Overview of SQUARE pharmaceuticals LTD Essay

IntroductionSquare Pharmaceuticals Ltd. (SPL) has been the bowel movementsetter in Bangladesh Pharmaceutical Market since its inception in 1958. e genuinelywhere the last decade SPL actually rose to a crude standard moving beyond manufacturing quality medicines to win mindshare of patients, physicians, shareholders, contrast partners, and communities where we work and live. Our dedication to bestow to a greater extent value to the common wealth of the society compounded by progressive strategies for fruit and diversification, pioneering role in bringing new engineering science and implementing new ideas, and commitment for total quality management distills the glory of our success. Today SPL is not merely a market leader. Most of the products that it actively markets enjoy leadership spot demonstrating incomparable trust of the healthcare professionals. Today SPL is ready to face the challenge of scarce sourcing of Active Pharmaceutical Ingredients (API) in the post-WTO e ra, with its advanced a manufacturing capability.SPL is one of the offshoot companies to have an extensively computerized and automate operative environment connecting every corner of the country to the centre. produceivity with connectivity is one of our heritages of progress. SPL is the first order to go beyond the national boundary, exporting its quality products in everyplaceseas markets in Asia Africa, and atomic number 63. More than that, SPL has probably fulfilled a national aspiration of turning a in one case import dependent country into an exporter of quality medicines. We believe, with our technological and managerial know-how and ability to take on challenges, we will be able to progress much blistering towards our objective of becoming the nations mostVisionary CompanyObjectivesOur main objective is to prepare this project to know about the organization. We try to counsel on the project SWOT analysis, potter five forces, organization design in Square Pharmaceut ical Ltd. ScopeOur assignment is only document foundation garment so we have not luck to take interview, survey and make observation. As it is a report about anorganization so we have opportunity to collect data by reading documents from their web sites. MethodologyTo complete our project and reach in a stopping point we around methods. To collect discipline we search internet, read newspaper, and utilize our personal observation.ABOUT COMPANYSquare Pharmaceuticals Ltd. is a leading edge drug keep companyceutical companyceutical company based in Dhaka, Bangladesh and is acclaimed for its great(p) product quality, world-class manufacturing facilities, product development capabilities and outstanding professional services. lame today symbolizes a name a state of mind. But its journey to the growth and prosperity has been no bed of roses. From the inception in 1958, it has today burgeoned into one of the top line conglomerates in Bangladesh. Square Pharmaceuticals Ltd., the f lagship company, is holding the strong leadership lieu in the pharmaceutical exertion of Bangladesh since 1985 and is now on its way to becoming a high performance global player. Historical Background of Square Pharmaceuticals Ltd. form Pharmaceuticals Limited is the largest pharmaceutical company in Bangladesh and it has been continuously in the 1st position among all national and multinational companies since 1985. It was established in 1958 and converted into a public limited company in 1991.1958 De merely of SQUARE Parma as a Partnership Firm.1964 Converted into a Private Limited Company.1985 Achieved market-leadership in the pharmaceutical market of Bangladesh among all national and multinational companies.1987 Pioneer in pharmaceutical export from Bangladesh.1991 Converted into a Public Limited Company1997 Won the interior(a) Export trophy for exporting pharmaceuticals. 1998 Agro-chemicals & Veterinary Products division of SQUARE Pharmaceuticals starts its operation. 2001 U S FDA/UK MCA standard new pharmaceutical factory goes into operation built under the watch of Bevis Lend Lease, UK. 2005 New State-of-the-Art SQUARE Cephalosporins Ltd. goes into operation built under the supervision of TELSTAR S.A. of Spain as per USFDA/ UK MHRA requirements. 2007 SQUARE Pharmaceuticals Ltd., Dhaka social unit gets the UK MHRA approval. 2012 SQUARE Pharmaceuticals Ltd., Dhaka Unit and SQUARE Cephalosporins Ltd. get the Therapeutic Goods Administration (TGA) of Australia approval. MissionOur Mission is to produce and provide quality & innovative healthcare relief for people, maintain stringently ethical standard in profession operation also ensuring benefit to the Shareholders, stakeholders and the society at large.VisionsWe view business as a mode to the material and social wellbeing of the investors, employees and the society at large, leading to accretion of wealth through financial and moral gains as a part of the process of the human civilization.ObjectiveO ur objectives are to conduct transparent business operation based on market mechanism indoors the legal & social framework with aims to attain the mission reflected by our vision.Corporate Social Responsibility (CSR)Corporate Social Responsibility (CSR) is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the topical anesthetic community and society at large.SQUAREs activity goes well beyond the sphere of business. As socially conscious and responsible corporate dust SQUARE is committed to the improvement of the society as a whole. SQUARE helps many NGOs in their effort to make available healthcare to the disadvantage population of the country. SQUARE is also a major sponsor of sporting events in the country.Organization DesignThe Board of Directors is responsible for the strategic be after and all overall policy guidelines of the bank. Besides, t here is an audit committee in the Board to oversee compliance of major regulatory and operational issues. The chief operating officer& MD, Deputy MD and group executives are responsible forachieving business goals and overseeing the day to day operations. The CEO and MD assisted by a senior management group superintend operation of various decisions centrally and coordinate operation of branches. There is also a management committee comprising member of the senior executive headed by CEO and MD to look into all operational function and risk management of the bank. The workf junior-grade of the organizational structure is given in the figure below1. put to work specialization2. incisionalization3. Span of control4. Chain of command5. Centralization & Decentralization6. FormalizationWork specializationWork specialization, which is dividing work activities into separate job task. respective(prenominal) employees specialize in doing part of an activity rather than the entire activit y in order to increase work output. Its also known as division of labor.There are some work specialists in SPL.Research and DevelopmentInformation TechnologyHuman ResourceSupply Chain tradeCustomer DevelopmentBusiness to BusinessFinance divisionDepartmentalizationGrouping jobs together is called departmentalization. Departmentalization and Division of labor is the same thing. Each and every organization follows some common forms of departmentalization. The five common forms of departmentalization areFunctional DepartmentalizationGeographical DepartmentalizationProduct DepartmentalizationProcess DepartmentalizationCustomer DepartmentalizationFunctional departmentalizationGroups jobs according to function. For instance it has the departments for merchandise, accounting and finance, human resourcefulness and management information system separately. All the departments together form functional departmentalization under managing directorGeographical DepartmentalizationGroups Jobs acc ording to Geographic region. Square distributes its products all over the country using its own distribution channel. It has a large form of vehicles and sales depots to ensure coverage of the whole country. Its coverage is the best in the country.Product DepartmentalizationGroups jobs by product line.Process DepartmentalizationIn every distribution channel certain type of process is obtained to maintain the client flow.. To show the way of working of Square Pharma Ltd. under process departmentalization, a diagram is presented below.Customer departmentalizationGroups on the basis of specific and unique customers. SPL has several product lines the tasks are emphatically different to serve the customer of individual product line. Customers needs and problems differ from one product line to another.Research and DevelopmentThis department brings ideas to improve and realise their brands as well. Information TechnologyThe managers of this department find the new technologies available and use.This technology to driveway competitive advantage. Human Resource DepartmentManagers of this dept use to drive the employees in a disciplined manner toachieve organizational goal. Here they also motivate the employees to the fullest possible extent.Customer DevelopmentBuilding relationship with customer and maintain the relation is important job for any organization that and is done by the managers of this departments. This department also tries to find needs and wants of the customers.Supply Chain DepartmentAfter production how products should be distributed to the supplier- wholesalers, retailer or what would be the chain of supply of the products from production till sales to the final consumer is totally operated by this department. trade DepartmentManagers of Marketing department tries to create values of their brands to the customer by taking various steps like- promotion, advertisement, free distribution and so on. Finance Department The vital role is played by fina nce department these departments develop plans for their financial activities and also prepare the budget for the coming fiscal year.Span of reassureHow a manager behind efficiently and effectively manage his subordinates is called span of control. In case of SPL, they strong span of control as a depart they gain market leadership as well as their progress change magnitude.FormalizationSPL is a highly formalized organization there are diaphanous job descriptions, numerous organizational rules, and clearly defined procedures covering work process. All employees have to follow guided rules and procedures in SPL. SWOT Analysis of the SQUARE Pharmaceuticals Ltd.The overall evaluation of a companys strengths, weaknesses, opportunities, and panics is called SWOT analysis. In general, a business unit has to monitor key macro environment forces (demographic- economic, technological, political-legal, and social-cultural) and meaning(a) microenvironment actors (customers, competitors, distributors, suppliers) that affect itsability to earn profits. The business unit should set up a marketing intelligence system to track tends and important developments. For each trend or development, management needs to identify the associated opportunities and threats .StrengthsRecognizes as a global company.Brand valueStrong brand portfolio.Strong relationship with retailers.Economies of scale.Largest organizationsAdvanced technologyWell skilled professionalsGood distribution network all over worldSquare Pharmaceuticals provided creative strategiesStrong marketing and good image groundingWide distribution channels in both national and internal marketsDecentralized decision-making.WeaknessesDual leadershipNot connecting with customers.Inefficient management of brands.Focus on short term strategyHigh cost of restructuringHard to manage and control company structureHigh cost limit promotions in companyOpportunitiesChanging consumers preferenceIncreasing need for several diseasesR ural areas are a large prospective marketEmploying external job applicants recognise high market shareIntroducing new distribution channelPromote its products in new geographic areasCustomer base is increasing with effective marketingTake advantage of the changes of technologyPopulation expanding at a rapid rateLow income consumers affrightsThe threats of the pharmaceutical industry are the analysis of the external industry components that could create an opportunity for the SPL to decline, atrophy or lose some competitive edge. For example, the pharmaceutical industrys threats could include increased government regulation, a declining economy, increasing research and development (R&D) costs or a decrease in the global population. The threats of SPL are discussed below. Product innovation is ineffectiveThe high competition for market share increases rapidlyChanges of peoples perceptionPolitical and Economic factorsIncreasing social awareness in societyUnfavorable conditionsAcquisiti on decisionLack of proper knowledge in medicineIndustry AnalysisIs a vital part of the decision making process in business? Industry Analysis helps investor to take decision. Industry Analysis also helps entrepreneurs to iron out the wrinkles in their business plans. Michael Porter has identified five forces that are astray used to assets the structure of any industry. Porters five forces areThreat of new entrantsThreat of substitutesBargaining power of buyersBargaining power of Suppliers on-going rivalryThreat of new entrantsPharma industry is one of the most easily accessible industries for an entrepreneur in Bangladesh. The capital requirement for the industry is very low creating a regional distribution network is easy, since the point of sales is restricted in this industry in Bangladesh.Economies of scaleSquare pharma can easily produce based on economies of scale but it is quite difficult to new entrants for produce based on economies of scale First means advantageIt was es tablished in 1958 and converted into a public limited company in 1991.First mover advantage is part of the standard lore of the I-Cubed Economy. It means that the first company into a market generally wins. Access to channels of distribution and relationshipThe Square pharma is a large pharmaceutical company in our country so they have large distribution channel and good relationship with the retailers.Distribution Channel at a GlanceThreat of substitute ProductsThis is one of the great advantages of the pharma industry. Whatever happens, demand for pharma products continues and the industry thrives. One of the key reasons for high competitiveness in the industry is that as an ongoing concern, pharma industry seems to have an infinite future. However, in recent times, the advances made in the field of biotechnology, can prove to be a threat to the synthetic pharma industry. Bargaining power of buyersThe unique feature of pharma industry is that the end user of the product is differe nt from the influencer. The consumer has no choice but to buy what doctor recounts. However, when we look at the buyers power, we look at the influence they have on the prices of the product. In pharma industry, the buyers are unlogical and they as such does not wield much power in the pricing of the products. However, government with its policies plays an important role in regulating pricing through the National Pharmaceutical Pricing Authority.Price SensitivitySquare pharma is produced the pharmaceutical products which are undifferentiated product and there are few electric switch cost. Relative Bargaining Power Two factors related to the relative bargaining powerNumber of buyerThe buyers bargaining power is determined by the number of buyer relative to the number of suppliers.Volume per buyerIt is determined by volume of purchase by single buyer. The number of buyer of Square pharma is a single buyer with several alternative suppliers.Bargaining power of SuppliersThe pharma in dustry depends upon several organic chemicals. The chemical industry is again very competitive and fragmented. The chemicals used in the pharma industry are largely a commodity. The suppliers have very low bargaining power and the companies in the pharma in dusty can switch from their suppliers without incurring a very high cost. However, what can happen is that the supplier can go for forward consolidation to become a pharma company. Companies like Orchid Chemicals and Sasha Chemicals were basically chemical companies, who turned themselves into pharmaceutical companies. In case of Square pharma there is low bargaining powers of supplierCurrent revelryConcentration and Balance CompetitorsThe number of firms in an industry and their relative size of its determine the degree of concentration. Lots of similar size and strong competitor exist in the market and price competition is likely to be harsh. So strongly pharma product price is competitive. dot of differentiation and switc hing costProduct differentiation is not the driver, cost competitiveness is. However, companies like Square pharma have created big brands in over the years, which act as product differentiation tools.Excess Capacity and Exit barrierIt is quit impractical for square pharma or other firms to forget from thisindustry because of they cannot use those machineries in other purpose. Also here some rules and regulation exist no one cannot easily exist from this industry.Recommendation musical note and control According to international standard square pharmaceuticals ltd. Should maintain their product quality Local market share At present in Bangladesh square pharmaceuticals is the market leader in pharmaceutical sector. Its followers and competitors always try to increase their percentage of market share. So square pharma concentrate more to increase his market shareDynamic sales strategiesDue to the customer complaint and the lack of guidelines to prevent untrained sales staff from serv ing customers, we recommended that square pharma should take dynamic sales strategies for higher customer satisfaction. Foreign market Though SPL captured Asia, Africa, Middle East pharmaceutical market but the Europe market till now un-captured. So square pharma should concentrate more in Europe market.ConclusionIn finally, I can say that Square Pharmaceuticals Limited play an important for economic development of the country after creating job opportunities, and earning profits as well. SQUARE Pharmaceuticals Limited is the largest pharmaceutical company in Bangladesh and it has been continuously in the 1st position among all national and multinational companies since 1985.Referencehttp//en.wikipedia.org/wiki/Square_Pharmaceuticalshttp//www.squarepharma.com.bd/index.phphttp//www.scribd.comhttp//www.managementstudyguide.com/swot-analysis.htmhttp//en.wikipedia.org/wiki/Porter_five_forces_analysishttp//en.wikipedia.org/wiki/DepartmentalizationBooksManagement-10th-Edition-Stephen P.Ro bbins & Mary Coulter