Business Plan of a Pharmaceutical Factory
Palestine Corporation for pharmaceutical industry
Mission Statement
• To improve continually our product and services to meet customer’s needs, allowing us to prosper as a business and to provide a reasonable return for our stockholders.
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Vision Statement
• Expand the production volume to cover west bank and the Middle East countries and produce all types of medicines.
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Goals and Objectives
• • • Long-term: To become an international corporation. Medium: To improve quality and serviceability. Short-term: accepted price with fair quality.
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The Organizational Structure
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Market Summary
- Current Situation
• The competition is confined locally between five companies
Local Medical Production
7% 12% 14%
11%
29%
Berzeit Company Al Quds Company
The Chemical Factory
Al Sharkeya Company 27% Dar Al Shifa Other companies
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Market Summary
- Demand
Average Need
Flagyne Acamol Aspirin
Aspirin, 4.8M
Flagyne, 6M
Acamol, 7.2M
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Market Summary
- Supply
Items Flagyne Average production 4.32M tablet / year.
Acamol
Aspirin
4.32M tablet / year
2.88 M tablet /year
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Market Strategy
Product
• Flagyne • Acamol • Aspirin
Place
Bait-Hanoun on the eastern way because of: • Availability of water, electrical, and communications networks. • Far from population. • Easy accessibility and transportation • Low land cost. • The possibility of future expansion
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Market Strategy
Price
The suitable pricing system is price per strip or price per batch.
strip
Number of strips per batch Price of one batch
$0.520
12,000 $6,240
Promotion • Sales Representatives • The distribution of free samples of the product to pharmacies and hospitals. • Using many types of advertisement such as “TV, Radio, billboard “
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Business Concept
Raw Material • • • • • Active ingredient Inactive ingredient. Additives (Corn starch ,water , fillers “diluents” ) Binding ,Flavor, coloring agents Lubricant (hydrogenated vegetable oil, stearic acid)
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Business Concept
Manufacturing Processes
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Business Concept
Quality Control • All machinery is sterilized before beginning the production process to ensure that the product is not contaminated • Performing periodic checks ( Humidity , Thickness ,Hardness, disintegration test and physical inspection) .
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Layout Design
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Business Concept
Machines
Digital Weighing balance
Mixer Granulator
Tray dryer
Miller
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Business Concept
Machines (cont.)
Blender
Tablet press
Coating
Blistering
Packaging
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Resource Requirements
Equipment • Two manual forklifts • Electric Generator, 3-phase transformer, Filters, Electric Forklift. • Machines • Three cars Personnel
• Manger , Accountant , Secretary , Stock keeper , Technician, Industrial engineer , Chemical engineer , Production engineer , Pharmacist, Cleaners and Two Guarder
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Financial Plan
Capital Investment
Items
Land Factory building Three cars
China
$150,000 $250,000 $45,000 $358,750 $1,500 $20,000 $15,000 $40,000 $65,000
Germany
$150,000 $300,000 $45,000 $1,076,250 $1,500 $20,000 $15,000 $40,000 $65,000
Machines
Two Manual Forklift and carts Furniture Labs Safety and Sterilization system Electric Generator ,3-phase transformer, Filters, Electric Forklift.
Total
$945,250
$1,712,750
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Financial Plan
Expenses
Items
Electricity Telephone Fuel Over head cost Insurances (1% capital Investment) Taxes(16%) Raw material
China
$12,000 $4,800 $10,800 $10,000 $9,453 $19,409 $79,872 $49,920
Germany
$12,000 $4,800 $10,800 $10,000 $17,128 $45,021 $109,056 $81,792 $138,000
Annual Preventive maintenance Salaries
$138,000
Total
$334,253
$428,597
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Financial Plan
Revenues
Years Production Price / (batch) batch China 80 83 86 $6,240* $6,240 $6,240 China Price / batch Germany $8,520* $8,520 $8,520 Germany 1 2 3
$499,200
$519,168 $539,136 $559,104 $579,072 $599,040
$681,600
$708,864 $736,128 $763,392 $790,656 $817,920
4
5 6 7 8 9 10
90
93 96 99 102 106 109
$6,240
$6,240 $6,240 $6,240 $6,240 $6,240 $6,240
$8,520
$8,520 $8,520 $8,520 $8,520 $8,520 $8,520
$619,008
$638,976 $658,944 $678,912
$845,184
$872,448 $899,712 $926,976
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Financial Plan
Summary of Calculations
Contents
Capital investment ($) Annual Average Production (batch) Annual Expenses Annual Revenues($) Study period (Year) MARR% Ө(PBP)(year) IRR% PWMARR% AWMARR% FWMARR% Selecting Alterative
China
$945,250 80 then increase by 4% $334,253 $499,200 then increase by 4% 10 10% 4.677 20.81% $ 571,054 $ 92,936 $ 6,384,637 Yes
Germany
$ 1,712,750 80 then increase by 4% $428,597 $681,600 then increase by 4% 10 10% 5.45 15.89% $541,144 $88,069 $ 10,288,453 22
SWOT Analysis
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Recommendations
• Support the medical sector in Palestine.
• Produce all types of medicines.
• Subcontracting with foreigner experts. • Expand the production rate to cover Palestine demand.
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Any Question?
Thanks