Executive Summary Sigma Pharmaceuticals Limited is located in Australia and is listed on the Australian Stock Exchange. The company has specialised in selling pharmaceutical drugs to the public. The company has recorded profit margins reaching up to 53 million dollars in a financial year. However, the net profit margins of the company have been seen to reduce while the sales profit margins have increased. This shows that the company is incurring a huge number of expenses. The company had to review the expenses that were essential and those that were not. In the aim to address the situation, the company developed a strategy that would be used to organize the remuneration or staff in the company. The strategy would be developed to motivate and reward the employees for the work done. Once employees are motivated, …show more content…
Companies employ various strategies that will enable it to survive in the highly competitive market. Sigma Pharmaceuticals Limited has also played its part in being competitive in the industry. The company has made several acquisitions over the years to increase its footprint in the pharmaceutical industry. Currently, the company has several subsidiaries to its name. These include Amcal, Amcal Max, Guardian Pharmacies, Central Health Services and Discount Drug Store. Acquiring these companies enabled Sigma to expand its network in the country. It used the existing networks created by these companies to develop to expand theirs (Bodie, Kane & Marcus, 2005). Adopting such a strategy enables the company to expand its coverage areas without the hustle of investing from scratch. Beginning a company is tedious work that consumes a lot of time and commitment, which the company does have enough of to spare. In addition, the acquired companies have built a reputation with the customers. Sigma will work to maintain the attained reputation and