Pestle Analysis

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 patient’s 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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PESTLE Analysis of Square Pharmaceuticals Ltd.

Square Pharmaceuticals Ltd. was established as a partnership firm in 1958. In 1991 it

 What pressures will be put on pricing?

 New info and Communications technologies.

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