PROFILE OF A COMPANY

SQUARE PHARMACEUTICAL LTD.

BUS 101
Group Report
Section 16
Prepared For
Mr. Adeyl Khan
Lecturer
Department: School of Business

Prepared By
COSMIC GROUP
Md. Azizur Rahman

1120102030

Md. Tahmidul Huq

1120212030

Ajeyo Patranabish

1120240030

Imtiaz Akbar

1120146030

Ashique Ahmed

1120331030

Letter of Transmittal

August 10, 2011

Mr. Adeyl Khan
Lecturer,
Department: School of Business
North South University
Subject: Submission of group report
Dear Mr. Adeyl Khan,
Here is the group report on the Profile of a Company that you asked us to prepare as a part of
requirement for our BUS 101 course.
In presenting this report, we have our level best to include all the relevant information and the
explanation to make the report informative and comprehensive.
It was a very enriching and enthralling for us to prepare this report. Our report writing skills have
improved a lot while doing it. If further clarification regarding this report is required, we will be
available by any means.
Thank you sir for believing in us and giving us this wonderful opportunity.
Sincerely,

Acknowledgments
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We would like to thank Almighty Allah for giving us the patience and the ability to work hard
with tremendous devotion. First and foremost thanks to our Course Instructor, Mr. Adeyl Khan
for his invaluable guidance, encouragement and suggestion throughout the entire BUS 101
course. Without his support and faith in us it would not have been possible to complete and
submit this report.

We are deeply indebted to Mr. Prosenjit Chakraborty without whom this report would not have
been a success. His invaluable suggestions and information have taught us much and as a result
our preparing this report has been a very positive and up lifting experience.

Special thanks to:

Mr. Adeyl Khan, Lecturer, School of Business Administration, NSU
Mr. Prosenjit Chakraborty, Senior Manager, International Marketing, Square Pharmaceutical Ltd.
(SPL)
Mushfiqur Rashid Chowdhury, friend, studying BBA in NSU

Page | 3

Executive Summary
We have prepared the following report on the Profile of a Company which is Square
Pharmaceutical Ltd.

This report has been divided into four parts. The first part includes Introduction which covers
our research objectives and team work with planning. The second part is about the Business
Background of Square Pharmaceutical Ltd. which includes key information about the
companys vision, mission and objectives, initial finance, market share and the prospect about
the Pharmaceutical industry locally and globally. We have provided comprehensive and
informative materials of Business Analysis in the next section which covered the innovation,
interpersonal relationship, detailed SWOT analysis, business management process, factory and
production, production life cycle, turnover comparison graph, ethical and philanthropic activities,
lastly risk management and awareness of Square Pharmaceutical Ltd.

Finally, the Conclusion part of the report in which we have commented exposing our opinion on
the business. This part also carries few recommendations that we have to the business for
overcoming some of the flaws and mentions some of increasing efficiency and productivity
based on what we have noticed in our comprehensive study process of the business while
preparing the following report.

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Table of Contents
Serial No.
0

Article
Letter of Transmittal
Acknowledgement
Executive Summary

Page No.
2
3
4

Introduction
Name of the Company
Address
Parent Company
Business Background
Vision
Mission
Objective
Establishment
Market Position/Market Share
Prospect of the Industry (Locally & Globally)

6
6
6

Business Analysis
Innovation
Workforce & Interpersonal Relationship
Major Challenges
SWOT Analysis
Business Management
Factory Premises & Working Condition
Production
Product Life Cycle
Performance in terms of Annual Comparison
Business Ethics & Philanthropy
Risk Management & Awareness

8
8
9
10
11
12
12
14
14
15
16

Conclusion

16

Recommendation to the Business

17

References

18

1.1
1.2
1.3
2
2.1
2.2
2.3
2.4
2.5
2.6
3
3.1
3.2

3.3
3.4
3.5
3.6
3.7
3.8
3.9
3.10
3.11

6
6
6
6
7
7
8

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1. Introduction
1.1

Name of the Company

Square Pharmaceutical Ltd.

1.2 Address
Corporate office : Square Centre 48, Mohakhali Commercial Area, Dhaka 1212
Factory : (Pabna Branch) Shalgaria & (Gazipur Branch) Kaliapur

1.3 Parent Company

Square Group of Industries

2. Business Background
2.1

Vision

Square Pharmaceuticals Ltd. view 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.

2.2

Mission

Square Pharmaceuticals Ltd. has the mission 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.

2.3

Objectives

Their 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 the vision.

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2.4

Establishment

The company was found in 1958 by Samson H. Chowdhury along with three of his friends as
a partnership organization. The company incorporated as a Private Limited Company in
1964.From the enormous success of long years business Square Pharmaceutical Ltd. derived
a huge amount of profit. These profits along with other investments were the vital source of
initial capital for Square Pharmaceutical Ltd.

2.5

Market Position/Market Share

Square Pharmaceutical Ltd. is a top pharmaceutical company of Bangladesh since 1958. At

present, there are about 170 pharmaceutical companies which are operating in Bangladesh
but Square Pharmaceutical Ltd. is leading from the front. Some of the major drugs producing
companies are:

Square Pharmaceutical Ltd.

Incepta Pharmaceutical Ltd.
Beximco Pharmaceutical Ltd.
Opsonin Pharma Ltd.
Per cent age S har e

Eskayef Bangladesh Ltd. (and many more)

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Page | 8

Page | 9

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The above data represents the result of survey of different companys market share. The
graph shows the comparison between 5 major competitors in pharmaceutical industry with
respect to its market share and position. We can observe that SPL is the leading
pharmaceutical company with a fair margin among the others.

2.6

Prospect of the Industry (Locally & Globally)

Bangladesh is nearly self-sufficient in finished pharmaceutical products. About 97% of local

demand is being met up by local manufacturing companies. Out of these supplies majority of
them are being supplied by Square Pharmaceutical Ltd.
Most of the worlds drug demand is made up by India and China. In past, few manufacturing
companies cost in those countries has increased significantly in comparison to Bangladesh
which is attracting several global market leaders. Now Square Pharmaceutical Ltd. is
working with several multinational companies for manufacturing their drugs.
Square Pharmaceutical Ltd. is exporting their products to 34 countries including UK and also
applying for several products in USA. They are also supplying products to the following region:
Asia, Africa and South America

3. Business Analysis
3.1

Innovation

Square Pharmaceutical Ltd. is pioneer in introducing new several drug delivery systems such
as, Metered Dose Inhaler; Sustain Release Products, Dry Powder for Inhalation. Currently
they are operating genetic pharmaceutical sector. Square Pharmaceutical Ltd. remains first in

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launching nuclear molecules and doses for the past few decades in Bangladesh
pharmaceutical market. They have their own research and development lab.

3.2

Workforce & Interpersonal Relationship

There are about 5000 employees in Square Pharmaceutical Ltd. and in total 500
manufacturing units. SPL gives it workers the opportunity of choosing flexible work
schedule and its factory runs in seven working days in three shifts and 8 (eight) working
hours per shift. The workers can choose any of these three shifts according to their
convenience. The company believes in hale and hearty relationship between employee and
employer to attain success. The company organizes family day every year for staffs and
several interactive sessions to maintain the affiliation, here Human Resource Management
plays the main role.
The supervisory level is very co-operative and manages all the production related queries and
dissatisfaction amongst the workers regarding any personal or production related matters. So
the workers are never left alone in their difficult times.

3.3 Major challenges

Exchange Rate Fluctuation:
One of the potential challenges of SPL is exchange rate fluctuation. Currency exchange rate
of Bangladesh fluctuates frequently because of turbulent domestic economic and political
conditions. SPL often faces problem while doing Business with foreign countries.

Complicated Port System:

Sea ports of Bangladesh are directed in an outdated system and method because of modern
day technology constraints. In most of the cases loading and unloading take a long time
which has a huge effect on export and import.

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Inflation:
SPLs profit margin is sharply effected by devaluation of our currency. Falling value of
currency adds an additional cost with their fixed expenditure while importing goods and raw
materials.

3.4

SWOT Analysis
Harmful
Helpful To achieve the objective

To achieve the objective

Strengths

Internal
(attributes of the system)

Modern machinery
Use of modern
software for security
Best quality raw
materials (China,
India)
Strong distribution
channel
Performance
evaluation system
Strong Human
Resource base
Efficient management
High productivity
rate
Market Leader

Weaknesses

High average of cost

production
Increasing diversity
of companys
business in other

sectors
Supply of skilled

human resource
Location of plants
High cost of power
(self generator)

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Opportunity
External

(attributes of the
environment)

3.5

Threats

Increasing demand in local

& international market
Automated machines to
increase productivity
Increasing buyers
purchasing power
Massive distribution in
different geographical
areas
Less trade restriction in
foreign market

Increase of liquidity of

currency
Government intervention
Increasing tax rate
Exchange rate fluctuation
Inflation
Complicated port system

Business Management

To define the management of Square Pharmaceutical Ltd. we have used the tree level of
Management Pyramid.

Top Level Mangement

Chairman
Vice Chairman
Managing Director

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Page | 15

Middle Level Management

General Manger
Finance Manager
Accounts Manager
Marketing Manager
Distributiopn Manager

Page | 16

Front Line (Supervisory Level Manager)

Factory Manager
Sr. Factory supervisor
Other Productoin Departmental Supervisors

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The top level management takes the crucial decision of the business and is involved in
Strategic Planning.
The middle level management is assigned by the top level management to carry out the
Tactical Planning.
The front line (supervisory level) management usually deals with daily operational activities
using their technical skills and is well guided by the top level and middle level management
in carrying out the task effectively.

3.6

Factory Premises & Working Condition

Factory Premises:
The production units of SPL are separated by two parts: one in Dhaka and the other is in
Pabna which is their principal manufacturing unit. The overall activity of Pabna unit is
directed and controlled by Dhaka unit. To ease the distribution of these products SPL has also
11 (eleven) other manufacturing units throughout the country. The main duty of these
manufacturing units is to make quality products and keep the supply chain active all the year
round.

Working condition & safety:

A very high level of safety measurement is maintained using numerous machines and human
control. A 3 day out of 7 days shifting work is there for the well-being of the workers.
Manufacturing staffs goes for medical check up on weekly basis. The manufacturing area
maintains a temperature of below 25c and 65% humidity in all. Before entering into the
manufacturing place staffs have to take complete shower. Afterwards the staffs enter with
properly washed dresses made of 100% cotton. There is also transport facility for the staffs.
All manufacturing units are well protected from fire explosion. Every year company arranges
disaster management training twice.

3.7

Production
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Production Capacity:
The factory of Square Pharmaceutical Ltd. consists of more than 2000 workers, employed in
different departments producing a range of high quality drugs. They maintain a wide range of
yearly production of 11 billion tablets, 7 billion capsules and 3 billion syrups.

Production Process:
There are 21 types of products and among them two major products are tablet and syrup
which are produced in a wide range. Two products have different production processes.
Tablet production process:

Raw
materials

Granulation

Primary
Packaging

Dispensing

Compression

Secondary
Packaging

Wieghing

Coating

Ware House

Syrup production process:

Raw
materials

Secondary
Packaging

Dispensing

Filling

Ware House

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Wieghing

Mixing

3.8

Product Life Cycle

The following graph shows the product life cycle of Square Pharmaceutical Ltd. Here we get
to see the product sales and profit over its lifetime.
Square Pharmaceutical Ltd. has about 670 different products. Currently its 60% of the total
product falls under the Growth Stage, about 20-25% of the total products are under the
Maturity Stage. Some are in the Introduction Stage and some are in Decline Stage. As
majority of the product are lying under the Growth Stage, so we can have a clear context
that the SPL is in Growth Stage.

3.9

Performance in term of Annual Turnover Comparison

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The following data represent comparison of turnover in recent years of the Square
Pharmaceutical Ltd. This comparison helps to figure out the performance and growth. This
process of evaluation provides the data to review the companys performance in market field.

Amount

Ann ual Tu rn(I

over
n
0
2005- 2006

85
0
.
7

million)

11
8.7

6
56
9.

6
36
.
11

9
.27
3
1

Source: Annual Reports of Square Pharmaceutical Ltd.

The chart shows the sequential increasing amount of annual turnover in the company. In last
five years the turnover has increased a lot. From the year of 2006 to 2010 the amount of
gross turnover has profoundly amplified. This creates a pen-picture of the company net
turnover in whole operational process.

3.10 Business Ethics & Philanthropy

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Square Pharmaceutical Ltd. follows a Company Code of Conduct with the commitment of
high ethical standard which includes:

No child labor
No discrimination (Gender, age, race, political beliefs, maternity status, religion etc.)
Rights to employee
Safe & healthy work place
Standard hours of work/overtime
Fair salary & wages

SPL is certified by Directorate General of Drug Administration (DGDA) and 14 other global
quality control authorities, UKMHRA, UNICEF, TGA (Australia). SPL released and
manufactured every drug through documented quality management system. Thus the
company ensures best drugs at reasonable price.
The Square Pharmaceutical Ltd. believes in welfare maximization and therefore it fits
perfectly and completes the four parts of Archie Carolls CSR model.
Philanthropic
Responsibilities

Ethical
Responibilities
Legal
Responsibilities
Economic
Responsibilities

3.11 Risk Management & Awareness:

The company tries to avoid risk by putting more emphasize on their quality. The industry
have back up inventory of raw materials and necessary supplies for meeting the next two
months average production level.

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Company management perceives investment risks within the national and international
economic situation in relation to legal requirements involving intellectual property rights,
scientific invention, WTO regulations and monetary & fiscal investment policies and has
prepared its production & marketing strategy to meet the challenges from these risks.

4. Conclusion
Starting from nil position and from a situation of extreme business risk; Square
Pharmaceuticals Ltd. has now become the largest pharmaceuticals company in Bangladesh
overcoming a lot of struggle and ups and downs; but after the Drug (control) Ordinance,
1982 the company got the result of its struggles.

5. Recommendation to the Business

The root level representatives of Square Pharmaceuticals Ltd. play a vital role in
fostering company reputation and image. Square Pharmaceuticals Ltd. should put
special emphasis on training them which will enhance their horizon of quality, skill
and knowledge.

Square Pharmaceuticals Ltd. should adopt new technologies to raise overall

productivity and increase product line. Square Pharmaceuticals Ltd. can make its
labor intensive production units technologically efficient by adopting modern
technologies including biotechnologies.

We have found that in some cases Square pharmaceuticals Ltd. lags behind in modern
day scientific labor management; which was developed by Frederic Taylor (father of
scientific management). From our close observation we have noticed that the distance
of washroom, prayer room, dining hall for workers are far from their main production
departments. It should be overcome.

Square pharmaceuticals Ltd. should produce medicine for major diseases e.g.
Parkinson disease, Prostate Cancer, Leukemia etc.

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6. References

Crane A. & Matten D. (2007). Business Ethics (2nd Edition). New York: Oxford

University Press, USA

McHugh J. & Nickels, S. M. (2010) Understanding Business 8th Edition. New York:

The McGraw Hill Companies, Inc.

David L. Kurtz (2010) Contemporary Business 13th Edition. New York: The McGraw

Hill Companies, Inc.

Methods, T. S. (n.d.) Free SWOT analysis template. SWOT Methods. Retrieved

August 2, 2011, from http://www.businessballs.com/sowtanalysisfreetemplate.htm

Market Share, Pharmaceutical Products of Bangladesh. (n.d.). Market Share.
Retrieved August 2, 2011, from http://medibd.blogspot.com/2011/04/top-20pharmaceutical-company-of_25.html
Present Market, Square Pharmaceutical Limited. (n.d.). Present Market. Retrieved

August 2, 2011, from http://www.squarepharma.com.bd/CurrentExportMarket.html

Product Life Cycle Model, Tom Spencer consulting blog. (n.d.). Tom Spencer
consulting blog. An enveloping perspective on management consulting, business
strategy and investing. Retrieved August 2, 2011, from

http://tomspencer.comau/2009/01/25/product-life-cycle-model/
Annual Turnover, Square Pharmaceutical Limited. (n.d.). Annual Turnover. Retrieved
August 2, 2011, from

http://www.squarepharma.com.bd/downloads/annual_report_2010.pdf
Drug Ordinance, THE DRUGS (CONTROL) ORDINANCE, 1982. (n.d.). Drug
Ordinance. Retrieved August 2, 2011, from
http://www.ddabd.org/download/Drugs_ordinance_1982.pdf

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