Comparing Company Performance with Goals and Objectives

Improving Business Performance (Square)

Within corporate organizations, there are three primary outcomes analyzed: financial performance, market performance and shareholder value performance. Here I am going to talk about continuous improvement and Radical change in which SPL can improve their business performance Interms of their HRM, Marketing and Production sector. Different models like the 4d model, Kaijen (Continuous Improvement) , Radical Change and A project plan has been given for square to make a radical change in their business which I think is a must for SPL to expand globally and earn more profit. Have been discussed for showing ways in which SPL can apply in their business and enhance Business performance for future success and be a global leader in pharmaceutical business.

Square Overview in Brief

Square Pharmaceutical Limited (SPL) is the largest pharmaceutical company of Bangladesh. In 1982, the turnover of SPL reached to Taka. 240 millions and the number of employees went to near 400. In 1985, SPL achieved the market leadership in pharmaceuticals market in the country in terms of sales. By the year 1988, the number of employee reached to 750 and annual turnover goes to Tk. 550 millions. SPL adopted necessary steps in implementing facilities to manufacture a wide range of essential drugs within the jurisdiction of WHO recommendation. SPL has entered in the global market in 1987. (squarepharma, 2013)

3 sectors of SPL in terms of Business Improvement

Human Resource Sector

HRMfor SPL are the activities that it carries out to utilize its human resources effectively. “Staffing policy is concerned with the selection of employees who have the skills required to perform a particular job”(hills, 2013) so staffing for SPL is very important in order to run their business in terms of domestic and internationally by selecting the skilled people in divisions like HRM, Finance, Accounting, Marketing, Management and other divisions. Can also be a tool for developing an promoting the firm’s corporate culture, the organization’s norms and value system, and a strong corporate culture can help the firm implement its strategy. (hills,2013)

Marketing Sector Of SPL

Marketing Sector of SPL concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a sustainable.Marketing of SPL includes all basic and long-term activities in the field of marketing that deal with the analysis of the strategic initial situation of SPL and the formulation, evaluation and selection of market-oriented strategies and therefore contribute to the goals of selling SPL products in domestic market and 38 countries worldwide. (squarepharma, 2013)

Present Markets of SPL

Square market its product around the world, in Europe, Asia, Africa and Central and South America. Below the country name are given where square exports their products.

Europe:UK Asia:Afghanistan, Bhutan, Cambodia, Fiji, Hong Kong, Iraq, Macau, Malaysia, Maldives, Myanmar, Nepal, Papua New Guinea, Sri Lanka, Tajikistan, The Philippines, Uzbekistan, Vietnam Africa:Eritrea, Gambia, Ghana, Ivory Coast, Kenya, Libya, Malawi, Mauritania, Mauritius, Mozambique, Niger, Nigeria, Sierra Leone, Somalia, Tanzania, Uganda Central and South America:Belize, Costa Rica, Suriname(squarepharma.com.bd, 2013)

Production Sector Of SPL

SQUARE has invested in state of the art formulation plants aligned to regulated market standards. Six “Production” units of the Dhaka site can produce pharmaceutical products maintaining CGMP requirement for highly regulated markets in Europe, Australia and USA. Other five manufacturing units at Pabna, SPL has 700 product approvals for export 38 other country markets and 900 product approvals for Bangladesh market.(squarepharma.com.bd, 2013)

Improvement through “Continuous Improvement” and “Radical Change”

For Human Resource sector and Marketing sector of SPl they require “Continuous Improvement and For “Production” division sector I am suggesting “Radical Change”.

Continuous Improvement interms of HRM and MARKETING

Continuous improvement means “Kaizen” ” Kaizen. It is a Japanese word, the literal translation is IMPROVEMENT. There is a deeper meaning too, it is improvement gained by slow steady change, not giant leaps forward (Radical Change and improvement that once achieved is maintained at that level until such time as the next step of improvement is made”.((Nissan UK Ltd) For square in their HRM and Marketing I am suggesting Continuous Improvement as they don’t require any radical change in these 2 sectors. (slack and chambers 2010)

Applying KaijenIn HRM and Marketing

The Kaizen philosophy embraces all aspects of an enterprise – cost, delivery, quality, safety, employee development, supplier relations, new product / service development, customer satisfaction – which serve to enhance quality. Kaizen strategy has been called:

“the single most important concept in Japanese management – the key to Japanese competitive success” (Evans and Lindsay – The Management and Control of Quality)

So, from the above statement it can be stated that interms of Square’s HRM and Marketing requires slow steady change as the company is moving forward is required, rather than any big change. So, interms of Square kaizen method can be very useful as it will help them in way like the following:

Kaizen is based on the philosophy of Flexibility, Team working and Quality Consciousness and this three things will surely enhance SPL business performance as flexibility in work force and team working, great team effort and Quality consciousness for serving the customer well is highly required for SPL in order to become a market leader in internet business in Bangladesh. (slack and chambers 2010)

How SPL will implement “Kijen“

Senior management commitment and involvement – establish a vision, appropriate goals, policy deployment, managingby walking about (MBWA), identify and recognise success.

Leadership and active commitment demonstrated by all managers – understand importance of Continuous Improvement and quality, aware of firms strategy, appropriate management style

Culture for continuous improvement – multi disciplinary teams, general awareness of quality

Focusing on employees – encourage participation, employees are actively encouraged to contribute, job swapping, training and development, barriers eliminated between and within levels of employees (slack and chambers 2010)

Radical Change in “Production Sector of Square”

Radical change means Breakthrough improvement rather than a continuous one. About redesigning the business around processes. Use New Technology to help focus on process And also They supported this with the assertion that as the business world had changed during the 1980’s, the changes could be examined by investigating the impact upon a business of the 3 C’s of Customers, competition and change ” Hammer(1990)”. Radical change, for square in their production system means that an entire business is changed radically, normally always in the form of a project. Radical change for Square will be needed in their production since the change will significantly impact business success, the reason behind this is that now they only have production facility in Bangladesh but in order to be a true multinational and earn more business profit, advantages and expand their business internationally they must have production facility in in others countries like in UK. So that in future when they market their products in European nations, its becomes much more easy for them to market their products and in this way it will give them more profit opportunity to market products than to produce and market products only from Bangladeshi production facility. This Radical Change for Square will introduce new knowledge, new strategies, new approaches, new production techniques and new equipment and for that they need to make a project plan and execute the project plan.(slack and chambers 2010)

A Project Plan for the Radical change in The Production sector of SPL

The 4D Model

D1. Define it

D2. Design it

D3. Do it

D4. Develop it (Maylor, 2010)

D1. Define it

This project is for SPL opening a production plant in UK. This will require buying of land for the factory setup of the production plant, setting up machineries and all other electronically operated machines for the production of pharmaceutical goods, and also SPL will hire expert workers working in the UK production plant including a “Project Manager”. SPL will start the project in 2015 and the Project will end in 2016. It will take around 20 million Us dollars to complete the set up of the “Production Plant”. A project leader/manager will be selected for managing the project and its successful completion in expected time and he will have support of other workers like managers, computer expert, IT expert and finance officer. Radical change for Square will be needed in their production since the change will significantly impact business success, the reason behind this is that now they only have production facility in Bangladesh but in order to be a true multinational and earn more business profit, advantages and expand their business internationally they must have production facility in in others countries like in UK. So that in future when they market their products in European nations, its becomes much more easy for them to market their products and in this way it will give them more profit opportunity to market products than to produce and market products only from Bangladeshi production facility.(Maylor, 2010)

D2. Design it

The “Design”/Planning part is very important for the SPL project. A good design of a project brings the success of the project, the project will finish in the expected time of 2015, with proper design/ planning of the project. The major elements of SPL project in the ukare :

Time: It is the direct input of labor into activities. The project will start in January 2014 and end in January 2015.

Land and Office Setup:For the “Production Plant” in the UK, SPL will need to buy a land of 20 thousand square feet for setting up production and there they will also require a proper office so the international and national staff to run the production facility.

Materials/ Machineries: Materials are consumables and other items used in the project and SPL will require machineries for the production of the pharmaceutical products in the UK.

Equipments:Communications equipment, IT equipment, meetings and workshop equipments, mobile and satellite phones, computer and Internet connections.(Maylor, 2010)

Budget Of The Project

Project Budget Outline	USD
Land for the production plant (20 thousand SQT)	10 million USD	10000000
Project Manager	500$/month*12months	6000
Line Manager 1	150$/month*12months	1800
Line Manager 2	150$/month*12months	1800
Administrative Support
Financial officer	400$*12 months	4800
Administrator	400$/month*12 months	4800
Official Travel
UK travel	1000$/month*4months	4000
Project Personnel
Component Total
Training**
In-service Training	10000$/	10000
Rent of the workshop facilities	100$*12	1200
Mechinaries for Production	2 million USD	200000
Refreshments	20000	20000
Stationaries	500$	500
Transportation for the workshop	680$	680
Workers Accommodation	15000	15000
Info sheets	200$*3types(500copies each)	600
Equipment
Expendable Equipment
Toner/Printer cartridge	100$/month*12months	1200
Stationaries	50$/month*12month	600
Non-Expendable Equipment
40 PC Compute	35000$	35000
Miscellaneous
Operation, Maintenance, Repair of equipment	15000$	15000
Grand Total	10 million 320 thousand 980 hundred $	10322980$

D3. Do It

For the successful completion of the project, the third comes the “do it” phase or the execution of the planning of the project. For the success of the project the top management, board of directors of SPL, the project manager, line managers, Supervisors and workers all need to have a good sync and a good communication from the top management of SPL to the workers. For the project to be successful and to complete the project in expected time development as a team is very important to meet the projects objectives. So for better execution of the project it is highly required to select an experience “Project Team” that will consist of a project manager, line managers, super visors and other workers, and all of them should be qualified with previous project work experience, in this way SPL will have a strong project team that will ensure that SPL set up a “Project Plant” in the UK by 2015. (Maylor, 2010)

D4. Develop it

In the last phase of the project for SPL it is important that the project is in the closing phase and all things are working according to the plan of the project that is having a “Production Plant” in the UK. The SPL top management will make sure that the project manager is working well, leading, guiding all the managers, workers under him and make the project as a success. The project manager need to give day to day feedback to the SPL top management so that if the project requires any further change, development or any problem to SPL top management take appropriate steps and thus finish the project of setting up the plant in time. For the project to be well observed, SPL can have a review board of management team that will make sure that the project manager, line managers, and all the workers are working according to their given responsibility and thus SPL will be able to complete the project and have a “Production Plant” in the UK for their further growth. (Maylor, 2010)

Track Progress:Check against milestones set, check progress reports and monitor effectively

Overcoming Problems: If there are problems seen the project manager should raise concerns early to the SPL higher management and also resolve difficulties ofpeople, product and process if there is any.

Update the plan: The project manager should also communicate the change, change management of project if required,assess the project development and give time to time feed back to SPL “Higher Management”.(Maylor, 2010)

PDCA Cycle for SPL:

Plan: The Plan is to setting up “Production Unit” in Uk. For this SPL will require 10 million dollar, Buying of land, Machineries, Electrical Equipment, Hiring of a project manager and different workers related to the project and running the production facility like IT, computer expert, different labours, managers.

Do: Apply the resource (10 million dollars), Land, project workers all into work for the successful completion of the work.

Check: The project manager of SPL must check that the project is running successfully and give feedback to the SPL top management.

Act: If there is anything requires interms of more resources, or any type of change in the product or any risk faced the project manager will make any required change and deal with any problem for the success of the project. (slack and chambers 2010)

The Essentials of Managing Risk in SPL Project

The project manager for SPL needs to define risks early so that he/she can determine how SPL will manage them. But the manager has to know more than just what risks might exist. He/she also have to know how to talk to other project team members about risks and even make decisions about which risks they will try to manage:

The ways can SPL Project Manager can deal project’s risks

Determining which aspects of SPL plan or project environment may change.

1. Assess the potential effects of those risks on SPL project.

The Project Manager for SPL needs to consider what can happen if those aspects don’t work out the way SPL envision.

1. Develop plans for mitigating the effects of the risks.

The project manager needs to decide how to protect its project from the consequences of risks.

1. Monitor the status of SPL project’s risks throughout performance.

The project manager for SPL needs to determine whether existing risks are still present, whether the likelihood of these risks is increasing or decreasing, and whether new risks may come and if appers the manager will solve it

1. Inform Top Management of SPL of all risks involved with SPL project

The project manager will explain the status and potential effect of all project risks from the initial state to its completion so that the top management can deal with any problem that may arise with project and solve it. (slack and chambers 2010)

Conclusion

In conclusion it can be said that “Square” is a very successful pharmaceutical company, that is exporting its goods in 38 countries around the world, but in order to be a global key player it requires “Radical Change: in their production facility and expand business in different countries through opening manufacturing units and other ways of expansion globally but Square still haven’t done it.Square for its future benefits and development should set up its manufacturing units in different parts, as it has 100’s of millions of dollars in cash reserve, has the man power to run its business in other countries in order to be a global Giant.Other than that, square is a successful private limited company that through “Continuous Improvement” in HRM and Marketing will be able to improve more and remain as the leader in Bangladesh. For a decade SPL has a dominance in Bangladeshi market, and Export it products successfully in 38 countries, its high time then ever that SPL should open the production Unit in UK (Europe) and become a true global giant in the future.