strategic marketing managment
TRANSCRIPT
HIGHNOON LABORATORIES 1
Value Chain of Highnoon
Primary Activities
Inbound Activities:
Inbound logistics is primarily associated with receiving, storing, and distributing inputs to the
product. It includes material handling, warehousing, inventory control, vehicle scheduling, and
returns to suppliers. Highnoon is mostly purchasing molecules and other chemicals from
different suppliers in Pakistan and also importing from United States, U.K., Germany,
Switzerland, Japan, Holland and France. According to the company “Only the best Raw
materials make it to the finished products, thus ensuring that what roles of the production line the
finest of products and is nothing less”. Once the materials are sorted out then they are shifted to
companies
Operations:
Operations include all activities associated with transforming inputs into the final product form.
Highnoon ensures that tools employed in production process are of the top most quality.
According to the company HighNoon production plant is comprised of latest equipment from
HIGHNOON LABORATORIES 2
UK, Germany, France and Italy. Highnoon is also one of the few companies in Pakistan that
have a dedicated antibiotics manufacturing facility in Pakistan. Medicines are made while
keeping all the specific procedure that is assurance of highest quality medicine produced.
Outbound Logistics:
Activates related to the outbound logistics are associated with collecting, storing, and distributing
the product. Highnoon laboratories have its own distribution channel but it is not as strong as
other companies having. Highnoon manages all the outbound functions by itself, like storing in
warehouses to the distribution of medicine to doctors and general stores. Highnoon should
improve its distribution channel globally. So it can compete with the other pharmaceutical
laboratories.
Marketing and Sales force:
Highnoon laboratories have highly skilled motivated and competent sales force to market its
products. Since HighNoon is a pharmaceutical company so making sure that the sales force are
to capture the market by using innovative approaches towards doctors and medical stores is
important. Highnoon have selected the most appropriated channel i.e. referrals by Doctors and
medical stores. And also because Highnoon is working with a differentiation strategy through
setting up the price and product line they have been successful in capturing their part of the
market.
Services:
HIGHNOON LABORATORIES 3
Pharmaceutical companies need to work with very error free environment and there is not much
margin for errors in them. Highnoon understands the situation and make sure that all the expired
medicines are taken out of the market on time. Relations with the Doctors are also key aspect of
the companies services policies.
Secondary Activities:
General Administration and Infrastructure
General administration in Highnoon consists of number of activities like general management,
planning of how much productions are needed and how to produce according to the demand of
the customers, finance and legal and government affairs as it is a highly a sensitive industry with
no chance of error.
The production unit and the head office of the Highnoon are located at Multan Road, Lahore. All
the demands are fulfilled by the production from this facility.
Human Resource Management
Highnoon is very much concerned about the humans which it hires because it can fulfill the
needs of the customers by recruiting the best human resources. Highnoon investment in human
resource starts with the recruitment. It invests heavily on the human resource because it is one of
the resources from where they are getting competitive edge over their competitors.
Technology
HIGHNOON LABORATORIES 4
Pharmaceutical companies mostly rely on their research and development because it is a key
success factor for any pharma company. The research and development is based on the latest
technology and Highnoon is well equipped with latest machinery for the production of anti-biotic
products. This machinery recently has been imported from Germany and France. Research and
development has been geared up in Highnoon to introduce new products and to increase the
market share.
Procurement
In order to have good relation with their suppliers, Highnoon has made their suppliers as
business partners. Following are the suppliers from where Highnoon purchases the raw materials.
Solvay Pharmaceuticals (Germany)
Mitsubishi Tanabe Pharma Corporation (Japan)
Chugai Pharmaceuticals Co., Ltd (Japan)
Laboratories Almirall, S.A (Spain)
Bouchara Recordati (France)
` Yes/ No How Highnoon does create value for its customers?
Primary
Inbound logistics Yes Highnoon is currently purchasing the best raw materials
from the best pharma product suppliers in the world.
Operations Yes Highnoon is equipped with latest production units which
help it to efficient production development and timely new
HIGHNOON LABORATORIES 5
launches.
Outbound Logistics No Highnoon is not well equipped with distribution.
Marketing and Sales No Because of the poor distribution, their marketing activities
are also disturbed.
Services Yes Highnoon is facilitating their customers with after sale
services.
Support
Procurement Yes Highnoon is purchasing from the well known companies
all around the world.
Technology yes Highnoon is equipped with the latest technology and
efficient research and development.
Human resource
Management
Yes Intellectual capital is the main resource of Highnoon
competitive edge.
General
Administration
Yes Highnoon management is working effectively to manage
all the activities in order to create value for their customers.
HIGHNOON LABORATORIES 6
Inbound
LogisticsIn
boun
d
Log
isti
csO
pera
tion
s
Out
boun
d
Log
isti
cs
Mar
keti
ng
and
Sal
es
Ser
vice
s
Pro
cure
men
t
Tec
hnol
ogy
Hum
an R
esou
rce
Man
agem
ent
Gen
eral
Adm
inis
trat
ion
Operations Yes No Yes No No Yes Yes Yes Yes
Outbound
Logistics
No Yes No Yes No No Yes Yes Yes
Marketing and
Sales
No Yes Yes No Yes No No Yes Yes
Services No No Yes Yes No No No Yes Yes
Procurement Yes Yes No No No No No No Yes
Technology Yes Yes Yes No Yes No No Yes Yes
Human
Resource
Management
No Yes Yes Yes Yes No No No Yes
General
Administration
Yes Yes Yes Yes Yes Yes Yes Yes No
HIGHNOON LABORATORIES 7
Resource/
Activity
Is it Valuable? Is it Rare? Are there few
Substitutes?
Is it Difficult to
make?
In bound
Logistics
Yes No No No
Operations Yes No Yes Yes
Outbound
Logistics
Yes No No Yes
Marketing and
Sales
Yes No No Yes
Service Yes No No Yes
Procurement Yes No Yes No
Technology Yes Yes No Yes
Human Resource
Management
Yes Yes No Yes
General
Administration
Yes No No Yes
HIGHNOON LABORATORIES 8
Resources of HIGHNOON
Following are the resources that give HIGHNOON a competitive edge over their competitors;
Efficient Production Process
Human Resource
Highly Efficient R&D
Due to the above mentioned resources, HIGHNOON are enjoying a competitive edge over their
competitors. The competitive edge is that they are having differentiation products that are being
sold at high prices in the market.
For Example:
Loprin
Lipirex
Blokium
Xyilin
Cidine
Colofac
Duphaston
These above mentioned medicine are formulas that other companies also have and producing the
same formula products under different names but Highnoon is differentiating them by having
higher prices in these medicines and they are successful in doing so. The prices of these types of
products of Highnoon are 3 to 4 Rs. Higher than competitors.
HIGHNOON LABORATORIES 9
Highnoon is creating competitive edge with patents rights of more than 5 formulas, which they
have acquired with extensive Research and Development. These formulas are under patent and
copyrights of Highnoon so no other pharma company can produce medicines from these
formulas. These formulas are the resources from which Highnoon is making itself different from
other market players. Highnoon is also creating differentiation by having higher prices than its
competitors and customers are willing to buy at given prices.
Example
Compivair
Taivor cap + Taivor F
Revolizer spacer
Artrodar
Ratio Analysis (2009-2010)
Short-Term Solvency or Liquidity Ratios
a) Current Ratio = Current Assets/Current Liabilities
= 866,886,416/640,403,587
= 1.35 Times
If it is less than 1.90 then it is dangerous for the company and if it is above 2.10 then it is in-
efficiency of the company. In this case current ratio is 1.35 which shows that company is in a
dangerous position.
HIGHNOON LABORATORIES 10
b) Quick Ratio = Current Assets – Inventory/Current Liabilities
= 866,886,416-640,844,633/640,403,587
= 0.35 Times
Industry average for this ratio is 1.20 so that is not good for the company because it is low then
the industry average.
Long-Term Solvency or Financial Leverage Ratios
a) Total Debt Ratio = Total Assets – Total equity/Total Assets
= 1,740,968,895-188,475,264/1,740,968,895
= 0.90 Times
Industry average for this ratio is 0.90 so the ratio for the company is good because it is according
to the industry average.
b) Debt Ratio = Total Debt/Total Assets
= 1,028,359,762/1,740,968,895
=60 %
This ratio shows the risk factor of the business, if it is between 40%-60%, then it is reasonable.
In this case debt equity ratio for the company is 60% so it is reasonable for the company.
c) Time Interest Earned Ratio = EBIT/Interest
= 105,580,358/89,424,804
= 1.180 Times
HIGHNOON LABORATORIES 11
This ratio shows that how many times the firm can pay interest. Industry average for this ratio is
6 times and in this case it is 1.180 so it is below industry average.
Asset Utilization or Turnover Ratios
a) Inventory Turnover = CGS/Inventory
= 1,732,983,015/640,844,633
= 2.70 Times
This ratio shows that how many times we sell our inventory in a year. Industry average is 9
times, but for it is 2.70 which is below the industry average.
b) Receivable Turnover = Sales/ Account Receivables
= 2,636,538,261/195,710,292
= 13.48 Times
This ratio shows that how many receivables we have in a year, the low is better. It is high so it
needs to be minimized.
c) Total Asset turnover = Sales/Total Asset
= 2,636,538,261/1,740,968,895
= 1.52 Times
This ratio shows that using total assets, how much sales we managed in a year. Industry average
is 1.8 times and for the company it is 1.52 times, so it needs to be improved.
HIGHNOON LABORATORIES 12
d) Capital Intensity = Total Asset/Sales
= 1,740,968,895/2,636,538,261
= 0.66 Times
Profitability Ratios
a) Profit Margin = Net Income/Sales
= 70,343,964/2,636,538,261
= 2.67%
This ratio shows that if we make a sale of 1$, how much in this 1$ is our profit. Industry average
is 5% and in this case it is 2.67% which is very below as compare to industry average.
b) Return on Asset = Net Income/Total Asset
= 70,343,964/1,740,968,895
= 4.04%
This ratio shows that how many returns we can gain by engaging the total assets. Industry
average is 9.0% and for the firm it is 4.04% which is below then the industry average.
c) Return on Equity = Net Income/Equity
= 70,343,964/712,609,133
= 9.88%
In this ratio we do not check performance, we check benefits. Industry average is 15.0% and for
the company it is 9.88% which is below then the industry average.
HIGHNOON LABORATORIES 13
Du Pont Equation:
ROE = (Profit Margin) (Total Assets Turnover) (Equity Multiplier)
= (Net Income/Sales) (Sales/Total Assets) (Total Assets/Common Equity)
= (70,343,964/2,636,538,261) (2,636,538,261/1,740,968,895) (1,740,968,895/712,609,133)
= 9.88%
Strengths & Weaknesses of Highnoon
Ratios Amounts Industry Average
Comments
Current Ratio 1.35 1.90 - 2.10 Poor
Quick Ratio 0.35 1.20 Poor
Total Debt Ratio
0.90 1.00 OK
Debt Ratio 60% 40% - 60% Good
Times Interest Earned
1.180 6.0 Poor
Inventory Turnover
2.70 9.0 Poor
Receivables Turnover
13.48 36 Days Poor
Total Assets Turnover
1.52 1.8 Somewhat Low
Capital Intensity
0.66 Good
Profit Margin 2.67% 5.0% Poor
Return On Assets
4.04% 9.0% Poor
Return On Equity
9.88% 15.0% Poor
Du Pont 9.88% 15.0% Poor
HIGHNOON LABORATORIES 14
Following are the strengths and weaknesses of Highnoon:
Strengths:
• Providing high quality products
• Efficient capacity management
• Patent & copy rights
• Human resource
• Continuous improvement
• Financial stability
Weaknesses:
• Providing high quality products
• Efficient capacity management
• Patent & copy rights
• Human resource
• Continuous improvement
• Financial stability
IFE Matrix of HIGHNOON
HIGHNOON LABORATORIES 15
Internal Strengths Weight Ratings Weighted Score
1. Providing high quality products 0.2 4 0.8
2. Efficient capacity management 0.1 4 0.4
3. Patent and copy rights 0.1 3 0.3
4. Human resource 0.1 4 0.1
5. Continuous improvement 0.1 4 0.4
Internal Weakness
1. Distribution channel 0.1 2 0.20
2. Shortage of space 0.05 2 0.01
3. Utilization of funds 0.05 2 0.01
4. Lack of variety of products 0.05 2 0.01
5. Internal control system 0.15 2 0.30
Total Weighted Score 1.00 3.10
Result: Total weighted score value is 3.1 which mean company internal position is Good
Strategic Group Mapping
HIGHNOON LABORATORIES 16
Strategic group mapping categorizes industry competitors into meaningful groups based on at
least two strategic variables. The size of circle shows the market share of companies lying in that
circle. Close competitors fall in same circle. Circles which are close to each other are also close
competitors. These companies have the following characteristics
• Profit potential is same for all the companies lying in the same circle and those who belongs
to the close circle.
• Driving forces are also almost the same for these companies.
• They are also close competitors.
Product Range & Product Quality
HIGHNOON laboratory is providing high quality products and moderate product range that’s
why it is close to CCL and SPL. SPL is offering high quality with low product range while CCL
is offering high product quality with high product range.
Brand Image & Distribution Channel
HIGHNOON LABORATORIES 17
HIGHNOON laboratory has moderate distribution channel along with high brand image. CCL
and SPL are its close competitors having moderate and low distribution channel respectively.
Both CCL and SPL have high brand image as of HIGHNOON laboratory.
Global Expansion & Market Penetration
HIGHNOON Laboratory and CCL highly focusing on market penetration along with moderate
focus on global expansion. SPL has moderate focus on market penetration and global.
HIGHNOON LABORATORIES 18
COMPETITIVE PROFILE MATRIX (CPM)
Competitive profile matrix is an essential strategic management tool to compare the firm with the
major players of the industry. Competitive profile matrix shows the clear picture to the firm
about their strong points and weak points relative to their competitors. The CPM score is
measured on basis of critical success factors, each factor is measured in same scale mean the
weight remain same for every firm only rating varies. The best thing about CPM that it includes
your firm and also facilitates to add other competitors make easier the comparative analysis.
CPM includes both internal and external factors to evaluate overall position of the firm with
respective to their major competitors. We have taken Searle Pakistan Ltd and CCL as a
competitor of HIGHNOON laboratories on the basis of strategic group mapping.
VERTICAL ANALYSIS
This figure shows that CCL is responding more to the mentioned critical success factors as
compare to HIGHNOON Laboratories and Searle Pakistan Ltd. So far as HIGHNOON
HIGHNOON LABORATORIES 19
laboratory is responding more to these success factors as compare with Searle Pakistan Ltd. So,
HIGHNOON laboratories avail a strong position in its competitors.
HORIZONTAL ANALYSIS
So far as each critical success factor is concern the response and position of these three
companies is as follows:
Product Availability
Weighted Score of HIGHNOON laboratories and CCL are 0.45 which is more than the weighted
score of Searle Pakistan Ltd. So, the distribution channel of HIGHNOON laboratory and SPL is
more competitive than SPL resulting in better product availability.
Product Quality & Brand Image
CCL, HIGHNOON Laboratories, and SPL are maintaining product quality in same passion. As
they are close competitors of each other they have same brand image.
Product Range
With reference to product range CCL bears strong position as compare with HIGHNOON
laboratory and HIGHNOON laboratory is having strong position as compare with SPL.
Product Development
HIGHNOON laboratories and CCL are more competitive and insuring efficient product
development.
HIGHNOON LABORATORIES 20
Global Expansion
CCL and SPL are more competitive than HIGHNOON laboratories in global expansion.
HIGHNOON is a local company involved in exports on moderate level.
Customer Loyalty
All of these three companies have equally loyal customers according to our analysis.
Market Penetration
HIGHNOON
LABORTORIES
SEARLE
PAKISTAN
CCL
Critical Success Factors
Weights Rating Weighted Scores
Rating Weighted Scores
Rating Weighted Scores
Product
Availability
0.15 3 0.45 2 0.30 3 0.45
Product
Quality
0.20 4 0.80 4 0.80 4 0.80
Brand Image 0.05 4 0.20 4 0.20 4 0.20
Product
Range
0.10 3 0.30 2 0.20 4 0.40
Product
Development
0.15 3 0.45 2 0.30 3 0.45
Global 0.10 2 0.20 3 0.30 3 0.30
HIGHNOON LABORATORIES 21
Expansion
Customer
Loyalty
0.15 4 0.60 4 0.60 4 0.60
Market
Penetration
0.10 3 0.30 2 0.20 4 0.40
Total 1.00 3.30 2.90 3.60
CCL has the ability to penetrate into the market where as HIGHNOON laboratory and SPL is
still trying to penetrate into the market.
CPM Matrix
By this CPM we can conclude that CCL is responding more to the critical success factors as
compare to Searle Pakistan and HIGHNOON. HIGHNOON is responding more to the critical
success factors as compare to Searle Pakistan so it has strong position it its competitors.
Generic Strategies of Firms
Highnoon:
Highnoon was incorporated in 1984 in the historical and culturally rich city of Lahore called the
heart of Pakistan. It took initiative with a culture of commitment, competitiveness and distinction
in every area of its operations. So far as its strategic alliance is concerned it is trend setter and
leading company in the industry right from its initiation up till now. The organizational structure
allows the employees the freedom, which is necessary to further initiative and creativity.
Employees can take appropriate decisions and implement these with conviction. This approach
has enabled Highnoon to bring forth world-class capabilities in marketing and sales.
HIGHNOON LABORATORIES 22
Following are the strategies on which Highnoon focuses:
Efficient Production Process
Human Resource
Highly Efficient R&D
HIGHNOON LABORATORIES 23
Generic Strategy of HIGHNOON:
Highnoon is using the differentiation strategy because they are selling the same formula products
at high price in the market; moreover they are having few products on which they have patent
and copyrights. These medicines cannot be copied by the other market players. It is giving a
differentiation advantage over their competitors.
Searle Pakistan Limited:
Searle Pakistan Limited (SPL) was incorporated in Pakistan as a Private Limited Company on
October 5, 1965 as a subsidiary of G.D. Searle & Co., U.S.A. In 1966, Searle Pakistan (Private)
Limited acquired a small manufacturing facility in S.I.T.E. and production of Aldactone,
Lomotil, Diodoquin, Ovulen, Neomycin Sulphate, Probanthine and Hydryllin, etc. started there.
Over the years the operation expanded and during 1984 construction of a new factory started.
During mid 1986 manufacturing operations of high quality pharmaceutical products commenced
at this newly built factory at Plot # F-319, S.I.T.E. Area, Karachi, measuring 5.24 acres.
Following are the strategies on which Searle Pakistan is focusing:
Quality of products
New methods of cost cutting
New technologies
HIGHNOON LABORATORIES 24
Generic strategy of Searle Pakistan:
Searle Pakistan is using overall cost leadership strategy in the production process by introducing
cost cutting measures and as a result they are having a competitive advantage over their
competitors by introducing low cost products in the market.
CCL Pharmaceuticals:
CCL was formed in 1965 by a renowned physician, Dr. Dilawar Hussain and his sons. In 1970,
Pulmonol cough syrup was launched, which turned out to be an instant success and grew to
become the flagship of the company. Many a times, Pulmonol has had the honor of being the
best selling cough syrup in the country, and proved a vital source of paving way for the company
heavy expenditure on research & development of innovative and novel new products.
Collective Responsibility & Integrity
Participative Management
Ongoing Interpersonal Communication
Mentoring and nurturing other colleagues
Continuous Improvement
Generic strategy of CCL Pharmaceuticals:
CCL pharmaceuticals are using differentiation strategy. They are differentiating themselves on
the basis of their distribution channel. CCL have a strong marketing and sales force of more than
300 people with a reach of more than three hundred territories covering literally every nook and
HIGHNOON LABORATORIES 25
corner of the country. Their sale force visits more than 50,000 doctors and their medicines are
present at more than 50,000 pharmacies nationwide. This reach, depth and strong presence make
it a very strong player in the local pharmaceutical arena.
Generic Strategy and Five Forces Model
The generic strategy that is used by Highnoon is “differentiation”. Highnoon is differentiating
itself on the bases of product range and product quality. It is having a very efficient research and
development department which helps it for making the new products. Highnoon also deals with
its suppliers as business partners so they together are also researching on making the new
products so that they can serve the humanity in the better way. This strategy is helping the
Highnoon that they are selling their products at higher prices as compare to their competitors.
This strategy is also helping the Highnoon to fifth against the five forces model.
HIGHNOON LABORATORIES 26
Bargaining power of Buyer:
Bargaining power of buyers is at moderate level. It is very sensitive to switch from one product
to another because it is a life concern so customers cannot switch easily from one reliable
product to the other. On the other hand there are many pharmaceutical companies offering a wide
range of products. So, the bargaining power of customers is at moderate level.
As Highnoon is manly focusing on their research and development, this will help the firm to
introduce more products that are not manufactured by other competitors. After having patents
and copyrights on new formulas, Highnoon will be the only producer of those products. This will
decrease the bargaining power of buyer for Highnoon.
Bargaining power of Supplier:
Bargaining power of Supplier is high. Suppliers of pharmaceutical industry of Pakistan are the
originators and large research based companies located in developed countries. They are a few in
numbers as compared with pharmaceutical companies in Pakistan. Therefore they have strong
bargaining power with them.
Highnoon has made their suppliers as their business partners. They are having good relationships
with their suppliers. As there are few suppliers available in the market so when a company
makes the supplier as their business partners, they work on win-win bases. This will help to
reduce the bargaining power of suppliers.
HIGHNOON LABORATORIES 27
Intensity of Rivalry:
Rivalry is at moderate level. So far as industry analysis is concerned it implies that rivalry among
existing firms in pharmaceutical industry is almost at moderate level. Pharmaceutical companies
are competing on the basis of quality, cost, product range and research and development.
The most successful firm in pharma industry is that is giving differentiated products to the
customers. Highnoon is spending a lot on their research and development, they do not want the
new firms to entre in the market, and they are trying to fill the gaps that are not filled by other
companies. It will help to reduce the rivalry in the industry. When the gaps will be filled, no one
will be willing to entre in the pharma industry.
Threat of New Entrants:
Threat of new entrant is at moderate level. Pharmaceutical industry of Pakistan is growing
rapidly and there is still significant potential for growth. There are chances of some new entrants
but this threat is at moderate level. It is not easy to establish a new pharmaceutical company in
Pakistan due to requirement of huge investment.
Threat of new entrants can be minimized if all the gaps are filled by current market players. All
the companies in the industry want to fill gap that are not still fulfilled. It will help to reduce the
threat of new entrants.
Threat of Substitute:
HIGHNOON LABORATORIES 28
Research and development are the essence of pharmaceutical industry. Every pharmaceutical
company in Pakistan is making efforts for the betterment of their research and development
department. Still there is a significant threat of substitute products because of rising discoveries
and pacing research and development in the whole world.
By introducing new products, Highnoon is continuously trying to reduce the threat of substitute
products.
Product Life Cycle of Pharma Industry
Product life cycle describes that at what stage currently the industry lies. Either its on
Introduction stage or Growth or Maturity or at the ending stage of Decline, Pharmaceutical
industry in Pakistan is at a growth stage. This trend is not only in Pakistan but worldwide its on a
growth stage. New product developments are taking place and continue Researches are done on
finding ways to cure the diseases.
HIGHNOON LABORATORIES 29
If we see the growth trends in the past 5 years of Pakistan we can clearly see that industry growth is
increasing from 8.67 % in 2009 to 9.39 % and its still growing at a steady pace. New companies are
trying to enter in the market and new research and developments are made by companies to gain the
patent rights.
Typical Product Life cycle in Pharmaceutical Industry
The typical product of a pharma industry goes under following steps:
Drug Discovery
Lead Optimization
Drug Development
Manufacturing & Supply Chain
Marketing, Sales and Distribution
HIGHNOON LABORATORIES 30
Drug Discovery
The first step in the typical product life cycle in a pharmaceutical industry is of the drug
discovery. Drug discovery refers to the idea of the drug which arises when a new disease is
found or new developments are done to the previously discovered diseases.
Lead Optimization
A complex process of refining the chemical structure of a hit to improve its drug characteristics,
with the goal of producing a pre-clinical drug candidate. The synthetic modification of a
biologically active compound, to fulfill all stereoelectronic, physicochemical, pharmacokinetic
and toxicological required for clinical usefulness
Drug development
HIGHNOON LABORATORIES 31
Once the lead optimization is done next PLC step is to actually develop the new drug. This phase
is very critical and the testing of the product is done in this phase. This phase is mostly
completed in 6 to 7 years and lots of experiments and testing are done before the manufacturing.
Manufacturing and Supply chain
After the initial testing and experiments the Manufacturing process begins. Raw materials are
processed and developed in to the final form of the medicine. Finished products are then
distributed in the market. This phase comprises of almost 8 to 9 years.
Marketing Sales and Distribution
After the initial production of the medicine a single drug can be marketed. This advertisement is
to make sure that the formula is now available in the market. This process is more of more than
10 years.
Conclusion & Recommendations
High Noon Laboratories Pakistan Ltd is currently working fine under a very tough situation in
Pakistan. Company is trying to follow the market leaders and trying to tackle other big
Multinational companies in the scene. Company Management is working effectively to maintain
a proper position in the market, with high concentration on their research and development and
their distribution channel. Company was established in the mid 1980’s and has established itself
HIGHNOON LABORATORIES 32
as one of the leading manufacturers of pharmacy products. Company was ranked as # 17 in the
Pakistani Pharmaceutical market.
Pharmaceutical industry is currently in the growth stage. From recent five years Government of
Pakistan is focusing on pharma industry and providing them incentives because its contribution
to GDP has been grown above from 1% to 4.8%. The Government has also minimized the
import duties on chemicals from 25% to 5 % and on 10 type of chemicals, the duties have been
completely eliminated.
But there are many things that are not being done properly by the company and that need a lot of
attention by the company management. Company is currently not completely fulfilling its
mission statement and objectives of providing welfare to the customers.
In their Mission statement they have mentioned that they are working for the betterment of the
humanity but if we look at the statistics we come to know that they are only spending 1 % of
their net profit on research and development which is for a pharmaceutical company is very low.
If they really want to serve the humanity in a better way they have to spend a lot on the research
and development so they can find new cures to those diseases that are still unburnable.
Highnoon is currently not focusing on a single product, so we recommend them to adopt the
product development strategy for further enhancement and betterment in existing products or
developing new products so that the sales can be boosted up. This will be beneficial for all the
stakeholders and also for the overall situation of the company. They are using resource based
model by focusing on core competencies that are considerably valuable, rare, costly to imitate
and well organized.
HIGHNOON LABORATORIES 33
If we also have a look at financial part of the Highnoon, we can conclude that Highnoon needs to
improve their financial situations. Their all ratios are below the industry average. The main focus
of the Highnoon is to improve their asset turnover ratio, return on equity and return on assets
ratio. Improvement in these ratios will show that firm is using their equity and assets at full
capacity.