Development of a business plan for Small and Medium Enterprise pharmaceutical company in India

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ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for the academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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ABSTRACT

India has a thriving pharmaceutical industry. From 1970 to 1994, the Indian pharmaceutical industry grew from a value of $738 million (1994 US dollars) to $1.5 billion (1994 US dollars).L This growth is attributable to two key factors. First, India's industrial policy since the 1970's has been crucial for the expansion of this industry. Second, Indian pharmaceutical firms have successfully developed low-cost techniques, which give them a competitive edge in the international market. The population of India has made India into a market with huge potential in every field. We had developed a business plan for the opening of a small and medium Pharmaceutical firm in India. We had seen that the market of India is very good and attractive in terms of expected growth and business risk.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

LIST OF TABLES AND FIGURESVII

CHAPTER 1: INTRODUCTION1

1.1 Introduction1

1.2 Background2

1.3 Strategic objectives2

1.4 Rationale of the project3

CHAPTER 2: LITERATURE REVIEW4

2.1 Investing in Emerging Economies4

2.2 PEST Analysis6

2.3 Introduction to Indian Pharmaceutical industry6

2.4 Corporate identity and corporate branding8

2.5 Corporate associations with respect to the pharmaceutical industry9

2.6 Social media marketing in pharmaceutical industry9

2.6.1 Definition of social media11

2.6.2 Evolution of social media within the physician/HCP community12

2.6.3 Evolution of social media within patient communities15

2.6.4 Social media versus conventional media in healthcare today17

CHAPTER 3: METHODOLOGY18

3.1 Rationale for a Qualitative Study19

3.2 Research design20

3.3 Justification of secondary research method20

3.4 Criteria for searching literature21

3.5 Keywords21

3.6 Critical Appraisal tool21

3.7 Ethical Considerations21

3.8 Literature Search23

3.9 Inclusion and exclusion criteria23

3.10 Research Questions24

3.11 Justifying the Research Question24

CHAPTER 4: DEVELOPMENT OF A BUSINESS PLAN FOR PHARMACEUTICAL COMPANY26

4.1 Company Overview26

4.1.1 Legal Business Description26

4.1.2 Legal Form of Business26

4.1.3 Vision26

4.1.4 Mission Statement27

4.2 Management Team28

4.2.1 President and Chief Executive Officer (CEO)28

4.2.2 Chief Scientific Officer (CSO)28

4.2.3 Chief Financial Officer (CFO)29

4.3 Outside Support29

4.3.1 Board of Directors29

4.3.2 Scientific Advisory Board29

4.3.3 Contract Research Organizations30

4.3.4 Personnel and salary plan30

4.4 Marketing plan31

4.4.1 Customer Profile31

4.4.2 Competition31

4.4.3 Marketing Mix31

4.4.4 Marketing activities32

4.5 India pharmaceutical Industry36

4.5.1 Market definition36

4.5.2 Market analysis37

4.5.3 Market Value37

4.6 Technological analysis of India40

4.6.1 Current strengths40

4.6.2 Current challenges41

4.6.3 Future prospects42

4.6.7 Future risks42

4.7 Cultural analysis of India44

4.8 Porter five forces analysis of India Pharmaceutical Industry45

4.8.1 Summary45

4.8.2 Buyer power47

4.8.3 Supplier power48

4.8.4 New entrants49

4.8. 5 Substitutes50

4.8.6 Rivalry51

4.9 Forecast for Indian Pharmaceutical market52

4.10 Financial analysis and planning53

4.10.1 India Business Environment Outlook53

4.10.2 Business risk analysis in India54

4.10.3 Laws and Regulations governing Indian Pharmaceuticals56

4.10.4 Start up Costs57

4.10.5 Break even analysis59

4.10.6 Sales forecast60

CHAPTER 5: SUMMARY AND CONCLUSIONS61

REFERENCES65

APPENDICES74

Appendix A74

Appendix B: Financial statements75

Pro-forma Balance sheet75

Pro-forma Income Statement77

LIST OF TABLES AND FIGURES

FIGURE 1: WORLDWIDE FACEBOOK USERS (DATAMONITOR)34

FIGURE 2: WORLDWIDE TWITTER USERS36

FIGURE 3: INDIAN PHARMACEUTICALS MARKET VALUE (BILLION $'S)40

FIGURE ...