Business Strategy of Square Pharmaceuticals Ltd
The business strategy of any organization denotes the market management of the same. The business strategy of the firm indicates the sustainability of the firm in the market. Therefore, the sustainable purpose of the business of the organization must be served by the business strategy of the organization. The business strategy of the organization is based on the objectives of Square Pharmaceuticals Ltd (SPL). The company is devoted to the providence of the transparent and quality service and product to the customers. The company has adopted two strategies for the achievement of the business objectives in the international market of business. The first strategy of the company is the cost leadership strategy that entails the selling of the product at the lowest price as compared to the competitor companies in the market (Prodhan 2017). This business strategy of SPL identifies typical customers of the firm and strategically sales the products at the lowest price to them (D. Banker, Mashruwala and Tripathy 2014). This strategy not only helps the firm to hold a greater percentage of the customers in the global market, but also ensure the increment of the market share of the organization. The company owns 18.64% market share in the international market as per the information provide in the website of the organization (Square Pharmaceuticals Ltd 2017).
Another strategy of the company focuses on the competitive advantages I the international market. To ensure the competitive advantage of the firm in the global market the company has implemented the focused differentiation strategy. This strategy entails the deliverance of the product at the early in terms of the other existing competitors in the market. The company secures is market share by providing innovative drugs to the market prior to the other competitors. It is noteworthy that the company has introduced the generic drugs such as Metronidazole, Clofenac, Cotrimoxazole, Ampicilin and many others. This business strategy of the firm not only ensures the increase of the market share of SPL in the international market, but also helps the firm to gain the band loyalty. This strategy is focused on the differentiation of the company in the global market in terms of the providing of the service and product to the customers prior to the other competitors existing in the market (Santos-Vijande et al., 2012). By means of this business strategy adopted by SPL, the company can easy enjoy the greater part of the market share in the international market of business. Along with this, this both the strategies confirms the sustainability of the firm in the specific industry.
Objectives of Square Pharmaceuticals Ltd
It is found from the case study of the Square Pharmaceuticals Ltd. (SPL) is one of the largest company in the industry and has been operating its business in 36 countries globally (Square Pharmaceuticals Ltd 2017). Therefore, the vision of the organization is directed towards the achievement of its objectives in the global market. Being a pharmaceuticals company, SPL proposes its vision and mission towards the wellbeing of the society and consequently the objectives focuses on the material and social betterment of the key stakeholders of the organization (Bizstudyportal 2017). The three possible objectives of the organization are conducting transparent business operation, providing innovative and quality healthcare relief to the people and securing the benefit and wellbeing of the stakeholders of the organization.
The organization is focused on the long term sustainability in the global market as well as on increasing the context of its business operation. Therefore, SPL stresses on the transparent business operation which includes the ethical and legal consideration of the company in the specific industry. This objective sheds lights on the operation of the business of the company on the basis of the market mechanism. Along with this, the company is determined to operate its business in the global context within the social and the legal framework that ensure the ethical consideration and the morale of SPL.
The next objective of the organization is based on the nature of the business of SPL. The company being a pharmaceuticals company is devoted to the purpose of serving people in terms of healthcare. The objective of the company denotes that the aim of the company is to provide quality health care to the customers. In addition, innovative production is another aim of the organization in order to provide better healthcare product and service to the people.
The third objective of the firm is focused on the wellbeing of the stakeholders of SPL. The stakeholders of the organization are the employees, investors, vendors, suppliers and other people who are engaged in the business operation of the company. By means of the wellbeing of the stakeholders does not imply only the wellbeing of the customers by the providence of the better, quality and innovative healthcare product and service, but also denotes the social and materialistic betterment of all the people of the organization involved in its business operation. Therefore, it is evident that the company is focused on transparent business operation for the wellbeing of the stakeholders as well as the customers within the legal framework in the global context.
Importance of Linking Departments
There are several departments in Square Pharmaceuticals Ltd. and each department operates different business operation and is responsible for the different organizational functions (Bizstudyportal 2017). The departments are linked with each other in terms of delivering business function and operations effectively. All the departments individually or together ensure the organizational business operations in both internal and external context. Therefore, the existence as well as the co-existence of the different departments is important and necessary for proper and deliverance of the business operations. For example the Accounting department is linked with the Finance department. The finance department provides the numerical data of the cost, expenditure, profits, loss and other financial activities and on the hand the Accounting department manipulates works on various calculations based on the business operations of the organization. To be precise, the Accounting department of the organization is responsible for the providence of the salary and other expenses of the organization.
The Marketing department of the organization is interconnected with the Sales department. The selling of the product is depended on the proper and successful marketing of the same. In short, if the marketing department fails to promote the product, the Sales department will fail to sale the product. Again, the Supply Chain department of the organization is responsible for the production. The Production department of the firm is dependent on the Supply Chain department of the same. The Supply Chain purchases the raw materials, equipments and machinery, official work necessities, vehicles, food for the staff management and the production (Square Pharmaceuticals Ltd 2017). Therefore, the functions of the Supply Chain department ensure the production of the company products. Similarly, the Human Resource department and the Administration department are interdependent. The Administration is responsible for all the administrative works including operating the Human Resource (HR) department of the organization. On the other hand, the HR department ensures the HR management of the whole organization including the Administration.
Therefore it is evident that all the departments are connected and depended on the one or more department for the proper and successful operation of the business of the company. SPL can encounter several problems due to the loss of connection and dependency of the departments. For example, if the Supply Chain department fails manage the suppliers of the company, the Production department of the company will not be able to perform its function. O the other hand, if the Finance department fails to manage the financial resource of the firm, its Accounting department will consequently fail to pay the salary of the employees. Therefore, the linkage among the department of the company is important in terms of operating smooth and proper business operation.
Comparing Organizational Structures
The organizational structure of the company plays on e of the most important role in the successful business operation of the company. The organizational structure refers to the system comprises of the implicit and explicit institutional policies and rules designed for the outlining the various roles and responsibilities of the employees within the organization in terms of delegation, control and coordination (Ashkenas et al. 2015). The flowing of the work and the information within different levels regarding business of the organization are also determined by the organizational structure. Hence, the organizational structure is important for the internal business operation of the organization.
In terms of comparing the organizational structure of SPL with the Watson Pharmaceuticals Ltd, there are several major differences between the two companies (Square Pharmaceuticals Ltd 2017). There are several factors that are controlled and determined by the organizational structure of the organization. The organizational structure of SPL comes under the line organizational structure which proposes a direct and vertical relationship among the different levels of the firm (yourarticlelibrary.com 2017). The departments of the company in aligned with the purpose of accomplishing the primary objectives of the organization. The Managing Director (MD) is the authority of the organization and the head of the same that controls the entire organizational business operations. On the other hand, the General Manager controls the HR and Finance department and the Director of Administration (DA) controls the Marketing and the Production department and both the management is aligned on a single line of control. The MD commands the HR and DA who are responsible for commanding their respective departments. Similarly, the head of the department are communicative person for the business operations and the decision making for the departments under them.
On the other hand, the organizational structure of the Watson Pharmaceuticals Ltd is the functional authority organizational structure. This organizational structure is based on the different functions of the organization’s various departments. There are different authoritative person in the organization for the different departments who are responsible for the respective functions of the organizations (Scott 2013). The span of control of this organization is stronger than SPL there are different authoritative person for the sub division of the departments within the film. Along with this, the chain of command is longer than SPL as there are assistant head in the every department of the organization. Therefore, the communication regarding the business operation of the Company is made through the heads and the assistant heads of the firm, which helps the firm in better decision making process. Therefore, the organizational structure of the Watson Pharmaceuticals Ltd is stronger than SPL in terms of the control and decision making process.
Factors that can Affect Human Resource Plan
There are several factors that are responsible for influencing the human resource plan of the Supply Chain department of the organization. The factors affecting the human resource plan can be both the internal and the external (Armstrong and Taylor 2014). The internal forces can be any issues or conflicts within the organization that are impacting the planning of the human resource management within the firm. On the other side, the external factors are basically based on the environmental forces containing the social, legal, socio-cultural, economical and others.
Organizational structure is one of the major internal forces that influence the human resource plan of the organization. The poor organizational structure is incapable of determining the human resource need of the organization (Hendry 2012). Therefore, organizational structure must be strong and proper for the better human resource planning of the organization.
Budget is the second internal factor determining the human resource planning of the organization. The lack of adequate budget of the organization can affect the human resource planning of the organization in terms of expense for the staffing and employee management of the company (Daley 2012). On the other hand, the some of the positions are demand sensitive and requires revenue and inadequate budget is incapable of provide the cost benefit of those positions.
Skill level and the productivity is another important factor for the human resource planning of the organization. With the increased productivity, the firm needs more efficient and skilled employees for the fulfillment of the additional requirement (Armstrong and Taylor 2014).
The external factors capable of affecting the human resource planning are:
Political factors of the context in which the organization is operating its business can be strong force for affecting the human resource planning of the organization in terms of the tax, wage rates, legal control and others.
Technological factor determining the need for updating the technologies of the organization, innovation and other important aspects of the organization needs technologically skilled labor (Daley 2012). Therefore, technologies are one of the factors affecting human resource planning.
Scio-cultural and the economical factors are equally responsible for affecting human resource planning of the company. The background of the employees, financial needs, social standards are some of the forces in that influences the human resource planning of the organization. The other important factors affecting the human resource planning are legal, environmental, ethical compliances and others (Hendry 2012).
The human resource practice of the organization includes various levels from the planning to the selection. The HR department of the organization prepares the human resource planning every year. The steps includes in the planning is the collection of the data and the information about the human resource. The recruitment process is based on the planning and preparation of the human resource by the HR department (Bizstudyportal 2017). The criteria for being the employee of the organization contain skills and qualifications. Therefore, the recruitment and selection process of the company is rigid structured. The company considers some policies for the recruitment process for the all departments, especially for the Supply Chain departments. The policies cover the ethical considerations for the human resource planning in order to ensure and maintain the moral standards of the firm. The company also includes the induction and probation period of the employees with some sub divisions in the process in order to ensure the capabilities and responsibilities of the employees for the given job in the organization. The company is involved into the employee performance appraisal and the reward and compensation system for ensuring the retention of the employees as well as the promotion of them (Square Pharmaceuticals Ltd 2017). Overall, the human resource practices of the organization do not require any recommendations.
Human Resource Practices of Square Pharmaceuticals Ltd
However, despite human resource practices being mostly appropriate in the organization, some implications are given for the betterment and sustainability of the organization in terms of the human resource planning and practice. It is suggested that the company must, practice the diversity management and the cultural management within the organization. The diversity management is needed for ensuring a conflicts free workplace for all the employees. On the other hand, the diversity management is capable of reducing the turnover rate of the employees. Therefore, it is suggested to the organization to practice diversity management in the organization for employee retention and prevention of conflicts within the employees. Another recommendation implies legal consideration is needed along with the existence of the ethical consideration for the human resource planning for the maintenance of the human rights of the employees within the organization. The legal consideration must include the wages, work hours, health and safety and other employee rights including the employment contract for strengthening the human resource management of the firm. Therefore, the implications are given to the company for the betterment of the human resource management in order to reduce employee turnover and secure employee retention.
The Square Pharmaceutical Ltd is one of the leading organizations in the pharmaceuticals industry of Bangladesh as well as in the global market. The business strategy is based on the main objectives of the company. The basic objectives of the company being the providence of the transparent business to the people and delivering the wellbeing of the stakeholders have adopted effective and appropriate business strategy. On the other hand, the business strategy of the organization is linked with the human resource strategies of the same in order to achieve the proposed business goals.
The organization stands as the leader in the market of Bangladesh and to maintain the position of the leader, the company has adopted the unique set of the generic strategies which to some extent is linked with the human resource strategies of the firm. It is found that the company follows the cost leadership strategy for the selling of the products (Prodhan 2017). The company offers products of several categories to the customers. The cost leadership strategy of the company is referred to the selling of the products to the typical customers at the lowest cost in comparison with the competitor companies (D. Banker, Mashruwala and Tripathy 2014). To implement the strategy properly in the global market of business, the company requires efficient and skilled human resource. Therefore, the company looks for the employees who have the quality and the skills for serving the purpose of the job as well as to help the company to meet the business goals.
Another business strategy of the company is focused on the differentiation of the product (Santos-Vijande et al. 2012). SPL executes this business strategy of the basis of the brand image, superior quality and the introduction of the new drugs to the market. It is to be noted that the company is the introducer of various generic drugs in the medical treatment. This particular strategy is called the focused differentiation business strategy which also requires the proper human resource for the marketing of the products. Therefore, this strategy is linked with the human resource strategy in terms of the effective marketing of the products. The human resource of the company must understand and realize the need importance of the marketing of the products in terms of earning the competitive advantages (Prodhan 2017). Therefore, the human resource strategy of the organization emphasizes on the training of the employees. The company sometimes sends the employees abroad for the advance training and proper understanding of the highly competitive international market. SPL also emphasizes on the induction and on job training to the employees for the accommodating them with the internal structure off the organization as well as the understanding business objectives and strategy (Bizstudyportal 2017).
Reference:
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Santos-Vijande, M.L., López-Sánchez, J.Á. and Trespalacios, J.A., 2012. How organizational learning affects a firm’s flexibility, competitive strategy, and performance. Journal of Business Research, 65(8), pp.1079-1089.
Bizstudyportal, 2017. HUMAN RESOURCE MANAGEMENT POLICY. [online] bizstudyportal.com. Available at: https://www.bizstudyportal.com/content/b/i/z/S/t/u/D/y/HRM/DEF/4/47HRM2012DEF0921174915.pdf [Accessed 26 Oct. 2017].
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yourarticlelibrary.com, 2017. 8 Types of Organisational Structures: their Advantages and Disadvantages. [online] Your Article Library. Available at: https://www.yourarticlelibrary.com/organization/8-types-of-organisational-structures-their-advantages-and-disadvantages/22143 [Accessed 26 Oct. 2017].
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