PROFILE OF A COMPANY

PROFILE OF A COMPANYSQUARE PHARMACEUTICAL LTD.

BUS 101Group ReportSection 16

Prepared ForMr. Adeyl KhanLecturerDepartment: School of Business

Prepared ByCOSMIC 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 KhanLecturer,Department: School of BusinessNorth 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

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, NSUMr. Prosenjit Chakraborty, Senior Manager, International Marketing, Square Pharmaceutical Ltd. (SPL)Mushfiqur Rashid Chowdhury, friend, studying BBA in NSU

Executive SummaryWe 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.

Table of ContentsSerial No.ArticlePage No.

0Letter of Transmittal2

Acknowledgement3

Executive Summary4

1Introduction6

1.1Name of the Company6

1.2Address6

1.3Parent Company

2Business Background6

2.1Vision6

2.2Mission6

2.3Objective6

2.4Establishment7

2.5Market Position/Market Share7

2.6Prospect of the Industry (Locally & Globally)8

3Business Analysis8

3.23.1Innovation8

3.3Workforce & Interpersonal Relationship Major Challenges9

3.4SWOT Analysis10

3.5Business Management11

3.6Factory Premises & Working Condition12

3.7Production12

3.8Product Life Cycle14

3.9Performance in terms of Annual Comparison14

3.10Business Ethics & Philanthropy15

3.11Risk Management & Awareness16

4Conclusion16

5Recommendation to the Business17

6References18

1. Introduction1.1 Name of the CompanySquare Pharmaceutical Ltd. 1.2 AddressCorporate office : Square Centre 48, Mohakhali Commercial Area, Dhaka 1212Factory : (Pabna Branch) Shalgaria & (Gazipur Branch) Kaliapur 1.3 Parent CompanySquare Group of Industries2. Business Background2.1 VisionSquare 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 MissionSquare 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 ObjectivesTheir 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.

2.4 EstablishmentThe 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 ShareSquare 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. Eskayef Bangladesh Ltd. (and many more)

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 Analysis3.1 InnovationSquare 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 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 RelationshipThere 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. 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 AnalysisHelpfulTo achieve the objectiveHarmfulTo achieve the objective

Internal(attributes of the system)Strengths 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 LeaderWeaknesses 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)

External(attributes of the environment)Opportunity 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 Threats Increase of liquidity of currency Government intervention Increasing tax rate Exchange rate fluctuation Inflation Complicated port system

3.5 Business ManagementTo define the management of Square Pharmaceutical Ltd. we have used the tree level of Management Pyramid.

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 ConditionFactory 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 ProductionProduction 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:

Syrup production process:

3.8 Product Life CycleThe 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 ComparisonThe 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.

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 & PhilanthropySquare 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 & wagesSPL 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.

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.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. ConclusionStarting 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.

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-20-pharmaceutical-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

Page | 18

Page | 8