scholarly journals The Pharmaceutical Firms of Pakistan: An Overview of Multidimensional Performance

2021 ◽  
Vol Volume 4 (Issue 3) ◽  
pp. 251-266
Author(s):  
Dr. Majid Ali ◽  
Dr. Gulam Sarwar ◽  
Dr. Abdul Saboor
Keyword(s):  
Pharmaceutical Industry ◽  
Cost Efficiency ◽  
Allocative Efficiency ◽  
Value Added ◽  
Raw Material ◽  
Factors Affecting ◽  
Pharmaceutical Firms ◽  
Single Output ◽  
Using Data ◽  
The Cost

The pharmaceutical industry of Pakistan is now meeting around 80% of total domestic demand with an annual11% growth rate. But the question arises as to whether the firms produce efficiently? The paper measures cost efficiency of the pharmaceutical industry of Punjab using Data Envelopment Analysis (DEA) for the period of 2014-15. The factors affecting the cost efficiency is also determined by using Tobit method. In first stage, value added is used as single output and number of employs, raw material, and cost of salary are as inputs. The result suggested that the cost efficiency of the pharmaceutical firms is 27.7% which is determined by 46% technical efficiency (TE) and 60.8% allocative efficiency (AE). It means wastage of resources is cost increasing factors in these firms. In the second stage, among the variables i.e. firm’s market share, firm’s Herfindahl-Hirschman Index (HHI) of market concentration, values of assets, energy, Herfindahl-Hirschman Index has strong positive effect on cost efficiency.

Technical efficiency analysis of the Indian drug and pharmaceutical industry

2014 ◽  
Vol 21 (5) ◽  
pp. 734-755 ◽  
Author(s):  
Varun Mahajan ◽  
D.K. Nauriyal ◽  
S.P. Singh
Keyword(s):  
Pharmaceutical Industry ◽  
Efficient Frontier ◽  
Raw Material ◽  
Managerial Performance ◽  
Content Type ◽  
Pharmaceutical Firms ◽  
Target Values ◽  
Usage Cost ◽  
Input Variables ◽  
The Cost

Purpose – The purpose of this paper is to measure technical efficiencies, slacks and input/output targets for 50 large Indian pharmaceutical firms. Design/methodology/approach – The data are collected from Prowess of Centre for Monitoring of Indian Economy for the financial year 2010-2011. This study uses data envelopment analysis approach, taking raw material, salaries and wages, advertisement and marketing and capital usage cost as input variables and net sales revenue as output variable. Findings – The paper finds that out of 50 firms, nine firms were overall technical efficient while 19 firms pure technical efficient and thus defined the efficient frontier. The BCC model identified that the inefficiency is either due to inefficient managerial performance or scale utilization. Further, firms are classified as high, low and middle robust firms on the basis of peer count. The study also analysed the slacks which were found to be significant in regard of some inputs, especially advertisement and marketing. The targets setting results have shown that all the inputs have significant scope for reduction. Practical implications – The empirical results are useful in assessing the relative efficiency of the large Indian drug and pharmaceutical industry (ID&P) firms. The managers and owners can take corrective actions to reduce the cost of operations by optimizing advertising and marketing cost, capital usage cost and salary and wages so as to improve their efficiency. Originality/value – Unlike the previous studies on the efficiency of the ID&P industry, the paper have shown the significance of improvement in managerial performance and scale utilization. In addition to this, excess inputs used in the production process and also possible target values of inputs and outputs are shown in the study. The robustness and stability of efficiency scores is also checked.

scholarly journals The impact of globalization on the implementation of green purchasing in companies operating in the forest-based sector

2021 ◽  
Vol 129 ◽  
pp. 07005
Author(s):  
Nikola Slastanova ◽  
Marek Hlodak ◽  
Hubert Palus
Keyword(s):  
Value Added ◽  
Raw Material ◽  
Sustainable Competitive Advantage ◽  
Business Systems ◽  
Product Lines ◽  
Factors Affecting ◽  
Proactive Approach ◽  
Furniture Manufacturing ◽  
Green Purchasing ◽  
The Impact

Research background: The global environment influences the behaviour of companies. This concerns the requirements for increasing number of products, product lines, brands, the need for market segmentation, consumer demand, innovations as well as the behaviour of consumers and suppliers including environmentally appropriate purchasing. The forest-based industries must respond to changes from the perspective of the globalization process by appropriate adaptation and, inter alia, to focus on the introduction of environmentally properly procurement. The integration of green purchasing principles into business systems is increasingly mentioned in the process of globalization of economies in connection with the huge potential for gaining a sustainable competitive advantage. Purpose of the article: The aim of the paper is to identify and analyze the factors affecting the implementation of environmentally friendly purchasing in the companies of forest-based sector in Slovakia. Methods: The reasons for implementing responsible practices in supply chains are based either on the stakeholder theory or the assumption that companies have a more proactive approach to implement sustainable purchasing practices as they are aware of the possible benefits. Using a questionnaire survey the companies operating in all sub-sectors of the forest-based industry - wood, pulp and paper and furniture manufacturing, including their suppliers of wood raw material in Slovakia, were questioned with the aim to identify the reasons for implementing sustainable purchasing practices. Findings & Value added: Data obtained are used to identify the factors that are crucial for the introduction of green purchasing in companies in dependence on the specific company characteristics and conditions of the market environment under which companies operate.

Measuring efficiency of Vietnamese banks

2017 ◽  
Vol 29 (2) ◽  
pp. 171-182 ◽  
Author(s):  
Thanh Ngo ◽  
David Tripe
Keyword(s):  
Cost Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Control Variable ◽  
Banking System ◽  
Alternative Methods ◽  
Content Type ◽  
Frontier Analysis ◽  
Using Data ◽  
The Cost

Purpose This paper aims to examine alternative methods for treating nonperforming loans (NPLs) in bank cost-efficiency studies using stochastic frontier analysis (SFA). Design/methodology/approach The authors consider three methods of treating NPLs in SFA: as an additional control variable, as an environmental factor or as a deduction from total loans. Using data from the Vietnamese banking system (2003-2010), the authors then compare these results with those of the base model (where total loans is used regardless of the NPLs) to see which one is more appropriate for this study. Findings The authors observed that the first two methods are inappropriate for the analysis: one cannot find the significant relationship between NPLs and the banks’ total cost, and the other cannot account for any inefficiency at all. The authors suggested that the third method of separating NPLs from total loans can provide better insights. Using the proposed method, the authors showed that the cost-efficiency of Vietnamese banks over the period examined was moderate with a slight decreasing trend. When NPLs are separated, the cost-efficiency decreases in state-owned banks and big banks, whereas it increases in small and private banks. Research limitations/implications Research is limited to Vietnamese banks during a certain period, and it would be useful to apply the same technique to other data sets. Practical implications The paper suggests a new approach to account for NPLs in cost SFA studies in banking. Originality/value The paper provides a much more searching analysis of NPLs in banking than has generally been seen in previous research.

scholarly journals Intellectual Capital and Financial Performance: Comparison With Financial and Pharmaceutical Industries in Vietnam

2021 ◽  
Vol 12 ◽  
Author(s):  
Xiao-Bing Zhang ◽  
Tran Phuong Duc ◽  
Eugene Burgos Mutuc ◽  
Fu-Sheng Tsai
Keyword(s):  
Pharmaceutical Industry ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Value Added ◽  
Financial Industry ◽  
Pharmaceutical Firms ◽  
Financial Firms ◽  
Positive Effects ◽  
Capital Efficiency ◽  
Pharmaceutical Industries

This study investigates the impacts of intellectual capital through Value-Added Intellectual Capital (VAIC) and its components: human capital efficiency (HCE) and structural capital efficiency (SCE) on financial performance in terms of return on assets (ROA) and return on equity (ROE). In addition, this study compares the effects between firms from financial and pharmaceutical industries. A total of 149 Vietnamese firms comprising of 108 financial firms and 41 pharmaceutical firms were examined. Based on the findings, VAIC and HCE show beneficial impacts on both financial performance measures, ROA, and ROE. However, SCE shows adverse and beneficial implications on ROA and ROE, respectively. In terms of industry comparison, VAIC has positive effects on ROA and ROE among the firms from financial industry, whereas it has no effect in the firms from pharmaceutical industry. The effect of HCE on ROA is stronger in the firms from financial industry than firms from pharmaceutical industry while the effect of HCE on ROE is stronger in the firms from pharmaceutical industry than firms from financial industry. The effect of SCE on ROA is stronger in the pharmaceutical firms than financial firms while the effect of SCE on ROE is stronger in the financial firms than pharmaceutical firms. Lastly, the implications of the importance of knowledge-based resources on value creation were elaborated.

scholarly journals Value-added analysis and development strategy of lemongrass bath salt effervescent in Sampang Regency

2021 ◽  
Vol 924 (1) ◽  
pp. 012065
Author(s):  
I Maflahah ◽  
D F Asfan
Keyword(s):  
Development Strategy ◽  
Cost Efficiency ◽  
Sampling Method ◽  
Value Added ◽  
Added Value ◽  
Ratio Analysis ◽  
Strategic Design ◽  
The Development Strategy ◽  
Strategic Factors ◽  
The Cost

Abstract This study aims to determine the added value and cost-efficiency of the effervescent lemongrass bath salt and formulate a strategic design for developing the effervescent lemongrass bath salt. The research was conducted in Sampang District, East Java, Indonesia, using the purposive sampling method. The value-added of the effervescent was calculated, the cost-efficiency was considered using the R / C ratio analysis, while the development strategy used the SWOT method. The calculated added value obtained shows a positive result. The value of the R / C ratio was 1.836. Based on the results of the analysis of the internal strategy factors, the IFAS value was 3.425, and the results of the study of the external strategic factors obtained an EFAS value of 2.658. This value places the effervescent lemongrass bath salt in the growth-oriented strategy.

scholarly journals Profitability Analysis of Ginger Value Addition in Abia State, Nigeria

2020 ◽  
Vol 2 (2) ◽  
pp. 50-54
Author(s):  
Ndubuisi Chigozirim Onwusiribe ◽  
Chimarauche Peace Amanze ◽  
Chinwendu Oriaku
Keyword(s):  
Value Added ◽  
Sampling Technique ◽  
Value Addition ◽  
Factors Affecting ◽  
Profitability Analysis ◽  
Specific Factors ◽  
Cost Implications ◽  
The Cost ◽  
Structured Questionnaire ◽  
Value Added Products

This study analyzed the profitability of ginger value addition in Abia State, Nigeria. This study identified the ginger value-added products common in the area, the cost implications of the value addition process, and the socio-economic and farm-specific factors affecting ginger value addition. A stratified random sampling technique was used to select 60 (sixty) respondents and a well-structured questionnaire was used to collect the necessary data. The results revealed that the value ginger products were dried ginger, salted ginger, ginger flakes, ginger oil, and ginger paste. The factors affecting the profitability of ginger value addition from the linear regression model shows that education, income, capital, and collateral were significant. It is, therefore, recommended that youth and entrepreneurs should invest in ginger value addition as it is profitable and it is a sure way to economic empowerment and fight against hunger. 

Johnsonville Sausage LLC: finding new opportunities beyond the pork commodity markets

2019 ◽  
Vol 15 (3) ◽  
pp. 181-198
Author(s):  
Keith D. Harris
Keyword(s):  
Undergraduate Students ◽  
New Ventures ◽  
Public Information ◽  
Value Added ◽  
Secondary Data ◽  
Commodity Markets ◽  
Raw Material ◽  
Total Production ◽  
Content Type ◽  
The Cost

Theoretical basis This case used the interplay between individuals, firms and markets to examine how a company sustained success from its value adding activities. The theory of value creation was demonstrated by the leader’s ability to configure the firm’s tangible and intangible resources to create opportunities beyond the commodity markets. Also, what matters were not just the technical processes of developing value-added products, but how the company’s culture served as a link to new products, new markets and new ventures. Research methodology The case was based on primary and secondary sources. The primary sources face-to-face semi-structured recorded interviews with the protagonist at the company’s headquarters. The secondary data were from the company’s website, and public information about Johnsonville Sausage LLC. Supplemental information was gathered from market research firms. No names have been disguised. The case has been classroom tested with undergraduate students in a capstone course. The author has no personal relationship with the company. Case overview/synopsis Kevin Ladwig, Vice President, was concerned by the expanded production of ethanol, an attractive supplement to gasoline in the USA. Because most ethanol is processed from corn, expanded production of ethanol heightened the demand for corn. Since corn is a staple feed ingredient for animals, heightened demand for corn increased the cost of Johnsonville’s raw material – hogs. In fact, the cost of feed was Johnsonville’s major economic input in animal production from farrow to finish, accounting for up to 70 percent of the total production cost of hogs. The case introduces the nexus of food and energy markets and how the “Johnsonville Way” was used to convert an old idea into an innovation. Complexity academic level This case is appropriate for undergraduate and graduate courses in business and agribusiness management. It would also be appropriate for courses using concepts in innovation and organizational culture.

Characteristics of Pharmaceutical Supply Chains

2019 ◽  
pp. 181-205
Author(s):  
Senthil Kumar Ponnusamy ◽  
Anbalagan Saravanan
Keyword(s):  
Supply Chain ◽  
Pharmaceutical Industry ◽  
Supply Chains ◽  
Research Topic ◽  
Pharmaceutical Supply Chain ◽  
Pharmaceutical Firms ◽  
Process Operations ◽  
Pharmaceutical Supply Chains ◽  
The Many ◽  
The Cost

The pharmaceutical supply chain is presently a noteworthy research topic in process operations and administration. A lot of research has been embraced on office area and configuration, stock and circulation arranging, limit and generation arranging, and point-by-point planning. Just a little extent of this work straightforwardly addresses the issues confronted in the pharmaceutical division. The pharmaceutical industry is facing extraordinary difficulties caused by a maturing population, the expanding expense of medicinal services, the priority given by the governments to bring down the cost of medications, boundaries to a passage in developing markets, and the more extensive reception of non-specific medications. These are quite recently a portion of the many difficulties making weight on the overall revenue of pharmaceutical firms. Expanded expenses of R&D and a diminished number of affirmed sedates additionally demonstrates that the lion's share of prescription, which is anything but difficult to find, has just been found.

Chemical relationships between cephalosporins and penicillins

1971 ◽  
Vol 179 (1057) ◽  
pp. 345-355 ◽  
Keyword(s):  
Pharmaceutical Industry ◽  
Medical Practice ◽  
Raw Material ◽  
Substitution Pattern ◽  
Production Methods ◽  
Chemical Structures ◽  
Similar Chemical ◽  
Starting Point ◽  
The Right ◽  
The Cost

The group of antibiotics known as the penicillins have a unique position in chemistry. Not only were they the first type of antibiotic to be widely accepted in medical practice, but their manufacture provided a powerful stimulant for the growth of the pharmaceutical industry. Furthermore, they still represent the most important and widely dispensed group of antibiotics in current use (Hewitt 1967). Several thousand tons of the penicillins are produced annually. Modern production methods have reduced the cost to a few pence per gram. As a consequence one should now regard the penicillins as a potentially useful raw material, suitable as a starting-point for the synthesis of a variety of derivatives. As an example one may quote the use of penicillins as precursors for the syn­thesis of the related, very useful antibiotics, the cephalosporins. The penam 1 and cephem 2 systems have similar chemical structures notable in possessing the identical β-lactam grouping 3 and the same C 5 isoprenoid-like unit [to the right of the dotted lines in 1 and 2.] The systems differ in that the cephalosporins possess a higher oxidation level than the penicillins and a different substitution pattern on the C 5 unit.

scholarly journals Factors Affecting Outbound Open Innovation Performance in Bio-Pharmaceutical Industry-Focus on Out-Licensing Deals

2021 ◽  
Vol 13 (8) ◽  
pp. 4122
Author(s):  
Eungdo Kim ◽  
InGyu Lee ◽  
Hongbum Kim ◽  
Kwangsoo Shin
Keyword(s):  
Pharmaceutical Industry ◽  
Financial Performance ◽  
Open Innovation ◽  
Development Process ◽  
Innovation Performance ◽  
Factors Affecting ◽  
Pharmaceutical Firms ◽  
Knowledge Based ◽  
Econometric Methodology ◽  
The Relationship

Due to the high risk in development process, the bio-pharmaceutical industry has transformed itself into an open innovation framework in order to overcome economic risk. This study examines the relationship between outbound open innovation and financial performance in bio-pharmaceutical industry. Specifically, this study extends knowledge-based view to link the open innovation performance and licensor’s sustainability. In order to provide empirical evidence, this study uses econometric methodology with several databases including bio-pharmaceutical firms. The analysis shows firm’s desorptive capabilities have a significant effect on financial performance, confirming the application of knowledge capacity framework. The result of the study can suggest the way how the licensors can maintain the sustainability of competitiveness in bio-pharmaceutical industry.

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