Square Pharmaceuticals Limited [12-15AM]

8/14/2014

Student Name: Student ID:

Mostafijur Rahman Nahid 1120950030

Md. Aminul Islam 1321041030

Square Pharmaceuticals Ltd.

Course: BUS101

Section: 1

Faculty: Afnan Uddin Ahmed

(AFD)

1

Table of Contents Introduction .................................................................................................................................................. 3

Board of Directors: ........................................................................................................................................ 7

Workforce: .................................................................................................................................................... 9

Recruitment, Selection and Retention: ..................................................................................................... 9

1. Internal source ............................................................................................................................ 10

2. External source: .......................................................................................................................... 10

Training & Development of HR: .................................................................................................................. 11

Present Market Position: ............................................................................................................................ 16

Export: ......................................................................................................................................................... 16

SWOT Analysis: ........................................................................................................................................... 17

Strength: ................................................................................................................................................. 18

Weakness: ............................................................................................................................................... 18

Opportunity: ........................................................................................................................................... 18

Threat: ..................................................................................................................................................... 19

Financial Statement: ................................................................................................................................... 20

Marketing Mix: ............................................................................................................................................ 22

PRODUCT: ............................................................................................................................................... 22

PRICE: ...................................................................................................................................................... 23

Placing Strategy (Distribution): ............................................................................................................... 24

Promotion: .............................................................................................................................................. 25

Sales promotion: .................................................................................... Error! Bookmark not defined.

Marketing Research .................................................................................................................................... 26

Data Mining ............................................................................................................................................. 27

Quantitative ........................................................................................................................................ 27

Qualitative ........................................................................................................................................... 27

Conclusion ................................................................................................................................................... 28

2

List of Abbreviations Used

SPL: Square Pharmaceuticals Ltd.

IMS: Information Medical Statistics

WTA: World Trade Agreement

MRPC: Market Research Planning & Cell

CGMP: Current Good Manufacturing Practice is a term recognized worldwide as a

holistic approach for the control and management of manufacturing and quality control

testing of food and pharmaceutical products.

API: Active Pharmaceutical Ingredients.

UKMHRA: United Kingdom Medicines and Healthcare Products Regulatory Agency

MPO: Medical Promotion Officer

DDA: Directorate of Drug Administration.

POM: Prescription Only Medicine

OTC: Over The Counter

Definition of The Terms

Value Proposition: Chesbrough and Rosenbloom (2002) define the value proposition as

the value created for users by the offering based on the technology.

Biotechnology is a radical innovation which has a very different technological regime from

the traditional pharmaceutical one. The manner in which biotechnology has been applied

to the search for, and development of, biopharmaceuticals is quite different from the

traditional approach. This new regime has resulted in the innovation process being

substantially conducted by small specialist firms. However pharmaceutical companies

have remained innovative, both with respect to the traditional small molecule based

technological trajectory but also in their adjustment process to the new technology.

OTC product: Over the counter medicine product which can be advertised of

commercialized.

POM product: Prescription only medicine. Strictly regulated in terms of pricing and

approaches.

3

Introduction Bangladesh is one of Asia Pacific’s most promising opportunities for drug makers with $700

million sector. There are currently a total of 245 companies out of which 200 have operations in

the country. The market is totally dominated by the local companies and there are only 5 multi-

nationals currently operating. The total number of brands that are registered in Bangladesh are

currently estimated to be 5,300, while the total number of dosage forms & strengths are 8,300 from

450 generics.

Square Pharmaceuticals Limited is an organization with equal emphasis on Leadership,

Technology, Quality and Passion. Square Pharmaceuticals Ltd. is the leading branded generic

pharmaceutical manufacturer in Bangladesh producing quality essential and other ethical drugs

and medicines.

Square 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 flagship company, is

holding the strong leadership position in the pharmaceutical industry of Bangladesh since 1985

and is now on its way to becoming a high performance global player.

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.

It was established in 1958 and converted into a public limited company in 1991. The sales

turnover of SPL was more than Taka 5 Billion (US$ 90 million) with about 15% market share

(April 2003 – March 2004) having a growth rate of about 16%.

Corporate History:

Square Pharmaceuticals started as a Partnership Firm in 1958. It converted into a Private Limited

Company in 1964. The company made its initial price offering in 1995. It has achieved MHRA

certificate as the first pharmaceutical company of Bangladesh.

Year of Establishment (Initially as a

Partnership)

1958

Incorporated as a Private Limited Company 1964

Technical Collaboration with Janssen

Pharmaceutical, Belgium, a subsidiary of

Johnson and Johnson International, USA.

1974

Licensing Agreement signed with F.

Hoffmann-La Roche Ltd., Switzerland.

1982

Achieved first position in the Pharmaceutical

Market of Bangladesh among all national and

multinational companies

1985

4

Pioneer in pharmaceutical export from

Bangladesh

1987

Converted in to a Public Limited Company

1991

Initial Public Offering of Square

Pharmaceutical Shares.

1994

Chemical Division of Square

Pharmaceuticals Ltd. starts production of

pharmaceutical bulk products (API).

1995

Won the National Export trophy for exporting

pharmaceuticals.

1997

Awarded ISO-9001 Certificate 1998

US FDA/UK MCA standard new

Pharmaceutical factory goes into operation

built under the supervision of Bovis Lend

Lease, UK.

2001

SQUARE enlisted as UNICEF's global

supplier.

2004

New State-of-the-Art SQUARE

Cephalosporins Ltd. goes into operation; built

under the supervision of TELSTAR S.A. of

Spain as per US FDA/ UK MHRA

requirements.

2005

SQUARE Pharmaceuticals Ltd., Dhaka Unit

gets the UK MHRA approval.

2007

Starts manufacturing of insulin maintaining

quality standards of US FDA & UK MHRA.

2009

SQUARE Pharmaceuticals Ltd., Dhaka Unit

and SQUARE Cephalosporins Ltd. get the

Therapeutic Goods Administration (TGA) of

Australia approval.

2012

5

Company Strive For:

Provide top quality health care products at the lowest cost possible.

Ensure highest return to the stockholders and growth of their assets.

Strive for best co-operation of the creditors & debtors the banks & financial institutions

who provide financial support when the company needs them.

Strive for fulfillment of responsibility to the Government through payment of entire

range of due taxes, duties, and claim to various public agencies.

Strive, as responsibilities citizen, for a social order devoid of malpractices, anti-

environmental behaviors, unethical and corruptive dealings.

Objective of the Organization:

Mission: It’s Mission is to produce and provide quality & innovative healthcare relief for

people, maintain stringently ethical standard in business operation also ensuring benefit

to the shareholders, stakeholders and the society at large.

Vision: Square views business as a means 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.

Objective: Its objectives are to conduct transparent business operation based on market

mechanism within the legal & social frame work with aims to attain the mission reflected

by its vision.

Corporate Focus:

Its vision, mission and objectives are to emphasize on the quality of product, process and services

leading to growth of the company imbibed with good governance practices.

MANAGEMENT PHILOSOPHY

The Philosophies as have been adopted by Square Pharmaceuticals Ltd. are as follows:

Businesses should support and respect the protection of internationally proclaimed human

rights within their sphere of influence and Make sure that they are not complicit in human

rights abuses.

Businesses should uphold the freedom of association and the effective recognition of the

right to collective bargaining;

The elimination of all forms of forced and compulsory labor;

The effective abolition of child labor and

Eliminate discrimination in respect of employment and occupation.

Business should support a precautionary approach to environmental challenges:

Undertake initiatives to promote greater environmental responsibility; and

Encourage the development and diffusion of environmentally friendly technologies.

Business should work against corruption in all its forms, including extortion and bribery.

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Square strives, above all, for top quality health care products at the least cost reaching the

lowest rungs of the economic class of people in the country. Square values our social

obligations.

Square owes our shareholders and strive for protection of their capital as well as ensure

highest return and growth of their assets.

Functions of the Organization:

Ensure strict compliance with WHO GMP standards and local regulatory norms in every phase

of sourcing & procuring quality materials, manufacturing, quality assurance and delivery of

medicines.

Ensure all activities through documented Quality Management System (QMS) complying

International Standard requirements of ISO 9001 through continuously developing Human

Resources by regular training and participation.

Square is committed to undertake appropriate review, evaluation and performance measurement

of processes, business activities and Quality Management System for continual improvement to

ensure highest standard, customer satisfaction, developing human resources and company’s

growth.

CORPORATE GOVERNANCE

Corporate Governance involves decision making processes for any corporate body as a going

concern for the benefit of all concerned, present and future. These decisions may be categorized

as policy & strategic, operational and executing, performance & evaluation and sharing of the

accretional assets between present & future cohorts. The involvement of the entrepreneur in all

these areas invokes decision making governance on a continuous basis, the degree of involvement

being variable with the extent of delegation of authority top down and reporting for accountability

bottom up of the Management echelon. These aspects of governance are shared by the Board of

Directors, Executive Management, operational participants and workers and others in fulfillment

of the common goals that converge in increasing the benefits of all stakeholders. To this end entire

corporate governance efforts are blended with "good governance practices" as ethically and

morally acceptable standards under a given socio politico environmental phenomenon of our

society in which we work, live and exist.

7

The organisms through which the corporate governance functions are carried out are:

Board of Directors: Mr. Samson H. Chowdhury Chairman

Mr. Samuel S. Chowdhury Vice Chairman

Mr. Tapan Chowdhury Managing Director

Dr. Kazi Harunar Rashid Director

Mr. M. Sekander Ali Independent Director

Ms. Ratna Patra Director

Mr. Anjan Chowdhury Director

Mr. Kazi Iqbal Harun Director

Mr. K. M Saiful Islam Director

AUDIT COMMITTEE

Mr. M. Sekander Ali Chairman

Mr. Samuel S. Chowdhury Member

Mr. Kazi Iqbal Harun Member

MANAGEMENT COMMITTEE

Mr. Tapan Chowdhury Chairman

Mr. K M Saiful Islam Member

Mr. Parvez Hashim Member

Mr. M. Ashiqul Hoque Chawdhury Member

Mr. Muhammadul Haque Member

Mr. Md. Kabir Reza, FCMA Member

SENIOR CORPORATE OFFICIALS

Mr. Md. Kabir Reza, FCMA Chief Financial Officer

Mr. Khandaker Habibuzzaman, MBA, ACS Company Secretary

Md. Majibur Rahman Bhuiyan, M.Com Head of Internal Audit

8

COMPANY SECRETARY

Mr. Khandaker Habibuzzaman, MBA, ACS

AUDITORS

M/s. Chowdhury Bhattacharjee & Co.

Chartered Accountants

47/2, Indira Road

Dhaka-1215, Bangladesh

Constitution: The Board of Directors, the top Management echelon, consisting of the

founding entrepreneurs/successors and an Independent Director, provides the policy and

strategic support and direction for the entire range of the corporate activities. The Board of

Directors consist of nine (9) members including the Independent Director with varied

education and experience which provides a balancing character in decision making process.

The Board is re-constituted every year at each Annual General Meeting when one-third of

the members retire and seek re-election. A director is liable to be removed if the conditions

of the Articles of Association and the provisions of the Companies Act 1994 are not

fulfilled.

Role & Responsibilities: The main role of the Board of Directors, which is the highest

level of authority, is to provide general superintendence, oversee the operations and control

the affairs of the company through appropriate delegation and accountability processes via

the lines of command. However the Board of Directors hold the ultimate responsibility &

accountability with due diligence for conducting the activities of the company as per

provisions of law in the interest of the shareholders, the stakeholders, the state and the

society.

Relationship with Shareholders & Public: The shareholders as owners, are required to

be provided with material information on the company's operation half-yearly and

annually, the latter at the AGM. They are also provided routine services by the Company

Secretary in matters of transfer of shares, replacement in case of loss or damage of shares,

payment of dividends etc. The Board is however responsible to the public for publication

of any price sensitive information as per SEC regulation. A qualified Chartered Secretary

is in charge for all these responsibilities as Company Secretary.

Relationship with Government: In its role on accountability to the government, the Board

of Directors ensure payment of all dues to government in the form of import duty, custom

duty and port charges, VAT, Corporate Taxes and other levies as and when they become

due on the basis of actual operations and make sure to avoid corruption. This has enabled

the company to enhance its contribution to the National Exchequer on a progressive rate

year after year.

Relationship with Financers/Bankers: The Board oversees the financial transactions and

ensures to meet company's commitments to the lenders without default. This has resulted

in securing lower interest rates from them.

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Relationship with Suppliers: As the company has to import plant and machinery and

almost all the raw materials from abroad, it maintains cordial and mutually beneficial

interest with its international as well as local suppliers. This has enabled the company to

avoid any legal disputes in international/local courts and enhanced the company's image as

a good customer.

Corporate Social Responsibilities (CSR): The Board of Directors is also awoken of the

Corporate Social Responsibilities (CSR) especially in the areas of gender equality, race-

religion-regional equality, non-employment of child labor, human rights, environmental

pollution, social-marketing, social activities (promotion of sports & culture, health care and

population control programs, elimination of corruption programs, participation in

charitable activities etc. in non-partisan manner) right to form and participate in Union

under ILO convention, employment of disabled etc.

THE EXECUTIVE MANAGEMENT

The Executive Management is led by the Managing Director (CEO) who is appointed by the Board

of Directors for a term of 5 years (renewable) with the approval of shareholders in the Annual

General Meeting. The Managing Director is supported by professional, well educated, trained and

experienced team consisting of Executive Directors, Directors, General Managers and a host of

Senior Executives in the hierarchy of management. The Board has approved an organogram with

modern features ensuring clear lines of delegation of authority and reporting for accountability for

effective decision making evaluation of performance on merit for both rewarding and disciplinary

action. The Executive Management is responsible for preparation of budgetary segment plans/sub

segment plans for every cost/profit centers and are held accountable for performance therefore.

The Executive Management is aided by committee(s)/sub-committee(s) in carrying out its

functions.

Workforce: Square Pharmaceuticals has a strong workforce of over 1,400 executives, staff and workers.

Besides them, the company has a significant number of non-regular day-to-day basis employees.

This is because it put much emphasize on Marketing, Finance and Sales. But as the company

didn’t go for plant expansion in the mentioned year so the number of workers didn’t increase

during the period. So the production people increase less proportionately.

Square Pharmaceuticals considers that the development of human resource is the key to

advancement. As such the company offers regular systematic training to its officers and workers

through various workshop, seminar and job attachment method.

The company has established a contributory provident fund scheme. The fund is wholly

administered by a Board of Trustees.

Recruitment, Selection and Retention:

Square with its progressive business outlook, believes and practices corporate work culture with

a classic blend of efficiency and equity. Square believes in company growth by increasing

efficiency level of employees and for that offering excellent environment and support for skill

and knowledge up-gradation. Square values productivity as the spontaneous contribution of

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Human Resources. Strategic Human Resource Development Programs are the energy sources for

Square HR for running towards the zenith of success.

1. Internal source: SQUARE thinks that current employees are a major source of recruits

for all but entry-level positions. Whether for promotions or for ‘Lateral’ job transfers,

internal candidates already know the informal organization and have detailed information

about its formal policies and procedures. Promotions and transfer are typically decided

by operating managers with little involvement by HR department.

2. External source: When job opening cannot be filled internally, the HR department of

SQUARE must look outside the organization for applicants.

All the external source of recruitment at below:

Walk-ins and Write-ins: Walk-ins are some seekers who arrived at the HR department

of SQUARE in search of a job; Write-ins are those who send a written enquire .both

groups normally are ask to complete and application blank to determine their interest and

abilities. Usable application is kept in an active file until a suitable opening occurs or until

an application is too old to be considered valid, usually six months.

Employee referrals: Employees may refer job seekers to the HR department .Employee

referrals have several advantages .Employees with hard –to –find job skill may no others

who do the same work. Employees’ referrals are excellent and legal recruitment

technique, but they tend to maintain the status quo of the work force in term of raise,

religions, sex and other characteristics, possibly leading to charges of discrimination.

Advertising: Want ads describe the job and the benefits, identify the employer, and tell

those who are interested how to apply .They are most familiar form of employment

advertising .for highly specialist requites, ads may be placed in professional journal or

out of town newspaper in areas with high concentration of the desired skills

Internet: Now today nobody thinks anything without internet. So, SQUARE gives

advertise at internet.

Employee Retention: Employers and employees each have their own sets of needs and

values, and successful relationship between these two sides requires that some sort of

balance be struck.

SQUARE divided this policy into three channel categories those are:

Employee safety: SQUARE provide the employee safety .It ensure the all kinds of job

safety such as insurance of each employee not this it provide insurance to the labor.

Employee health: Free medical checkup, provide health care and also provide necessary

medical facilities for each employee.

Employee working condition: The working condition of employee is very hygienic.

SQUARE is ISO 9001-2000 Certified company.

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Training & Development of HR: Training & development of human resources is an important issue in all organization. Without

proper training & development program a company cannot achieve its success & growth.

Moreover for proper utilization of human resources providing training & development of skills

& quality is essential. Square Pharmaceuticals Ltd. also provides some sort of training to their

employees & develops the skills & abilities of their employees.

Training Planning: Square Pharmaceuticals develops human resource development

and training planning each year for the next three-year for all its employees. The training

planning for an employee is developed by immediate superior.

Training Division: Square Pharmaceuticals has a separate department for training. This

department is called “Human Resources Training and Development Cell” (HRTDC). This

department is run by an assistant manager.

Human Resources are following these activities: - Looking after Corporate HR activities of SQUARE Group.

- Conducting Recruitment and selection Process.

- Looking after Management Development Training.

- Conduct Training Need Assessment in different area within the organization.

- Formulate, Edit and Implement HR Policies.

- Overall talent and resource Management

- Analyzing organizational need linking with employee development.

- Managing employee relations and Communication.

- Conducting Orientation Program for Newly joined Employees.

In Square Pharmaceuticals training is provided for two reasons:

1. Skill Development: This training is provided when the employees try to perform their task but fail to do so. Because

of skill inadequacy, if they cannot perform their task then the company arranges this type of

training. An example can be given. A computer operator supposed to know all the popular

packages. But if s/he doesn’t know any of the packages then the company sends him/her for a

training to learn the package.

2. Career development: It is more of a future-oriented training. Only executives get the opportunity to take part in this

type of training. As the company has future plan and clear knowledge about the potential

vacuum in the future it continues to improve its workforce.

12

The company uses both on-the-job and off-the-job methods to train its employees:

Training Method Used:

On-the-job training: Apprentice Program and Job Instruction Training both are used by

the company. The company also considers the drawbacks of the job training i.e. lower

productivity and error made the trainees.

Off-the-job training: The Company uses all types of off-the-job training like lecture or

conference, films, simulation exercise, experimental exercise, etc.

Management Development Training: Round the year, management development

training is organized for managers & executives at the Corporate Headquarters, Dhaka

Unit & Pabna Unit. Their own and renowned resource persons from home & abroad

conduct the training sessions. The company also sends their employees to renowned

local training institutes for specialized training.

Overseas Training: The Company sends their employees to abroad for training program

depending on availability of appropriate topics. Technical persons of their factories

attend the Factory Assessment Test (FAT) in various parts of the world for smooth

operation of equipment’s.

Field Forces Training & Development: Each year, a significant number of Field Forces

complete their induction training program and joined to their respective markets and

appear at examination in every month for further development.

Field Forces Refresher Course: For updating product knowledge and selling skills of

field forces, Refresher Course is organized in four different regions in every month.

Territory Manager Training: Twice in every year, mid-level managers of sales

participate in the training program titled “Sales Territory Management” at a regular

basis.

Distribution: Every year a number of Distribution Assistants (DA), Data Entry

Operators (DEO) goes under induction training program immediately after initial

recruitment. Each month, Refresher course for DA, Driver and Packers is organized in

two different depots for updating their knowledge.

Training Conducted by Training Wing at the HQ:

All the in-house trainings for the sales force and other management trainings are conducted by

this department. The trainings related to sales are designed for the sales force consisting of:

Medical Promotion Officer (MPO) :60 working days

Regional Sales Manager & Territory Managers: 2 working days every moth.

Depot In charge: 1 to 2 working days.

Delivery Assistants: 2/3 working hour in a regular basis.

The Training Wing also conducts different management development programs using various

mid and top management people as ‘Resource Person’ (SPL name for trainer).

13

Safety Related Training:

Safety is a very important issue in any manufacturing plant. SPL conducts a comprehensive

training to ensure that factory employees are conversant with each and every aspect related to

the safety of plant, equipment and personnel. Some of such trainings are:

Fire prevention and safety training: This training is compulsory for all the employees

of the factory. Theoretical training is followed by real life scenario fir fighting exercise.

It also includes equipment shut down and evacuation procedures.

Emergency procedure training: this training includes practical training related to

machinery failure, toxic leakage etc.

Personal protective equipment training: To ensure highest product quality, safety of

personnel or safety from any other health hazard, factory workers inside the plant wears

various protective clothing and equipment. This training aims to make the trainees

conversant with all these equipment.

First Aid training: this is also a compulsory training for all employees.To combat any

kind of emergency there is a team named as Emergency Response Core Team (ERCT),

which is constituted by taking 2 members from each department. The purpose of this

team is to respond to any emergency irrespective of the place of action. This system

eliminates any chaos or confusion during actual emergency. All the ERCT members

undergo thorough training on each and every aspect of safety and emergency handling.

Promotional Strategy, Transfer, Discharge, Resistance to Change Strategy: Traditional approaches to career planning, performance appraisals, reward management and

employee development must be re-appraised in the light of the vision, characteristics and mission

outcomes as reflected in the HRM plans, policies, and practices.

Square Pharmaceuticals follow a model for its employee promotional or discharging activities.

Career Development Strategy: It is more of a future-oriented training. Only

executives get the opportunity to take part in this type of training. As the company has

future plan and clear knowledge about the potential vacuum in the future it continues to

improve its workforce.

The company provides functional as well as general management training:

Functional Training: Functional training is the training which aimed at developing the

functional areas like Sales, Production, Marketing, etc.

General Management Training: Except functional training all other trainings is

General Management Training.

Management Development Program: The Company has management development

program. It is an ongoing process. The development program is separated in different

small modules. For the management development program both on-the-job and off-the-

job methods are used.

14

The management development program is aimed at improving managerial performance. It is

mostly educational process and the executives have gone through lots of reading and think about

what might increase their productivity.

The company has committee assignment on-the-job management development program method.

But it is not very widely used.

Lecture and Simulation Exercise are off-the-job methods that the company uses. The company

always considers cost before go for any type of training. If the on-the-job training is less costly

then the off-the-job training then it goes for on-the-job training.

Strategic Pay, Rewards and Benefits:

Incentives: Incentives are important issues in modern organizations. To keep the

employees effective and to get maximum productivity incentives are provided to the

employees.

Competitive Strategies

Lowest – cost – Lower output costs per employee

– Individual & group incentive plans

– Behavioral encouragement plans

Differentiation – Unique product or services

– Creative, risk – taking employees

– Long – term focus

– Team – based incentives

Workers’ Compensation: Workers’ compensation is a legally required benefit is included in

the compulsory disability laws of many countries. Mostly, employer is seen liable regardless of

the fault.

Objectives of Workers’ compensation – Provide income & medical benefits

– Reduce litigation

– Eliminate legal fees & time

– Encourage employer safety

– Promote accident study & avoidance

Workers’ compensation claims – Injury

– Occupational disease

– Death

Workers’ compensation benefits – Medical services

– Disability income

– Death benefits

15

Technological up gradation

The company is endeavoring to upgrade and adopt new technology in production, quality control,

distribution and administration of its products to patients. During the year (2007-2008) the

company invested an amount of Tk. 36,424,234 in improving its Laboratory.

R&D Activities:

A team of scientific pharmaceutical experts who continuously conduct research & development

programs for improving quality of products, reduction of cost, adaptation of products that are free

of intellectual property rights and innovative products. These efforts have enabled the company to

add new products to its product lines every year to the benefit of the common men of the country

and the shareholders. The success in this field has secured the leading position for the company in

the pharmaceutical sector.

RAW MATERIAL MANUFACTURING

• Pet Bottle Unit: First integrated machine of its kind in pharmaceuticals industry of Bangladesh.

Operation started from 2004. Production capacity/hour is 5000 pcs.

• API Unit: Pharmaceutical Bulk Manufacturing Plant. It is presently the largest quality-bulk

drugs manufacturer in the country producing international standard bulk pharmaceuticals to satisfy

more than hundred pharmaceutical companies throughout the country. API product range-

(1)Amoxycillin Trihydrate (Compacted) BP/USP

(2)Amoxycillin Trihydrate(Micronised) BP/USP

(3)Cloxacillin Sodium (Compacted) BP/USP

(4)Cloxacillin Sodium (Micronised) BP/USP

(5)Paracetamol BP/USP

(6)Diclofenac Sodium BP/USP

(7)Diclofenac Di Ethyl Amine BP

(8)Diclofenac Potassium BP

(9)Diclofenac INN (Free Acid)

(10)Flucloxacillin Sodium (Compacted) BP

(11)Flucloxacillin Sodium (Micronised) BP

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Present Market Position:

Source: IMS Report,4th Quarter - 2007

Export: The company is continuously pressing hard for expanding it's export sales. During the year under

review, the exports amounted to Tk. 212.49 million as against Tk. 192.95 million in previous year,

a 10.13% increase. The exports are expected to rise in the forthcoming years so far. As the

Company has secured license under UK MHRA, it is expected that the export potential will

increase substantially in the near future. It may be mentioned that the company has, for the first

time, exported basic chemicals for over Tk. 2 million during the year. The company is making

entry into foreign markets and making efforts in registering its products in USA/EU countries for

which is has already set up a modern state-of-art production facilities at Kaliakoir, Gazipur. The

company has already secured permission for marketing its products in UK/EU countries.

Name Sales USD Share %

Square 106.5 18.4

Beximco 54.3 9.91

Incepta 43.5 7.37

Acme 31.9 5.4

Eskayef 26.8 4.54

Drug Int. 23.1 3.91

Aristopharma 22.9 3.88

Sanofi-Aventis 22.4 3.8

ACI 22.4 3.79

Renate 21.5 3.64

Top 10 Manufactures of Bangladesh in Sales 2007

17

Present export market covers:

Source: Annual report 2008, SPL

VALUE PROPOSITION

SPL has presently been offering its products to its market segment with the value proposition

“Utmost quality, excellent efficacy”

SWOT Analysis: A SWOT analysis is an organized approach to assessing a company’s internal strengths and

weaknesses and its external opportunities and threats. SWOT analysis is another step of planning.

SWOT analysis basically a positive and negative situation analysis. Company use SWOT to

change the business decision in an effective way.

Myanmar Nepal Kosobo Kenaya

Libya Mauritius Malawi Yemen

Tanzania Sri Lanka Somalia Vietnam

Afghanistan Ukraine Uzbekistan Ghana

Iraq Benin Botswana Bhutan

Cambodia Comoros Island Tajikistan

Mozambique Gambia Niger Rwanda

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Strength:

Square is the largest private sector industrial conglomerate in Bangladesh. Square is more efficient

and leading company in pharmaceutical industry for their strengths. Their strengths are given

below:

The well qualified employees are strength of Square.

Huge experience in the pharmaceutical market

Used modern and sophisticated technology

Strong research and development division

Highly Skilled workforce, efficient management

Strong brand recognition, outstanding service

World class manufacturing facilities.

Nationwide & worldwide recognition.

Big multinational clients.

Quality assurance.

Providing quality research.

Client satisfaction.

Reliable & trusted employees.

ISO certified.

Weakness:

The chain of command of Square is elongated, which takes long time to take any decision. In

reality Square has insignificant weakness in strategy.

Need more smooth distribution channel

In case of product launching Square is follower rather than to become pioneer.

Unnecessary permanent employees almost in every department.

Excess workload on employees.

Too much importance attached to the role of top management.

High production cost.

High marketing expenses affect their margin significantly.

Opportunity:

The pharmaceutical market of Bangladesh is booming rapidly, so Square has a huge scope to do

better.

Today technology is more advanced and sophisticated which opens the door of the new

generation of medicine.

More and more health care centers and hospital are being established Square has scope to

penetrate in those.

Globalization opens the door of new era for Square.

Established & Growing market segment.

Can be penetrated easily in the market

19

Threat:

There are lots of big pharmaceutical companies established in market in the country, which create

more competition .So that is a threat for Square.

Frequent change in government rules & regulations.

Unstable political situation.

Regular devaluation of money increasing the cost of exports.

Increase the price of raw material

Lack of availability of raw material

Huge import tax

Competitor increase day by day

Major Competetors Major competitors of Square pharmaceutical are given below:

ACI Pharmaceuticals

Aristopharma Ltd

Amico Laboratories

The ACME Laboratories Ltd

Beximco Pharmaceuticals Ltd

Eskayef Bangladesh Limited

Gaco Pharmaceuticals

Ganashastha Pharmaceuticals

Ibn Sina Pharmaceuticals

Incepta Pharmaceuticals Limited

Navana Pharmaceuticals

Orion Pharmaceuticals

Pharmadesh

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Financial Statement:

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Unaudited)

As At 31 December 2013

31-12-2013 31-03-2013

Taka Taka

ASSETS:

Non-Current Assets: 22,771,079,492 20,310,355,617

Property, Plant and Equipment-Carrying Value 11,421,474,170 9,613,059,761

Capital Work-in-Progress 4,991,584,879 4,907,039,756

Investment - Long Term (at Cost) 147,694,430 157,694,430

Investment - Associates Undertaking 5,196,317,176 4,914,958,933

Investment in Marketable Securities (Fair Value) 801,052,222 686,985,768

Pre-Operating/Preliminary Expenses 212,956,615 30,616,969

Current Assets: 8,051,825,616 6,946,361,767

Inventories 2,835,972,419 3,091,263,712

Trade Debtors 804,622,484 812,741,029

Advances, Deposits and Prepayments 954,488,796 952,411,276

Short Term Loan 1,240,677,992 1,108,757,914

Cash and Cash Equivalents 2,216,063,925 981,187,836

TOTAL ASSETS 30,822,905,108 27,256,717,384

SHAREHOLDERS' EQUITY AND LIABILITIES:

Shareholders' Equity: 25,636,179,542 22,370,264,441

Share Capital 4,819,992,630 3,707,686,640

Share Premium 2,035,465,000 2,035,465,000

General Reserve 105,878,200 105,878,200

21

Tax Holiday Reserve 406,231,702 406,231,702

Gain on Marketable Securities (Unrealized) 401,546,024 313,532,224

Retained Earnings 17,867,065,986 15,801,470,675

Non-Controlling Interest 8,647,807 7,678,418

Non-Current Liabilities: 1,895,193,371 1,603,367,092

Long Term Loans - Secured 1,289,807,593 1,106,327,183

Deferred Tax Liability 605,385,778 497,039,909

Current Liabilities: 3,282,884,388 3,275,407,433

Short Term Bank Loans 374,423,119 1,302,048,378

Long Term Loans-Current Portion 579,662,825 540,421,336

Trade Creditors 62,569,319 7,034,724

Liabilities for Expenses 43,330,838 173,261,777

Liabilities for Other Finance 2,222,898,287 1,252,641,218

TOTAL SHAREHOLDERS'

EQUITY AND LIABILITIES 30,822,905,108 27,256,717,384

Source: http://www.squarepharma.com.bd/quarterly-reports.php

22

Marketing Mix:

Marketing professionals and specialist use many tactics to attract and retain their customers.

These activities comprise of different concepts, the most important one being the marketing mix.

There are two concepts for marketing mix: 4P and 7P. It is essential to balance the 4Ps or the

7Ps of the marketing mix. The concept of 4Ps has been long used for the product industry while

the latter has emerged as a successful proposition for the services industry.

Market Segments: The main basis of segmenting market in Bangladesh is

therapeutic drug i.e. NASAL DROPS, ANTIBIOTIC etc. Presently SPL has the

largest product portfolio to serve as many segments as possible. It consistently

strives to make it larger. Its present segments are identified in the product table.

Target Customers: Rather than the consumer of the medicine, the key

customers for SPL has been the physician. Physicians are considered here as

opinion leader. The major innovative drugs cannot be purchased without a

prescription provided by a doctor. SPL’s main selling task has been directed,

therefore, not at the user, but at physicians. Doctors and physicians are

segmented on the basis of its therapeutic drug segment. As for example, NASAL

DROPS products are communicated at E.N.T specialists. Therefore, if SPL has

NASAL DROPS product line, then E.N.T. specialists are treated its target

customers. Besides this, general physicians are also its target customers

PRODUCT: A product is anything that can satisfy the need, want, or demand of the customer .The product

aspects of marketing deal with the specifications of the actual goods or services, and how it

Product

(Medicine)

Price

(All most

regulated)

Promotion

(Personal Selling

through relationship)

Place

(Domestic &

foreign)

Target

Customer

(Doctors &

Physicians)

23

relates to the end-user’s needs and wants. The scope of a product generally includes supporting

elements such as warranties, guarantees, and support.

SQUARE Pharmaceutical Products:

Square Pharmaceutical products are those products which meet the medical need of the

customer. Square Pharmaceutical product is a drug, broadly speaking, is any substance that,

when absorbed into the body of a living organism, alters normal bodily function.

These products are dosage form containing one or more drugs (medicines) along with other

substances included during the manufacturing process.

PRICE: The amount of money charged for a product or service, or the sum of the values that consumers

exchange for the benefit of having or using the product of service. Drug pricing is heavily

dependent on the National Drug Policy adopted by Directorate of Drug Administration of

Bangladesh Govt. Governments agencies act as a countervailing power in pricing

pharmaceuticals.

As per the NDA 2005, regulatory authority pursuing “Rational pricing” of drugs to ensure

essential drugs available to the end-users at affordable prices. On the basis of that policy, SPL

has been pursuing two different kinds of pricing policy-

For OTC product, all most similar price as the competitors’.

For POM product, competitive pricing.

Some of the Products of SQUARE Pharmaceutical Ltd.

Antibiotics

Anti-Fungal-Drugs Anti-Protozoal-Drugs

Anti-Histamines Anti-Emetic

Anthelmintic Antacid & Anti Ulcerants

Laxative Drug Anti-Oxidant

Vitamins & Minerals NSAIDs

Bronchodilators Expectorants

Anti-Diabetic Drugs Anti-Depressants & Anxiolytics

24

There are also few exceptions. If SPL introduces a product first in the market, it charges little

bit higher price than it’s competitors, but within the rules and regulations of Drug

Administration.

Top 5 Pharmaceutical Company of Bangladesh: 2010

Placing Strategy (Distribution):

If we look into the channel of distribution we find the process normally as below,

Square’s own distribution channel & system will be utilized but focusing more on Hospitals &

Clinics. Square has a very wide network of distribution system. It ensures to supply the right

product in the right place in the right time. Distribution starts from the factory where is it is

prepared, then it goes to DPG for calculating & clearing government taxes. From DPG the products

are distributed to all the Depots in the country. Finally the products are distributed to the final

destination which mainly consists of Hospitals & clinics. Square Pharma is equipped with high

0

200

400

600

800

1000

1200

1400

Square Incepta Acme Beximco Eskayef

Sales Of Top 5 Companies In 2010

Sales in Tk. Corer

25

quality logistical & human support to maintain highest level of efficiency in distribution among

all the companies in the industry.

There are three types of transportation method used in pharmaceutical distribution system as well

as Square pharmaceutical Ltd. that are given as below,

Own transport: Square pharmaceutical Ltd. uses their own transport because the vehicles

and deliveries are maintained properly.

Courier service: Square pharmaceutical Ltd. sometimes uses courier service for sending

immediate and small bulk to the depot.

Hired van/trucks: Sometimes Square pharmaceutical Ltd. use these types of

transportation because it costly method to distribute the products.

SPL has the strongest domestic distribution network for smoothing distribution of medicines to all

parts of the country. Currently it has 15 depots all over the country. Those are situated at Dhaka,

Pabna, Bogra, Rangpur, Khulna, Barisal, Comilla, Mymensingh, Chittagong, Noakhali, Sylhet,

Tangail, Rajshahi, Faridpur and Naryanganj. It uses own transport system to deliver its product to

the stockist and retailer.

Promotion:

Personal selling:

Field selling: Basically Square pharmaceutical Ltd. used always field selling because

square pharmaceutical Ltd. salespeople used face-to-face communication with their

customers. It is one of the most expensive forms of promotion.

Telemarketing: Square pharmaceutical Ltd. sometimes uses telemarketing in terms of

promoting their products in international market. This method is not widely use in the

pharmaceutical product promotion.

Pen: The widely used gift item in pharmaceutical promotion is pen. Square

pharmaceutical Ltd. use over 100 types of pen to promote its product in market to the

chemist, doctors, consultant, and other people who are involved with pharmaceutical

distribution.

Pad: Pad is a widely used promotional material for promoting every new and existing

product with the basic information of the product. Pad also work as a gift item for the

pharmacy.

Sales promotion:

Product samples: Product sample is one of the widely used promotional tools used in

pharmaceutical product promotion. Square pharmaceutical Ltd. provides samples to

doctors, hospitals, clinics and to prescribe their products.

26

Marketing Research

Obtaining market

Internal Data: By collecting bill and receipt this data can be collected but in our country

this is quite difficult.

External Data: From public we get data about Square that their product is good and work

appropriately for disease.

Secondary Data: We get data from government institute as drug administration.

Primary Data: By doing question to the customer we collect many answer. As instance,

customer like their medicine and their medicine work properly, in their medicine there is

no side effect.

Product

Product sell basis Square get the number one position in Bangladesh. They maintain their position

from 1985 to still now. They take Incepta Pharma as number one competitor in business. In market

almost all medicine and medical equipment they supply and customer accept their product greatly.

They produce the brand product Seclo and this is the highest sell product from whole

pharmaceutical industry. In future they want to come to the market Anti-Cancer, Anti dose of

Cholera, Infusion, Herbal medicine and most important Hormone product.

Price

Drug Administration of Bangladesh is approved all medicine price. No one cannot approve any

kind of medicine price as their own and this is strongly maintained by them. Their price is always

flexible and customer get them easy way. April to August are the sell months, their sell rate

becomes high at this summer session and their target about profit almost fulfill at this time. For

maintain rules and regulation they got 180 crores taka profit in previous year. In future they target

220 to 250 crores taka only. They got the award from Prime Minister for most given tax.

Place

Widely spread their product in Bangladesh. Specially their sell rate high in Uttar Bongo area as

example Dinajpur, Rangpur, Bagura, Pabna etc. Not only that also they are working to get the

contract from U.S. - F.D.A. If they get this contract they can supply their product to worldwide.

Their product mostly needed in rural area.

Promotion

From government said that this is strongly banned to do any kind of advertisement in medicine

product.

27

Data Mining

This data calculation between quantitative data and qualitative data and detect patterns and

relationships

Quantitative: Quantitative data are measures of values or counts and are expressed as

numbers. This data are data about numeric variables (e.g. how many; how much; or how often).

Qualitative data are measures of 'types' and may be represented by a name, symbol, or a number

code.

4Ps Agree (%) Disagree (%)

Product Medicine 75 25

Price Flexible 70 30

Place Rural Area 80 20

Promotion Face to Face 70 30

Qualitative: Qualitative data is a categorical measurement expressed not in terms of numbers, but

rather by means of a natural language description. In statistics, it is often used interchangeably

with "categorical" data.

4ps Agree (%) Disagree (%)

Product Medicine 70 30

Price Flexible

Place Rural Area

Promotion Face To Face

CONSISTENT UPGRADATION

SPL’s another strategy is upgrading and adopting new technology for it’s manufacturing plants

consistently so that it can produce quality product with comparatively lower cost.

EXPORT

This is an important market expansion strategy of SPL. Because the past fifty years have seen a

dramatic lowering of barriers to cross-border trade and investment, For example, the average tariff

rate on manufactured goods traded between advanced nations has fallen from around 40 percent

28

to under 4 percent. Similarly, in nation after nation, regulations prohibiting foreign companies

from entering domestic markets and establishing production facilities, or acquiring domestic

companies, have been removed.

Conclusion Square Pharmaceuticals always tries to improve the efficiency and skill of its employees. It

spends huge amount of money in maintaining its employees in effective way.

The company develops a system whenever there is inadequacy in efficiency or need for future

development, the training is provided.

Since the inception Square Pharmaceuticals Limited has come a long way. Based on customer

satisfaction and reliability it has already emerged as a pharmaceutical business giant in the

country. Now it is looking beyond the national boundary to enter into western market.

Therefore, it is going through a critical time. At this very moment, the importance of

knowledgeable, skilled and efficient human resource is greater than ever for the company. Good

news is SPL gives maximum value to its human resources and thereby top management gives

maximum importance in training and development of the workforce.

Through the probe, it is established that Square Pharmaceuticals Ltd. has a strong training and

development system, but which need some tuning with much care and by emphasizing training

as a core activity of its business. Throughout the report much was said about the need

assessment of the training in Square. In fact much of the training effort goes in vain because of

the wrong selection of employees, which should be addressed by the SPL top management.

Another critical issue for Square is the need for quality trainers. Though the training wing doing

their best and obviously they provide quality training, but being in the Head Quarter they could

do little for all the establishment based throughout the country. Positive side of the scene is

Square has assigned foreign consultants for its Dhaka Unit plant to make it capable of acquiring

MHRA (Medical & Healthcare Product Regulatory Authority – UK) certification, who provide

training and necessary technical support. Hopefully this will be regular practice for all of its

manufacturing plants. Last of all it can be concluded that despite more scope of improvement,

Square Pharmaceuticals Limited has a effective training program to contribute to its employee

performance.

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References:

1. http://www.scribd.com/doc/15343190/Market-Expansion-Strategy-of-Square-

Pharmaceuticals-Ltd

2. http://squarepharma.com.bd/

3. http://en.wikipedia.org/wiki/Pharmaceutical_industry_in_Bangladesh

4. Philip Kotler & Gary Armstrong, 10th Edition, Principles of Marketing, Pearson

Education International, New Jersey, USA.

5. http://www.squarepharma.com.bd/mission-vision.php

6. http://www.squarepharma.com.bd/history-growth.php