| Abstract: | The study was commenced by pointing out and highlighting the major problems in the
profitability of production lines in EPHARM. Data was collected through observation,
interviewing and questionnaires purposely selected experienced key senior and middle
level management staffs, through reviewing various document and five years audited
reports. The collected data had been organized, discussed to enable and describe the
analyses, underlying of each designed questions and questionnaire responses, reviewed
documents, and observations. Descriptive research was applied in this research. From
total of 84 targeted populations, 6 board members, 12 top management, 52 middle level
management, 12 accountants and 2 auditors were targeted population. Both
qualitative and quantitative and primary and secondary data were collected using
questionnaire, focus group discussion and documentation of reviews. The analysis
showed that there was a big return gap between high profitability production lines and
low profitability production lines.
The major problems that hinder the profitability of production lines were out-dated
production machines, shortage of raw materials, machines spare parts and foreign
currency. The company has been growing at increasing rate in finance, human capital,
and large market shareholding as well. EPHARM had been long years of
manufacturing pharmaceuticals products in the industry, experienced workers, huge
expansion areas and excess market demand. It’s recommended that the shareholders
and management should coordinate the Company resources, replace existing old
machines and replace non profitable products by new to further exploit ample local
market demands and to continue competitively in the market. |
