Square Pharmaceuticals is the largest pharmaceutical company in Bangladesh. It has over 16 departments that handle functions like product management, marketing, finance, HR, and supply chain. Square produces over 400 medicines across various dosage forms like tablets, capsules, injections, liquids and inhalers. External factors affecting the pharmaceutical industry include political pressure on pricing, economic pressures reducing disposable income, an aging population, and increasing regulations.

1. Name: Mahamid Rahman
ID: 15264031
A Shock to the System
Assuming myself as a trainee in a firm of management consultants and for my induction process
I have chosen Square pharmaceuticals ltd. to work on. I will be discussing on organization
structure of Square pharmaceuticals ltd, its products and on the key external influences which
have affected its operations in recent years.
Following I have discussed on organization structure of Square pharmaceuticals ltd:
Square Pharmaceuticals Limited is the largest pharmaceutical company in Bangladesh and it has
been continuously in the 1st position among all national and multinational co. since1985. It was
established in 1958 and converted into a public limited company in 1991. The sales turnover of
SPL was more than Taka 11.46 Billion (US$ 163.71 million) with about 16.43%market share
(April 2010± March 2011) having a growth rate of about 16.72%.
Square now has one of the largest and competent sales force and large distribution network of its
own, operated from 18 different locations throughout the country. A most dynamic skilled and
dedicated marketing team comprising of pharmacists and doctors are at the core of the marketing
operation. These highly skilled professionals play a crucial role in providing the necessary
strategic guideline for the promotion of its product.
Functions of Departments:
Responsibility of Product Management Department (PMD):
 Preparation of marketing plan
 Preparation of printing promotional materials.
 Replying to quarries from the doctors and as well as the fiend forces related to a particular brand.
 Preparation of packing and packaging materials.
Responsibility of Medical Services Department (MSD):
 Provide medical information to the doctors’ parallel to the field force engaged in promotion of the
SPL.
 Performing the medical promotion like direct marketing of publications, free distribution of medical
newsletters, free videos.
 Continuous Medical Education (CME) for graduate doctors with alliance of Sales Department
Responsibility of Personal & Administration (PAD):
 Recruitment of employees
 Promotion of employees
 Transfer of employees
 Retirement of employees’ bill with remuneration, increments, and other fringe benefits namely
house rent, allowances, insurance’s, profit bonus, etc.
Responsibility of Accounts and Finance Department:
 Maintains all the accounts like recording of transaction, preparation final accounting reports,
costing and budgeting, taxation, bookkeeping’s, providing funds to the projects etc.

2.  Maintaining accounts receivables accounts, which is broken down into each market of SPL and
bank accounts.
 Preparation final accounting report for performance analysis of SPL.
Responsibility of Information Technology (IT) Department:
 Providing computer and other related accessories supports to all the user
 Maintenance of server and ensure smooth LAN operation
 Providing up to date technical and software support to all the sectors of SQUARE
 Development and maintenance of centralized databases and provide routine and ad hoc reports
for management decision making.
Responsibility of International Marketing Department:
 Exploration of new markets all over the world
 Operating of export business in the different countries
 Provide training to field forces in overseas countries
 Provide all types of documents for registration of SPL’s products in overseas countries.
Responsibility of Supply Chain Management:
 Purchase of raw materials, and packaging materials
 Purchase of machinery and equipments
 Purchase of chemicals, as advised by the department
 Purchase of stationary items and office applies.
Products of Square pharmaceuticals are as followings:
THE EXISTING PRODUCTS:
The formulation plants are producing wide range of dosage forms
like –
Product Mix Product Name
Tablets Total Dosage Form = 190 NosNon-Coated (Plain, Chewable, Dispersible,
Vaginal)
Coated (Sugar, Coated, Film Coated, Enteric Coated,)
Sustained/Extended Released (Coated, Non-Coated)
Capsules Total Dosage Form = 53 NosGranulated Material Field, Pellets Filled
Suppositories Total Dosage Form = 08 Nos Suppocire based
Injections Total Dosage Form = 41 NosVials Containing Dry Powder for Injections
Small Volume Liquid Parenterals
Liquids Total Dosage Form = 38 NosOral Syrups (Sugar based, Non-Sugar based)
Oral Suspensions Topical Liquids
Spray,Drops,Ointment

3. Product Mix Product Name
Cram and Powder Total Dosage Form = 56 NosSmall Volume Sterile Eye and Ear Drops
Small Volume Nasal Drops and Sprays
Topical Ointments and Cream
Topical Antibiotic Powder
Oral Dry Powder Total Dosage Form = 30 NosDry Suspensions (Antibiotic and Anti Infective)
Dry Syrups (Antibiotics)
Dry Powder Total Dosage Form = 04 NosPartial Filled (Premix) Capsules for Respiratory
Tract Application with a Device
Metered Dose
Inhaler
Total Dosage Form = 10 NosPressurized Canisters for Oral use with an Actualor
External factors which have affected in recent years are as following:
PRODUCT FACTORS: Quality. Approvals. Design factors / design specifications. Physical criteria /
physical parameters. R&D costs / development costs / customization. Technology / technology
factors & development. Product life / longevity. Performance / product efficiency / product
integrity. Reliability / product failure / product defects. Operating criteria / product operation or
usage. Probability of technical development / technical. Product life cycle / product
obsolescence.
MARKETING FACTORS: Distribution / warehousing / handling costs. Costs/prices at
supplier sale price. Costs/prices at end user / retail sale price. Stock availability / lead times /
delivery. Sales promotion & sales costs. Advertising posture & advertising costs. Competition /
competitors' aggressiveness & posture. Market share / relative market shares. Seasonality /
cyclical demand / demand fluctuations. Sensitivity to economic climate & conditions.
SUPPLIER FACTORS: Processing / production / handling facilities & capacity. Processing/
handling capacity / flexibility of plant. Dependence on sub-contractors / in-house supplies.
Technical capabilities / new product developments. Technological aptitude & innovations.
Other capacity. Own buying influence / economies of scale. Alternative suppliers base.
Commitment/capacity of other suppliers. Price advantages & pricing amongst other suppliers.
DISTRIBUTION / CUSTOMER INTERFACE FACTORS: Technical /marketing capabilities
& capacity. Distribution facilities & manpower availability .Commitment to other suppliers.
Sales volumes / turnover required. Margins added value. Captive customer base /customers
handled. Area/s serviced & geographic coverage. Sales promotion / advertising / salesforce.
Effects on existing products & customer base. Cash-flow requirements of distribution channel.
Capital requirements
.CUSTOMER FACTORS: Propensity to consume / demand factors. Product purchase
background / past product purchase. Purchasing criteria - commercial. Purchasing criteria -
motivational. Purchase price / acquisition costs / product costs. DMU susceptibility / customer
awareness.

4. Pestle Analysis
It never ceases to amaze me why so many businesses fail to take the time to look at the macro
and the micro environments when completing their business plans and strategies. These external
forces will play a big part in shaping the final outcome of the ultimate corporate achievement.
Yet, most managers’ focus only on internal factors and it is fair to say that sales growth and
profits remain high on their agenda.
The macro environment tends to have a long term impact and requires extensive research.
Couple this with the fact that many managers are over worked and under resourced and we begin
to see why the process is often not completed. There is no published evidence to confirm this
hypothesis, just anecdotal hearsay.
The remainder of this article will illustrate an example of a Macro or PESTLE analysis for the
pharmaceutical industry. It is set at a very general level but it can be used as a template or
adapted to be more specific if required:
Political
There is now growing political focus and pressure on healthcare authorities across the world.
This means that governments will be looking for savings across the board. Some of the questions
the industry should ask are:
· What pressures will be put on pricing?
· What services will be cut?
· Will the same selection of drugs be available to everyone?
In addition to this, could there be more harmonization of healthcare systems across Europe or the
USA? What impact will reforms have on insurance models?
Economic
The global economic crisis still exists yet government reports still show that spend on healthcare
per capital continues to grow. Will the current healthcare models exist tomorrow? The growth in
home-care (as seen in the Nutrition sector) demonstrates how nursing services have moved to the
private sector and have become a key business offering.
The reduction in consumer disposable income will have an impact on those countries using
health insurance models particularly where part payment is required.
These economic pressures are seeing an increased growth in strategic buying groups who are
forcing down prices.
Increased pressure from shareholders has caused a consolidation of the industry: more mergers
and acquisitions will take place over the coming years.
Social / Culture
The increasing aging population offers a range of opportunities and threats to the pharmaceutical
industry. The trick will be to capitalize on the opportunities.

5. There is also the problem of the increasing obesity amongst the population and its associated
health risks.
Patients and home careers are becoming more informed. Their expectations have changed and
they have become more demanding. Public activism has also increased through the harnessing of
new social networking technologies. How can pharmaceutical companies get closer to consumers
without over stepping the regulatory boundaries?
Technological
Technological advancements will create new business prospects both in terms of new therapy
systems and service provisions. The online opportunities will see the growth in:
· New info and Communications technologies.
· Social Media for Healthcare.
· Customized Treatments.
· Direct to Patient Advertising.
· Direct to patient communications.
Legislation
The pharmaceutical industry has many regulatory and legislative restrictions. There is also a
growing culture of litigation in many countries. The evolution of the internet is also stretching
the legislative boundaries with patient’s demanding more rights in their healthcare programmes.
Environmental
There is a growing environmental agenda and the key stake holders are now becoming more
aware of the need for businesses to be more proactive in this field. Pharma companies need to
see how their business and marketing plans link in with the environmental issues. There is also
an opportunity to incorporate it within their Corporate Social Responsibility programmes.
Marketing and new product development should identify eco opportunities to promote as well.
The information above illustrates just a fraction of the likely macro factors involved in the
pharmaceutical industry.