management report on Square Pharmaceuticals Ltd.doc

7/29/2019 management report on Square Pharmaceuticals Ltd.doc

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1.0 Introduction

1.1 Origin of the Report

...

1.2 Objectives

The main objective of this report is to gain a practical knowledge of management of an

organization.

1.3 Scope of the Report

The report will be concentrating on a distinct organization on the basis of the concept we havegot from our study of Principles of Management. We also take help from other sources. It will

not contain in-depth study from any other source accept some books and interview of some

manager of Square Pharmaceuticals Ltd.

1.4 Methodology

The entire report was dependent solely on secondary data, taken from the annual report of

Square Pharmaceuticals Ltd. and books.

Some primary data were obtained by interview.

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1.5 Limitations

The limitations to produce this report are as follows:-

The accuracy of the report depends upon the accuracy of the information furnished by our

text book and from annual report of Square Pharmaceuticals Ltd. as well. Inadequate knowledge in studying reports.

Lack of in-depth understanding of certain terms and concepts prevented us from goinginto details.

Lacks of research.

Time limitation is also been there.

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2.0 Profile of Square

Square is one of the leading private limited company of our country. It is also doing some sort of business out side the country as well.

SQUARE

1958- Established of Square

Square

Pharmaceuticals Ltd.

Square Textile Ltd. Square Toiletries

Ltd.Product of

Pharmaceuticals

Formulation Products Veterinary Products Therapeutic CategoryActive Pharmaceuticals Ingredients

Square Consumer

Products Ltd.

Square Spinning

Ltd.

Square Informatix

Ltd.

Square

Agro Ltd.

Square

Health Products Limited Ltd.1964- Incorporate as a private Co.

84- Technical Collaboration with La-

Roche & Co. Ltd.

1- Converted into Public Limited Co.

998- Award of ISO- 9001 Certificate

Market Share: 15.27 % of Bangladesh in

PharmaceuticalsMarket Leader in Bangladesh amon

National & Multinational Co. sinc1985

FormulationPlant-I

FormulationPlant-II

Bulk Chemical

Plant-III

Public Share: 40.32 % on

Total 2.5 million shares

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3.0 Organogram of Square

Chairman

Managing Director

ProductionDirector

HRDirector

FinanceDirector

New ProductDirector

MarketingDirector

PersonalManager

TrainingManager

InternalAccountant

ComputerManager

ResearchManager

DevelopmentManager

SalesManager

AdvertisingManager

MarketinResearchMana er

WorkingManager

TransportManager

oard ofrectors

Mid Level & Senior Managers

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4.0 Organizational Goals

Mission: Is to provide quality &

innovative healthcare relief forpeople, maintain stringently ethicalstandard in business operation also

ensuring benefit to the shareholdersand other stakeholders.

Goals

Strategic Goal[Duration: 10 yrs or More

Set by Production, Finance &Marketing Director]

Use of good chemical Effective labor force

Availability of themedicine

[Production Manager]

Make the customeraware about the newmedicine

Develop gooddistribution channel

[Marketing Manager]

Good use of retainedearnings

Use of debt indiversified businessefficiently

Use good source fordebt

Quality Product

Innovative Health Care

Maintain Ethical Standard

Provide Benefit to TheShareholders

Tactical Goal[Set by Senior Production,

Finance & Marketing Manager]

Operational Goal[Duration: 1year

Set by Asst. Production, Finance& Marketing Manager]

Proper utilization ofraw materials

Produce finishedgoods in time


Design new targetmarket

Effective promotionalactivities

[Marketing Manager]

Financed theproduction in properway

Good use of accountreceivables

[Finance Manager]

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5.0 Organizational Plans

Mission: Is to provide quality &innovative healthcare relief forpeople, maintain stringently ethicalstandard in business operation also

ensuring benefit to the shareholdersand other stakeholders.

Plans

Strategic Plan

Forward Integration

Good Wages pay tothe labor

Good distributionchannel


Direct Marketing

Focused on CustomerLoyalty

[Marketing Manager]

Increased share

holders wealth Good use of financial

instrument[Finance Manager]

Tactical Plan Operational Plan

Set up new plant

Formulationplant-I

Formulationplant-II

Formulationplant-III

Adopt with newtechnology

Importation of newmedical machineries

Set-up new plant

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6.0 Barriers towards Goals

We all know it that Square is one of the leading private limited company in our country. They are not

only doing their business in our country. They also do export their medicines in some African

countries. Though they are very much stable in their position, but, they have to face some barriers to

set goals. Major barriers are:

Political Barriers

This is major and most complicated hazards for all types of business in our country are the uncertaintyof the politics. Our culture of politics is totally polluted by different occurrence. Professionalism

towards money makes our politics dark. So, it is one of the major barriers for the business

organization. Because, if any organization goes for plan even for few years, they dont feel secure.Thats why no foreign investors show any interest to invest in our local market.

Global Environment

After a certain time there wont be any boundary for the business organization to do their business.

Because, globalization is going to be happened very fast. For this, the business organizations have toface more competition and thats why the environment is changing very fast. Its difficult for any

company which usually does business in their local market to cope up with this huge change.

Lack in Resources Deployment

We all know it that the resource is limited, but, the want is unlimited. But, we have to have the properidea about the availability of resource. Those resources have to

be deployed properly. But, most of the time the resources are not proportionate with the plan done by

the organization. Ultimately, they found themselves in vain.

New Competitors

With the time new competitors are coming up with their business. Its one of the barriers. Because,

when an organization does plan then they usually do it for 2-3 years. So, when they see that new

competitors are coming in this business then they need to change their strategy which may have aneffect on their planning.

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7.0 Way to Overcome Barriers

Motivated Work Force

Most of the time the people who are working in the organization even doesnt know their goals andwhat their organization actually wants from them. So, organization should make its employees to work

for them and let them know the mission of their organization.

Good Relation with the Employees

We know that top level management of the organization usually set the organizations goals andmission. But, after setting the goals usually they mat have not any negotiation with the other

employees. But, they should always do this for the betterment of the organization and through this

good relation they can motivate their employees.

Foresight Power

To achieve a certain goal, an organization may have different strategy. They need to depend on the

time and environment. They basically do plan for 2-3 years and can be more then that. So, if the

organization doesnt have any forecasting power then its not possible for them to set any appropriate

goal.

Time to Time Monitoring

After setting the goals the organization should monitor the overall performance and they also shouldrevise the total strategy.

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8.0 SWOT Analysis

SWOT

Internal[I] Strength

[II] Weakness

External[I] Opportunities

[II] Threats

[I] Strength

Market leader in pharmaceuticalsAdoption of latest technology very quicklyGreater market share then otherEfficient production plantCustomer loyaltyExcellent marketing & distribution networkexcept a little problemHighly educated employees

ISO-9001 certified

[II] Weakness

High priceEmployee TurnoverProblem in the distribution in the rural places

[I] OpportunitiesTo expand their business in third worldcountriesExcellent growth opportunities

Strengthen operations in domestic marketmore

Increase market share internationally &nationally

Improve productivity and profitability so as tooffer more value to the shareholders.

Manufacture International standardpharmaceuticals and promote them in domestic& export markets.

[II] Threats

New competitorsGlobalizations effectPolitical Hazards

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8.1 SWOT Analysis- Strength

Common Strength

They have a brand name like other drugscompanies like Beximco, Glaxo, ACME etcUsing same raw material the competitors areusingMost of the drugs do the same activities likethe others companions drugs

Distinctive CompetenciesHigh quality productUse of latest technology which is too costlyEfficient production plant

Imitative Strength

The technology they are using is not imitable.Because, itll cost a bulk of money which anormal company cant financed.They can imitate any companys product.Because, they have got that technologicaladvancement which makes them stronger thenother companies.

Sustained CompetitiveAdvantage

The cost-effective method they are using isnot imitable by anyone-they claim

Strength

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8.2SWOT Analysis- Weakness

Some time they offer some products which are costly. LikeAmcofin-5 (Tk. 3) produced by Incepta- A

very new pharmaceuticals company

Amcofin-5 (Tk. 3.50) produced by ACME

Amcofin-5 (Tk. 4) produced by Square

So, here we can see that they are not using the cost effective way to manufactures drugs. By a very

limited survey, we got to know that they a problem with the employee which is employee turnover.

They are facing this problem for quite a long time. So, now its turned into a weakness for them. They

have got any big success in this field.

They have a little problem with their distribution in the urban area. In the urban area they need a bit

more time to supply their drugs.

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8.3SWOT Analysis- Opportunities

.

Square pharmaceuticals can easily expand their market in some other third world country. Though

they are exporting their product in international market, but, thats not in a high percentage of market.

In the domestic region, they can make their current position more strong by offering more value totheir customer. We have a vast population and we are always suffering from different types of diseases

every time and all over the country. So, its a great opportunity to increase the market share through

sales. They can produce international standard drugs through their new plant they established few

months ago.

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9.0Recommendation

We all know Square is one of the leading pharmaceuticals industries in our country. But, after all of

this qualities or leadership of this company, there are some problems of square besides the qualities.

But, there have some ways to elimination.

Square is the market leader is in the pharmaceuticals industries. They are such a company which

always does try to cope up with the dynamic and complex global environment. Such as, with the

advancement of the technology, they have already established the south Asias biggest plant in the

field of pharmaceuticals at near the Dhaka city which is recognizing themselves as a SMART business

company. They have the greater market share in pharmaceuticals industries now. They have achieved

it by delivering the quality drugs and good retailer service especially in the urban area. They usually

use the push strategy to makes their products available for their consumer. Their customer is very

much loyal about their products. This is on of the important reason behind their success. They havegained it through their quality. They are managing their business by such employees who are highly

qualified and have got a vast experienced. Their work force is so much delegated about their works

except few problems. Their product is already certified by the International Standard Organization

(ISO) which recognizes them as a quality manufacturer.

Its natural that wherever there is a little possibility to be a gainer, there must have some weakness.

Though square is a doing their business in international level but, they have also some problem. Like,

there are some products of square which is relatively charging high price then others. Such as:

Amcofin-5 (Tk. 3) produced by Incepta- A very new pharmaceuticals company



So, here we can see that they are defeating by the price. There are some other cares like this which

seems a weak point for them.

They have another problem has viewed by a small survey that they have a problem with their

distribution in the rural area. There the drugs pharmacy doesnt get their drugs in time and they need to

wait for a long time for their drugs supply by which they can lose their consumer loyalty.

Employee turnover is another problem of square. Not a great deal of turnover, but, it a problem for

them.

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At the current time they are exporting their drugs in some African countries. So, they have a great

chance to enlarge their business boundary. They can export their drugs in some other countries by

establishing new technology. They are already the market leader in the pharmaceuticals industries. So,

if they do try to strengthen their operation more in the domestic market, then they can have the positionin the market which can never be unbreakable. If they able to do this then they can maximize the share

holders profits and through this they can increase their market share.

Now, in the pharmaceuticals industries, there a lots more competitors then before. Such as:

ACI

Aventis

ACME

Beximco Pharmaceuticals

Glaxo

Pacific Pharma

Embee

Jayson

Opsonin Incepta etc.

So, we can see that day by day the competitors are increasing and among the new competitors, there

are some who are doing a very good business. Like:

Amcofin-5 (Tk. 3) produced by Incepta- A very new pharmaceuticals company



So, here we can see that they are defeating by the new competitors. Because, the competitors are

producing more efficiently then square. So, its a great threaten for them.

There are some other joint ventures pharmaceuticals companies in Bangladesh like ROCHE, United &

Unihealth etc. So, square should take the necessaries steps to protect their market share. Otherwise, the

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market challengers like ACME, Beximco, and Jayson etc. can attack square. Market followers are

having some good quality product. So, its a real threat for the market leader.

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10.0 Conclusion

Its an important aspect for every company to set their goals and according to that they can get the

motivation to reach the goals. But, the goals and plans should be realistic and to achieve that goal

everybody should work together and Square is such a company which is completely enthusiastic to

achieve it.

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Bibliography

Books

Annual Report

Survey

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