The Management Process of Square Pharmaceuticals Limited

SQUARE PHARMACEUTICALS LIMITED

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The Management Process of Square Pharmaceuticals Limited

TOPIC : THE MANAGEMENT PROCESS OF SQUARE

PHARMACEUTICALS LIMITED

Submitted By:

Tasnim Chowdhury 1610639630

MD. Nishatur Rahman 1610995630
Rudmila Khan 1611504030
Sumaya Abedin 1410360630
Negar Sultana 1612617630
Nafisa Tafsir Rinty 1611271030
Nafisa Tafsir Rinty 1611271030

Supervised By:
Tasnim Rezoana Tanim
Lecturer of
Department of Management
School of Business & Economics

Date of Submission: 18th July 2016

North South University

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The Management Process of Square Pharmaceuticals Limited

MANAGENT RESEARCH REPORT ON

“THE MANAGEMENT PROCESS OF
SQUARE PHARMACEUTICALS
LIMITED”

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The Management Process of Square Pharmaceuticals Limited

LETTER OF ENDORSEMENT

The report entitled “THE MANAGEMENT PROCESS OF SQUARE

PHARMACEUTICALS LIMITED” has been submitted to the Faculty of Management,
Northsouth University on partial fulfillment of the of the requirements of the course of
Management-201, School of Business and Economics on date: 18th July 2016 by :

Tasnim Chowdhury 1610639630

MD. Nishatur Rahman 1610995630
Rudmila Khan 1611504030
Sumaya Abedin 1410360630
Negar Sultana 1612617630
Nafisa Tafsir Rinty 1611271030
Nafisa Tafsir Rinty 1611271030

Tasnim Rezoana Tanim

“ Lecturer”
School of Business and Economics
Department of management
Northsouth University – Bangladesh

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The Management Process of Square Pharmaceuticals Limited

LETTER OF TRANSMITTAL

Date : 18th July 2016

Tasnim Rezoana Tanim

Lecturer
School of Business and Economics
Department of Management
Northsouth University – Bangladesh

Subject : Submission of Project report.

Madam,

We would like to express our gratitude to you for supervising and guiding us throughout
the entire management-210 program without which it was quite impossible for us to
prepare this report.

This project has not only given us the opportunity to fulfill the requirements of
Management-210 program set by the university but also provided us a real experience of
how the working environment is going to be in out future life. It will definitely be
helpful for our subsequent career.

The report contains comprehensive data based on the “THE MANAGEMENT PROCESS OF

SQUARE PHARMACEUTICALS LIMITED.”

Your sincerely,

Tasnim Chowdhury
MD. Nishatur Rahman
Rudmila Khan
Sumaya Abedin
Negar Sultana
Nafisa Tafsir Rinty

Department of
School of Business and Economics

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The Management Process of Square Pharmaceuticals Limited

ACKNOWLEDGEMENT

At first, I would like to thank Mr. Shah Md. Tanvir Hasan, manager, supply chain
management of Square Pharmaceuticals Limited (SPL) for kindly giving us his valuable
time. He enlightened us on many crucial issues concerning talent retention practices at
SPL. We would like to convey our heartiest thank to Mr. Shah Md. Tanvir Hasan,
manager, supply chain management of Square Pharmaceuticals Limited (SPL) for their
cooperation in this regard.

During the preparation of this report, we sought advice from many other sir/ madam of
SPL. We thank them too for their overall support in the accomplishment of this report.
Last but not least, we would like to thank specially Tasnim Rezoana Tanim, course
instructor, lecturer, school of business and economics, department of management,
Northsouth University- Bangladesh for giving us this opportunity to demonstrate our
project and analytical skills.

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The Management Process of Square Pharmaceuticals Limited

EXECUTIVE SUMMARY

Square Pharmaceuticals Limited Group as the most important functionary of the

management system play a dynamic role in the economic development of a nation
through a disciplined management system. The World of business has become
increasingly complex and time driven. In the world of competition SPL is trying to meet
the demand of their consumers, and seek to satisfy customer through their service. So in
the competitive market they should try to find out present & future problems and try to
discover how those problems can be solved. An attempt has been made in this paper to
examine and evaluate the overall performance of SPL.

In this report first we have tried most to provide overall information about the
management process of SPL, like background, mission & vision of SPL, its objectives &
product/ services provided by SPL, managerial function, situational analysis, SWOT
analysis, porter’s 5 forces and so on. We have analyzed about its some good and bad
things.

And finally We have highlights some important findings and tried to provide several
suggestion regarding these problems.

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The Management Process of Square Pharmaceuticals Limited

TABLE OF CONTENTS

Cover page----------------------------------------------------------------------------------------------------
Title of the report--------------------------------------------------------------------------------------------
Letter of endorsement----------------------------------------------------------------------------------------
Letter of transmittal------------------------------------------------------------------------------------------
Acknowledgement--------------------------------------------------------------------------------------------
Executive summary------------------------------------------------------------------------------------------
Table of contents---------------------------------------------------------------------------------------------
Organization Overview-------------------------------------------------------------------------------------
1.1 Introduction--------------------------------------------------------------------------------------------
1.2 Products-------------------------------------------------------------------------------------------------
1.3 Employees & Customers-----------------------------------------------------------------------------
1.4 Vision & Mission--------------------------------------------------------------------------------------

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The Management Process of Square Pharmaceuticals Limited

CHAPTER # 1
ORGANIZATION OVERVIEW

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The Management Process of Square Pharmaceuticals Limited

1.1 Introduction

Square Pharmaceuticals Limited belongs to square group of industries. SQUARE group is

one of the largest groups in Bangladesh. SQUARE was founded in 1958 by Samson
H Chowdhury along with his three friends as a private firm. It went public in 1991 and
is currently listed on Dhaka Stock Exchange. Square Pharmaceuticals Ltd, the flagship
company, is holding the strong leadership positionin the pharmaceutical industry of
Bangladesh. Since 1985 it has been in the 1st position among all national and
multinational companies. Square Pharmaceuticals Ltd is now on its way to becoming a
high performance global player.

SQUARE’s industrial sector also includes textiles, toiletries, food & beverage, health care
products, information technology, hospital and so on. SQUARE is not only doing its
business in Bangladesh but it has also expanded its business in abroad. SQUARE is
doing its business much successfully but it strictly follows Corporate Social
Responsibility. (www.squarepharma.com.bd / Annual report 2014-15)

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The Management Process of Square Pharmaceuticals Limited

1.2 Products

SQUARE Pharmaceuticals Ltd. manufactures more than 500 products medicines such as
vaccines, oral health care products, tablets, capsules, syrup, suspension, Sterile eye
drops, injectable, nasal sprays, nasal sprays, creams, ointments, IV fluids, metered dose
inhalers, dry powder inhalers, suppositories, lyophilized injectable, prefilled syringes etc,
argrovet & pesticide products, herbal & neutriceuticals products .
(www.squarepharma.com.bd , Annual report 2014-15)

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The Management Process of Square Pharmaceuticals Limited

1.2 Employees & Customers

SQUARE Pharma is running its business successfully with more than 22000 employees .
SQUARE also concentrates on improving of the quality of life of the workforce as they
consider their employees as the asset of the company. Child labor and forced labor
isstrictly prohibited in SQUARE. They don’t allow women to work in night shift.

As SQUARE Pharmaceuticals is one of the most renowned company of the country. It

has its own loyal customers who believe SQUARE produces the best products. SQUARE
has not only gained customers in pharmaceuticals sector but also in other sectors. In a
sentence they cover the large group of customers of the country.
(www.squarepharma.com.bd)

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The Management Process of Square Pharmaceuticals Limited

1.5 Vision & Mission

1. Vision
We view business s as a means to the material and social well-being 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. Mission
Our 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.

3. Objectives
Our objectives are too conduct transparent business operation based on market
mechanism with the legal & social frame work with aims to attain the mission
reflected by our vision.

4. Corporate Focus
Our vision, our mission and our objectives are to emphasize on the quality of
product, process and services leading to growth of the company imbibed with good
governance practices. (Annual report 2014-15)

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The Management Process of Square Pharmaceuticals Limited

CHAPTER # 2
EIGHT MANAGERIAL
FUNCTIONS

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The Management Process of Square Pharmaceuticals Limited

2.1 Eight Managerial function:

Eight managerial functions are-

How Square Pharmaceuticals Ltd. carries out eight managerial functions while managing
the people is explained below :

Planning:

The Company’s main plan is to produce and provide quality and innovative healthcare
relief for people, maintain stringently ethical standard in business operation also ensuring
benefit to the shareholders, stakeholders and the society at large. The company views
“business as a means to the material and social wellbeing of the investors, employees
and society at large, leading to accretion of wealth through financial and moral gains as
a part of the process of the human civilization.”Their objectives are to conduct
transparent business operations within the legal & social frame work with aims to attain
the mission reflected by our vision.

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The Management Process of Square Pharmaceuticals Limited

Future Program of the Organization:

>Strengthen its position in the present markets.

> Work is in progress to enter into regulated markets in Europe and United States.

> Develop new products in competitive price.

> Use local resources for proper utilization.

Decision Making:

Decision making process in SQUARE company limited is basically in group decision

making at the managers arrange a meeting and the board of director make a decision
about this meeting. 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 process via the
lines of command. They take special care in designing and articulating productivity and
compensation plans of employees and workers rewarding them appropriately on the basis
of quality and quantity of performance as an incentive. This presentation briefly
explain decision making process of SQUARE company.

Organizing:

At SQUARE, HRD symbolizes the unique blending of professionalism as well as sharing

the stress and success equally like a family where every member has deep concern,
feelings and pride for their own company SQUARE. HR ensures the strong supporting
role to develop & implement HR policy guidelines for ensuring uninterrupted operation
and spontaneous participation to achieve organizational objective as well as fulfillment of
employee needs. HR is maintaining an effective way to deal with labor union and still
no unrest has been recorded as dispute. Personnel working here are taking care of
SQUARE as if it is their own family. Employee-employer relation is cordial and
supporting always.

Staffing:

The procedures of recruitment and selection process in SPL are generally driven by a
desire to be fair. However, there may in some cases need to be a better balance of
fairness and operating a quick and effective process. Careful consideration of policies and
procedures may identify unnecessarily bureaucratic practices. Each year SPL recruit above
100 numbers of Medical Promotion Officer (MPO) those are mainly chosen for field
work.

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The Management Process of Square Pharmaceuticals Limited

Communicating:

Flow of clear and specific information, direction, feedback, and justification of queries
play the vital role to ensure the market reputation of SQUARE as the most trusted and
transparent company and it enriches the motivation level of HR who are the real
contributors and owners of his / her own jobs.

Motivating:

For organization’s benefits, SQUARE choose the most efficient and eligible employees
and believes in company growth by increasing efficiency level of employees and for that
offering excellent environment and support for skill and knowledge up gradation.

Leading:

SQUARE is committed to undertake appropriate review, evaluation and performance

measurement of processes, business activities and Quality Management System for
continual improvement to ensure highest standard, customer satisfaction, developing human
resources and company's growth.

Controlling:

The company’s chief operating decision makers compare desired result with actual result
on an aggregate basis and take necessary steps if needed. They perceive 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.

(www.squarepharma.com.bd , Annual report 2014-15 , Shah Md. Tanvir Hasan, manager,

supply chain management of Square Pharmaceuticals Limited)

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The Management Process of Square Pharmaceuticals Limited

CHAPTER # 3
SITUATIONAL ANALYSIS

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The Management Process of Square Pharmaceuticals Limited

External & Internal Environment of the Company

3.1 External Environment

External Environment refers to factors and forces outside the organization that affects its
performance. There are some certain components of external environment which have
great impacts on organizations. If the components are in positive condition then the
business can gain profit and can go well but if the conditions are not so it can bring
loss.

Six major components of external environment are:

1. Economic
2. Demographic
3. Political / Legal
4. Sociocultural
5. Technological
6. Global

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The Management Process of Square Pharmaceuticals Limited

1. Economic Components
Interest rates , Inflation , Changes in disposal income , stock market fluctuations , business
cycle stages are the factors of economic components. These factors influence organizations
significantly. Unsupportive economic components brings about loses to the company.
Unstable economic condition of Bangladesh is hampering SQUARE’s regular badly.

2. Demographic Components
Any business mainly deals with people. So it is very important to understand the
geographic location , gender , age , education level, income family composition etc. Any
business can go well only when it follows demographic components. SQUARE PHARMA
is holding a strong position here. They follow their customer’s needs very seriously and
according to that they produce their products. Today they are also able to get success
in their other business too.

3. Political / Legal Components

Political stability is very important for a business to run smoothly. Political or local
environment talks about federal , state , local and global laws and also about political
condition of a country. To run a business successfully , it is must that law and order are
in favor. But unfortunately the political and legal condition of Bangladesh is very low
which is affecting SQUARE business badly. It is also decreasing their export and
international relationship with foreign businessmen.

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The Management Process of Square Pharmaceuticals Limited

4. Sociocultural Components
Sociocultural components are concerned with societal and cultural factors such as values ,
trends , attitudes , traditions , lifestyles , beliefs , tastes and patterns of behavior. SQUARE
Pharmaceuticals Ltd gives much importance to this component. As a result today they
are able to gain trust of their customers and they are successfully continuing their
business in abroad as well.

5. Technological Components
Technological components are concerned with scientific and industrial innovations. Today
is an age of science and technology has increased productivity. Without using advanced
technology today no business can gain high production and earn profit. An organization
cannot even stand against its competitors because of the lacking of technological
component. SQUARE is following advanced technology for its high and developed
productivity and also for competitive advantage. But at the same time it is also
necessary for them to work with more developed and modern technology.

6. Global Components
Global components encompasses those issues associated with globalization and a world
economy. A company must get up to date news about new and existing markets around
the world so that they can work according to that. Though SQUARE is following this
strategy but they need to develop more.

(http://en.wikipedia.org/wiki/Pharmaceutical_industry)

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The Management Process of Square Pharmaceuticals Limited

3.2 Internal Environment

Internal environment mainly consists of organizational culture. Organizational culture is
the shared values , principles , traditions and ways of doing things that influence the way
organizational members act and that distinguish the organization from other organizations.
(www.squarepharma.com.bd)

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The Management Process of Square Pharmaceuticals Limited

CHAPTER # 4
MANAGEMENT ISSUES

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The Management Process of Square Pharmaceuticals Limited

4.1 Some Good Things & Some Bad Things

Strong and Weak factors are internal of any company. For SQUARE Pharmaceuticals

Ltd. Strengths and weaknesses are –

Strengths Weakness

Brand Value Cost structure

Tax structure
Skilled scientists and
emoloyees

Dependency on imported raw

material
High quality standard
product

Developed labs, equipments

and manufacturing

Global recognition

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The Management Process of Square Pharmaceuticals Limited

4.1 Strengths

 Brand Value:
SQUARE Pharmaceuticals is one of the largest renowned company. It is already an
established company. As a result people trusts its brand name and believes their all
products as good ones which is very positive profitable for any company.

 Skilled Scientists and Employees:

SQUARE Pharma has created job opportunities for more than 22000 employees. They
have highly experienced and efficient employees. SQUARE offers many attractive
incentives to motive their workers. SQUARE trains them for perfection and cares them
as their family and assets.

 High Quality Standard Products:

SQUARE maintains a standard quality for their products. Their Products are approved
by Government of Bangladesh and other countries.

 Developed Labs, Equipments and Manufactures:

SQUARE is well known for their updated equipments and developed manufacturing
machines. It’s one of their strong factors.

 Global Recognition:
SQUARE exports their medicines to almost 25-30 and earned 5744nmillion(2014-15). It
has a huge number of international accreditation’s. Today SQUARE Pharmaceuticals is
not only doing its business successfully in Bangladesh but also in overseas.

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The Management Process of Square Pharmaceuticals Limited

4.2 Weakness

Everything in this world has a good and bad side. Though SQUARE has many strong points,
it has some flaws and lacking. They are -

 Cost Structure:
Cost is unavoidable for every company which cannot be denied. But producing good
products at least cost is always positive and profitable. So every company must follow this
view. To develop more SQUARE must use cost structure.

 Tax Structure:
SQUARE must give attention to income tax, taxes for employers, excise tax and other
important things regarding tax to overcome their weakness.

 Dependency on Imported Raw Materials:

As SQUARE produces many important drug and medicines like inhaler, nasal spray,
suppositersetc they have to depend on import edresources which sometimes can cause
stoppage of production. So they must try to overcome this weakness and should look for
their own raw materials for continual and more production. (Annual report 2014-15)

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The Management Process of Square Pharmaceuticals Limited

CHAPTER # 5

SWOT ANALYSIS

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The Management Process of Square Pharmaceuticals Limited

5.1 SWOT Analysis of the Company

SQUARE Pharmaceuticals Ltd. Comprehensive SWOT Analysis –

 Strengths
 Weakness
 Opportunities
 Threats

Strengths
-Monetary assistance provided

-High profitability and revenue

-Established brand value

-Skilled workforce

Weakness

-Cost structure

-Tax structure

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The Management Process of Square Pharmaceuticals Limited

-Investment in research and development

Opportunities

-Global market

-Income level is at a constant

Threats

-Strong competitors

-Rising cost of raw materials

(Annual report 2014-15)

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The Management Process of Square Pharmaceuticals Limited

CHAPTER # 6

PORTER’S FIVE FORCES

ANALYSIS

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The Management Process of Square Pharmaceuticals Limited

CHAPTER # 7

RESULT AND ANALYSIS

SUMMARY

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The Management Process of Square Pharmaceuticals Limited

CHAPTER # 8

FINDINGS,
RECOMMENDAON,
CONCLUSIONS &
REFERENCES

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The Management Process of Square Pharmaceuticals Limited

SPl is the largest and oldest pharmaceuticals organizations in Bangladesh, with years of
experience. Adaptation of modern technology both in terms of equipment and corporate
practice ensures efficient service to customers as well as employees & its management
authority can be more organized.

But SPL has faced few problems.

 SPL’s cost structure is not adjustable with our country environment.

 They can’t follow the tax structure strictly.
 SQUARE almost depends on imported raw materials sometimes it causes of
production problem.
 They are not using their current resources properly.
 Insufficient of suitable technologies.
 Employees are not that much happy with their compensation packages.
 Most of the employee work for their personal development.
 No special program is conduct for employees.
 Most of the employees are not concern about the corporate behavior.


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