A Case Study On SQUARE GROUP Bangladesh.pdf

A CASE STUDY ON SQUARE
GROUP
The same Square Quality
Case Study | Managerial Economics | November 6, 2023

Presented To
Mr. Basharat Hossain
Assistant Professor
Department of Business Administration (DBA)
International Islamic University Chittagong (IIUC)
PRESENTED BY
Name ID
Saidul Karim Aqib R232050
Soumik Barua R232053
Faisal Md Mohsin Zisan R232052
Habibur Rahman Riyad R232064

Introduction
➢ SQUARE was founded in 1958, and its growth accelerated with the
leadership of Samson H Chowdhury. Today, the SQUARE Group
generates over a billion dollars in revenue in more than fifty countries
worldwide. The group has diversified into multiple businesses, including
healthcare, textiles, consumer goods, media, and information technology.
It is the country's top conglomerate and the most significant job creator,
employing many skilled workers.
➢ SQUARE was founded to provide people with products and services that
improve their lives. With an innovative mindset, SQUARE is building
multinational businesses with significant investments in different parts of
the world. The pursuit of excellence, a philosophy deeply ingrained in its
entrepreneurial DNA, is incorporated into the design thinking of all
business operations. The group has received numerous national and
international recognitions for its strict compliance with quality, regulatory
guidelines, and best practices. Since its inception, SQUARE has been
creating competitive advantages by value creation through sustainable
business practices and contributing to the well-being of society and the
environment. Each SQUARE company cultures innovation to sustain
development for transforming value propositions to support customers’
ever-changing needs and to benefit all stakeholders with good value
realization. Building blocks of SQUARE’s legacy are founded on creating
shared value, doing good to society, customer-centricity, and diversity.
➢ SQUARE has begun the digital transformation of its value chain by
integrating data-driven technologies for the smart factories of
tomorrow.

Overview of Square Group
The slogan of Square Group
The Same Square Quality.
Formation 1958
Founder Samson H. Chowdhury
Headquarters Dhaka, Bangladesh
Region served Bangladesh
Official language Bengali
Key people Anjan Chowdhury
Subsidiaries Square Pharmaceuticals Ltd.
Radhuni
Maasranga Television
Square Hospital
Revenue $1.5B (2021-2022)
Staff 65,000 (2022)
Website www.squaregroup.com

Board Of Directors
Mr. Samuel S Chowdhury
Mrs. Ratna Patra
Mr. Tapan Chowdhury
Mr. Anjan Chowdhury & Mr. Kazi Iqbal Harun
Mr. Syed Afzal Hasan Uddin
Mr. S M Rezaur Rahman
Chairman
Vice Chairman
Director Independant
Director
Managing Director
Independent
Director

Mission, Vision & Values
Mission:
➢ Our mission is to achieve higher efficiency to develop and deliver
affordable products and services to society for good.
Vision:
✓ Our vision is to be the leading conglomerate in the region, globally
recognized for excellence in quality and value proposition.
Values:
❖ We are in society as a corporate citizen
❖ We believe in the mother nature ecosystem with its uniqueness
❖ We are in business for humans, society, and humanity.

Business of SQUARE Group
Pharmaceuticals Hospitals
Toiletries
Food &
Beverages
Square
Tea Informatix
Mediacom Maasranga Tv
Square
Textile Denim
Apparels Fashions Ltd.
Square

Products of SQUARE Group
➢ Square Pharmaceutical: Entacyd, Zimax, Fona plus, Anzitor,
Ambrox, Calboral DX, Moxacil, Flexi etc...
➢ Square Herbal and Nutraceuticals: Garlin, Adovas, Dubarel,
AmCivit, Livolite etc...
➢ Square Toiletries Limited: Sepnil Soap, Magic Herbal Toothpaste,
Senora Sanitary Pad, Zero Cal Stevia, Kool Aftershave, Kool deo,
Meril Soap, Xpel Aerosol, Meril Petroleum Jelly, Chaka Detergent
powder, Chamak Fabric brightener, Jui Hair Oil etc...
➢ Square Food and Beverage Limited: Radhuni, Ruchi, Chopstick,
Chashi, Aaram.
➢ Square Tea: Orvana

➢ Square Fashion Ltd: T-shirts, Polo, Jeans, Tank Tops, trousers,
sweaters, Knitted Blazers, jackets, etc...
Export Items of SQUARE Group
• SQUARE has been exporting pharmaceutical formulations since 1995,
pioneering Bangladesh's pharmaceutical exports.
• SQUARE Food and Beverage products meet all international
phytosanitary requirements. The company began exporting to South
Korea in 2002 and has since expanded to 30 countries worldwide,
including Australia, Europe, North America, Africa, and Asia. All
exports meet global standards and regulations.
Export Countries
SQUARE Pharmaceuticals PLC. is already supplying products to the
following markets:
Asia: Afghanistan, Azerbaijan, Bhutan, Cambodia, Georgia, Hong Kong,
Iraq, Laos, Macau, Malaysia, Maldives, Myanmar, Nepal, Philippines,
Singapore, Sri Lanka, Tajikistan, Vietnam, and Yemen.
Africa: Cameroon, Eritrea, Ivory Coast, Kenya, Libya, Mauritania, Mauritius,
Mozambique, Nigeria, Somalia, Sudan, Tanzania, Uganda.
Oceania: Fiji, Palau, Papua New Guinea.
Central & South America: Belize, Costa Rica, Jamaica, Nicaragua, Panama,
Suriname.
Europe: UK (Contract Manufacturing)
North America: USA

Profits of SQUARE Pharma
Square Pharmaceuticals, a leading drug maker in the country, has
recommended the highest-ever cash dividend of 105 percent for the financial
year 2023 as the company witnessed sustained profit growth driven by
increased sales revenue. Square Pharma has reported a consolidated profit of
Tk 18.98 billion for FY'23, registering an increase of 4.45 percent from the
previous fiscal year.
The company managed to continue its profit growth, while some other drug
makers have experienced a decline in their profits for FY'23 due to a surge in
raw material costs and foreign exchange losses.

Contribution to the National Economy of SQUARE Group
Square is a name that embodies a state of mind, representing growth and
prosperity. However, this conglomerate's journey took much work.
Established in 1958, it has grown to become one of the top companies in
Bangladesh, with Square Pharmaceuticals Ltd., its flagship company, holding
a solid leadership position in the country's pharmaceutical industry since
1985. Square is now on its way to becoming a high-performance global player.
Square is more than just an organization; it is an institute that has pioneered
the development of various industries in Bangladesh, such as
Pharmaceuticals, Toiletries, Garments, Textiles, Information Technology,
Health products, Food and beverage Products, and Hospitals. SQUARE
Pharma's turnover during the year 2021- 2022 was BDT 66.41 billion (US$
780.26 million) with about 18.74% market share and a growth rate of
approximately 10.24% and has around 11,199 employees across the country
and abroad. It is a true icon of the Bangladesh business sector.

SWOT Analysis of SQUARE
Strength:
➢ Huge demand in the domestic market
➢ Favorable regulatory authorities for domestic manufacturers
➢ Increasing health expenditure due to growing health consciousness
➢ International Standard product manufacturing units
➢ Global experience
➢ Increasing achievement of Public Trust.
Weakness:
➢ Lack of investment and knowledge-based workforce hindering R&D
➢ A weak advertising system
➢ Sometimes, the owner’s relative employee acts as a disturbing
employee
➢ Time consuming decision-making process
➢ Incorrect method for collecting resources and inventory management
➢ Lack of asset management and debt
➢ Minimum profit in comparison with others
Opportunity:
➢ Government Support
➢ Banking and information technology
➢ Entering a new arena product helps to grow customers' confidence.
➢ Opportunity to take market share away from rivals by offering new
products
➢ Innovative products or services
➢ Opportunity to enter into the global market
Threats:
➢ Hiking the price of raw materials.
➢ Frequent Currency Devaluation
➢ Competitors are offering innovative new products and services
regularly. Matching them is hard.

Internship Opportunity at SQUARE
Square Group offers internship opportunities for undergraduate students who
meet specific requirements.
Requirements:
1. BBA Graduates from a reputed University.
2. Must have completed all credits except internship
3. Required CGPA: 3.00 and above
Knowledge & Skills:
1. Proficiency in making animated presentations in MS PowerPoint
2. Ability to work efficiently in MS Word & Excel
3. Typing skills in English and Bengali (esp. Avro keyboard)
4. A solid intent to study/research on any particular topic
Benefits:
* Learning opportunities of key functional areas in Square.
* Orientation with corporate culture
* Monthly honorarium and free-of-cost company-provided lunch.

Job Opportunity at SQUARE
The Square Group is always searching for intelligent, energetic, and result-
oriented individuals with varying skills to support their continuous growth.
Advantages of a career at SQUARE
➢ Here, learning is every day, everywhere: Learning and development
needs are addressed through on-the-job training, classroom settings,
and e-learning platforms.
➢ Long-term career planning: At Square, employees enjoy a fulfilling
experience, leading to long tenures. The third generation currently
works here.
➢ Growing Opportunity: Members are provided with guidance and
support to overcome challenges and make progress.
➢ Working here is about passion: Employees actively participate in
initiatives and proudly represent the company as brand ambassadors.
Recruitment Process at SQUARE
The recruitment and selection process is a critical function of the human
resources department. It is the first step towards creating a competitive
advantage for the organization.

First, the process involves identifying vacancies, preparing job descriptions
and person specifications, advertising vacancies, managing responses,
shortlisting and arranging interviews, conducting interviews, and making
decisions.

Sources Of Recruitment
There are two primary sources for recruitment:
✓ internal and
✓ external.
Internal Source: Square believes that current employees are a significant
recruitment source for all positions except for entry-level ones. As candidates
for new positions or lateral job transfers, existing employees possess a good
understanding of the company's informal organization, as well as detailed
information regarding its formal policies and procedures.
External Source: When internal candidates cannot fill a job opening,
Square's HR department must look for external applicants. There are several
sources of recruitment available, which we will discuss below:
▪ Walk-ins and write-ins
▪ Employee referrals
▪ Advertising
▪ Press advertisements
▪ Internet
▪ Educational institutions
▪ Personal agencies
▪ Employee exchange
▪ Labor Contactors

Criticism of SQUARE
Adam Smith, in his book "The Wealth of Nations," and some scholars argue
that if individuals maximize their interests, the general interest will also be
maximized. This implies that if each firm pursues its interest, the overall
interest of all firms will increase. However, we disagree with this theory and
believe the general interest will remain unchanged.
The company's opportunity for advancement and promotion policy has caused
employee dissatisfaction. Only 8% of them are satisfied with this policy and
practice, while 25% of them are not satisfied with it.
According to the survey, respondents would prefer something other than the
existing lunch facility provided by the company. 33% of the respondents are
highly dissatisfied, 8% are dissatisfied, and only 25% are satisfied with the
facility.
The employees are getting benefits according to their job responsibilities and
duties, but 33% of them are not satisfied, and 25% of them are dissatisfied
with the package in comparison to their job responsibilities. However, 25%
of them are happy. Regarding the annual appraisal of the company, the
employees are not satisfied. 17% of them are not happy with it.

Problems of SQUARE
Square Group is one of the largest and oldest organizations in Bangladesh,
with several years of experience. The company has incorporated modern
technology in terms of equipment and corporate practices to ensure efficient
services to its customers and employees. This has enabled the management
authority to become more organized and streamlined. However, Square Group
has faced a few problems, which are as follows:
➢ The cost structure of Square Group is not adjustable to the country's
environment.
➢ They cannot follow the tax structure strictly.
➢ Square Group almost entirely depends on imported raw materials,
which sometimes causes production problems.
➢ They are not utilizing their current resources effectively.
➢ There is a lack of suitable technologies.
➢ Employees are not satisfied with their compensation packages.
➢ Most employees work for their personal development.
➢ No special programs are conducted for employees.
➢ Most employees are not concerned about corporate behavior.

What kind of Firm is SQUARE?
SQUARE was established in 1958, and visionary leader Samson H
Chowdhury accelerated its growth and stability. The group has expanded into
multiple companies, with diverse businesses in healthcare, textiles, food and
beverages, cosmetics and toiletries, media, and information technology.
SQUARE's vision is to serve people with products and services that help them
live better lives. With a pioneering spirit, SQUARE is building multinational
businesses and making significant investments in different parts of the world.
Manufacturing industries with high fixed costs often exhibit increasing returns
to scale. Square Group has made practical and timely business decisions since
its inception, resulting in steady growth based on Returns to Scale (RTS). The
firm is regarded as highly economically developed due to its ability to
generate increasing returns to scale. It occurs when a company can produce
more than double the output by doubling all its inputs, such as labor and
capital. In other words, the firm's output will increase by a more significant
amount than the number of increased inputs. Being a diversified company,
Square Group benefits from economies of scale, leading to lower production
costs and increased efficiency.

The nature of the SQUARE group is Perfectly
competitive.
A perfectly competitive market refers to a type of market where all the
available goods and services are indistinguishable. The market has no entry
barriers, and there exists a significant number of buyers and sellers, none of
whom have the power to impact market prices. When a company faces a more
substantial number of competitors who offer similar products and services,
their power gets reduced. In such a scenario, suppliers and buyers tend to look
towards the competition for better deals and lower prices. On the other hand,
when the competition is low, the company gets greater power to set higher
prices and negotiate deals to achieve better sales and profits. Square Group
faces intense competition from companies such as Beximco, Pran Group,
ACI, Incepta Pharma, Akij Group, Partex Group, Orion Group, Novo
Nordisk, Opsonin, etc. Due to this competitive landscape, Square Group
cannot charge exorbitant prices and must strive to survive amidst this high
level of competition.

Does it offer market or efficiency wages?
Did you know that Square Group is a diversified conglomerate in Bangladesh,
excelling in industries ranging from pharmaceuticals to food and beverages
and beyond? Determining wage rates can be complex and depends on factors
such as job role, experience, Job location, and overall market conditions.
Market wage refers to paying wages that align with the market rates for a
particular job. In contrast, efficiency wage refers to paying above-market
wages to motivate employees to be more productive.
To determine the market wage for a specific role within Square Group,
reliable sources such as wage rates and company compensation policies can
be helpful. Ultimately, the wage depends on the company and the job market.

Recommendation
➢ Quality and control: SQUARE Group needs to adhere to international
standards and maintain the quality of its products.
➢ Local market share: In the current scenario, Square Group stands as
the frontrunner in the MNC sector in Bangladesh. The competitors and
followers of the company are constantly striving to increase their
market share. Therefore, Square Group focuses on expanding its market
share while also considering the growth of its other sectors.
➢ Dynamic sales strategies: Due to the customer complaint and the lack
of guidelines to prevent untrained sales staff from serving customers,
we recommended that Square Group take dynamic sales strategies for
higher customer satisfaction.
➢ Foreign market: Though SPL captured Asia, Africa, and the Middle
East's pharmaceutical markets, the European market is still uncaptured.
So Square Pharma should concentrate more on the European market,
and they should also try to grab other sector’s markets.
➢ Monitoring new staff: To get better performance, the company's
authority should monitor their new staff carefully.

Conclusion
SQUARE today symbolizes a name – a state of mind. But its journey to
growth and prosperity has been no bed of roses. From its inception in 1958, it
has today burgeoned into one of the top-line conglomerates in Bangladesh.
For over four decades, Square Group has been a prominent and leading
company in the industry. They are known for manufacturing quality products
and have diversified into various areas of the local business field. Square
Group's other concerns include pharmaceuticals, toiletries, garments, textiles,
information technology, health products, food products, and hospitals. The
company prioritizes the quality of its products and aims to increase profits for
shareholders, stockholders, and employees. To produce the best quality
product, Square Group believes that its employees must be skilled,
knowledgeable, and motivated, as they are all members of the same family.
However, Square Group is not solely focused on product quality and
reputation. They also prioritize employee satisfaction to improve productivity
and produce high-quality products. They provide various benefits and
facilities to ensure employee satisfaction and promote betterment.

References
https://www.coursehero.com/file/51188634/A-report-on-Square-Group-Of-
Company-Ltddocx/
https://squaregroup.com/
https://www.investopedia.com/
https://www.wikipedia.org/
https://www.scribd.com/document/457420606/CONCLUSION-and-
recmmendation-docx

A Case Study On SQUARE GROUP Bangladesh.pdf

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