TERM REPORT

Contents

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INTRODUCTION

.............................................................................................. 2

SANOFI-AVENTIS IN PAKISTAN............................................................................2
APPLICATION OF MANAGEMENT PRINCIPLES...............................................................3
Summary...................................................................................................................... 11
CONCLUSION........................................................................................................................... 12

INTRODUCTION
The purpose of this report is to
find out the application of

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management principles in one of the leading pharmaceuticals of the country as well
as across the globe.
Sanofi-aventis Pakistan limited has a strong presence in Pakistan. With over 1000
employees working every day with the commitment to improve health and wellness
across the country, sanofi-aventis Pakistan limited ranks amongst the top ten
pharmaceutical firms in Pakistan.
By working in collaboration with our stakeholders, we ensure that our patientcentric approach yields tangible benefits to the common man through provision of
our quality medicines that cater all age groups. We are proud to be in the business
of improving lives and alleviating suffering, because we believe: when the world has
its health, it will have everything.
Our manufacturing facilities are among the most modern and environmentally
friendly facilities in the country, maintaining the demanding standards of cGMP.
There is great emphasis on quality, professionalism and high ethical standards. The
rich product portfolio of our company includes life-saving drugs, several of which
are leaders in their respective classes.
Sanofi-aventis in Pakistan
In a rapidly changing healthcare environment, our people remain dedicated to
bringing cutting-edge health solutions to protect health and enhance lives. Our
talent pool comprises qualified professionals, experts and young individuals across
various disciplines, contributing towards the achievement of our collective goal. A
perfect combination of managerial as well as technical skills helps us execute our
business strategies smartly. Our people remain instrumental in Sanofi delivering
sustained business performance and promoting company image as a healthcare
leader.
Our Manufacturing

Our extensive site in Karachi was founded in 1972, with an objective to develop,
produce, package and distribute high quality medicines under optimal safety
conditions and at competitive costs to the market. Sanofi-Aventis Pakistan limited
boasts a diversified pharmaceutical manufacturing facility, manufacturing products
ranging from oral solids and liquid dosage forms to highly technical and
sophisticated sterile products.

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Amongst the support functions of the site, Industrial Quality and Compliance (IQC) is
a key function that plays a vital role in maintaining high standards of quality, safety
and efficacy for products. It employs modern technologies, equipment and highly
trained and qualified staff to measure the quality of products being manufactured,
ensuring that products reaching patients are fully compliant to the claim of the drug
substance. Not only that, an independent quality assurance system is also in place
to ensure and maintain GMP standards. Since 2009, a Global Quality organization is
directly responsible to the Group senior management for ensuringfull compliance
with company, ethical and regulatory requirements across the lifecycles of all Sanofi
products.The quality management of all divisions reports to a Global Chief Quality
Officer.The scope of Global Quality was expanded in 2010 to include the commercial
affiliates and in 2011 to include new entities such as Genzyme and Merial, through
the creation of dedicated Operational Quality Units. The mission of Global Quality is
to define and coordinate the implementation, across Sanofi, of a shared quality
management system to ensure a harmonized quality management approach and
develop quality systems for each range of products and related services through all
steps of products lifecycle.Quality managers are appointed in each of the
operational units, site and affiliate, involved in activities that may impact product
quality, patient safety or data integrity. These quality managers conduct and
coordinate quality and compliance activities, and they contribute to compliance with
regulatory requirements and continuous improvement of the Groups performance.

APPLICATION OF MANAGEMENT PRINCIPLES

STRATEGIC MANAGEMENT
Vision
To become a diversified healthcare leader, focused on patients needs
Valued by patients & healthcare providers
Sought-after as an employer
Respected by the scientific community & our competitors

Mission
Our core strategy is to:
Create value by rapidly launching and successfully marketing
innovative
Focus commercial resources on strategic brands to drive sales
growth and maximize the value of existing and new global brands.
Aggressively recruit and retain top talent, enhancing our capabilities
in drug innovation and commercialization.

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Strategic Objectives

Through vaccines and medicines help prevent and where needed, treat those
in need,adapt to meet changing health care needs .To have a real impact
build a sustainable business to invest in delivering innovative solutions at the
same time we need to improve access to medicines and improved healthcare.

Build a revitalized R&D organization focused on meeting unmet needs of

patients and delivering truly innovative solutions.

Seizing external growth opportunities through partnerships and acquisitions

to grow the business and continue to look for opportunities.

Adapting the group to future challenges going beyond delivering products to

delivering real solutions and services.
IMPLICATION OF THE MBO
MBO (Management by objectives ) is the core of planning at Sanofi. At the beginning
of the year objectives are set and then the performance is evaluated depending on
two aspects WHAT and HOW. What is the preset objectives and how is the
ways and methods involved in achieving those objectives which included the
behavioral aspects as well. Employee renumeration also depends upon the
achievement of these objectives.

Future Outlook
In terms of future outlook, the team along with its cross-functional partners,
essential for the success of the projects, is working on number of short, medium
and long-term projects, which include but are not limited to:
1. Commercialization of Genzyme business in Pakistan: bolting on Sanofis
global acquisition of the company, thereby enhancing Sanofis position in the
specialty segment by introducing specialized biotech products.
2. Introducing Branded Generics in Pakistan: fulfilling the need of customers by
providing access to quality economical products. This is being planned and
executed through an innovative alliance with some top local partners to cope
with the challenges of capacity constraints, and to manage the timing issues
associated with registration and stability studies.With our presence of quality
generics in diabetes, anti-infectives and gastroenterology we are working
hard to expand our horizon to penetrate other therapeutic segments as well.
3. Diversifying the business by introducing Chattem, a US based consumer
healthcare company acquired by the Sanofi Group. Aligning ourselves with
the Group, Sanofi Pakistan has taken over the Chattem product, Selsun Blue
shampoo. This is the first product, a household name for the treatment of
dandruff, intended to be re-launched in 2012. Our future endeavors will focus

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on expanding the Chattem range in Pakistan in the areas of topical
analgesics, mouthwashes, diaper rash creams and various other categories.
4. Continuing in line with the strategy of diversification, Sanofi Pakistan also
aspires to enter the Animal Health Market in the future through the
introduction of global brands of Merial Products, a well known Animal Health
company in USA.
5. Afghanistan Export is another milestone that Sanofi Pakistan is all set to
embark upon in 2012.

STRATEGIC BUSINESS UNITS

The dedicated Cephalosporin unit (Claforan Plant), which has the capability
of online filling and packing of Sterile powder
Haemaccel Plant, which is the first blood plasma substitute manufacturing
facility in Pakistan
Multi-product pharma manufacturing unit, the sites largest production facility
manufacturing wide range of solids and injectable forms
A fully automated oral liquid unit

SWOT Analysis

STRENGTHS

Market leader in emerging

markets (China, India, Brazil,
Mexico, Russia)
Strong position in the diabetes
care market (19% sales increase
in 2009)
Good financial results (36%
increase in Net Income)

OPPORTUNITIES

Population growth and

significant increase in
purchasing power in
emerging countries
The ageing population will
continue to form an important
source of consumers

NEW MANAGEMENT CONCEPTS

WEAKNESSES

High dependence on aging

patent-protected
blockbusters like Plavix and
Lovenox
The patent of most of the
blockbuster drugs will expire
in the coming years
Low R&D productivity

THREATS

Increasing generic competition

Political reforms to cut
government spending on
healthcare
Problem of counterfeit medicines
especially in emerging countries

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THE LEAN SYSTEM

Lean management system is one of the cores of management at Sanofi,
LEAN, means the removal of those activities from the processes that donot
add any value for the company i.e. not contribute to any significant return..
These activities are called waste.

THE +QDCI concept

This is the daily monitoring system for the manufacturing process. +
stands for the safety, which incorporates that either the manufacturing is
conducted within the boundaries of health and safety standards, are there
any injuries or accidents, Q stands for quality, the number of rejections any
on the day,D for delivery, either the plant has achieved its desired
objectives of the day, what are the deviations and C for cost, either the
manufacturing is done within the standard costs employee the assigned
number of hours and labor or not. I stands for involvement of employees in
the daily staff meetings.

CORPORATE SOCIAL RESPONSIBILITY

As a healthcare company, Sanofi has placed the concept of social responsibility at
the heart of its strategy and growth. Its approach to Corporate Social Responsibility
(CSR) inspires all its activities while focusing on four main dimensions:
Addressing patients needs Patient
o The right to health: access to healthcare - Access to healthcare in
developing countries - Access to healthcare in developed countries Sustainability of healthcare systems - Combating neglected tropical
diseases.
o Innovation: a priority
o Information and patient
o Relationships with patient organizations
o Fight against counterfeit drugs
o Product quality

Ensuring ethical integrity in business and research Ethics

Ethical Business Conduct

o Respect of human rights
o Good corporate governance rules
o Fighting corruption
o Responsible marketing
o Promoting CSR among suppliers and sub- contractors

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o Relationships with healthcare professionals
Ethics in Research
o Ethics and transparency of human clinical trials
o Use of animals in research

Promoting social commitments People

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Diversity and non-discrimination

Supporting change
Developing talent and careers
Occupational health and safety
Contribution to local economic development
Transfering skills and technology to developing countries
Improving employee awareness about CSR

Limiting the Groups impact on the environment - Planet

To encourage community-involvement amongst Sanofi employees a beach-cleaning
activity was organized at Sea View, Karachi. Sanofi employees and their families
volunteered for the Go Green campaign to clean the most popular and busy
beach of Karachi. Islamabad-based Sanofi employees planted 50 trees in the
Fatima Jinnah Park. Various departments of Sanofi Pakistan planted one tree each
on the premises of Sanofi Pakistans Head Office. Plantation within the premises
was increased and the existing green-belt outside the Head Office was enhanced.
Waste bins were donated to select hospitals in Karachi.

HUMAN RESOURCES MANAGEMENT

As the name embodies, a companys true source of competitive advantage and
sustainable growth lies in the quality of its people. At Sanofi we take pride in the
excellence of our human asset and our teams continued commitment for
organizational success. Our human resource policies, development programs and
promotion / incentive activities all revolve around creating an exemplary team.
Recruitment
A critical aspect of Sanofis corporate strategy is to identify and subsequently induct
talent from across Pakistan. They recruit experienced talent but also provide
opportunities to potential talent, young university graduates eager to make their
mark. The Company boasts of a robust Internship Program which helps students to
familiarize themselves with the healthcare industry and corporate environment.
Furthermore it also enables students to attain a stronger understanding of their
specific area of interest. their active participation at job fairs in the countrys
leading business schools reflects determination and enthusiasm to pursue new
talent and build a dynamic and highly competent team.

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The human resource which is the main asset of the company is managed through
Sanofi; a global integrated healthcare leader with operations in more than 100
countries, Workday Human Capital Management (HCM). Sanofi has consolidated
several on-premise legacy software systems with one unified application in the
cloud. In an increasingly competitive global industry, Sanofi deployed a new
strategy that repositioned the company for continued growth by focusing its efforts
on research and development, market diversification, and new areas of investment.
The company understood that the success of repositioning the business for future
growth would require that the entire organization was properly aligned and focused
against these objectives. To meet this need, Sanofi's human resources (HR) function
embarked on a transformation strategy to create a new operating and service
delivery model that would best support the business and global workforce. Following
an internal review of the technology requirements necessary to support its HR
transformation, Sanofi identified the need for a truly global and integrated
application; one that would remove complexity associated with its current processes
and systems diversity and at the same time would propose a new, flexible and more
effective way for HR to interact with managers and employees. With Workday HCM,
Sanofi expects to replace a number of large HR applications with one unified cloudbased HCM application for core HR and talent management for the entire company.
With Workday Talent Management, Sanofi expects to offer its managers more
visibility on the strengths and talents of employees so that they can access wider
pools of potential candidates for key roles in support of the expected future growth
of the company. Furthermore, Sanofi expects to create and integrate new global
processes to reduce time and effort spent by HR on administrative tasks, take
advantage of analytics for more informed and strategic decision-making among the
HR organization, and empower managers and employees with greater self-service
capabilities delivered in an intuitive user experience.

Training & Development

The human resource department designed and conducted a wide variety of training
and development programs. Furthermore they rapidly rotate employees through
jobs after their experience in a particular area. Following are some training
programs;

Licensed 2 Sell a global initiative rolled out to all sales team (150
participants)
Extensive training on technical aspects & sales certification process
Business Management Certification Program to 45 employees
New Product Training to around 200 employees
District Managers training for new/promoted DMs to develop their
capabilities
Participation of Sanofi Pakistans employees as facilitators in Evolve (a
regional program to coach young High Potentials from different affiliates)

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In continuation of last years Talent Management Program (to nurture

employees through a structured career program), employees sent abroad for
management training programs Evolve and Marketing Skills, Hong Kong
university and training seminar at Singapore.
Mapping for Leadership, an advanced leadership program for all
supervisors including the Management Committee. This focused on training
around the Leadership Competencies.
W2E, (Way to Excellence) a customized, technical program for enhancing inclinic performance of the sales force.

CONTINUOUS INNOVATION
The metamorphosis of R&D at Sanofi is underway. Refocused on strategic priorities
and high medical value projects, R&D delivered remarkable innovations in 20122013 and launched a dynamic for durable success.
18 potential launches.
9 regulatory approvals
6 new submissions in medicines and vaccines.

Many companies have focused on simply providing drugs or devices for any
particular medical condition or problem, but Sanofi realized that these are just a
component, and they need to seek more of a solution from the patients
perspective. And this solution will be different for everyone. There are already a
lot of great drugs on the market, so what is needed is a new approach. This new
mindset has required a change in how companies look at innovation how they
use it and where they find it, as it is never as simple as just being able to say to
researchers go innovate. Change and innovation are incremental as well as
disruptive, so it is important to look for the small ideas as well as the big ones.
Facing up to this, Sanofi has created a centralized innovation group, which is
looking at new ways to run the business. For example, patients are becoming
increasingly vociferous, particularly through social media such as Twitter,
Facebook, and through patient groups. Sanofi has decided to use this to its
advantage by creating a non-brand-specific social media group. The company is
using this group to crowd source answers to questions such as, What matters
most to you in, for instance, diabetes, which is one of the medical condition to
which Sanofis products cater to?

INDUSTRIAL AWARDS
Innovation is an extraordinary growth lever at Sanofi and the industrial awards
gives it the opportunity to acknowledge this powerful dynamic and take stock of
new challenges. Every year new innovative ideas are brought up by the employees
at various regional sites, worked on in teams headed by a leader which are then

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incorporated by the company and then awards are granted to the idea most
implementable.

ORGANIZATION STRUCTURE AND DESIGN

Sanofi follows a hybrid structure incorporating both functional and divisional
structures. Communication at Sanofi follows the formal vertical chain of command
from top to bottom or vice versa.

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CONTROLLING THE ORGANIZATION: CORPORATE

GOVERNANCE
Corporate governance is a system of structures and processes for the direction and
control of organizations. It is a process through which balance of duties and
responsibilities between shareholders, management and the board are defined,
enabling an organization to maintain the right balance of power and accountability
while striving to achieve its objective of enhancing shareholder value.

Composition of board and directors independence

In line with good governance practice, the Chairman of the board is an independent
non-executive director representing minority interest. The board comprises of 9
directors out of which 6 are non-executive directors, including 3 representing
minority interests. The roles of Chairman and the CEO has been clearly defined and
segregated. The CEO is responsible for operations of the company whereas the
board under the Chairman performs oversight responsibilities.

Performance evaluation of the board

The board, being the trustee of the shareholders, has set the following broad criteria
for evaluation of its performance:

Review of business risks, strategic plans, significant policies, financial

structure, monitoring and approval.
Monitor companys performance against planned objectives and advise
the management on strategic initiatives
Ensuring maximum attendance at board meetings to enhance the quality
of decision making as well as effective discharge of its roles &
responsibilities
Compliance with the applicable laws & regulations including the
Memorandum and Articles of Association of the company
Ensuring orientation of the board of directors including new appointments
so that each member is fully aware of his roles & responsibilities
Establishing adequate internal control system in the company and its
regular assessment through internal audit activities

Performance evaluation of the Chief Executive Officer

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The performance of the Chief Executive Officer (CEO) is based on the criteria
defined by the sanofi group, which takes into account both qualitative as well as
quantitative parameters. The CEO also apprises the board of the developments
taking place in the pharmaceutical industry both globally and locally including the
overall position and performance of the company.
Management initiatives on

INTERNATIONAL MANAGEMENT
With nearly 112 sites in 40 countries and 40,000 employees, the industrial network
is a key pillar for Sanofis development. It supports the companys global growth
strategy and its choices are aligned with the Group's mission of focusing on
patients needs. Control of the production and distribution chain ensures the safety
and quality of medicines for patients.To respond to health needs worldwide, Sanofi
has increased the efficiency of its industrial resources by strengthening production
capacity, promoting inter-site collaborations and increasing its presence in emerging
markets. The industrial network strategy reflects that of the Group, supporting its
growth platforms and fostering innovation.

Summary

This summary is intended to reflect briefly on the major domains of Sanofi-Aventis

that is within our textbook to get a proper understanding regarding the
management process applied at the pharmaceutical company under examination.
Sanofi-aventis Pakistan limited has a strong presence in Pakistan. The extensive site
of Sanofi- Aventis in Karachi was founded in 1972, with an objective to develop,
produce, package and distribute high quality medicines under optimal safety
conditions and at competitive costs, to ensure improvement in the health of
patients. The human resource which is the main asset of the company is managed
by Sanofi; a global integrated healthcare leader with operations in more than 100
countries, through the deployment of Workday Human Capital Management (HCM)
which is a unified application that repositioned the company for continued growth
by focusing its efforts on research and development, market diversification, and
new areas of investment. The corporate social efforts of the company falls into four
divisions, which are addressing patients needs thus the focus is well-being of
patients, ensuring ethical integrity in business and research thus the focus is
upholding ethical principles in operations across the departments and areas,
promoting social commitments thereby aligning the focus with that of wellbeing of
people and limiting the Groups impact on the environment with the focus thus

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concentrated on well-being of the planet.Sanofi-Aventis is seen to be following the
philosophy of Hand of Management in the domain of corporate social responsibility.
In the domain of change management, Sanofi-Aventis mainly leverages the use of
social media gaining from consumers and customers their responses to such
questions as What matters to you most in Diabetes? Crowdsourcing answers
comprising customers expectations subsequently enable Sanofi to indulge in
effective change management and innovation practices, which prompts the
production of drugs that could provide more value to the patients, thereby
alleviating and eventually eliminating their medical condition. Controlling process
concentrates significant attention on the quality management process, which is
understandable considering that pharmaceutical companies deal with vulnerable
customers as patients. Industrial Quality and Compliance (IQC) is a key function that
plays a vital role in maintaining high standards of quality, safety and efficacy for
products. A Global Quality organization is directly responsible to the Group senior
management for ensuring full compliance with company, ethical and regulatory
requirements across the lifecycles of all Sanofi products. The mission of Global
Quality is to define and coordinate the implementation, across Sanofi, of a shared
quality management system to ensure a harmonized quality management approach
and develop quality systems for each range of products and related services
through all steps of products lifecycle. This structure is imperative to be followed in
the light of the fact that Sanofi is a multinational organization with operation in
more than 100 countries.

CONCLUSION
Many events in Sanofis long history have marked the evolution of pharmacy and
science. Today it is global integrated health company, offering therapeutic solutions
in co-ordination with their partners. They not only strive to develop medical
solutions but also endeavor to cater to the patients needs. Indeed, they have placed
patients at the very heart of their approach. They believe that sharing is the
building block for success thats why they strive to develop relationships with their
stakeholders.

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