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Pestle Analysis

The document provides a PESTLE analysis for Square Pharmaceuticals Ltd, the largest pharmaceutical company in Bangladesh. It analyzes the political, economic, social, technological, legal, and environmental factors affecting the pharmaceutical industry. Politically, there is growing pressure on healthcare systems to cut costs. Economically, while healthcare spending rises, economic pressures are increasing consolidation and forcing down drug prices. Socially, an aging population provides opportunities but also issues like obesity. Technological advances enable new treatments and online opportunities. The industry faces many legal and regulatory restrictions. Environmental issues are also growing in importance for the industry.

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Muddasir Nishad
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816 views

Pestle Analysis

The document provides a PESTLE analysis for Square Pharmaceuticals Ltd, the largest pharmaceutical company in Bangladesh. It analyzes the political, economic, social, technological, legal, and environmental factors affecting the pharmaceutical industry. Politically, there is growing pressure on healthcare systems to cut costs. Economically, while healthcare spending rises, economic pressures are increasing consolidation and forcing down drug prices. Socially, an aging population provides opportunities but also issues like obesity. Technological advances enable new treatments and online opportunities. The industry faces many legal and regulatory restrictions. Environmental issues are also growing in importance for the industry.

Uploaded by

Muddasir Nishad
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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PESTLE Analysis of Square Pharmaceuticals Ltd.

Square Pharmaceuticals Ltd. was established as a partnership firm


in 1958. In 1991 it was converted into a public limited company. Square
Pharmaceuticals Limited is the largest pharmaceutical company in
Bangladesh and it has been continuously in the 1st position among all
national and multinational companies since 1985.

PESTLE Analysis:
It never ceases to amaze me why so many businesses fail to take the time to
look at the macro and the micro environments when completing their
business plans and strategies. These external forces will play a big part in
shaping the final outcome of the ultimate corporate achievement. Yet, most
managers focus only on internal factors and it is fair to say that sales growth
and profits remain high on their agenda.

The macro environment tends to have a long term impact and requires
extensive research. Couple this with the fact that many managers are over
worked and under resourced and we begin to see why the process is often
not completed. There is no published evidence to confirm this hypothesis,
just anecdotal hearsay.

The remainder of this article will illustrate an example of a Macro or PESTLE


analysis for the pharmaceutical industry. It is set at a very general level but it
can be used as a template or adapted to be more specific if required:

Political
There is now growing political focus and pressure on healthcare authorities
across the world. This means that governments will be looking for savings
across the board. Some of the questions the industry should ask are:

What pressures will be put on pricing?


What services will be cut?
Will the same selection of drugs be available to everyone?
In addition to this, could there be more harmonization of healthcare systems
across Europe or the USA? What impact will reforms have on insurance
models?

Economic
The global economic crisis still exists yet government reports still show that
the spend on healthcare per capital continues to grow. Will the current
healthcare models exist tomorrow? The growth in home-care (as seen in the
Nutrition sector) demonstrates how nursing services have moved to the
private sector and have become a key business offering.

The reduction in consumer disposable income will have an impact on those


countries using health insurance models particularly where part payment is
required.

These economic pressures are seeing an increased growth in strategic


buying groups who are forcing down prices.

Increased pressure from shareholders has caused a consolidation of the


industry: more mergers and acquisitions will take place over the coming
years.

Social / Culture
The increasing aging population offers a range of opportunities and threats
to the pharmaceutical industry. The trick will be to capitalise on the
opportunities.

There is also the problem of the increasing obesity amongst the population
and its associated health risks.

Patients and home carers are becoming more informed. Their expectations
have changed and they have become more demanding. Public activism has
also increased through the harnessing of new social networking technologies.
How can pharmaceutical companies get closer to consumers without over
stepping the regulatory boundaries?
Technological
Technological advancements will create new business prospects both in
terms of new therapy systems and service provisions. The online
opportunities will see the growth in:

New info and Communications technologies.


Social Media for Healthcare.
Customized Treatments.
Direct to Patient Advertising.
Direct to patient communications.

Legislation
The pharmaceutical industry has many regulatory and legislative restrictions.
There is also a growing culture of litigation in many countries. The evolution
of the internet is also stretching the legislative boundaries with patients
demanding more rights in their healthcare programmes.

Environmental
There is a growing environmental agenda and the key stake holders are now
becoming more aware of the need for businesses to be more proactive in this
field. Pharma companies need to see how their business and marketing plans
link in with the environmental issues. There is also an opportunity to
incorporate it within their Corporate Social Responsibility programmes.
Marketing and new product development should identify eco opportunities to
promote as well.

The information above illustrates just a fraction of the likely macro factors
involved in the pharmaceutical industry

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