Examination Paper: Pharmaceutical Management
IIBM Institute of Business Management 1
IIBM Institute of Business Management
Examination Paper MM.100
Pharmaceutical Marketing
Section A: Objective Type (30 marks)
•This section consists of Multiple Choice questions & short notes type questions.
•Answer all the questions.
•Part one questions carry 1 mark each & Part Two questions carry 5 marks each.
Part One:
Multiple Choices:
1. What is the full form of IPR?
a. Intellectual Property Rights
b. Intellectual Patent Rights
c. Intellectual Process Rights
d. International Patent Rights
2. The environment that poses tremendous opportunities for new products and services to alert
marketer is an _________ environment.
a. Ecological
b. Social
c. Technological
d. Competitive
3. Arrange these market opportunities analysis step by step:
I. Evaluate new opportunities in new segments
II. Build on your strengths
III. Explore new market opportunities
IV. Analyze your existing markets
a. i, ii,iii,iv
b. ii,iv,i,iii
c. iv,ii,iii,i
d. i,iii,iv,ii
4. Marketing virtually the same product with two or more brand names is a strategy of:
a. Family brand strategy
b. Multiple brand strategy
c. Individual brand
d. Private brand
5. The pricing that deals with the judgmental or subjective elements of pricing is a:
a. Cost-based pricing
b. Petition based pricing
c. Market based pricing
d. Demand based pricing
Examination Paper: Pharmaceutical Management
IIBM Institute of Business Management 2
6. Which of the following is not a member of distribution channel?
a. The Physician
b. Manufacturer
c. The consumer
d. The transporter
7. Arrange the communication process in order:
i. Medium
ii. Feedback
iii. Sender
iv. Receiver
v. Message
a. ii,iv,v,i,iii
b. iii,v,i,iv,ii
c. iv,i,iii,v,ii
d. iii,ii,iv,i,v
8. The strategy used to create a demand for a product within a channel of distribution by appealing
directly to the consumer is a:
a. Pull strategy
b. Push strategy
c. Combination strategy
d. Competitive strategy
9. Toward off a competitive threat or to create an entry barrier, some companies from different
power blocks may temporarily form a cartel it is termed as:
a. Franchise power
b. Integration power
c. Niche power
d. Coalition power
10. Which of the following ‘R’ is not a part of good management principle?
a. Resources
b. Recognition
c. Responsibility
d. Reward
Part Two:
1. Define the term Marketing Communication.
2. Differentiate between Product Item and Product Mix.
3. Differentiate between Cost Based Pricing and Demand Based Pricing.
4. Describe Boston Matrix.
END OF SECTION A
Examination Paper: Pharmaceutical Management
IIBM Institute of Business Management 3
Section B: Caselets (40 Marks)
•This section consists of Caselets.
•Answer all the questions.
•Each Caselet carries 20 marks.
•Detailed information should form the part of your answer (Word limit 150 to 200 words).
Caselet 1
Apex Pharma was one of the Leading pharmaceutical companies with manufacturing plants spread all
over India. Initially, the company produced bulk drugs as the activities expanded, the company started
manufacturing formulation. The first formulation plant was commissioned at Mandideep, Bhopal in 1983.
This plant was exclusively catering to the overseas demand in various countries including the US, South
Africa, Australia and the UK.
The demand in pharmaceutical industry is not evenly spread throughout the year. There were months
when the company operated at 50%-60% of its capacity, and there were months, when the company
operated at more than the installed capacity, by working in three shifts. As a general policy, the company
used to operate in two shifts. Third shift operations were only resorted to during the peak season. Apex,
during the period of increased demand, outsourced medicines from other companies. However, the
medicines which were outsourced were sold only in the domestic market. The company applied high
quality standards so as to fulfill the requirements of the export market.
Apex’s Bhopal plant was run as a cost center and hence, it was not supposed to report any profits or
losses. The plant had three different blocks manufacturing different sets of medicines (capsules, tablets,
dry syrups and injectibles).
•Semi Synthetic Penicillin Block (SSP): This block produced antibiotics and drugs based on
amoxicillin and ampicillin.
•General Block: This block produced non-antibiotic drugs.
•C Block: this block produced third generation drugs based on cephalosporins.
Apex had a policy to invest in a new plant and machinery only when the company foresaw a sustainable
long-term demand for a particular product. For its cephalosporin’s range of drugs, the company was
experiencing an increased demand from the US markets for the past 2-3 years.
The total investment in C-block was Rs. 130 million with the existing capacity of 396 million capsules
per year. The demand had increased to 590 million capsules per year. To meet the increased demand, the
management decided to purchase a new machine. The finance manager, Ramesh Swami, had two options
(Refer Table 1)
Table 1
Particulars Machinery I
Machinery II
Brand Zenhasi (USA) Zentacs (Second hand
machinery from Russia)
Capacity 300 million capsules per
annum
200 million capsules per
annum
Cost of Machine
Life of Machine
Rs. 11.70 million
5 years
Rs. 9.50 million
3 years
Residual Value Nil Nil
Examination Paper: Pharmaceutical Management
IIBM Institute of Business Management 4
Sales revenue (for 18 tones
material equivalent to 194
million capsules per annum)
Rs. 575.4 million Rs. 575.4 million
Material Cost 90.68% of sales price 90.68% of sales price
Cost of repair and overhauling
before commissioning Nil 1.30 million
Total indirect costs (65%
fixed, 35% variable) Rs. 26.91 million Rs. 30.00 million
Depreciation as per income
tax provisions Rs. 0.87 million Rs. 0.80 million
Total Interest (Non cash) Rs. 7.86 million Rs. 7.79 million
Income Tax rate (company is
paying only MAT @ 11.5% of
EBT)
Rs. 2.08 million Rs. 1.74 million
Investment requirement in
working capital for operations
of the machine (assumed to be
released at the end of life of
the machine)
Rs. 63.39 million Rs. 63.39 million
The interest was calculated on the aggregate of receivables, investment and the working capital. The
details for the proportion of different components of total interest are given in Table.
Table 2
Particulars Machinery I
Machinery II
Receivables Rs. 0.06 million Rs. 0.06 million
Investment (10.4% of the cost
of Machine)
Rs. 1.21 million Rs. 1.12 million
Working Capital (10.4% of the
investment required in
working capital)
Rs. 6.59 million Rs. 6.59 million
Total interest Rs. 7.86 million Rs. 7.79 million
After calculating the cash flows for the alternatives available, Swami decided to buy the first machinery.
The policy of the company was to discount the cash flows at the rate of 16.59%. the order for the machine
was placed in March 2000, with a delivery period of four months, and the machine was to be made
operational in July, 2000. The payment was released in April, 2000. The machine was received in July,
2000 but it could not be made operational due to damage in the transit. The machine was finally made
operational in October, 2000. The company was not able to generate revenues from that machine for the
same period. Apex finalized its balance sheet on June, 30 every year.
Questions:
1. If you were in the position of Swami, what would have been your decision? Justify keeping
qualitative aspects in mind.
Examination Paper: Pharmaceutical Management
IIBM Institute of Business Management 5
2. Discuss the various other factors, which should be considered while making capital investment
decision.
Caselet 2
Geetha Laboratories Pvt. Ltd. Was established by Mohan Ramnath in 1985 at Chennai. He was a PhD in
Chemistry, a soft spoken gentleman who did not believe in working under pressure. The company was a
small scale unit manufacturing non-patented anti-malarial medicines. The company worked 6 days per
week and was running smoothly. In 1978, CITU supported union came into existence. Industrial relations
started deteriorating making it difficult for the company to service. In 1983, Ramnath decide to enter into
partnership with three other partners, Chandan Keshav, Bharat Pathak and Veenu Ramachandan to
overcome the difficulties faced by him. The company came to be known as Geetha Laboratories Ltd.
Even after this, industrial relations did not improve till 1990 and it was during this period that 14 workers
were sacked. In 1990, Ramnath decided to sell his shares to Emission Pharmaceuticals, a multinational,
though other partners continued. Now, the company was called German Drug House (GDH)
Pharmaceuticals. During this period CITU withdrew support to the union and BMS (Bhartiya Mazdoor
Sangh) came into the picture. An average increment of Rs. 225/- was given to all workers and industrial
relations improved to some extent.
IMPLA Pharmaceuticals Limited was another non-patented anti-malarial bulk drug manufacturing giant
having units at Poona, Mysore, Hyderabad, and Coimbatore and having corporate office at Baroda. It
wanted to have monopoly in anti-malarial drug manufacturing by taking over GDH, but before taking
such step, they wanted to assess the internal condition of the company. Therefore, in January 1994 Vishal
Shrivastav, a qualified Chartered Accountant, was inducted as Director by purchasing a requisite number
of shares of the company. In September 1994, after IMPLA was convinced about the favorable conditions
of GDH it formally took over the company. At that time the manpower strength of the plant was 210 in
which 130 were workers and 80 were executives and staff members. After taking over, IMPLA made
many changes and the major ones were:
1. They increased the salaries of executives and staff of the unit to reduce the gap in the pay
structure of the executives and staff of this unit and their other units.
2. They invested 3-4 crores for up gradation of the plant.
3. They shifted from 6 days working per week to 7 days working per week to improve the
productivity and enhance cost-effectiveness of the unit.
The shift from 6 days to 7 days working without any financial gains, made workers resists the change. At
this junction Sumeet Joshi, Corporate Manager, (IR) intervened and promised the workers that they
would be paid for 30 days instead of 26 days, but Ravi Shriman, Director (Personnel) and Vishal
Shrivastav; GM (operations) refused to agree to this since they were not involved when Sumeet Joshi
made the commitment. The promise was not fulfilled, further complicated problems. The issues kept on
lingering for 6 months. No decision could be taken because of the difference of opinion among senior
executives. In June 1995, the workers gheraoed Vishal Shrivastav to pressurize the management to take
the decision. They were successful to some extent as it led to the agreement of management with workers
that financial benefits would be given with retrospective effects of 4 years making it one additional year
over and above 3 years of normal agreement. They were asked to give a notice of change which the
Workers couldn’t give till December 1995 because of disagreement among themselves. It was felt at this
point of time by Shrivastav that the plant should have an Assistant Manager (Personnel) instead of having
a Personnel Officer. Ajit Dubey, Assistant Manager (Personnel) was appointed in October 1995 but even
this appointment took 3-4 months because of difference of opinion between shrivastav and Shriman.
In December 1995, the workers gave a notice of change demanding an increase of Rs. 2200/- per month.
In January 1996, a notice of change was given by management. In February 1996, the negotiations started
and continued till July 1996. Shrivastav, Rajkumar, the new Corporate Manager (IR), Ajit Dubey and
Examination Paper: Pharmaceutical Management
IIBM Institute of Business Management 6
Kishore were to represent the management and nine members of the union were to represent the workers,
besides V.D. Agarwal, the General Secretary of BMS. The first two rounds of meeting did not lead to any
outcome as none of the parties were ready to budge. This made V.D. Agarwal withdraw as he was fed up
with the rigid stand of the union leaders.
The third meeting was held without Agarwal, wherein the union leaders came down to Rs. 1,200/- from
Rs. 2,200/- p.m. The minutes of the meeting were jotted down but the union leaders refused to sign.
Taking advantage of the occasion, Dubey and Shrivastav had a secret meeting with Agarwal in a hotel.
Agarwal advised the representatives of the management to maintain a low profile for a few months to
crack down the workers’ aspirations who had very high expectations. It was observed by Dubey that there
were perceptual differences between senior and junior union leaders. Taking clue from this, Dubey
adopted a policy of divide and rule and took into confidence Devilal, the senior union leader and had
secret meeting with him to explore the last settlement amount and apprised him that the management
could go only upto Rs 450/- . He also took Janak Singh, the junior union leader into confidence and
convinced him that the management was not going to bend before their demands and as such the workers
were going to be the ultimate sufferers. Besides this, Dubey spread the message that no wages would be
given retrospectively.
The next day the meeting resumed in which union representatives demanded Rs. 750/- (because of the
pressure from the workers) beyond which they were not ready to come down. It was decided that instead
of having a meeting with all the members, only two members, one senior union leader, Devilal and one
junior union leader, Janak Singh would sit in the negotiations. Immediately a meeting between
Shrivastav, Rajkumar, Devilal and Janak Singh was held and it was resolved that Rs. 575/- average per
month would be given for 4 years retrospectively. A MOU was drafted by the legal consultant at the
corporate office and was duly signed by Shrivastav, Rajkumar, Dubey and all the union representatives.
In the evening a dinner was hosted in which all the negotiators were invited. When the papers were sent to
R. Shriman, he objected to the MOU on the following points. First, the other plants were having 30 days
pay system leading to less average per day and in Chennai plant it was to be given for 26 days leading to
higher average per day. Second, the milk allowance given for overtime at Chennai unit was higher than
other units. it took Shrivastav and Rajkumar two months to convince Shriman about the agreement,
thereafter implementing the same. Rs. 14 to 15 lakhs were given to all the 160 workers within a week as
arrears and the issue was settled.
Questions:
1. Was it right for V.D. Agarwal to withdraw half way during negotiations?
2. In view of the information given in the case, suggest the strategies for making IMPLA
Pharmaceuticals a more progressive organization.
END OF SECTION B
Examination Paper: Pharmaceutical Management
IIBM Institute of Business Management 7
Section C: Applied Theory (30 Marks)
•This section consists of Applied Theory Questions.
•Answer all the questions.
•Each question carries 15 marks.
•Detailed information should from the part of your answer (Word limit 200 to 250 words).
1. Pharmaceuticals promotion covers a very large area of operations. Describe all those areas in
detail which plays a vital role for the promotion of pharmaceutical products.
2. Explain the terms in the context of the Pharmaceutical Marketing :
a. Brand
b. Trademarks
c. Generic brand
d. Product line
END OF SECTION C
IIBM Institute of Business Management 1
IIBM Institute of Business Management
Examination Paper MM.100
Pharmaceutical Marketing
Section A: Objective Type (30 marks)
•This section consists of Multiple Choice questions & short notes type questions.
•Answer all the questions.
•Part one questions carry 1 mark each & Part Two questions carry 5 marks each.
Part One:
Multiple Choices:
1. What is the full form of IPR?
a. Intellectual Property Rights
b. Intellectual Patent Rights
c. Intellectual Process Rights
d. International Patent Rights
2. The environment that poses tremendous opportunities for new products and services to alert
marketer is an _________ environment.
a. Ecological
b. Social
c. Technological
d. Competitive
3. Arrange these market opportunities analysis step by step:
I. Evaluate new opportunities in new segments
II. Build on your strengths
III. Explore new market opportunities
IV. Analyze your existing markets
a. i, ii,iii,iv
b. ii,iv,i,iii
c. iv,ii,iii,i
d. i,iii,iv,ii
4. Marketing virtually the same product with two or more brand names is a strategy of:
a. Family brand strategy
b. Multiple brand strategy
c. Individual brand
d. Private brand
5. The pricing that deals with the judgmental or subjective elements of pricing is a:
a. Cost-based pricing
b. Petition based pricing
c. Market based pricing
d. Demand based pricing
Examination Paper: Pharmaceutical Management
IIBM Institute of Business Management 2
6. Which of the following is not a member of distribution channel?
a. The Physician
b. Manufacturer
c. The consumer
d. The transporter
7. Arrange the communication process in order:
i. Medium
ii. Feedback
iii. Sender
iv. Receiver
v. Message
a. ii,iv,v,i,iii
b. iii,v,i,iv,ii
c. iv,i,iii,v,ii
d. iii,ii,iv,i,v
8. The strategy used to create a demand for a product within a channel of distribution by appealing
directly to the consumer is a:
a. Pull strategy
b. Push strategy
c. Combination strategy
d. Competitive strategy
9. Toward off a competitive threat or to create an entry barrier, some companies from different
power blocks may temporarily form a cartel it is termed as:
a. Franchise power
b. Integration power
c. Niche power
d. Coalition power
10. Which of the following ‘R’ is not a part of good management principle?
a. Resources
b. Recognition
c. Responsibility
d. Reward
Part Two:
1. Define the term Marketing Communication.
2. Differentiate between Product Item and Product Mix.
3. Differentiate between Cost Based Pricing and Demand Based Pricing.
4. Describe Boston Matrix.
END OF SECTION A
Examination Paper: Pharmaceutical Management
IIBM Institute of Business Management 3
Section B: Caselets (40 Marks)
•This section consists of Caselets.
•Answer all the questions.
•Each Caselet carries 20 marks.
•Detailed information should form the part of your answer (Word limit 150 to 200 words).
Caselet 1
Apex Pharma was one of the Leading pharmaceutical companies with manufacturing plants spread all
over India. Initially, the company produced bulk drugs as the activities expanded, the company started
manufacturing formulation. The first formulation plant was commissioned at Mandideep, Bhopal in 1983.
This plant was exclusively catering to the overseas demand in various countries including the US, South
Africa, Australia and the UK.
The demand in pharmaceutical industry is not evenly spread throughout the year. There were months
when the company operated at 50%-60% of its capacity, and there were months, when the company
operated at more than the installed capacity, by working in three shifts. As a general policy, the company
used to operate in two shifts. Third shift operations were only resorted to during the peak season. Apex,
during the period of increased demand, outsourced medicines from other companies. However, the
medicines which were outsourced were sold only in the domestic market. The company applied high
quality standards so as to fulfill the requirements of the export market.
Apex’s Bhopal plant was run as a cost center and hence, it was not supposed to report any profits or
losses. The plant had three different blocks manufacturing different sets of medicines (capsules, tablets,
dry syrups and injectibles).
•Semi Synthetic Penicillin Block (SSP): This block produced antibiotics and drugs based on
amoxicillin and ampicillin.
•General Block: This block produced non-antibiotic drugs.
•C Block: this block produced third generation drugs based on cephalosporins.
Apex had a policy to invest in a new plant and machinery only when the company foresaw a sustainable
long-term demand for a particular product. For its cephalosporin’s range of drugs, the company was
experiencing an increased demand from the US markets for the past 2-3 years.
The total investment in C-block was Rs. 130 million with the existing capacity of 396 million capsules
per year. The demand had increased to 590 million capsules per year. To meet the increased demand, the
management decided to purchase a new machine. The finance manager, Ramesh Swami, had two options
(Refer Table 1)
Table 1
Particulars Machinery I
Machinery II
Brand Zenhasi (USA) Zentacs (Second hand
machinery from Russia)
Capacity 300 million capsules per
annum
200 million capsules per
annum
Cost of Machine
Life of Machine
Rs. 11.70 million
5 years
Rs. 9.50 million
3 years
Residual Value Nil Nil
Examination Paper: Pharmaceutical Management
IIBM Institute of Business Management 4
Sales revenue (for 18 tones
material equivalent to 194
million capsules per annum)
Rs. 575.4 million Rs. 575.4 million
Material Cost 90.68% of sales price 90.68% of sales price
Cost of repair and overhauling
before commissioning Nil 1.30 million
Total indirect costs (65%
fixed, 35% variable) Rs. 26.91 million Rs. 30.00 million
Depreciation as per income
tax provisions Rs. 0.87 million Rs. 0.80 million
Total Interest (Non cash) Rs. 7.86 million Rs. 7.79 million
Income Tax rate (company is
paying only MAT @ 11.5% of
EBT)
Rs. 2.08 million Rs. 1.74 million
Investment requirement in
working capital for operations
of the machine (assumed to be
released at the end of life of
the machine)
Rs. 63.39 million Rs. 63.39 million
The interest was calculated on the aggregate of receivables, investment and the working capital. The
details for the proportion of different components of total interest are given in Table.
Table 2
Particulars Machinery I
Machinery II
Receivables Rs. 0.06 million Rs. 0.06 million
Investment (10.4% of the cost
of Machine)
Rs. 1.21 million Rs. 1.12 million
Working Capital (10.4% of the
investment required in
working capital)
Rs. 6.59 million Rs. 6.59 million
Total interest Rs. 7.86 million Rs. 7.79 million
After calculating the cash flows for the alternatives available, Swami decided to buy the first machinery.
The policy of the company was to discount the cash flows at the rate of 16.59%. the order for the machine
was placed in March 2000, with a delivery period of four months, and the machine was to be made
operational in July, 2000. The payment was released in April, 2000. The machine was received in July,
2000 but it could not be made operational due to damage in the transit. The machine was finally made
operational in October, 2000. The company was not able to generate revenues from that machine for the
same period. Apex finalized its balance sheet on June, 30 every year.
Questions:
1. If you were in the position of Swami, what would have been your decision? Justify keeping
qualitative aspects in mind.
Examination Paper: Pharmaceutical Management
IIBM Institute of Business Management 5
2. Discuss the various other factors, which should be considered while making capital investment
decision.
Caselet 2
Geetha Laboratories Pvt. Ltd. Was established by Mohan Ramnath in 1985 at Chennai. He was a PhD in
Chemistry, a soft spoken gentleman who did not believe in working under pressure. The company was a
small scale unit manufacturing non-patented anti-malarial medicines. The company worked 6 days per
week and was running smoothly. In 1978, CITU supported union came into existence. Industrial relations
started deteriorating making it difficult for the company to service. In 1983, Ramnath decide to enter into
partnership with three other partners, Chandan Keshav, Bharat Pathak and Veenu Ramachandan to
overcome the difficulties faced by him. The company came to be known as Geetha Laboratories Ltd.
Even after this, industrial relations did not improve till 1990 and it was during this period that 14 workers
were sacked. In 1990, Ramnath decided to sell his shares to Emission Pharmaceuticals, a multinational,
though other partners continued. Now, the company was called German Drug House (GDH)
Pharmaceuticals. During this period CITU withdrew support to the union and BMS (Bhartiya Mazdoor
Sangh) came into the picture. An average increment of Rs. 225/- was given to all workers and industrial
relations improved to some extent.
IMPLA Pharmaceuticals Limited was another non-patented anti-malarial bulk drug manufacturing giant
having units at Poona, Mysore, Hyderabad, and Coimbatore and having corporate office at Baroda. It
wanted to have monopoly in anti-malarial drug manufacturing by taking over GDH, but before taking
such step, they wanted to assess the internal condition of the company. Therefore, in January 1994 Vishal
Shrivastav, a qualified Chartered Accountant, was inducted as Director by purchasing a requisite number
of shares of the company. In September 1994, after IMPLA was convinced about the favorable conditions
of GDH it formally took over the company. At that time the manpower strength of the plant was 210 in
which 130 were workers and 80 were executives and staff members. After taking over, IMPLA made
many changes and the major ones were:
1. They increased the salaries of executives and staff of the unit to reduce the gap in the pay
structure of the executives and staff of this unit and their other units.
2. They invested 3-4 crores for up gradation of the plant.
3. They shifted from 6 days working per week to 7 days working per week to improve the
productivity and enhance cost-effectiveness of the unit.
The shift from 6 days to 7 days working without any financial gains, made workers resists the change. At
this junction Sumeet Joshi, Corporate Manager, (IR) intervened and promised the workers that they
would be paid for 30 days instead of 26 days, but Ravi Shriman, Director (Personnel) and Vishal
Shrivastav; GM (operations) refused to agree to this since they were not involved when Sumeet Joshi
made the commitment. The promise was not fulfilled, further complicated problems. The issues kept on
lingering for 6 months. No decision could be taken because of the difference of opinion among senior
executives. In June 1995, the workers gheraoed Vishal Shrivastav to pressurize the management to take
the decision. They were successful to some extent as it led to the agreement of management with workers
that financial benefits would be given with retrospective effects of 4 years making it one additional year
over and above 3 years of normal agreement. They were asked to give a notice of change which the
Workers couldn’t give till December 1995 because of disagreement among themselves. It was felt at this
point of time by Shrivastav that the plant should have an Assistant Manager (Personnel) instead of having
a Personnel Officer. Ajit Dubey, Assistant Manager (Personnel) was appointed in October 1995 but even
this appointment took 3-4 months because of difference of opinion between shrivastav and Shriman.
In December 1995, the workers gave a notice of change demanding an increase of Rs. 2200/- per month.
In January 1996, a notice of change was given by management. In February 1996, the negotiations started
and continued till July 1996. Shrivastav, Rajkumar, the new Corporate Manager (IR), Ajit Dubey and
Examination Paper: Pharmaceutical Management
IIBM Institute of Business Management 6
Kishore were to represent the management and nine members of the union were to represent the workers,
besides V.D. Agarwal, the General Secretary of BMS. The first two rounds of meeting did not lead to any
outcome as none of the parties were ready to budge. This made V.D. Agarwal withdraw as he was fed up
with the rigid stand of the union leaders.
The third meeting was held without Agarwal, wherein the union leaders came down to Rs. 1,200/- from
Rs. 2,200/- p.m. The minutes of the meeting were jotted down but the union leaders refused to sign.
Taking advantage of the occasion, Dubey and Shrivastav had a secret meeting with Agarwal in a hotel.
Agarwal advised the representatives of the management to maintain a low profile for a few months to
crack down the workers’ aspirations who had very high expectations. It was observed by Dubey that there
were perceptual differences between senior and junior union leaders. Taking clue from this, Dubey
adopted a policy of divide and rule and took into confidence Devilal, the senior union leader and had
secret meeting with him to explore the last settlement amount and apprised him that the management
could go only upto Rs 450/- . He also took Janak Singh, the junior union leader into confidence and
convinced him that the management was not going to bend before their demands and as such the workers
were going to be the ultimate sufferers. Besides this, Dubey spread the message that no wages would be
given retrospectively.
The next day the meeting resumed in which union representatives demanded Rs. 750/- (because of the
pressure from the workers) beyond which they were not ready to come down. It was decided that instead
of having a meeting with all the members, only two members, one senior union leader, Devilal and one
junior union leader, Janak Singh would sit in the negotiations. Immediately a meeting between
Shrivastav, Rajkumar, Devilal and Janak Singh was held and it was resolved that Rs. 575/- average per
month would be given for 4 years retrospectively. A MOU was drafted by the legal consultant at the
corporate office and was duly signed by Shrivastav, Rajkumar, Dubey and all the union representatives.
In the evening a dinner was hosted in which all the negotiators were invited. When the papers were sent to
R. Shriman, he objected to the MOU on the following points. First, the other plants were having 30 days
pay system leading to less average per day and in Chennai plant it was to be given for 26 days leading to
higher average per day. Second, the milk allowance given for overtime at Chennai unit was higher than
other units. it took Shrivastav and Rajkumar two months to convince Shriman about the agreement,
thereafter implementing the same. Rs. 14 to 15 lakhs were given to all the 160 workers within a week as
arrears and the issue was settled.
Questions:
1. Was it right for V.D. Agarwal to withdraw half way during negotiations?
2. In view of the information given in the case, suggest the strategies for making IMPLA
Pharmaceuticals a more progressive organization.
END OF SECTION B
Examination Paper: Pharmaceutical Management
IIBM Institute of Business Management 7
Section C: Applied Theory (30 Marks)
•This section consists of Applied Theory Questions.
•Answer all the questions.
•Each question carries 15 marks.
•Detailed information should from the part of your answer (Word limit 200 to 250 words).
1. Pharmaceuticals promotion covers a very large area of operations. Describe all those areas in
detail which plays a vital role for the promotion of pharmaceutical products.
2. Explain the terms in the context of the Pharmaceutical Marketing :
a. Brand
b. Trademarks
c. Generic brand
d. Product line
END OF SECTION C
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