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.