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BUSINESS PLANNING FOR PHARMACY PROGRAM : 

BUSINESS PLANNING FOR PHARMACY PROGRAM MS.WAJIHA IFFAT

TYPES OF ORGANIZATIONAL STRATEGIES : 

Corporate-Level Strategy Determines what businesses a company should be in or wants to be in the direction that the organization is going the role that each business unit will play TYPES OF ORGANIZATIONAL STRATEGIES

LEVELS OF ORGANIZATIONAL STRATEGY : 

LEVELS OF ORGANIZATIONAL STRATEGY

TYPES OF ORGANIZATIONAL STRATEGIES : 

Corporate-level Strategy (continued) Grand Strategy - Stability no significant change is proposed organization’s performance is satisfactory environment appears to be stable and unchanging TYPES OF ORGANIZATIONAL STRATEGIES

TYPES OF ORGANIZATIONAL STRATEGIES : 

Corporate-level Strategy (continued) Grand Strategy - Growth seeks to increase the level of the organization’s operations related diversification - grow by merging with or acquiring firms in different but related industries unrelated diversification - grow by merging with or acquiring firms in different and unrelated industries Grand Strategy - Retrenchment - designed to address organizational weaknesses that are leading to performance declines TYPES OF ORGANIZATIONAL STRATEGIES

THE BCG MATRIX : 

Stars THE BCG MATRIX Question Marks Cash Cows Dogs

TYPES OF ORGANIZATIONAL STRATEGIES : 

Corporate-Level Strategy (continued) BCG matrix (continued) strategic implications of the matrix cash cows - “milk” stars - require heavy investment question marks - attractive but hold a small market share dogs - sold off or liquidated TYPES OF ORGANIZATIONAL STRATEGIES

TYPES OF ORGANIZATIONAL STRATEGIES : 

Business-Level Strategy Determines how an organization should compete in each of its businesses Strategic business units - independent businesses that formulate their own strategies Role of Competitive Advantage competitive advantage - sets an organization apart by providing a distinct edge comes from the organization’s core competencies not every organization can transform core competencies into a competitive advantage once created, must be able to sustain it TYPES OF ORGANIZATIONAL STRATEGIES

TYPES OF ORGANIZATIONAL STRATEGIES : 

Business-Level Strategy (continued) Competitive Strategies industry analysis based on five competitive forces Threat of new entrants - affected by barriers to entry Threat of substitutes - affected by buyer loyalty and switching costs Bargaining power of buyers - affected by number of customers, availability of substitute products TYPES OF ORGANIZATIONAL STRATEGIES

TYPES OF ORGANIZATIONAL STRATEGIES : 

Business-Level Strategy (continued) Competitive Strategies (continued) industry analysis based on five competitive forces Bargaining power of suppliers - affected by degree of supplier concentration Existing rivalry - affected by industry growth rate, demand for firm’s product or service, and product differences TYPES OF ORGANIZATIONAL STRATEGIES

STEPS IN THE DEVELOPMENT OF A BUSINESS PLAN : 

Define the Business or Program Conduct Market Research and Analysis Conduct Competitor Analysis Assess Clinical and Quality Requirements Define Processes and Operations Develop a Marketing Strategy Develop Financial Projections Identify an Action Plan Assess Critical Risks and Opportunities Establish an Exit Plan STEPS IN THE DEVELOPMENT OF A BUSINESS PLAN

DEFINE THE BUSINESS OR PROGRAM : 

the initial step of business planning is to define the business or service proposed. The mission will crystallize the aims of the program and help to steer the direction taken in other steps of the planning process. DEFINE THE BUSINESS OR PROGRAM

CONDUCT MARKET RESEARCH AND ANALYSIS : 

The term market refers to the customers of the program. First, the market can be described geographically In particular, the customers of pharmacy programs may be something or someone other than patients. The target market may be based on a special market niche that the program fulfills and/or a special customer need. CONDUCT MARKET RESEARCH AND ANALYSIS

CONDUCT COMPETITOR ANALYSIS : 

A key component of analyzing the external environment is to identify and gauge potential competitors. Surveys of customers, price comparisons, and publicly available information (i.e., Web sites) should be investigated. Characteristics such as years in business, number of customers, percentage of the market (i.e., market share), and product or service niche should be compared. CONDUCT COMPETITOR ANALYSIS

CONDUCT COMPETITOR ANALYSIS : 

The strengths and weaknesses of each competitor should also be reviewed and compared with those of the proposed business. Categories of strengths and weakness to consider include service quality, staff competence and credentials, customer service, customer access, price, technology or innovation, and delivery mechanisms. CONDUCT COMPETITOR ANALYSIS

ASSESS CLINICAL AND QUALITY REQUIREMENTS : 

The health care market more than most others is highly regulated. This analysis should extend beyond just the mandatory legal rules or requirements. There are federal, state, and city/county ordinances, laws statutes, and regulations that must be followed when applicable. ASSESS CLINICAL AND QUALITY REQUIREMENTS

DEFINE PROCESSES AND OPERATIONS : 

Defining the details associated with the planned operations . This step includes planning of the optimal organizational structure (with a link to the larger organization), the staffing levels, personnel requirements, and the reporting relationships of the program. Personnel job titles, job descriptions, and the number of full-time equivalents2 (FTEs) needed in each position should be determined DEFINE PROCESSES AND OPERATIONS

DEVELOP A MARKETING STRATEGY : 

The marketing strategy should be based on information gathered in the previous steps of the business planning process, especially the market and competitor analyses. The marketing strategy should identify the target market for the program and develop a plan for gaining the business of that market. DEVELOP A MARKETING STRATEGY

DEVELOP A MARKETING STRATEGY : 

The strategy for a new business should be separated into the initial marketing plan and the ongoing marketing plan DEVELOP A MARKETING STRATEGY

DEVELOP FINANCIAL PROJECTIONS : 

Perhaps the most critical step in the business planning process is the development of financial projections for the program. In developing the financial projections, revenue(if it exists) should be based on the anticipated volume of business, changes to that volume expected over time, and the income per unit of service. DEVELOP FINANCIAL PROJECTIONS

IDENTIFY AN ACTION PLAN : 

This action plan should detail the start and finish dates and list responsible individual(s) for each task necessary to accomplish the objectives of the business plan. The action plan should include periodic monitoring and assessment of the performance (i.e., clinical, financial, or other) of the program. IDENTIFY AN ACTION PLAN

IDENTIFY AN ACTION PLAN : 

A Gantt chart is one method to depict the action plan visually IDENTIFY AN ACTION PLAN

Assess Critical Risks and Opportunities : 

Another key step in the business planning process is to determine the critical risks and opportunities of the proposed program. SWOT Assess Critical Risks and Opportunities

Establish an Exit Plan : 

The exit plan is a formal protocol for determining when and why a decision would be made to terminate the program. The exit plan also defines the steps that would be taken if such a decision were to be made. Establish an Exit Plan

COMMUNICATION OF THEBUSINESS PLAN : 

Writing the Business Plan The business plan should be informative and balanced in its presentation of the proposal. The document should be written with a specific audience in mind (the financial decision maker). The contents of a business plan typically follow a sequence of items that are unique to this type of planning. COMMUNICATION OF THEBUSINESS PLAN

Typical Table of Contents of theBusiness Plan : 

1. Executive summary 2. Background and description 3. Market analysis and strategy 4. Operational structure and processes 5. Financial projections 6. Milestones, schedule, and action plan 7. Critical risks and opportunities 8. Exit strategy 9. Conclusion 10. Supportive documents (include financial pro forma statements, letters of support) Typical Table of Contents of theBusiness Plan

COMMUNICATION OF THEBUSINESS PLAN : 

Presenting the Plan A good oral presentation can go a long way toward garnering positive support for the business plan. The personal nature of the oral presentation may add dynamics to the decision-making process that do not exist with the written document. COMMUNICATION OF THEBUSINESS PLAN

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