The company-Square Pharmaceuticals

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This report is prepared in fulfillment of the requirement of the term paper of MBA program of IIUCDC about the company-Square Pharmaceuticals

EXECUTIVE SUMMARY

This report is originated as a partial requirement of the internship program of the International Islamic University Chittagong (Dhaka Campus), Bangladesh with a foremost objective to study structural and operational activities of the Square Pharmaceuticals Limited.

Square Pharmaceuticals Limited is an old company starting its journey way back in the middle of the century it has grown in size and age. They have established almost countrywide operations and have wide access to distribution channels. They had taken several actions for their product improvement. They have strong potential through the country as of innovative research for tomorrow’s health. In fact, they are in the industry maturity stage now. Square Pharmaceuticals Limited today stands for reliance. The foundation of this reputation lies in its resourceful manpower, updated technology and above all devotion. Devotion to humanity and commitment to progress made the story a success. SPL with its solemn vow to uplift the community health stands in the forefront. SPL does not dedicate only in the realm of production but also ensure high quality and potentially larger product range.

Domestic companies constitute about 70% of the pharmaceuticals market, the balance being the share of multinationals. The three leading local companies are Square, Beximco and Opsonin, which together comprise about 55% of this sector. While the market is growing at around 15% annually, Square expects to grow at 23% pa. over the next five years. Consequently, its market share will rise to 20%.

Strategies for future are recommended for the Square Pharmaceuticals Limited for achieving its target growth rate. Rectifications of promotional activities are recommended to achieve the market leader position.

1.0 Introduction

This report is prepared in fulfillment of the requirement of the term paper of MBA program of IIUCDC about the company-Square Pharmaceuticals Ltd. where we have worked for collecting information.

1.2 Objectives

• To trace what strategic process activities are practiced by them.
• To analyze their performance.
• To investigate what are the internal strengths and weakness and external threats and opportunities.
• To assess the problems and possible solutions regarding these phenomenon.

1.3 Scope

The scope of this report is limited to the investigation of some documents and reports of the SPL.

1.4 Vision, Mission & Objective statement:

VISION

We see business as a means to the 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.

MISSION

Our mission is to provide quality & innovative healthcare relief for people, maintain stringently ethical standard in business operation also ensuring benefit to the shareholders and other stakeholders.

OBJECTIVE

Our objectives are to conduct transparent business operations within the legal & social frame work with aims to attain the mission reflected by our vision.

1.5 Methodology

Information used to prepare this report has been collected both from primary and secondary sources within the company and text materials. An open discussion method was followed to gather primary information by interviewing people working there.

1.6 Present Status of SPL

Square Pharmaceuticals Limited today stands for reliance. The foundation of this reputation lies in its resourceful manpower, updated technology and above all devotion. Devotion to humanity and commitment to progress made the story a success. SPL with its solemn vow to uplift the community health stands in the forefront. SPL does not dedicate only in the realm of production but also ensure high quality and potentially larger product range.

1.7 Limitations

Although they have provided toward us to meet report objectives, however due to limitation of time the information gathered may not be a thorough one. However the company confidentiality is a major constraint for us to determine necessary requirement.

2.0 SPL-A corporate profile

2.1 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.

2.2 Corporate Governance

Top Management: Board of Directors

As per provisions of the Article of Association, Board of Directors holds periodic meetings to resolve issue of policies and strategies, recording minutes/decisions for implementation by the Executive Management.

2.3 Types of Ownership

In 1958, SPL started as a proprietary firm and Mr. Samson H. Chowdhury was the sole proprietor. In 1960, it was converted into a partnership company through accepting few people as co-owners. It was converted into a private limited company in 1964. In 1991, it became a public limited company, but it did not offer shares to the public. In 1994, it offered 20% of its shares to the general public and the rest were sold to foreign investors.

The authorized capital of SPL is now 1000 million, which is divided into 10,000,000 shares of Tk.100 each and 2,000,000 ordinary shares of Tk.100 each was offered and subscribed in the following manner.

Table2.1

1,000,000 ordinary shares are offered to the public at Tk.900, which includes a premium of Tk.800 per share. All 2,000,000 ordinary shares subscribed and fully paid up in cash.

2.4 Type of Organization

The Executive Management is headed by the Managing Director, the Chief Executive Officer (CEO) who has been delegated necessary and adequate authority by the Board of Directors. The Executive Management operates through further delegations of authority at every echelon of the line management. The Executive Management is responsible for preparation of segment plans/sub-segment plans for every profit centers with budgetary targets for every item of goods & services and is held accountable for deficiencies with appreciation for exceptional performance. These operations are carried out by the Executive Management through series of committees, sub-committees, ad-hock committees, standing committees assisting the line management. So all these imply SPL is a tall organization.

3.0 The Various Square Concerns

3.1 Square Textiles Ltd.

SQUARE first ventured into the textile sector with the establishment of the first unit of the SQUARE Textile Ltd. in 1997. A year later the establishment of the second unit followed. Today it has one of the most sophisticated vertically integrated set-ups in the country. SQUARE Group’s ventures in the textile arena are: SQUARE Textiles Limited, SQUARE Spinnings Limited, SQUAREKnit Fabrics Limited and SQUARE Fashions Limited

3.2 Square Textile & Square Spinnings Ltd.

3.4 Square Toiletries Ltd.

SQUARE Toiletries Ltd. started its journey in 1988 with a single product as a separate division of SQUAREPharmaceuticals. In 1994, SQUAREToiletries Ltd. becomes a Private Limited Company. At present, STL is the country’s leading manufacturer of international quality cosmetics and toiletries with over 50 products.

Currently, STL is Carrying out its production in its two automated plants at Rupsi and Pabna. Depending on the nature of products, formulation and packaging, STL has product specific machinery. STL uses raw materials from the world renowned suppliers like Dragoco, Firmeuich etc. STL always performs international standard production process which follows the Good Manufacturing Practice (GMP).

3.5 Square Consumer Products Ltd.

In 2001, SQUAREConsumer Products Ltd started its operation as an individual company. Within a very short span of time SCPL has drawn the attention of the consumers by providing quality products and preferred services.

3.6 Square Informatix Ltd.

The vacuum in the quality data connectivity within distributed offices for online systems inspired SQUARE to diversify into the information and communication technology (ICT) sector. SQUARE InformatiX Ltd. pioneered and commissioned the first of its kind VSAT Control Center with capacity to control 16,000 VSATs at Gazipur to provide the most secured, reliable and cost effective data communication within and outside the country

Apart from the communication solution, SQUARE InformatiX Ltd. also have long experiences in providing complex network solution, deployment of integrated Enterprise Resource Planning system and provider of Corporate Internet Services.

MicroserveLtd.

Microserve Ltd., a subsidiary of SQUARE InformatiX Ltd., was chosen by Microsoft Corporation as the sole Market Development Partner for Bangladesh for all Microsoft products.

3.7 Square Agro Development & Processing Ltd.

AgriBiotech Project :

SQUARE has setup a plant tissue culture laboratory to develop agricultural/agro processing sector in the country and is committed to bring improved quality planting materials and year round production through AgriBiotech. The major activities of AgriBiotech is to provide disease free, stress free, high yielding seed & seedlings such as potato, banana, ginger, turmeric and some flowers including varieties of orchids to the farmer & nurserymen to solve quality seed problems in this agro based country.

Well equipped around 4000 square feet tissue culture laboratory is situated at Uttara, a convenient location, having careful designing and planning, facilitated to produce 10,00000 seedlings per year. The other activities of this project will be of research and development in the field of Biotechnology to protect some of endangered medicinal plant and to bring some new as cane, rattan, bamboo which is almost extinct in the country.

3.8 Square Hospitals Ltd

The hospital is nearing completion at a cost of over US$ 40 million and is scheduled to go into operation in mid 2006.

Focused to provide International standard healthcare services at an affordable price SQUAREHospitals Ltd. is a multi-disciplinary hospital with specialty in Cancer, Cardiac and Pediatrics. One stop state of the art Diagnostic Services will be it’s another major service. The hospital will be exclusively managed by Bumrungrad Hospital International of Thailand, only US accredited hospital in Asia.The 300-bed hospital is located in the city center. 1200 patients can be served per day by its out patient department through it’s 60 exam room. Housed in an 18 storied building covering 40,000 sq. meters the facility can also accommodate 200 cars in its 3 basement parking areas

3.9 Square Harbal & Nutraceuticals Ltd.

SQUARE is committed to ensure better health through quality medicines

Associated Companies

SHEL TECH (PVT.) LTD.

PIONEER INSURANCE CO. LTD.

MUTUAL TRUST BANK LTD.

NATIONAL HOUSING FINANCE AND INVESTMENT LTD.

EKUSHEY TELEVISION LTD.

CONTINENTAL HOSPITAL LTD.

APOLLO HOLDINGS LTD.

Major Competitors

BEXIMCO

OPSONIN

FISONS

GLAXO

RHONE-POULENCE RORER

ACI

RENETA

SKF

INCEPTA

Name of the company

Square Pharmaceuticals Limited.

4.0 Products

The formulation plants are producing wide range of dosage forms like –

4.1 New Products

January, 07

4.2 Product Image

SPL has strong image for producing good quality products. This image is due to their dedication to advanced technology. The manufacturing processes and analytical methods are fully validated. Chemical and stability tests are part of the regular routine. The origin of raw material is also another reason for their product image. SPL used to import raw materials from Singapore, Taiwan, India and some European countries. For 8 years, SPL has been producing chemicals in their chemical division.

SPL’s prime competitor BEXIMCO is enjoying a very good product image in the market. Their R/M source is also the same and moreover, they started producing chemicals before SPL started. But recently, the crisis of corruption in the company abates the image of BEXIMCO.

4.3 Highest Number of Products Among the pharmaceutical companies

Among existing pharmaceutical companies SPL has the largest number of products and dosage forms. This also gives the company image regarding production facilities and financial capability of producing this large volume of medicines. BEXIMCO is the next largest producer in this industry.

4.4 Customers and Users of SPL -Products

The customers of SPL can be broadly classified into different groups.

• Qualified Doctors
• Rural Medical Practitioners
• Institutions
• Chemist

The doctors are taken as the prime customers here because majority of demand for pharma products are dependent on doctor’s prescription.

To spread a country wide marketing network SPL has 253 MPO/SMPO, which is also marked as a single market. Each MPO/SMPO has report to supervisor (PS). PSs has to report to Area Managers. There are areas where Area Managers report to Zonal Managers. There are three zones and Zonal Manager controls each.

5.0 Market Structure and Growth

Domestic companies constitute about 70% of the Pharma market, the balance being the share of multinationals. The three leading local companies are Square, Beximco and Opsonin, which together comprise about 55% of this sector.

While the market is growing at around 15% annually, Square expects to grow at 23% p.a. over the next five years. Consequently, its market share will rise to 20%.

5.1 Market Share

SPL has a market share of 15% to 16% with about 300 pharmaceutical products. The market share of each product is determined through prescription analysis by the MPO of SPL in every month.

5.2 Distribution

Approximately 20% of the products of Square are distributed through wholesalers and the rest 80% through retailers. The distribution of SPL products is based upon the concept of “Warehouse on the wheels”.

The MPO receive orders from the chemists and druggists and send those to the invoice sections in the said sales centers, through which the orders are being processed. About 20 trained persons are working in the invoice sections and are capable or processing more than 2000 invoices per day. The goods are packed as per the invoice in these centers and then the consignment goes to the different distribution points. SPL has 13 distribution points. In these points Distribution Assistants (DA) receives the goods, consignment letters and party-wise invoice. Then the goods and invoices are delivered to the chemists and druggist shops through collection persons (CP) of the market concerned for delivery. About 72 CP, 11 DA, 6 Sales Assistants, 1 Assistant Manager and a Senior Executive in Pabna and Dhaka are involved in the distribution process.

5.3 Promotions

The promotional aspects of SPL are carried out in the form of personal selling. According to the govt. rule no promotional campaign of general nature are followed by the pharmaceuticals companies. SPL promotes its products to its target market through the MPO. Apart from sales cost SPL provides newsletters, literatures, “Dear Doctor” letters, different kinds of gifts, pads and conducts seminars and symposiums, scientific seminars and “Continuing Medical education” Program at different medical collages. Square has also been granted scholarship to top three MBBS internees of each govt. medical collage of Bangladesh since last few years.

5.4 SPL in Foreign Market

SPL has extended its range of services towards the highway of global market. It pioneered exports of medicines from Bangladesh in addition to meeting the requirements of the domestic market demand. SPL also export its antibiotics and other products to the highly conscious countries.

Countries to where SPL exported and they it exported first:

United Kingdom – 1987

Singapore – 1987

Nepal – 1990

Pakistan – 1996

Yemen – 1996

Myanmar – 1997

Srilanka – 1997

Cambodia – 1997

Russia – 1997

5.5 Good Relationship with Press

Earlier SPL used to keep a very low profile in respect of publicity. But as the prime competitor BEXIMCO is maintaining a very good relationship with press, political parties, and business associates and can exert pressure on govt. authorities regarding policy making, now SPL has also started keep a good relationship with press and trying to build corporate image.

5.6 Strong Brand Image

SPL is enjoying a strong brand image for some of its products, like Entacyd. Neotack, Cetamol, Civet etc. These products are well known in the pharmacy market. Some products of BEXIMCO, RPR also have strong brand image.

5.7 Quality of the Promotional Material

The quality of promotional items like literature, booklets, pads, gifts etc. project company image. At present in some cases BEXIMCO, OPSONIN, RPR are enjoying lighter position in this respect than SPL. SPL is producing good quality printed materials, but gifts provided by SPL are not much attractive.

5.8 Product Management Department

Every executive of PMD is allocated a number of brands for which he/she is totally responsible. One of the major roles of Product Executives in maintaining inter-departmental coordination to make the new product launching programs a successful one.

5.9 Market Research Department

1) Judge the self and competitor’s performance in market place.

2) Identify any market opportunity and effectiveness of promotional activities.

3) Find out prescription share of own companies every market of SPL.

4) Operates to reveal specific information for a certain problem.

6.0 Image and Reputation Analysis

6.1 Sources of Image

• Quality of the products
• On time delivery system
• Good relationship with chemists and doctors
• Dedicated, friendly and smart sales force
• Cordial behavior of the employees with all kinds of people
• Good relationship with press
• Availability of the products
• Medicines supplier of the local WHO office
• Exporting in European and Asian countries
• A modern architectural Head Office at Mohakhali
• Strong brand image
• Quality of the printed materials

Highest number of products among the pharmaceutical companies

7.0 Human resources Management

The company has kept up with its human resources development program for the improvement of the quality of products and services. The company normally sends officers on foreign training to Germany, Japan, India, Pakistan and also local training institutions. In addition, the company organized in house courses for its officers, staffs at its factory with the assistance of local expatriate and consultants and experts. These activities of improving the skill level of employees and maintaining good employee relations are vital to creating value of SPL.

7.1 Human Resource : Practices & Climates

SQUARE, with its progressive business outlook, believes and practices corporate work culture with a classic blend of efficiency and equity. SQUAREbelieves in company growth by increasing efficiency level of employees and for that offering excellent environment and support for skill and knowledge upgradation. SQUARE values productivity as the spontaneous contribution of Human Resources. Strategic Human Resource Development Programs are the energy sources for SQUARE HR for running towards the zenith of success. Flow of clear and specific information 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. 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.

7.2 Legal Issue and Government Relations

Legal issues and govt. relations demand a lot of top management’s time. Handling such issues effectively can have a significant impact on a corporation’s long-term viability. The Drug Policy limits the operations of pharmaceutical companies.

7.3 Personnel and Administration Department

· Engages in the activities of recruitment, promotion, transfer and retirement of the employees.

· Deals with remuneration, fringe benefits namely cost of living allowance, insurance, house rent, medical and conveyance allowance, technical allowance, profit bonus etc.

· Looks after facilities like lunch, transportation service etc.

7.4 Empowerment

The management is highly concerned about the employee empowerment. They develop the soft side to employee. They recognize that workers are the valuable assets and act accordingly to develop those assets. They let their employees to feel that they are the organization. The top-level managers are used to tell the employees that are ‘SQUARE FAMILY’ and they all are the members of this family.

7.5 Training

The company’s top management provides opportunities for prospective job incumbents through a process of provision training for 2 months that makes a crucial decision about

an employee of being hired or fired. They provide both in-house and outside training at all levels from top to bottom level employees.

7.6 Company Employees

Total number of permanent employees if SPL is about 2381 including both the Dhaka and Pabna Office.

The Supervision Ratio

7.7 Organogram
8.0 SWOT Analysis of SPL

8.1 Strengths

Company image

SPL enjoys strong brand image in the pharmaceutical market for over 35 years in 1985, SPL becomes the market leader in the pharmaceutical sector. Its size and stature make it a ling-term core holding in the market.

High growth of turnover

It was the first company to cross 1-billion taka turnover in 1992. It controls 14% of the Bangladesh pharmacy market and its financial ability is gradually increasing.

Good management team and disciplined work force

Good management team is taken under consideration at a first phase of the company. The company follows strict discipline in every part of the production process and management. This leads to create a healthy and disciplined environment company-wide.

Largest manufacturer of formulation products in the country.

Excellence in distribution

SPL has an efficient and innovative distribution system throughout the country. Country wide marketing network is very strong SPL’s distribution cost is 30-40% less than the compactors.

It has good and effective R&D department, which already has succeeded in developing new hi-tech product lines with foreign collaboration and technical know-how.

Less fixed and administrative cost.

Wide product line and so increased coverage.

Introduce new product very quickly before the competitors.

Possesses most organized largest sales force and highest number of professionals pharmacists, chemists etc.

Faster and informal decision making in all levels.

International Medical Statistics (IMS)

IMS is a secondary source provides valuable qualified data regarding the total market behavior, behavior of the market segments and performance of the competitors. Although it is a biannual report, SPL is the subscriber, which gets the report quarterly. This is a valuable data source and an important starting point for making marketing plans.

8.2 Weaknesses

• Management approach of SPL is somewhat unstructured rather that systematic. In formal and faster decision making in some cases may be erroneous.
• Proper attention may not be given to all products due to huge product line, insufficient number of employees and frequent introduction of new products.
• Although large in number, SPL’s field forces (MPOs) are not so efficient in their duty like some of its competitors (as observed from survey).
• There is less marketing orientation in SPL. Although the PMD is responsible for marketing activities, most of the executives engaged in this dept. do not have marketing background, which could strengthen their efforts.
• Obliged to maintain high inventory levels of imported raw material.

8.3 Opportunities

• Pharmaceutical industry is a growing industry at the arte of 15-20% annually. SPL has to avail the opportunity by matching itself with industry growth rate and increase its market share.
• Excess capacity in certain areas of manufacturer can be utilized.
• Good opportunity for backward integration. It can manufacture raw materials and minimize production cost. It can also grow in related fields like diagnostic, beverage etc.
• Bangladesh being a signatory to GATT, product patents will come into effect within few years time. In the mean time, SPL can plan to enter into tie up with the international companies having rights to patented products.

8.4 Threats

• The regulatory authority of the government dictates the pricing policy to the pharmaceutical industry.
• Any adverse police change in government level, i.e. import policy change, change of import duty in machinery; tax policy etc. will hamper profitability.
• Technological obsolescence may present marketing problem.
• Failure in any suitable arrangement of environment and pollution control facilities as required by the dept. of environment, which is under way, may result further delay in commercial production of chemical plants.

Bangladesh signed GATT, which implemented in the year 2005. In that case, the intellectual patent right of products has to be followed and new product launching will not be advantageous like now.

8.5 GE Framework

8.6 INDUSTRY ATTRACTIVENESS CRITERIA

8.7 BUSINEAESS UNIT STRENGTH CRITERIA

he above analysis shows that the Industry Attractiveness Criteria for SPL, are high. The industry is growing. The Business Unit Strength is also high. Therefore SPL falls into the criteria of Successful Business Unit and should invest more into the operations.

GE Matrix

8.8 Stage of Development of the Industry

Since SPL is an old company starting its journey way back in the middle of the century it has grown in size and age. They have established almost countrywide operations and have wide access to distribution channels. They had taken several actions for their product improvement. They have strong potential through the country as of innovative research for tomorrow’s health. So they are in the industry maturity stage now.

8.10 Leadership Style and Organizational Culture Analysis

8.10.1 Leadership Style

With the span of time, SPL developed Transactional Leadership. The top management gathers information to make plans; set goals for them etc. the decision-making followed here cab be called Benevolent Autocratic.

8.10.2 Leadership Style at Different Levels.

8.10.3 Top Management Level

The present management style is somewhat achievement oriented. Here the leader determines all the policies. The personality traits (like intelligence, social maturity, inner motivation & achievement drive and human relation attitude), which are necessary for a successful leader, are all present in the top management. In most of the cases, the leadership is task oriented. In managerial grid the leadership style is somewhat like (9, 5) that is concern for production is 9 and concern for people is 5, in the continuum of leadership behavior the leadership is “manager sales decision” that is somewhat Boss Oriented.

8.10.4 Mid Management Level

Mid management level of SPL is situational, professional people oriented and more on subordinate centered.

8.10.5 Lower Level Management

It is democratic task oriented, situational and usually presents tentative decision subject to change.

8.10.6 Identification of Corporate Culture

The culture of an organization and that creates and reinforces particular norms of thinking, feeling and action. Square has built its own culture possessing unique characteristics. The nature of corporate culture of the organization can be identified through focusing and illustrating the ideology, values, beliefs, philosophy etc, as well as customers and institutions developed to uphold the corporate ideology, values, beliefs etc.

The basic philosophy of square is being number one pharmaceutical company in Bangladesh by dedicating its resources, talents and energies to help empower human health and the quality of life of people throughout the world.

The values and beliefs of an organization give rise to a set of management practices concrete activities that are usually rooted in the values of the organization. The company believes in strict ethical code of business. They dedicate their knowledge, creativity, skill to the diseases, which people are still ill equipped to tackle. They believe in investing for people. Their values concern more with people than with business. They have relentless endeavor for investing cure and hope for people. But they do not compromise with quality for cost efficiency. Square has been successful to built a corporate culture which ultimately responsible for turning the organization as “the most effective organization” in the pharmacy industry.

SPL has a principal to let each employee, to manager in the corporate office to a line worker in the factory, feel like an active family member and participate openly in the overall management activities.

Square strives for the highest quality and continuous improvement in its products and service for all of its customers, internal and external, maintaining the highest standards of integrity in all its relationship.

Employees of square are integrated to their works due to high motivation and job satisfaction. Employees are motivated of well-defined job description, continuous feedback from the management, impartial appraisal and equal promotion opportunity, lucrative compensation package including fringe benefit, bonuses, lunch, transport and other facilities. Each employee, from a liftman to the CEO, is punctual and sincere.

Working environment to the square if friendly and co-operative. Healthy environment and well decorated office place with all kinds of supporting facilities keeping each employee happy.

Employees are integrated to the organizational goals because each employee is well aware about the organization’s objectives and believes that achievement of his or her own goal is possible through achieving organizational goals. Each employee prepares a program sheet starting with works she is going to perform in the very next day. Managers of each department frequently sit for internal meeting with departmental employees to figure out the action plan, to evaluate the performance, to provide feedback and to fix future course of action.

At square, strong employee integration through effective personnel management led to maximum productivity of the company, which drives the organization at pinnacle of success. Therefore, one statement can reveal the nature of the corporate culture of square-“Quality and Professionalism-our Duty and Pride” is the motto of each and every member of the square family.

9.0 Sales Department

• Distribute the sales target fixed by PMD it in respect of market and MPO both in terms of value and unit.
• Deals with survey of product with respective PMD Executives.
• Passes competitor’s information to PMD.
• Communicates upwards and downwards.
• Participates in training of the sales people, checks TA/DA bill, tour program and other expenses of field staff.
• Complies data or marketing research, identifies weak markets and sends letters to those areas.
• Solves nay problem obtaining from doctors and chemists.

Deals with transfers and promotions of the MPO along with market reshuffling, if necessary and fulfills their personal requirements.

9.2 Cordial Behavior of the Employees

SPL is practicing relationship marketing at present. The employees are very friendly and behave well with all kings of people. But in other companies, this atmosphere is rare.

9.3 Availability of Products

With the current distribution system, SPL is supplying its products every alterative day to different chemist shops, whereas BEXIMCO is supplying its products to chemist shop within 6 hrs. of placing the order and the return per order of BEXIMCO is more than SPL.

9.4 Medicine Supply to the Local WHO Office

It is a prestigious matter to be the supplier of medicine in the local WHO office. It helps to build the image of quality product producer.

9.5 Marketing & Sales

Customers of products are doctors, chemists, institutions and hospitals. As the company does not contract directly with its existing market, thus there is a great need for them to make a better relationship with their customers. As a result, MPOs have the present market. At SPL 300 skilled and qualified field staff is a key to success.

9.6 Services

Managers are increasing recognizing customers as one of the firm’s most important activities. Customer services include activities such as installation, repair, customer training, parts supply and product adjustment, as well as courtesy and prompt response to customer inquires and complaints. SPL encourages bulk purchases to offering extra discount to large customers so that retailers can purchase from the whole sales at a price that would be the same if the purchases were made directly from the company.

9.7 Clinical meeting

It is found during the survey that out of the six companies under consideration SPL more often arrange clinical meeting but it also found that the doctors are very much frustrated about the clinical meeting arranged by the pharmaceutical companies. This is such a way where the doctors can be motivated to prescribe SPL products.

Hence, SPL should arrange more clinical meeting as they are doing in practice. These meetings can be arranged allover the country especially in the renowned hospitals and clinics compounds. Specialist doctors from overseas can be called upon the deliver their valuable lecture in such occasions.

10.0 Technology & Development

10.1 Information System

At SPL, the communication system is done through sophisticated local area network system to its sell centers for information system.

10.2 Technical Service Department

1) Selection and standardization of raw materials and packaging materials.

2) Preparation of standard in-house specification of raw materials and coordination between factory and procurement or import dept.

3) Selection of machinery and equipment including spare parts and coordination with factory and procurement or import dept.

4) Coordination and follow-up of the designing and implementation of the master plan or the factory. All maters related to development or factory facilities.

5) Dealing with various types of product complaints from markets field forces and different depts.

6) Recipe development and necessary changes in formulation and product improvement.