PRINCIPLES OF

MANAGEMENT
VEGA
PHARMACEUTICALS
 HISTORY
VEGA Pharmaceuticals (Pvt.) Ltd.
Pharma City, 30 km Multan road,
Lahore, Pakistan

―July 2004
―Main area of operation: Ophthalmic,
establishing Pharma now
―VEGA – 5th brightest star
 MISSION STATEMENT
“ WE ENDEAVOUR TO MAKE SOCIETY HEALTHY, BY PROVIDING
QUALITY PRODUCTS AT AFFORDABLE PRICES, OUR CORE
STRENGTH IS A DYNAMIC, INNOVATIVE AND EXPERIENCED TEAM,
WHICH ANTICIPATES AND RESPONDS TO CHALLENGES TO
CREATE A DIFFERENCE.”

Major elements of Vega’s mission statement

― Concern for public image
― Product and services
― Customers
― Technology
― Concern for employees
 VISION
“To be among the top
Pakistani pharmaceutical
companies & then go
international”
EXTERNAL
ENVIRONMENT
MEGA ENVIRONMENT
§I n t e r n a t i o n a l e l e m e n t
§L e g a l p o l i t i c a l e l e m e n t
§Te c h n o l o g i c a l e l e m e n t
§E c o n o m i c e l e m e n t
§S o c i o c u l t u r e e l e m e n t
TA S K E N V I R O N M E N T
§C u s t o m e r a n d c l i e n t s
§C o m p e t i t o r s
INTERNAL
ENVIRONMENT
Organizational Culture
GOAL
S
STRATEGIC GOALS
―Product expansion

―Increasing market share

―IMS report of 2007

―To go international after its achievement

of major market.
TA C T IC A L
Target Zonal Revenue
PKR 4.5 million
O P E R AT I O N A L
Never been out of stock
ROLE OF COMPETITIVE
ANALYSIS IN STRATEGY
FORMULATION
―ENVIRONMENTAL
ASSESSMENT
―ORGANIZATIONAL
ENVIRONMENTAL
ASSESSMENT
―Porters five competitive forces model
―Rivalry: 25-30 competitors
―Bargaining power of customers
―Bargaining power of suppliers: foreign
suppliers
―Threat of new entrants: ministry-
ORGANIZATIONAL
ASSESMENT
―SWOT ANALYSIS
―Strength: IMS figures, experienced team, healthy
m arket share
―Weakness : infant company, limited financial
resources, reliance on foreign suppliers for raw
materials
―Opportunity : ministry has created barriers to
entry: price flooring, ceiling, patent laws
―Threat : infant among multinational giants

―BCG GROWTH-SHARE MATRIX

Business Level
Strategy
Differentiation Strategy

―Strong market abilities

―Experienced team
―strong public relations
―co-operation from distributors
( channels)
Functional Level
Strategy
―Play a significant role in
supporting business-level strategy

―sales representatives designated

different areas
―R&D engaged in innovation
process
―Marketing department
Organizational
Structure
―JOB DESIGN
―Work Specialization
―Job Rotation
―DEPARTMENTALIZATION
―VERTICAL COORDINATION
―Degree Of Formalization
―Span Of Control
―CENTRALISATION Versus
DECENTRALISATION
―HORIZONTAL COORDINATION
ORGANIZATIONAL CHART

FUNCTIONAL STRUCTURE
CROSS FUNCTIONAL
CONFLICTS
 HUMAN RESOURCE
MANAGEMENT
All activities related to managing the
human asset of the company e.g.
attracting, maintaining and developing
people in the employment relationship.
Vega pharmaceutical has an effective
HRM department. With HRM director, 2
managers and 4 assistant managers.
The managers along with the assistant
managers are responsible for
requirement, planning, training ,
development, motivation of the
Motivational Methods
used by VEGA
―Mobile phones with connections
& bills paid for
―Bikes, cars, paid fuel
expenditures
―Flexible work schedules at the
office
LEADERSHIP
TRANFORMATIONAL
Communication
Process
 verbal and non-verbal communication
―Email
―Conference calls
―Memos
―Sms
―Letters
―Manuals
―Newsletters
―Brouchers
―In-person meetings
CONTROL MECHANISM

VEGA Pharmaceuticals has adopted an

orthodox and professional approach as
far as the control process is concerned,
they carry out forecasting exercises
looking in the future (future planning),
stating what it wants to happen,
observing the existing market forces,
comparing the actual results with the
planned objectives and then
investigating causes of any difference
and further deciding how to achieve their
RE C OM ME ND AT I
ON S