Financial Plan ABC Pharmaceuticals Essay Example | Topics and Well Written Essays - 3000 words

Financial Plan ABC Pharmaceuticals - Essay Example Moderate Pain-Control Medication Project, named MPMP, is the upcoming project of ABC Pharmaceuticals. Since its inception in 1997, the company has excelled in severe pain medication market and after several years of presence in the pharmaceuticals industry, the company has acquired a major share in the market segment it serves, not to mention the brand name and excellence in the pharmaceuticals industry’s fundamentals. Based on its experience in the market, the company plans to develop differentiated pain control products that provide the flexibility and versatility required to address the limitations of existing prescription pain medications in supervised health care settings. Resource Planning for MPMP MPMP is an extension project. Most of the resources of the existing product line, especially on the soft side such as human resources and technical resources could support the new product line as well. However, certain additional resources would also be required to support the project; encompassing, production plants, human resources such as production labor and specialists in moderate pain control medication, working capital, office supplies etc (see details in section 2). A brief of the resources required are as follows: Human Resources: Production specialists in the area of moderate pain-control medication would be required. In line with the previous experience, three specialists each at the three production locations of the company would suffice. Apart from that, production labor would be required. Based on the sales forecasts, as such three teams, each comprising 10 workers (daily wagers), supervised by a production incharge and headed by the area specialist, would be established. The core human resource function would remain at the head office. Technical Resources: For the first five years of the project, three production plants will be fixed at the current production sites. Each plant will have the capacity to produce approximately 15,000 units a year (including breakdowns, if any). Budget Allocation for MPMP The total estimated cost of the project comes to $ 10,500 million calculated as follows