Pestle Analysis

PESTLE Analysis of Square Pharmaceuticals Ltd. Square Pharmaceuticals Pharmaceuticals Ltd. was established as a partnership frm in 1958. In 1991 it was converted into a public limited company. Square Pharmaceuticals Pharmaceuticals Limited is the larest pharmaceutical company in !anladesh and it has been continuously in the 1st position amon all national and multinational companies since 1985.

PESTLE PES TLE Analys Ana lysis: is: It never ceases to ama"e me why so many businesses #ail to ta$e the time to loo$ at the macro and the micro environments environments when completin their business plans and strateies. %hese e&ternal e&ternal #orces will play a bi part in shapin the fnal outcome o# the ultimate corporate achievement. 'et( 'et( most manaers #ocus only on internal #actors and it is #air to say that sales rowth and profts remain hih on their aenda.  %he macro environment environment tends to have a lon term impact and requires requires e&tensive e&tensive research. )ouple this with the #act that many manaers are over wor$ed and under resourced resourced and we bein to see why the process is o#ten not completed. %here is no published evidence to confrm this hypothesis(  *ust anecdotal hearsay. hearsay.  %he remainder remainder o# this article will illustrate illustrate an e&le e&le o# a +acro or P,S%L, analysis #or the pharmaceutical pharmaceutical industry. industry. It is set at a very eneral level but it can be used as a template or adapted to be more specifc i# requiredrequired-

Political  %here is now rowin rowin political #ocus and pressure pressure on healthcare healthcare authorities across the world. %his means that overnments will be loo$in #or # or savins across the board. Some o# the questions the industry should as$ are

hat pressures will be put on pricin/

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hat services will be cut/

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ill the same selection o# drus be available a vailable to everyone/

In addition to this( could there be more harmoni"ation o# healthcare systems across ,urope or the 0S/ hat impact will re#orms have on insurance models/

Economic  %he lobal economic crisis still e&ists yet overnment reports still show that the spend on healthcare per capital continues to row. ill the current healthcare models e&ist tomorrow/ %he rowth in home2care 3as seen in the 4utrition sector demonstrates how nursin services have moved to the private sector and have become a $ey business o6erin.  %he reduction in consumer disposable income will have an impact on those countries usin health insurance models particularly where part payment is required.  %hese economic pressures are seein an increased rowth in strateic buyin roups who are #orcin down prices. Increased pressure #rom shareholders has caused a consolidation o# the industry- more merers and acquisitions will ta$e place over the comin years.

Social / Culture  %he increasin ain population o6ers a rane o# opportunities and threats to the pharmaceutical industry. %he tric$ will be to capitalise on the opportunities.  %here is also the problem o# the increasin obesity amonst the population and its associated health ris$s. Patients and home carers are becomin more in#ormed. %heir e&pectations have chaned and they have become more demandin. Public activism has also increased throuh the harnessin o# new social networ$in technoloies. 7ow can pharmaceutical companies et closer to consumers without over steppin the reulatory boundaries/

Technological  %echnoloical advancements will create new business prospects both in terms o# new therapy systems and service provisions. %he online opportunities will see the rowth in

4ew in#o and )ommunications technoloies.

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Social +edia #or 7ealthcare.

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)ustomi"ed %reatments.

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irect to Patient dvertisin.

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irect to patient communications.

Legislation  %he pharmaceutical industry has many reulatory and leislative restrictions.  %here is also a rowin culture o# litiation in many countries. %he evolution o# the internet is also stretchin the leislative boundaries with patients demandin more rihts in their healthcare prorammes.

Environmental  %here is a rowin environmental aenda and the $ey sta$e holders are now becomin more aware o# the need #or businesses to be more proactive in this feld. Pharma companies need to see how their business and mar$etin plans lin$ in with the environmental issues. %here is also an opportunity to incorporate it within their )orporate Social :esponsibility prorammes. +ar$etin and new product development should identi#y eco opportunities to promote as well.  %he in#ormation above illustrates *ust a #raction o# the li$ely macro #actors involved in the pharmaceutical industry