Test 1 Flashcards
factors affecting the delivery of pharmacy goods and services
- patient demographics
- patient attitudes and belief systems
- third-party payers and coverage issues
- competitive markets
- technology
patient demographics
age, ethnic composition, education, economic status
patient attitudes and belief
beliefs about disease, sick role, and taking meds, trust or lack of trust in the healthcare delivery system, direct-to-consumer advertising of prescription drugs
third-party payers and coverage issues
complexity and differences among payers’ policies and formularies, limited access for some patients, patients’ lack of knowledge
competitive markets
diminished margins (lessening profits), increased diversity in the types of providers offering products and services
technology
software, use of automated dispensing technology
accounting
recording financial transactions, preparing financial statements, analysis of profitability, determination of business strengths and weaknesses, computation of tax liability
finance
determine financial needs, identify sources of capital, develop operating budgets, invest profits, manage assets
economics
determine the optimal mix of labor and capital, determine optimal output, determine optimal hours business operation, determine levels of investment into risk management
human resources management
conduct job analyses, hire personnel, orient and train personnel, appraise personnel performance, terminate employment
marketing
identify and implement competitive advantages, identify target markets, implement and evaluate promotional strategies, select proper mix of merchandise, properly arrange and display merchandise and products, price goods and services
operations management
design workflow, control purchasing and inventory, perform continuous quality improvement initiatives
management
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, organization and efficient utilization of resources.
leader
ability to inspire and direct others. leader does not have to be a manager and a manager does not require acting as a leader
fayol’s five management functions
forcast and plan, organize, command, coordinate, control
resources managers manage
money, people, time, materials, information
levels of manager impact
individual (self), interpersonal (one person), organizational (groups of people)
planning
predetermining a course of action based upon an organization’s goals and objectives
organizing
arranging activities and resources necessary for the effective accomplishment of goals and/or objectives
leading/directing
bringing about purposeful action to achieve the desired goals/objectives or outcomes
controlling/evaluating
reviewing the progress that has been made toward the objectives that were set out in the plan, then making appropriate changes or effectively seeking remedy
innovation
change where new ideas lead to radical breakthroughs that transform practice enivroments or incremental improvements in existing products, processes or services
entrepreneurship
practice of organizing, managing, and assuming the risk of business, creating a focused change in an organization’s social or economic potential
key characteristics of entrepreneurship
creates its own corporate hierarchy, build own support network, locate and obtain resources for the new venture, faces personal financial risk, image and reputation must be created over time
intrapreneurship
works within an existing corporate hierarchy, has an existing support network, relies on existing organizational funds/resources, faces career risk, organization lends its name and reputation to venture
micro view of entrepreneuriship
focuses on internal characteristics associated with success (those within the actual control or direction of the entrepreneur)
Entrepreneurial traits:
achievement, creativity, determination, technical knowledge
Venture opportunity
seeking resources to obtain, develop, and implement products, processes, or services that are entirely novel or improvements of existing innovations
Strategic formulation:
planning for entrepreneurial effectiveness, involving leveraging specific resources to be used explicitly for entrepreneurial functions
Macro view of entrepreneurship
focuses on external components associated with entrepreneurial effectiveness (those beyond the immediate control or direction of the entrepreneur)
Environmental:
aspects of institutions including values and norms that create infrastructure from which the entrepreneur operates
Financial/capital:
analyzing and acquiring external monetary sources to fund entrepreneurial activity
Displacement:
an event or circumstance that is related to being prevented, redirected, or displaced from conducting activities may be a factor in the choice to be an entrepreneur
Four distinct events associated with effective entrepreneurial activities:
innovation, triggering events, implementation, and growth
Four distinct events associated with effective entrepreneurial activities influenced by
personal, sociological, organizational, and environmental factors.
Entrepreneurial Assessment Approach
Emphasizes the importance of making several assessments such as qualitative, quantitative, strategic, and ethical that inform the selection or implementation of entrepreneurial activities
methods to stimulate innovation within organizations
Feedback that motivates and promotes those who behave in an innovative manner, Continuous learning, studying, and facilitating open dialogue promotes skills development and identification of shortcomings in existing products, processes, and services within an organization, Candidness on the part of the leader or manager about actual issues, goals, and strategies
four categories of risk incurred by entrepreneurs
financial, career, social, physiological
financial entrepreneur risk
loss of personal funds or accumulation of debt that may be difficult to repay if the venture fails
career entrepreneur risk
venture failure may change standing within the industry or organization or make it harder to pursue future ventures, find other work, or return to previous work
Social entrepreneur risk
increased commitments required to innovate might take away from family, friendships, or social experiences
Psychological entrepreneur risk
stress, anxiety, and depression are possible when navigating a venture or the failure of a venture
A strategic plan involves
where the organization wants to go
how it can get there
what it needs to watch out for
what it is likely to cost
Steps of Strategic Planning
- Organizing team, including key stakeholders
- Identifying organization’s strategic direction
- Conducting a strategic analysis
- Defining major goals
- Developing an action plan
- Developing a monitoring and evaluation system
- Communicating the plan to others
mission statement
concise explanation of the organization’s reason for existence
vision statement
inspirational and aspiration statement that creates a mental image of the ideal state that the organization wishes to achieve
SWOT analysis
valuable tool in the early strategic planning process used to critically assess and analyze the internal and external factors that may affect the organization, the strategic plan, and the plan’s target market
Internal SWOT factors
Strengths: positive tangible and intangible attributes internal to an organization
Weaknesses: factors within an organization’s control that detract from its ability to attain the core goal
External SWOT factors
Opportunities: attractive factors that represent the reason for an organization to exist and develop
Threats: factors beyond an organization’s control that could place the organization mission or operation at risk
Determine the elements of a monitoring and evaluation plan
(1) Determining monitoring strategies, (2) establishing measures or metrics, (3) setting a schedule for evaluations
Make recommendations to improve communication of a strategic plan.
Use simple, straightforward language with a clear, concrete description of the actions to be taken, a timeline to complete the plan, the outcomes expected, and the resources available. Be prepared. Tell the truth
Make sure the person receiving the communication understands the message. Be consistent. Be brief
benefits of strategic planning
Promotes employee morale, motivation, and commitment
Enhances organizational processes and financial performance
Facilitates better comprehension of organizational goals
Criticisms of strategic planning
Practiced too rigidly
Hinders creativity and innovation in response to a changing environment
Fails to influence the overall direction of the organization
business plan
formal document that contains background information about the intended opportunity and key participating members and describes and details supporting information concerning attaining goals.
business plan Executive Summary
brief summary of the highlights of the plan
business plan business profile
define and describe the intended business and explain how goals will be achieved
business plan products/services
define which products and/or services will be offered by the business
business plan operations and management
describe the intended organizational structure and operations (functioning business), including assigned responsibilities and tasks, workflow, and required resources and expenses (including technology); also address staffing/personnel plans, gaps, or needs
business plan financials/economic
complete assessment of the economic environment in which the business will operate including a one-year cash flow assessment, what could go wrong, and how you will address problems
business plan summary and conclusion
highlight critical points of the proposal
business plan appendices
supporting documents
sources of funding for a business
SBA (Small Business Administration) loans [does not loan directly but helps a business receive a loan from a bank or lender]
Angel Investors and Venture Capitalists
Credit Cards
Bank Loans
Home Equity Loans
List the five C’s, or characteristics, of credit
Character, capacity, capital, collateral, and conditions
Proprietorship
One owner
o Liability: unlimited, personal liability
o Taxes: owner pays tax on personal returns
o Can deduct losses on personal returns
o Ownership: totally transferable
Partnership
Two or more owners
o Liability: unlimited, all partner jointly liable for actions of the other partners
o Taxes: profits divided among partners and each must individually pay tax on personal returns
o Can deduct losses on personal returns
o Ownership: may need consent of other partners to transfer
Corporation (3 types)
“C” Corporation, “S” Corporation, Limited Liability Corporation (LLC)
“C” Corporation
Unlimited owners
§ Liability: personal liability limited to the amount invested to the limit of assets of the company
§ Taxes: corporation pays taxes on profit and shareholders pay tax on dividends on personal returns
§ CANNOT deduct losses on personal returns
§ Ownership: totally transferable
“S” Corporation
§ No more than 75 shareholders
§ Liability: personal liability limited to the amount invested to the limit of assets of the company
§ Taxes: profits flow to shareholders and each must individually pay tax on personal returns
§ Can deduct losses on personal returns
§ Ownership: transfers may be limited in order to preserve S status
Limited Liability Corporation (LLC)
Unlimited owners; single owner permitted in most states
§ Liability: personal liability limited to the amount invested
§ Taxes: flexible; profits flow to members and individuals pay tax on personal returns
§ Can deduct losses on personal returns
§ Ownership: generally need consent of all owners to transfer
job analysis
process used to collect information about the duties, responsibilities, necessary skills, outcomes, and work environment of a particular job.
skills inventory
tool utilized by job seekers and employers to determine necessary attributes to fulfill expectations developed in the job analysis.
Professional competence components include
Pharmaceutical, pharmacotherapy, and pharmacy-specific knowledge and skills o Cognitive aspects o Technical skills o Integration of reasoning, judgement, and knowledge o Understanding of context o Management of relationships o Emotional intelligence o Cultural competence
Cultural competence
Awareness (of one’s own cultural view) o Attitude (toward cultural differences) o Knowledge (of different cultural practices) o Skills (cross-cultural)
Internal stakeholders
directly involved in day-to-day operations such as managers and employees. They have a strong grasp of what may or may not be needed.
External stakeholders
include patients, vendors, lenders, and community/government leaders. They tend to contribute unique perspectives and valuable input due to their position outside the organization
SMARTER goals
Specific, Measurable, Acceptable, Realistic, Time-based, Extending, and Rewarding
What are the four P’s of marketing
Product, price, promotion, and place
key actions to ensure successful communication of a strategic plan
Communicate both verbally and in writing
Use simple, straightforward language to describe the actions to be taken, the timeline to complete the plan, outcomes expected, and available resources.
Be prepared
Tell the truth
Make sure the person receiving the communication understands the message
Be consistent
Be brief
four requirements for effective strategic plan execution
Realistic expectations of outcomes
Sound judgement of those executing the plan
Implementing the monitoring and evaluation plan
Promoting high employee performance
Donabedian’s structure-process-outcome framework used when constructing an action plan
Structure = physical setting Process = the service that will be provided Outcome = the result of the service
value of an organizational SWOT analysis
It may serve as a complement to a market analysis.
Porter’s five forces framework used to conduct a market analysis
- Threat of entry or new competition
- Threat of substitute products/services
- Bargaining power of consumers
- Bargaining power of suppliers
- Intensity of competitive rivalry
