Evaluating the Financial Performance Through ‘Consumer Centric Decision’ Approach in Pharmaceutical Companies of Bangladesh: A Business Planning Perspective

European Journal of Economics and Business Studies, 9(1), 2017

16 Pages Posted: 26 Aug 2018

See all articles by Md Mostafizur Rahman

Md Mostafizur Rahman

Macquarie University, Faculty of Arts, Department of Sociology; Urban and Rural Planning Discipline, Khulna University

Mahmud Uz Zaman

Khulna University

Sabiha Afroz

Social Development and Communication Organization (SDCO)

Date Written: September 1, 2017

Abstract

Pharmaceuticals agglomerations consistently use their brand image and versatile product portfolios to consolidate their position in the financial sector, which is evident in their continuous profit making and expansion in market share. This paper explores the short-term and long-term investment attractiveness through ‘consumer centric decision’ approach in two selected pharmaceutical companies, Renata Limited and Orion Pharma Limited, of Bangladesh over the last three years’ period. This research adopts a systematic approach which primarily addresses the various concerns of investors to illustrate the decision-making process of the existing and future investors. Using primarily domestic transaction data, this study explores how the leading pharmaceuticals companies of Bangladesh effectively use the wide array of drug portfolios mix with appropriate branding techniques to increase their financial profit and market share simultaneously. Both SWOT analysis and Porters Five Forces Model explore the business analysis of Renata Limited in compare to Orion Pharma Limited that provides a conclusion regarding investors’ decision to invest in Renata Limited. Considering the financial analysis, Renata’s financial liquidity is not very satisfactory and could have been improved further if management is prudent on financial strategy settings. Findings of the business analysis indicate that Renata Limited would be a good investment choice for existing and prospective shareholders based on its opportunities for long term and short term growth and further expansion in developing the market. The results suggest that even lower liquidity coupled with higher interest borrowings can be balanced by posing positive picture to the public shareholders by returning the positive dividend to them.

Keywords: Financial Performance, Consumer Centric Decision Approach, Business Planning

JEL Classification: R51

Suggested Citation

Rahman, Md Mostafizur and Zaman, Mahmud Uz and Pritha, Sabiha Afroz, Evaluating the Financial Performance Through ‘Consumer Centric Decision’ Approach in Pharmaceutical Companies of Bangladesh: A Business Planning Perspective (September 1, 2017). European Journal of Economics and Business Studies, 9(1), 2017. Available at SSRN: https://ssrn.com/abstract=3228142

Md Mostafizur Rahman (Contact Author)

Macquarie University, Faculty of Arts, Department of Sociology ( email )

North Ryde
Australia

Urban and Rural Planning Discipline, Khulna University ( email )

Khulna
Bangladesh

HOME PAGE: http://www.ku.ac.bd

Mahmud Uz Zaman

Khulna University ( email )

Gollamari
Khulna, 8208
Bangladesh

Sabiha Afroz Pritha

Social Development and Communication Organization (SDCO)

Khulna
Bangladesh

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