Contents

Executive Summary

1. Introduction

1.1 Objectives

1.2 Mission

1.3 Success keys 

1.4 Control of the Organization

1.5 Description of activation

2. Rational justification

3. Financial activity analysis 

3.1 Budgeting summery

3.2 Breakeven analysis

4. Management of risk and service issues

References 

Executive Summary

This project is based on the starting facility of pharmacy to patients of the health district residences at Nepean Blue Mountains Local Health District. The basic aim of this project is to provide medicine t discount price, so the name of this pharmacy is nominated as “Discount Pharmacy”

The key aim of the discount pharmacy is to deliver prescribed drugs to our consumers at affordable costs. We will be able to sell prescription of doctors for customers who pay for their own prescription drug-through careful efficiency in our operating systems and targeting certain market segments. It gives us extra efficiency by focusing on this part, avoiding cash flow disruptions which are often associated with insurance payments and eliminating unnecessary types of regular, informed customer services, using medications (Pyhrr, 2012).

The drug is supplied from a supermarket that can be shipped by fax to clients and directly to receptionists. We would improve by attracting nice and professional workers who promote repeated companies with our high rates. We just wish to see discount pharmacies draw consumers' attention and convenience as product price continues to rise.

Our advertisements should reach individuals who are able to save money at expensiveness but required and daily expenditures, in particular in magazines covering more than fifty individuals.

A director from board of Nepean with medicinal experience, will guide the discount pharmacy. The expenses would be minimized if only one pharmacist is kept and blanks for pharmacy technicians are filled out. We expect to make a reasonable profit to cover contingent expense only in our second year and aim to make big sales every year.

1. Introduction

1.1 Objectives

The first three years have as their goals:

  1. Exceeds expectations of customers at discounted prices.

  2. More than 30 percent annually increase the number of customers

  3. Establish a business that survive its own cash flow

1.2 Mission

The discount pharmacy's goal is to give our clients the cheapest generic medication rates. We meet our consumers' needs of ease and quality.

1.3 Success keys

The performance keys are:

  1. Satisfy our clients, so that they can visit again and again.

  2. Keep operating and overhead costs low

  3. Offer our market the highest offer

  4. Summary of organization

  5. The NSW discount pharmacy offers our customers a prescription medication at discounted prices either by post or in front of the shop.

1.4 Control of the Organization

Nepean management have basic control of the Discount Pharmacy. One of the directors is the main stakeholder.

1.5 Description of activation

  1. The actual expense of the pharmacy would be the following:

  2. The original equipment:

  3. Office equipment, chairs, file cabinets and desks included.

  4. Reception, storage room, reported currency.

  5. Apps: Windows Word, QuickBook Pro, Drug Interaction App, Patient Guide apps with accurate patient details and other side effects.

  6. Scale of shipping.

  7. System of telecommunications.

  8. Rent, supplies, protection.

2. Rational Justification

A number of generic medications are eligible for patients in health district from the retail pharmacy. It is issued ordinary and brand medications.

In order to purchase a product order, consumers can first contact a discount pharmacy. The client shall then give, fax or submit a prescription. Upon completion of the receipt and payment arrangements, the drugs will be sent. Local customers can stop to collect medicines in front of the store.

A prescription offering deals is only open to consumers who spend like self-pay. The retail store keeps consumers shopping for themselves, because the quality is cheaper. Discounts on rates are very appropriate for many citizens without a prescription program.

The discount drug industry can prevent marginalization by ordering operations and failure to accept insurance policy on drugs which hinder the flux of money due to the operating skills. The discount also saves the pharmacy money by not providing unlimited pharmacist access for customers. The pharmacist should attempt to respond whether a consumer has a question regarding a product. The final response will be given by the pharmacist. This query is normally addressed by a technician or written literature (Imani, Janati, Moghimi, Golestani, & Doshmangir, 2015).

This model savings will not work by giving pharmacists unlimited access because unlike new customers, many customers will have to keep their hands on the drug for a while. The transaction is completed. They are interested in the treatment of pharmacies as a cheap source.

A printout accompanies each order with the drug that gives instructions on how to take the drug, other simultaneously avoidable medications and other useful information. The discount pharmacy can use industrial software machine printouts to reduce the cost of providing this material.

Although the term "self-pay" is commonly associated with the notion that consumers pay for their medicines without insurance, they are used in the context of those who pay for drugs regardless of whether they have coverage. They can pay for themselves, or they pay in advance and then deposit them with the insurance company's medicine plans to replace them later.

3. Financial activity analysis

Financial activity analysis consists of three types of budgeting like normal zero-based budget, contingency plus 10% and contingency minus10% budget (Hall, 2016).

3.1 Budgeting Summery

table shows Normal Budget and Contingent Budget
table and graphs shows startup and personal expenses

3.2 Breakeven Analysis

table shows breakeven analysis and the comparison of income and expense

(separate excel working shows detail of budgeting and contingency detail)

Breakeven analysis shows the income and expense comparison, here budget was based on zero based activity (Pyhrr, 2012), so budgeted income and expenses are tried to settled on zero profit or in other words to consume all of the income on customers.

graph shows Comparison of Income and Expenses

Due to zero based budgets, income and expenses of all three forms are exactly same approximately. That’s why graph lines show same pillars.

Upon contingency budgets, expenses of all heads could be reducing, under setup expenses, budgeting techniques applied to minimize the cost (Le Quéré et al., 2015), and personnel expenses could be control by controlling overtime wages and to cover the work within given time and wages.

4. Management of Risk and Service Issues

In order to increase the consistency of the project, the continued, versatile and realistic requirements for successful planning will be used in preparation to ensure the link or alignment between long-term strategic planning and more efficient short-term planning (Chinniah, 2013). Apart from integrating long-term / strategic planning in the planning process, the factors of insecurity that contain elements of the risk also should be taken into account. In accordance with the International Accountants Federation (1999) concept of risk, there is a danger that the potential events will be unpredictable that affects the attainment of targets. A systemic approach is therefore necessary to identify, understand, act and communicate risk in conditions of uncertainty, in other words the best course of action, that is to say risk management.

  1. Mr. X director of the unit has served as a product manager for multinational organizations in Australia. He could see the advantages of the prescription medicine industry and the failures of most businesses.

  2. He has an MBA in the Innovative Entrepreneurship Program of the University of NSW.

  3. One of the employees available on store will be head pharmacist with experience of pharmacy and management to control one on board problems of the patients and employees.

  4. Three technical pharmacists would work under the supervision of head pharmacist to control the operational activities of the discount pharmacy, to know the exact demand of prescription, drug usage and composition of formula checking.

  5. Three sale agents would be responsible for the delivery and sale of medicines to the patients, on store and on mail request of the patient.

  6. Counter frontier would be responsible to listen and solve the issues of direct clients at discount pharmacy store.

  7. Phone operator would responsible for listen call from patients, higher management of Nepean and other stakeholder of the hospital management.

  8. Person to fulfil the order would be responsible to package and make it ready for delivery of the product to the patients on store and through other sources.

There are total eleven employees as one director, one head pharmacist, three technical pharmacist, three agents for sale, one counter person, one phone operator and one person to fulfil order.

Market analytical summary: Two groups, local or walk-in clients and mail order customers in the discount pharmacy. Two separate tactics should be used by Discount Pharmacy to hit all parts of this market.

Customers through mail order: In an effort to conserve money this collective of clients has purchased their medications via telephone. Post order buyers are usually older than 50 years. For fact, older patients consume more drugs than younger people (Srithongrung, 2018). Customers ordering by email will usually buy medicines for ongoing diseases requiring routine treatment. Also, in several months this group of clients is more likely to buy medicines at once.

Direct clients: this consumer community searches for the lowest quality. Yet per month at their nearest pharmacy, they buy drugs frequently at a higher price. For this group there is no general population other than living in the metropolitan area of Portland. Some of these customers compensate for the drugs directly, and then others lodge with their medical provider a benefit application.

Competitive Benefit: risk always reduced while using comparative benefits. A drug discount's economic advantage is low costs. Of this reason, we will stay a low-cost supplier with challenges to insure the expenses are reduced to a minimum flexibility. They will achieve by increasing any of the conventional facilities provided by pharmacies (Lin & Wu, 2017). We should only employ a doctor, for instance, then allow a pharmacist to fill the void. As long as the pharmacist is in the, pharmaceutical app technology can be used for all other applications where other pharmaceutical practitioners are using the pharmacist. Another capacity is to have just a tiny front shop and to manage much of our business by email.

We trust most of our clients to learn how to handle the medication and to prevent any side-effects of the product. Only prints of relevant information for drug use will be provided for each patient.

Sales strategy: to control the risk factors, the selling approach is focused on long-term consumer ties. We are going to provide medicines at great prices, supply fast shipments and pick-ups before the stores and offer excellent customer service in order to facilitate this. All sales representatives are trained to offer customer service with friendliness and knowledge. We want our clients to render the discount pharmacy a special source of drugs by retaining this basic but successful market strategy. For others, narcotics are an important aspect of their life, which means that long-term marriages maintain a strong and dedicated client base.

Summary of the web plan: This website is used to disseminate information and share e-mail. At first, no reservations will be made via our website as we do not expect our target customers to widely use the process.

Required for growth: The discount pharmacy will keep computer science university graduates to manage and operate website.

References

Chinniah, A. (2013). An Assessment of Zero-Based Budgeting to Protect the Leakage of Finance in Government and an Organizational Development. CLEAR International Journal of Research in Commerce & Management, 3(5).

Hall, M. (2016). Realising the richness of psychology theory in contingency-based management accounting research. Management Accounting Research, 31, 63-74.

Imani, A., Janati, A., Moghimi, M., Golestani, M., & Doshmangir, L. (2015). Identification of indicators for evaluating the financial and economic performance of the pharmacy: A systematic review. Pharmaceutical Sciences, 21(2), 111-124.

Le Quéré, C., Moriarty, R., Andrew, R. M., Canadell, J. G., Sitch, S., Korsbakken, J. I., . . . Boden, T. A. (2015). Global carbon budget 2015. Earth System Science Data, 7(2), 349-396.

Lin, Z., & Wu, Y. (2017). Application of Zero base Budget in Maintenance Operation and Maintenance Fee of County Power Supply Company. Paper presented at the 2017 International Conference on Management, Education and Social Science (ICMESS 2017).

Pyhrr, P. A. (2012). Zero‐Based Budgeting. Handbook of Budgeting, 677-696.

Srithongrung, A. (2018). An evaluation of performance-based budget reform in Asian countries. International Journal of Public Administration, 41(4), 257-267.

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Health Care Finance Assignment Help

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