Exam 1 Flashcards
What is a business plan?
A written document that describes in detail how a business defines its objectives and how to achieve the goals. Lays out a written roadmap for the operations from each of a marketing, financial, and operational standpoint.
Key questions to be answered before developing a business plan
The purpose of writing the BP
To obtain loans or investments or financial support?
To make the right decisions?
Who are the audiences and potential audiences?
How to develop a BP
Sense or identify a potential of service/ product business opportunity. Switch your role as customers, talk and keep thinking,
Conduct literature review or internet searches and organize information,
Complete BP.
The structure of a BP document
Cover sheet Table of contents Executive summary and loan request Company summary Description of the proposed business/program Marketing plan Competition analysis and strategy Implementation plan Financial Plan Appendices
Cover sheet
Serves as title page
Has the name of company, logo, and address
Author names
Prepare date
Executive summary and loan requests
Name of applicants for the business Brief description of business Objective statements- reflect personal and professional philosophy Summary of marketing plan Outcomes Summary of finance request Collateral
No more than 2 pages, uses bullets and brief description.
Table of contents
Complete outline and page numbers
Company summary
Brief description of the company
list vision, mission statements for the business, along with goals and objectives (measurable attainments)
Legal structure
Brief description about existing products or services.
Description of the proposed products/services
Describe the business opportunities
Describe the proposed products/services
Congruent with the company mission and business strength
Marketing operation/plan
Business opportunities- needs and wants
Marketing/operation plan (Target market and the 4 Ps principles)
4 Ps
Product
Price
Promotion
Place
SWOT analysis
Strength, weakness, opportunity, threat
Competition analysis and strategy
Implementation plan
Milestones and timetable
What results and when to be achieved.
Sales forecast, management structure.
Financial data and documents
Projection of short and long term sales volume, projected expenses, etc.
Project financial statements- income, balance sheet, cash flow statement
Break even analysis
Appendices
Limit to 15 pages, CV (limit to 1 page per member)
Any supporting document.
Steps in developing BP
Sense the needs and opportunities Define the proposed business or programs Conduct market research and analysis (literature review) Reimbursement from insurance companies Conduct competitor analysis Assess clinical and quality requirements Define process and operations Develop market strategies Develop financial projects Identify the action plan Assess critical risks and opportunities Establish an exit plan
Issues with past BP
Innapropriate objectives (clinical objectives), no SMART principle Inappropriate assumptions or market data. Inconsistent contents. Lack of teamwork.
What is modern management?
Management is “a process which brings together resources and unites them in such a way that, collectively, they achieve goals or objectives in the most efficient manner possible.
Uses planning, organizing, leading, and control to accomplish organizational goals.
Good company objective statements
Accord with the company vision and mission statements
Need to be feasible and challenging
Support and agree among the objectives by different departments.
Balance between short and long term objectives
Staff involvement and buy in
The management process- planning
Determine an organizations objectives and establish appropriate strategies to achieve them.
Vision statement
Inspires people to excellence- to strive toward higher expectation for themselves and the organization/department.
Vision is very broad and short.
What is a mission statement?
A sentence or short paragraph written by a company or business which reflects its core purpose, identity, values and principle business aims.
3 parts: the what, the how, and the why
What is MBO?
A systematic and organized approach that allows management to focus on achievable goals and to attain the best possible results from available researches. To ensure that everyone within the organization has clear understanding of the objectives.
Continual process where superiors define major areas of responsibility and results expected of them.
Functions of MBO
Focus on results
Participative management
Achieve the balance between management and employee empowerment
Criteria for good objective statements
Specific Measurable Achievable Realistic/Relevant Timed
How to write objectives
To verb noun by date at cost by action
What is marketing?
A discipline which focuses on understanding consumer needs and then developing strategies for sales, promotion, and pricing
Functions of marketing
Attract customers Fulfill orders Retain customers and build loyalty Identify new opportunities Develop new products
Why study marketing?
Marketing is a way of problem solving in the real world and of influencing others.
Applying marketing can make you a more effective pharmacist and help you get the job you want.
Marketing focuses on
Needs, wants, demands
People
Value
Exchange
Transactional marketing
View the exchanges as isolated, individual transactions, never expect to do business again.
Goal- to maximize the benefit from each transaction.
Relationship marketing
View the exchange as a series of transactions over time.
Goal- satisfaction can lead to future business, long term benefits.
Why is relationship marketing useful for pharmacists?
BC it parallels pt care.
Marketing myopia
Focuses on selling the tangible product while failing to consider the needs of the customers
Uncontrollable variables for the marketing environment
Competitive environment, technology environment, sociocultural environment, economic environment, political environment
What are the control variables in marketing?
The 4 Ps
Product, place, price, promotion
Does the political environment affect marketing?
Yes
Durham-HUmpphrey amendment
Equal pay act
Medicare
Examples of technologies affecting marketing
Automatic pill counting systems, internet, e-prescriptions, gene therapy, artificial intelligence, etc.
What are the types of marketing competitors?
Intratype and intertype
Intratype competitors
Same or simular product
-Mcdonalds and Burger Kind
Compete by offering similar tangible and augmented products
Intertype competitors
Distinctly different products that meet similar customer needs and wants
Cinema and restaurant
SWOT analysis internal factors
Strengths- what do we do well?
Weaknesses- where would we like to improve?
SWOT analysis external factors
Opportunities- what is occurring in our “external” environment that may lead to opportunity?
Threats- what is occurring in our external environment that we should prepare for?
SWOT analysis of a drug store chain example
Strength- market leader, innovation, brand recognition
Weaknesses- store layout, higher prices
Opportunities- demographic change, MTM
Threats- increasing intertype competition, majority of sales from prescriptions
Product life cycle
Introductory stage
Growth stage
Maturity stage
Decline stage
Introductory stage
Primary task is to start the diffusion process by gaining adoption among innovators and early adopters.
Heavy marketing effort could shorten this stage.
Growth stage
Repeat purchase from old customers begins.
New competitors enter the market and lead to lower price.
Firms begin to offer new options or quality levels to reach new segments.
Industry profitability grows.
Maturity stage
Repeat sales become much more extensive than 1st time sales.
Customers are knowledgeable about alternatives and brand preferences are well established.
Few major technical advances withh be forthcoming, few competitive advantages on that front.
