Proposal for a New Business
The modern goals of the members in the business community have drastically changed during the past recent years, being now centered on establishing a favorable reputation, achieving territorial expansion to other countries or reducing the employee turnover. However, the ultimate goal remains the never ending desire to register profits. And this has materialized in a superior analysis of the industries in order to identify those that stand increased chances of retrieving revenues and where the demand will never cease. Such an industry is the pharmaceutical one. The new pharmaceutical store to be opened is based on the partnership of two associates and will be funded through personal transfers and a bank loan. The company aims to address and satisfy the needs of a wide customer palette and to increase their satisfaction will also offer complementary services. A strategy implemented also for the benefit of the customers revolves around the promotion of lower retail prices than those implemented by the competition. This particular approach to the business model is likely to generate reduced incomes during the first years of operations, but the company is willing to make this concession in order to best consol
Then, they must be eager to increase their performances, be able integrate within a team and function alongside one another to support the organization in reaching its overall goals. Contracts will be signed with suppliers, hospitals and other potential intermediaries or business partners4. The four pharmaceutical employees will have to possess specialized education and at least two years of experience in the industry. Promotional strategies will be implemented (emphasis will be placed on the high quality of the products and the complementary services such as home delivery or online purchases) and sales will commenceAll steps of the business program are in full accordance with the company's mission statement, which says that the new pharmaceutical business is committed to offering their customers the highest quality products and services available on the market. The second method is generally more common and implies the registration of sales and costs when these incur, rather than when an actual payment in cash is made or received. The reduced pricing of the items will have the beneficial effect of attracting the interest of consumers, but it will also materialize in reduced revenues. The second set of regulations refers strictly to the pharmaceutical industry and revolves around the process of selling and handling drugs and medicines. Aside from the large costs implied by the issuing of stocks and the payment of dividends, the process also has the negative effect of allowing shareholders to participate to the decision making process. But even onto the American land, the legislation varies based on state features and characteristics. On the other hand, most all pharmacies sell subsidized medicines, paid from the state budget or through several social programs. The first one regards the legislature at the basis of corporate functioning and contains matters such as accounting methods, distribution of profits, shareholders' interests, the payment of state taxes or employment procedures. The organization has also made a goal in treating their staff with the utmost respect, promoting equality and cherishing their individuality and cultural diversity as each and every employee is a plus of value for the store. In these conditions, a return on the investment made will only be possible after one or two years since launching the operations within the pharmaceutical industry. To more clearly identify the time the investment will turn into profit, or the payback period, one should look at the budget for the first year:Costs:Operational Facility - $90,000(These costs also include operational and running costs, such as water, heath and electricity)Personnel: 5 employees x $7/ hour x 40 hours per week x 4 weeks a month x 12 months a year = $67,200Cost of drugs = $100,000Promotional and advertising costs = $20,000 (including the development and maintenance of the website)Sales Revenues:$100,000 + $100,000 x 40% markup = $130,000The Payback Period represents the "length of time required to recover the cost of an investment" (Investopedia, 2008) and it is calculated by dividing the cost of the project by the estimated inflows.
Common topics in this essay:
Investor Words,
Executive Summary,
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