Penston Academy of International Studies

Studies.
Strategic Planning
Course# 711

Student: Md. Azizul Hakim

Course Title: PGD in Strategic Management and Leadership
Professor: Mr. Shafquat Azad
Deadline: August 15, 202

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Executive Summary

Organizational leaders use strategic planning to determine their long-term vision as well as
their goals and objectives. In this study, a piece of detailed information was given on Square
pharmaceutical which is the largest healthcare organization in Bangladesh. This study focuses
on the cost-leadership business unit strategy of Square pharmaceutical. In the later part, some
alternative strategies are discussed. This research takes into account the market, as well as a
variety of techniques and concepts for monitoring and reviewing the strategic strategy. In the
end, the importance of a strategic plan for the success of Square pharmaceutical was
discussed.

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Table of Contents

Contents

Introduction 4
Task 1 5
1.1: Fundamentally analyze and recognize the organization’s key points and goals counting
the approach adjusted to key planning. 5
1.2: Determine various strategic choices out there and also the implications for the
organization. 6
1.3: Critically assess the impact of neutral expectations on a strategic arrangement and
therefore the coming up with the horizon. 6
Task 2 8
2.1: Critically measure the choice strategic choices out there to the organization over the present
coming up with horizon and factorization in wider context market and contender impacts. 8
2.2: Assess and confirm the priorities and feasibilities of other choices over existing designing
horizons 9
2.3: Carry out a risk assessment of the popular strategy and various. Identify, justify and articulate
the chosen methods among the setup and address any potential issues. 10
Task 3 11
3.1: Critically review the structure and market factors to be thought-about within the
implementation of the strategic arrangement. 11
3.2: Determine and apply a variety of tools and ideas to observe and review the strategic
arrangement. 11
3.3: Determine the impact of the strategic arrangement on the organization’s direction and
accomplishment of the organization’s objectives. 12
Conclusion 13
Reference 14

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Introduction

An organization's capacity to develop a goal or purpose, pick long-term objectives, and set parameters
for value and growth is referred to as strategic vision. A successful strategic vision can provide a
corporation with a number of advantages (Shakib, 2017). In this study, the focus is given to the
strategic vision of the business unit. A business unit is a division of a company that develops and
implements its own processes while adhering to the company's overall values. As a senior manager of
Square pharmaceuticals, here I am going to present the strategic vision of this business unit that
meets the organizational objectives of Square pharmaceuticals.

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 Task 1

1.1: Fundamentally analyze and recognize the organization’s key points and goals counting

the approach adjusted to key planning.

Chosen Organization: Since 1985, Square Pharmaceuticals Limited, the flagship firm of the Square

Group, has had a strong leadership position in Bangladesh's pharmaceutical industry and is now on its

path to becoming a high-performance worldwide player.

Mission: The goal of this organization is to manufacture and give people high-quality, innovative

healthcare assistance while adhering to the highest ethical standards in business operations while also

benefiting shareholders, stakeholders, and society as a whole.

Vision: The square views its company as a means of enhancing social as well as material well-being.

In addition, as part of a human civilization process, consider the wellbeing of stakeholders and the

public as a whole, leading to wealth growth through financial and moral rewards.

Objective: To reach the goal of our vision, Square's goals are to undertake transparency business

activities depending on the market processes within a cultural and legal framework.

Current Strategy: Square Pharmaceuticals' cost-cutting efforts are well-known. In contrast to

competitors, cost leadership is an interconnected set of measures meant to produce acceptable

consumer-quality goods or services at a lower opportunity price.

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1.2: Determine various strategic choices out there and also the implications for the

organization.

Square Pharmaceuticals is a well-known healthcare company that possesses a potent

combination of resources and competencies to give a solid foundation for significant
development in today's rapidly changing healthcare market (Bahadur and Deb, 2013). An
organization can pursue one of four business strategies:

Cost leadership: The organization achieves competitive advantages through cost leadership strategy

by lowering the overall cost of the organization. This is the business approach employed by Square

Pharmaceutical.

The other 3 alternative strategic options are:

Focus cost leadership: When a corporation adopts a cost-focused strategy, it focuses on acquiring

new consumers primarily on the basis of price.

Focus differentiation: The focus differentiation approach involves a company's delivery of distinct

features while keeping the demand of a certain target market in mind.

Differentiation: Differentiation refers to a company's usage of product features or services to

differentiate itself distinct from its rivals.

1.3: Critically assess the impact of neutral expectations on a strategic arrangement

and therefore the coming up with the horizon.

A stakeholder is a person or a group of people who have an interest or concern in a firm. Like

other business bodies, Square pharmaceuticals also have stakeholders of their business. The

report says

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 (Source: http://www.squarepharma.com.bd/share-holding-position.php)

Impact of stakeholders: Stakeholder participation at a good degree leads to better outcomes and a
higher sense of ownership in the process (Poister and Streib, 2005). Managers make decisions and
provide proposals that have an impact on the company's operations. Employees may have only a
sliver of a say in company choices. Customers purchase products and services and provide input to
businesses on how to improve them.

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 Task 2

2.1: Critically measure the choice strategic choices out there to the organization over the present

coming up with horizon and factorization in wider context market and contender impacts.

Square pharmaceutical is following a cost-leadership strategy for grabbing more customers by

keeping the product price Low. Square can also use a differentiation strategy, which involves
employing commercial products or services to set the firm apart from its competitors' offerings.
Product differentiation increases market competition while lowering consumer costs (Elbanna et al.,
2016). The impact of competitors and wider context market is shown by PEST analysis:

Political Forces

Political forces mean the influence that the government has on the healthcare industry in any country.

Economic Forces

Government statistics imply that healthcare spending per capita is increasing despite the ongoing
global economic crisis. Consumer discretionary income will be influenced in nations that use health
insurance plans, notably in the part where organizations pay.

Sociocultural Forces

As the world's population ages, the pharmaceutical industry faces various benefits and threats. The
answer will be to take advantage of the opportunities that arise. There's also the growing problem of
overweight in the neighborhood, which has its own set of health hazards.

Technological Forces

Novel business opportunities will emerge as a result of technological improvements, both in

the introduction of available therapy systems and business solutions. They employ
operational technology such as new information and communications, as well as social media
for healthcare.

2.2: Assess and confirm the priorities and feasibilities of other choices over existing designing

horizons.

Square Pharmaceuticals is using a cost-cutting strategy to attract more customers by keeping product
prices low. The other 3 alternatives are

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1.  Differentiation strategy: Product differentiation is a commercial approach for increasing
earnings, standing out, and attracting customers' awareness (Gupta and Govindarajan, 1984).

Advantages of Product Differentiation

❖ Additional value is created

❖ Brand loyalty is developed

Disadvantages of Product Differentiation

❖ The increased revenue is not guaranteed

❖ The anticipated value can be declined

2. Focus Differentiation Strategy

Focus differentiation strategy is one in which a corporation decides to focus its marketing resources
on either expanding into or entering a new market or niche (Gupta and Govindarajan, 1984).

Advantages of a Focus Strategy

❖ Business develops a constructive pricing structure

❖ Effective relationship with the target market is built

Disadvantages of a Focus Strategy

❖ Initial demand on a product is limited

❖ Future growth is limited

Focused cost leadership strategy:

Focused cost leadership brings out the price competitiveness to target a small market. It has
low costs in contrast to other businesses in the target market.

2.3: Carry out a risk assessment of the popular strategy and various. Identify, justify and articulate

the chosen methods among the setup and address any potential issues.

The preferred alternative strategy was the differentiation strategy. Two risks associated with a
differentiation strategy are competitor replication and changes in customer tastes. Furthermore,
organizations that employ a differentiation strategy may be able to further differentiate themselves in
their respective marketplaces (Poister and Streib, 2005). The market leader's need to manage its
changing portfolio of market segments, on the other hand, could be the most dangerous threat. Some
risks are

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Cournot Effect: The potential of additional firms entering the market and decreasing prices to avoid
losing clients is the first risk to differentiation strategy.

Cooper-Kahn Effect: This new model was based on Cooper and Kahn's oligopoly price strategy of
collusion or non-collusion of competitors.

Comparable to the cost focus method, the differentiation focus strategy is similar to the
differentiation strategy, except it focuses on a specific niche rather than the entire market. The
company tailors its offers to a specific audience rather than generating unique new things that appeal
to everyone (Bahadur and Deb, 2013). Because it focuses on a certain demographic rather than
producing products for the general public, the company has less competition. So instead of a
differentiation strategy, Square Pharmaceutical can plan for a differentiation focus strategy to
mitigate the mentioned risk associated with the differentiation strategy.

Task 3

3.1: Critically review the structure and market factors to be thought about within the implementation of
the strategic arrangement.
Michael Porter has identified five forces that are widely used to assess the structure of any industry.
Porter’s five forces are

Rivalry among existing firms: Because Square Pharma is Bangladesh's largest pharmaceutical
company, its product pricing is competitive. Square Pharma is a fast-growing company with limited
rivalry.

The threat of new entrants: The capital necessary to enter this industry is comparatively low so
there is a high chance of new entrants in the industry.

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The threat of substitutes: Biotechnology breakthroughs in recent years have the potential to put the
pharmaceutical industry on the defensive.

Bargaining power of buyers: The buyer’s intention to buy has impacted on the industry.

Bargaining power of Suppliers: Suppliers have very little bargaining power, and pharmaceutical
companies can easily switch suppliers without incurring large costs.

3.2: Determine and apply a variety of tools and ideas to observe and review the strategic

arrangement.

SWOT analysis to Square Pharma:

Strengths Weakness

● Executives are highly potential ● Modern technology is less available

● Brand image is strong ● Less proactive authority

Opportunities Threats

● Availability of government support ● Devaluation of currency

● Good financial backup ● Rapid competition in healthcare

industry

Boston Consultancy Group (BCG Matrix):

This product portfolio matrix classifies product lines into four categories. The Boston Consultancy
Group classified these products as following:

Dogs:

The Dog matrix has a limited market share and a slow growth rate. Many companies decide to phase
out outmoded items, while others desire to repurpose and develop them.

Star

The startups control a significant chunk of the industry and operate in rapidly expanding markets. At
this stage, the product is profitable for the company.

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Cash Cows

There are certain products that have reached the end of their life cycle yet continue to generate a
significant amount of money for Square at a slower rate.

Question Marks

Some items see tremendous market growth, yet the company fails to obtain market share.
These are referred to as "question mark" items.

3.3: Determine the impact of the strategic arrangement on the organization’s direction and

accomplishment of the organization’s objectives.

Any company's success hinges on its ability to plan strategically. The long-term viability of an
organization is influenced by strategic planning. High-quality products, significant gains in
profitability, large client patronage, and increased sales volume are only a few of the benefits of
strategic planning on Square’s performance (Helms and Nixon, 2010).

Square Pharmaceutical is one of Bangladesh's top pharmaceutical enterprise's thanks to its strong
strategic planning. The complexity of strategic planning is influenced by a variety of elements
including professional, business, and environmental considerations. Strategic planning affects
management performance because it has a direct impact on the ability of the final strategic plan to
attract the support and commitment of the organization's human resources (Gates, 2010). 

Conclusion

Strategic planning is used by business executives to identify their long-term vision, as well as their

goals and objectives. The largest healthcare organization in Bangladesh, Square Pharmaceutical, was

profiled in-depth in this report. This research focuses on Square Pharmaceutical's cost-leadership

business unit strategy. Alternative strategies are addressed in the final section. This research takes into

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account the market, as well as a variety of techniques and concepts for monitoring and reviewing the

strategic strategy. Finally, the need for a strategic strategy for Square Pharmaceutical's success was

emphasized.

Reference

Bahadur, S.K. and Deb, B.C., 2013. Economic Value Added (EVA): A Better Performance Indicator-

The Case Study of Square Pharmaceuticals Limited. Journal of Business, 34(2).

Elbanna, S., Andrews, R. and Pollanen, R., 2016. Strategic planning and implementation success in

public service organizations: Evidence from Canada. Public management review, 18(7), pp.1017-

1042.

Gates, L.P., 2010. Strategic planning with critical success factors and future scenarios: An integrated

strategic planning framework. Carnegie-Mellon Univ Pittsburgh Pa Software Engineering Inst.

Gupta, A.K. and Govindarajan, V., 2014. Business unit strategy, managerial characteristics, and

business unit effectiveness at strategy implementation. Academy of Management journal, 27(1),

pp.25-41.

Helms, M.M. and Nixon, J., 2010. Exploring SWOT analysis–where are we now? A review of

academic research from the last decade. Journal of strategy and management.

Poister, T.H. and Streib, G., 2015. Elements of strategic planning and management in municipal

government: Status after two decades. Public administration review, 65(1), pp.45-56.

Shakib, M.D., 2017. Different effective promotional materials and strategies of SQUARE

Pharmaceuticals Limited.

Shanta Islam, S., 2019. Project Report on Human Resource Planning for Effective Business

Performance A case study on ACI Limited and Square Pharmaceuticals Limited.

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