3 0.6 2 0.4
1 2.8 3.5 2.3

Accordingly to the above table, which reflect the Abbott competitive approach in the
market as compare to their two main active competitors.

PRICING: -
Abbott commonly known as house of multivitamins & pricing of multivitamins is most
economical as compared to competitors, whereas prices of rest of the products are
competitive.

PLACEMENT: -
Abbott has three levels channel which includes fifty seven distributors all over the
Pakistan who are providing Abbott products to consumers via wholesalers and retailers.

Main Distributor: -
Pharmanet – Karachi
Premier Agency – Karachi
Qarni Cooperation – Hyderabad
Baber Medicine Co. – Lahore
DS Pharma – Islamabad
Nadeem Traders: - Peshawar

PROMOTION: -
Abbott medicine products are promoted through personal selling i.e. one to one selling to
Doctors through medical representatives.

13
Abbott consumer products like Selsun blue, Mospel, Rashnil, Burnol are promoted
through advertising (print & electronic media). Low & Rauf is the service provider of
print media & FM Radio, PTV, GEO is the main resource of electronic media.

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CLASSIFICATION OF BUSINESS ACTIVITY OF ABBOTT PAKISTAN: -

SECONDARY PRODUCTION:
Abbott involves manufacturing, transform raw material into goods, and raw material has
been import from India, China, Germany and Denmark and this all raw material are
imported by third party.

TERTIARY PRODUCTION:
Abbott also provides direct service for relaxation of public vial direct selling at low price
in Exp centre Karachi.

BUSINESS ACTIVITY: -
Abbott has a good name in Non-durable Goods as medicine and Nutrition milk,
confectionery (Shampo, Mospel, Burnol)

MIXED ECONOMIES: -
Pakistan has mixed economy so Abbott is working also between mixed economies, the
part of price of medicine is dependent on approval of ministry of health, but in nutrition
Abbott has authority of holding price. Production decisions are made by firms in response
to demands of consumers and also on seasonal basis.

PRODUCT LINE: -
Abbott has products line in which most popular product are Surbex, Rondec, Kalaracid,
Erythrocin etc., Abbott has also multiple product line who allow for company to grow
more rapidly and can help to minimize theconsequences of slow sales in anyone product
line.

STAGES IN THE PRODUCT LIFE CYCLE: -

GROWTH : -
The new products of Abbott are Reductil, Ganaton, Gopten, Nicor & Daycor. These
products are in Growth level and satisfy enough consumers, sales begin to climb rapidly.

MATURITY: -
Abbott’s some products are in Maturity level like Pedialyte, this product is a ors product.
Some products are also in maturity level and these product are come in counter sale and
with out company promotion are being sale (Brufen, Burnol).

DECLINE: -
Abbott some products are come in decline due to condition of economic is that raw
material is so expencesive but the price of product not increase from ministry of health,
company is selling only for company name.

BRANDING PRODUCTS: -
Abbott has also so brand product like Burnol, Cofcol, Rondec these branding is using
symbols to communicate the qualities of a particular product made by a Abbott.

PACKAGING PRODUCTS: -
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Abbott package serves in-store advertisement that makes the product attractive, displays
the brand name, and identifies features and benefits. Abbott also reduces the risk of
damage, breakage, or spoilage and increases the difficulty of stealing small products.
Provide convenience in transportation.

LABELING PRODUCTS: -
Abbott’s all products have a label on its package. Like outer carton label, product
package label which contain the product name, raw material use in manufacturing &
expiry dates, also caution label on products addresses issues of consumer safety & usage
of product.

REFERENCES: -

1. ABBOTT LIMITED (www.abbott.com)

2. ABBOTT LABORTARIES (PAKISTAN) LIMITED (www.abbott.com.pk)
3. http://www.paksearch.com/Annual/Annual00/ABBOT00.htm
4. SHAKEEL AHMED METHAWA (Manager Costing Finance Dep. Abbott)
5. ARSHAD ALI (Ass. Manager employ relation Abbott)
6. ALMAS ILYAZ (Distribution Services Officer Abbott)
7. ATIF AUSAF (Territory Manager Abbott)
8. SALEEMUDIN (Warehouse Manager Korangi Plant Abbott)

16