8/14/2014

Square Pharmaceuticals Ltd.

Course: BUS101
Section: 1
Faculty: Afnan Uddin Ahmed
(AFD)
Student Name:

Student ID:

Mostafijur Rahman Nahid

1120950030

Md. Aminul Islam

1321041030

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

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.

Introduction
Bangladesh is one of Asia Pacifics most promising opportunities for drug makers with $700
million sector. There are currently a total of 245 companies out of which 200 have operations in
the country. The market is totally dominated by the local companies and there are only 5 multinationals currently operating. The total number of brands that are registered in Bangladesh are
currently estimated to be 5,300, while the total number of dosage forms & strengths are 8,300 from
450 generics.
Square Pharmaceuticals Limited is an organization with equal emphasis on Leadership,
Technology, Quality and Passion. Square Pharmaceuticals Ltd. is the leading branded generic
pharmaceutical manufacturer in Bangladesh producing quality essential and other ethical drugs
and medicines.
Square today symbolizes a name a state of mind. But its journey to the growth and prosperity
has been no bed of roses. From the inception in 1958, it has today burgeoned into one of the top
line conglomerates in Bangladesh. Square Pharmaceuticals Ltd., the flagship company, is
holding the strong leadership position in the pharmaceutical industry of Bangladesh since 1985
and is now on its way to becoming a high performance global player.
Square Pharmaceuticals Limited is the largest pharmaceutical company in Bangladesh and it has
been continuously in the 1st position among all national and multinational companies since 1985.
It was established in 1958 and converted into a public limited company in 1991. The sales
turnover of SPL was more than Taka 5 Billion (US$ 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

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

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, antienvironmental behaviors, unethical and corruptive dealings.

Objective of the Organization:

Mission: Its 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 companys
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.

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

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, racereligion-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
didnt go for plant expansion in the mentioned year so the number of workers didnt 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 doesnt 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.

11

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 equipments.
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).

12

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-thejob methods are used.

13

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
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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

15

Present Market Position:

Top 10 Manufactures of Bangladesh in Sales 2007
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
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.

16

Present export market covers:

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
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 companys 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.

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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
18

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

22,771,079,492

20,310,355,617

ASSETS:
Non-Current Assets:
Property, Plant and Equipment-Carrying Value

11,421,474,170

9,613,059,761

4,991,584,879

4,907,039,756

147,694,430

157,694,430

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

Capital Work-in-Progress
Investment - Long Term (at Cost)
Investment - Associates Undertaking

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
20

105,878,200

Tax Holiday Reserve

406,231,702

Gain on Marketable Securities (Unrealized)

Retained Earnings
Non-Controlling Interest

401,546,024

313,532,224

17,867,065,986

15,801,470,675

8,647,807

Non-Current Liabilities:

1,895,193,371

Long Term Loans - Secured

Deferred Tax Liability
Current Liabilities:

406,231,702

7,678,418
1,603,367,092

1,289,807,593

1,106,327,183

605,385,778

497,039,909

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

2,222,898,287

1,252,641,218

30,822,905,108

27,256,717,384

Liabilities for Other Finance

TOTAL SHAREHOLDERS'
EQUITY AND LIABILITIES

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

21

Marketing Mix:

Product

Price

(Medicine)

(All most
regulated)

Target
Customer
(Doctors &
Physicians)

Place

Promotion

(Domestic &
foreign)

(Personal Selling
through relationship)

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. SPLs 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

22

relates to the end-users 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.
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

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.

23

There are also few exceptions. If SPL introduces a product first in the market, it charges little
bit higher price than its competitors, but within the rules and regulations of Drug
Administration.
Top 5 Pharmaceutical Company of Bangladesh: 2010

Sales Of Top 5 Companies In

2010
1400
1200
1000

800
600
400

200
0

Square

Incepta

Acme

Beximco

Eskayef

Sales in Tk. Corer

Placing Strategy (Distribution):

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

Squares 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
24

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.

25

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.

26

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
Product

Medicine

Price

Flexible

Place

Rural Area

Promotion

Face To Face

Agree (%)

Disagree (%)

70

30

CONSISTENT UPGRADATION
SPLs another strategy is upgrading and adopting new technology for its 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
27

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-SquarePharmaceuticals-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

29