Strategic Management: Square Group of Company in

Bangladesh

Rajibul RatulUniversity of Science and Technology Beijing,Beijing, China

Square Group of Company in Bangladesh

• SQUARE today symbolizes a name – a state of mind. • Founded in 1958 by Dr. Samson H. Chowdhury• And Started with Pharmaceuticals Business at the beginning

period• Square Pharmaceuticals Ltd., the flagship company, is

holding the strong leadership position in the pharmaceutical industry of Bangladesh since 1985.

• and is now on its way to becoming a high performance global player.

Developmet Time Line

1958 :  Debut of Square Pharma as a Partnership Firm.

1964 :  Converted into a Private Limited Company.

1974 :  Technical Collaboration with Janssen Pharmaceutical, Belgium, a subsidiary of Johnson and Johnson International, USA.

1982 :  Licensing Agreement signed with F. Hoffmann-La Roche Ltd., Switzerland.

1985 :  Achieved first position in the Pharmaceutical Market of Bangladesh among all national and multinational companies.

1987 :  Pioneer in pharmaceutical export from Bangladesh.

1997 :  Won the National Export trophy for exporting pharmaceuticals.

ProblemsWhat should they do now???

They want to extend their business…

Decisions?

They want to extend their business………..• Start Medical service unit

(Build up a Hospital )• Textile Unit

SWOT Analysis: HospitalStrengths

PharmaceuticalsFamiliarity

WeaknessesDependent on DoctorsDependent on Patients

OpportunitiesNo good Private Hospital in BD

Huge Market

ThreatsNo available Doctors

Poor People

Porter’s five forces: Textile

5. Intensity of Rivalry

1.Threats of

New Entrants

3. Bargaining Power of

Buyers

4.Threats of Substitutes

2. Bargaining Power of Suppliers

> Mainly China> Big Industry in BD> Good reputation of payment (BD)

Lower Labour cost

>Not so many big industries in Country>India, China, Vietman

>International Buyers>Hot Cake BusinessGrowing companies

but not so strong

SWOT Analysis: Textile

• Big Investment Capability• Popularity in the world

market

• Fully different sector

• Row materials – China• GSP facilities of Bd

• Growing many Industries• Dependent on China • International Industries

What They Did.....

Buyers/CustomersIts main customers are GAP in the USA, Marks & Spencer, George, Mackay's, Littlewoods and Jeff & Co in the UK, H&M in Sweden, Mango and Zara in Spain, and Auchan and Camaieu in France.

Was it Right or Wrong Decision???1997 :  Won the National Export trophy for exporting pharmaceuticals.

:  Debut of SQUARE  Textiles Ltd.1998 :  Second Unit of SQUARE  Textile Ltd. is established.

:  Agro-chemicals & Veterinary Products Division on SQUARE  Pharma starts its operation.

2000 :  SQUARE   Spinnings Ltd. starts its Journey.

2001 :  SQUARE   Knit Fabrics Ltd. is established.

:  SQUARE  Fashions Ltd. starts its operation.

:  US Fda/UK MCA standard new pharmaceutical factory goes into operation built under the supervision of Bovis Lend Lease, UK.

:  SQUARE  Consumer Products Ltd. Started its operation.

:  SQUARE  InformatiX Established.:  SQUARE  Hospitals Ltd. Incorporated.2003 :  Management Agreement with Bumrungrad Hospital International of Thailand

for the management of SQUARE  Hospitals Ltd.

Time and si

tuatio

n is th

e vital fa

ctor

in Strategic

Management