Management - PRELIMS

8/10/2019 Management - PRELIMS

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PHARMACEUTICAL

MANAGEMENT

Nelson T. Tubon, R.Ph., M.S. Pharm., Ph.D. B.M.

Carol Geraldine C. Pablo, MSc.


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Planning

Ano man ang gawat pag dinali-dali, Ay hindi iigi ang

pagkakayari

Anything done with haste, Never

gets done well.

Failing to plan is planning to fail


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PL NNING

is deciding in advance what to do, howto do it, when to do it, who is to do it, and

how to measure performance. It bridges the

gap from where we are to where we want togo.


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Planning

Assess internal resources

Establish goals

Develop general policies andprocedures

Develop business strategies


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Preparing Comprehensive Plan1. Environmental Dimensions

This refers to the specific conditions of the country

A. Economic sector

B. Social sector

C. Political government sector

D. Scientific and technological sector


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Preparing Comprehensive Plan

2.Strategic Dimensions

This refers to the companys basic purpose

and objectives

A. Customers target

B. Product Mix

C. Geographic MarketD. Competitive Strength

E. Objectives and Standards


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3.Program Dimensions

This refers to the specific aspects of

operations of a company

A. Marketing

B. Production

C. FinanceD. Administration


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4.Behavioral Dimensions

This refers to the human elements in the

organization, which constitutes a very

important factor among Filipinos

A. The individual

B. Group Behavior

C. Interaction


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3 TYPES

1. Strategic plan

Choosing company objectives

Planning the organization

Setting personal policies

Setting financial policies

Setting marketing policies


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2. Management Control

Formulating Budget

Planning staff budgetsFormulating personnel practices

Working capital expenditures

Deciding routine expenditures

3. Operational Planning

Controlling hiring

Monitoring the implementation of policiesControlling credits extension

Scheduling production


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3 OBJECTIVES OF PLANNING

1. To offset uncertainty and change

2. To focus attention on objectives

3. To gain economical and efficient

operations

4. To Facilitate control


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OTHER TYPES OF PLANS

1. Business Plan

To make decision about investing in and moving

forward with a program

2. Resource Plan

To ensure the resources necessary to achieve the goals

and strategy of the organization

3. Organizational Plan

To ensure that the organization is organizedappropriately to meet the challenges in the future

4. Contingency Plan

To provide a fallback option or direction

fail


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Major Components of Planning

1. Goal

2. Mission

GOALA future target or end result that an organization

wishes to achieve

PLANThe means devised for attempting to reach a

goal

MISSIONThe organizations purpose or fundamental

reason for existence

MISSION STATEMENTA broad declaration of the basic,

unique purpose and scope of operations that distinguish

the organization from others of its type


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9 Components of Mission Statements

1.Customers:

Who are the enterprise's customers?

2. Products or services:

What are the firm's major products or services?

3. Markets:

Where does the firm compete?

4. Technology:

What is the firm's basic technology?

5. Concern for survival, growth, and profi tabi l i ty:

What is the firm's commitment towards economic

objectives?


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9 Components of Mission Statements

6. Philosophy:What are the basic beliefs, core values, aspirations and

philosophical priorities of the firm?

7. Self-concept:

What are the firm's major strengths and competitive

advantages?

8. Concern for public image:

What is the firm's public image?

9. Concern for employees:

What is the firm's attitude/orientation towards

employees?


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Mission Statement ExamplesCadbury

"Continuously be the leading, trusted and caring drugstore."

In the years to come, Mercury Drug will keep on looking for opportunities to

further enable customers to have more access to quality, safe and life-saving

medicines, thus enabling them to have more meaningful, healthier and longerlives. It will always pursue its commitment to better and further serve its

customers whose trust and loyal patronage has allowed Mercury Drug to be of

continued service to the nation.


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Pfizer Mission Statement:

"We wil l become the world's most valued company to patients, customers,

colleagues, investors, business partners, and the communi ties where we work

and live."

Pfizer Vision

At Pf izer, we' re inspir ed by a single goal: your health. That' s why we' re

dedicated to developing new, safe medicines to prevent and treat the world's

most ser ious diseases. And why we are making them avai lable to the people

who need them most. We believe that f rom progress comes hope and the

promise of a healthier wor ld.


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MISSION

VISION

GOALS/

OBJECTIVES

PLANS

AND

PROGRAMS

GOAL

ATTAINMENT

THE OVERALL PLANNING PROCESS


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PLANNING CONCEPT

WHERE DO WE WANT TO GO?(OBJECTIVES)

STRATEGIES

WHERE ARE WE NOW?

(present situations/existing resources)

A B C

HOW DO

REACH OUR

OBJECTIVES?


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4 STAGES IN PLANNING

1.Diagnosing the problemSetting objectives:Objectives may be set for the entireorganisation and each department or unit within the

organisation.

Developing premises:Planning is concerned with the future

which is uncertain and every planner is using conjucture

about what might happen in future.

2.Identifying ACAIdentifying alternative courses of action:Once objectives are

set, assumptions are made. Then the next step would be to act

upon them.


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4 STAGES IN PLANNING

3.Projecting the results of each ACAEvaluating alternative courses:The next step is to weigh the

pros and cons of each alternative.

4.Adopting the best ACA

Selecting an alternative:This is the real point of decision

making. The best plan has to be adopted and implemented.

Implement the plan: This is concerned with putting the plan

into action.

Follow-up action: Monitoring the plans are equally important

to ensure that objectives are achieved.


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7 ACTIVITIES IN PLANNING

1. Formulating forecasts2. Establishing objectives

3. Setting policies

4. Determining procedures

5. Developing programs

6. Providing schedules7. Preparing budgets


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Broadly defined target or future end

results set by top management

(Organization Perspective)

Targets or future end results usuallyset by middle management for

specific departments or units

(Department Perspective)

Targets or future end results set by

lower management that address

specific measurable outcomes

required from the lower levels (Unit

or Individual Perspective)

SG

TG

OG

LEVELS OF GOALS


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SP

TP

OP

TOP MANAGEMENT

Organization wide perspective

MIDDLE MANAGEMENT

Department perspective

FIRST-LEVEL MANAGEMENT

Unit/individual perpective

LEVELS OF PLAN


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8 Major Areas of Strategic Goals

Market Standing

Financial Resources

Profit Requirement

InnovationSocial Responsibility

Human Resources

Profit Requirement

Physical Resources


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/ ACCURATE

/ REALISTIC


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5 + years

1 to 5 years

1 year

GOALS

PLANS

OPERATIONAL TACTICAL STRATEGIC

SHORT RANGE INTERMEDIATE RANGE LONG RANGE


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STEPS IN BUSINESS PLAN

1.Evaluate your personal resources and

interest, and resources of the community. Do you have necessary funds?

Do you have the skills or management

experience?

Does government provide financial and technical

assistance?

Are raw materials available?

Are you interested in such business?

Do you have good human relation?


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2.Analyze your market?

Is there a good demand for your product or service?

How many competitors are there in the market?

What is your estimated share in the market?

Who are your customers?

Are they interested in the existing product or service?

Is it possible for you to offer a better quality or a

lower price?

Is there a reasonable profit?


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3.Choose a proper business location

Is it near your prospective customer?

Are there facilities like electricity, water,

transportation, and communication?

Is the place clean, decent, and peaceful?

Do you have good alternatives in case the best

location is expensive?

Is it accessible to raw materials and other

supplies?


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4.Prepare a financial plan

What are your objectives?

How much money do you need?

How will you spend the money?

Where will you get the money?

What are your expenses?

How soon can you recover your money?


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5.Prepare a production plan

Is it more economical to rent to or buy productionequipment?

Can you ensure or improve your product design or

quality?

Can your production facilities meet demand?

Do you have inventory control?

Do you have proper scheduling of production?


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6.Prepare an organizational plan

What type of business organization is most suitable?

Do you know the corresponding laws, policies, and

requirements of your business organization?

Are you aware of the advantages and disadvantages

of each type of business organization?

Who will be the officers and employees of your

enterprise? What are their duties and responsibilities?


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7.Prepare a management plan

What are your goals and objectives?

What are your strategies?

Do you have business policies for your customers?

Do you have human resources development for your

employees?

What is your program of social responsibility?


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THE CONCEPT OF

STR TEGIC

M N GEMENT


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StrategiesLarge scale action plans for

interacting with the environment inorder to achieve long term goals

Strategic ManagementA process

through which managers formulateand implement strategies geared

toward optimizing strategic goal

achievement, given availableenvironmental and internal conditions


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Strategy FormulationThe process of identifying

the mission and strategic goals, conducting

competitive analysis, and developingspecific strategies

Strategic ImplementationThe process of

carrying out strategic plans and maintainingcontrol over how those plans are carried out

Competitive AdvantageA significant edge over

the competition in dealing with competitive

forces


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LEVELS OF STRATEGY

1.Corporate Level Strategy

2.Business Level Strategy

3.Functional Level Strategy


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Identify

Current

MissionAnd

Strategic

Goals

Assess

Env.

Factors

Assess

Org.

Factors

Conduct

Competitive

AnalysisS

W

O

T

Develop

Specific

Strategies

Corporate

Business

Functional

CarryOut

Strategic

Plans

Maintain

Strategic

Control

Strategy

Implementation

Strategy

Formulation

STRATEGIC MANAGEMENT PROCESS


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5 COMPETITIVE FORCES MODEL

1. Rivalry

2. Bargaining power of customer

3. Bargaining power of suppliers

4. Threat of new Entrants

5. Threat of substitute products/services


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1. Set Objectives

2. Identify Constraints

3. Identify Alternatives

4. Gather Appropriate Information

5. 5. Evaluate Alternatives

6. Choose the most Acceptable

Alternatives

THE

DECISION


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Planning Techniques and Tools

1. Forecasting

2. Break-Even-Analysis

3. Scheduling

4. Management by Objectives


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TYPES OF PLANNING TOOLS

1.Quantitative Planning Tool (numericaldata)

A. PERT (Program Evaluation and

Review Technique)

Use to schedule projects whose

completion cannot be precisely

determined


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B.CPM (Critical Path Method)

It is used to schedule and control projects

whose completion can be precisely predicted

C.Break-even analysis compares total revenue

(TR) with total cost (TC)

TR = price x quantity while TC = fixed cost +

variable cost

When TR = TC, it is break-even, means that

expenses are equal

When TR > TC there is PROFIT

When TR < TC it is loss


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2.Qualitative Planning tools do not use

numbers like mathematics

expert judgment, opinion, or experiences.

A.Delphi technique. Forecasts are performed by consultants,experts, or specialists who are outsiders.

B.Brainstormingis a group effort in solving a problem.Employees are free to discuss their ideas or suggestions

C.Quality Circleis a cooperative effort of employees and asupervisor

D.MBO is one-on-one approach which requires face-to-facemeeting between mangers and subordinates.


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Characteristics of Business Plan

Objective

Clear

Logical

Simple

Flexible

Stable

Complete

integrated

OUTLINE OF A BUSINESS PLAN


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OUTLINE OF A BUSINESS PLANCover Sheet: Name of Business,Address

Business Goal

Strategies

Table of Content

Section One

THE BUSINESS

Description of thebusiness

Product/Services

Market

Location of the

Business

CompetitionManagement

Personnel

Application and

Expected effect of loan

Summary

Section Two

FINANCIAL DATA

Source and ApplicationOf funding

Capital Equipment list

Balance Sheet

Break-even Analysis

Income projection

Cash Flow ProjectionHistorical Financial

Reports for existing

business

Income statement

Tax returns

Section Three

Supporting

Documents

Personal balance sheet

Cost of living budget

Credit reports

Letters of referenceJob descriptions

Letters of intent

Copies of leases

Contacts

Legal Documents


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OBJECTIVES. Predetermining the results to be

accomplished, setting goals to guide all operations

of the enterprise

3 Resulting Issues In Setting Operating

Objectives

1. Clearly define broad goals

2. MBO

3. Modifying and improving operating objectives


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MBO

a process through which specificgoals are set collaboratively for the

organization as a whole and every unit

and individual within it; the goals are

then used as a basis for planning,

managing organizational activities, and

assessing and rewarding contributions


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1. Develop overall organization goals

2. Establish specific goals for various departments,

Subunits, and individuals

3. Formulate action plans

4. Implement and maintain self-control

6. Appraise performance

5. Review progress periodically

STEPS IN THE MBO PROCESS


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Strengths of MBO

1.Aids coordination of goals and plans

2.Helps clarify priorities and

expectations

3.Facilitates vertical and horizontal

communication

4.Fosters employee motivation


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Weaknesses of MBO

1.Tends to falter without strong, continualcommitment from top managers

2.Necessitates considerable training of

managers

3.Can be misused as a punitive device

4.May cause overemphasis of quantitativegoals


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6 FACTORS IN DEVELOPING REALISTIC

AND MEANINGFUL OBJECTIVES

1. Review of past performance

2. Setting realistic objectives

3. Stating specific objectives in measurable and

quantifiable terms

4. Upgrading periodically the objectives

5. Ownership in setting objectives by employees

6. Clear communication of objectives to all concerned


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5 STEPS IN ESTABLISHING OBJECTIVES

1. Clearly define the rationale of the existence of the

enterprise

2. Define the economic commitment of individuals

3. Define functional commitment

4. Define the target market and product segment

commitment

5. Define the geographic commitment where company

will focus on


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6 KEY RESULTS AREAS TO CONSIDER IN SETTING

OBJECTIVES

1. Profitability

2. Market share

3. Productivity

4. IT Leadership

5. Career path of employees

6. Enhanced core competencies


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POLICIES.A plan of action or a way of management to

ensure a uniform and consistent manner of

handling basic management problems

ADVANTAGES OF DEFINED POLICIES

1. To deliver wise decisions and judgments

2. Eliminates hasty and frustrating decision on recurringproblems

3. To spend less time deciding on repetitive problems of

employees

4. Improves the quality of decision making


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PROCEDURES. The method of doing things. Setting

control standards for desired outputs, quality, product

and process cost, delivery and customer services, etc.

5 TYPES OF CONTROL MECHANISM

1. Decentralizing without loss of control

2. Creating departments, division and subsidiaries that areprofit centers

3. Defined control targets

4. Using control data for long-range planning

5. Enhancing control through rewards and motivations


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4 CONSIDERATIONS IN USING PROCEDURES

1. Consistency

2. Kept to the absolute minimum

3. Research-based

4. Periodic review and revision as needed

PROGRAMS.The sequence of action steps to be

followed in achieving objectives in the light of a

highly dynamic and volatile environment


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6 STEPS IN EFFECTIVE PROGRAMMING

1. Review objectives

2. Determine major steps

3. Establish correct priorities

4. Systematically set schedule

5. Determine detailed steps on what tasks to be

accomplished and delegating to accountable

managers

6. Review and reconcile


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4 KEY POINTS IN EFFECTIVE PROGRAMMING

1. Periodic improvement

2. Coordination at all levels

3. Stability of programs

4. Active involvement of all concerned

BUDGETS.Allocating resources to accomplish objectives and

carry out programs.


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6 TYPES OF APPROPRIATION

BUDGETS

1. Land, building and equipment

2. R and D for new products and new processes

3. Institutional advertising and other forms of

promotion

4. Training and development of personnel

5. Market penetration strategies

6. Market development strategies


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3 BASIC STEPS IN BUDGETING

1. Translating plans into accounting results

2. Adjusting plans to make it workable

3. The resulting budgets should be useful in

highlighting areas that need corrective

measures3 PRACTICAL USES OF BUDGETS

1. Planning tool in establishing objectives

2. Enables us to determine the most cost-efficient useof scarce resources.

3. Provides a measure of performance


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4 FACTORS TO CONSIDER IN THE

DEVELOPMENT OF BUDGETS

1. Building budgets from the bottom up and top down

2. Budgets based on established programs

3. Accountability for budgets when the managers own the

operations

4. Maintaining the integrity of the budget


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STEPS IN THE PLANNING PROCESS

1. Define or orient the planning process to a singular

purpose or a desired result (vision and mission)2. Assess the current situation

3. Establish goals

4. Identify strategies to reach those goals

5. Establish objectives that support progress toward goals

6. Define responsibilities and timeless for each objectives

7. Write and communicate the plan

8. Monitor progress toward meeting goals and objectives


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Steps Used In the Strategic Planning Process by

Community Pharmacies

1. Develop mission statement

2. Identify strengths and weaknesses

3. Identify threats and opportunities

4. Formulate and select strategies

5. Review pharmacy structure and system

6. Implement strategies

7. Evaluate implemented strategies


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Barriers to Effective Planning

1. Failure to commit sufficient time to the planning effort

2. Interpersonal issues such as struggles over power or

politics and individual or group resistance to change

3. Lack of planning skills

4. Failure to plan far enough into the future

5. Constantly changing environment

6. Failure to implement due to lack of time or lack of

resources

7. Failure to monitor progress

8. Lack of support of top executive/ management


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Internal Strengths and Weaknesses of Pharmacy Services

Programs

FACTORS

1. Profitability

2. Quality

3. Customer service

4. Staff

5. Operations


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External Opportunities and Threats of Pharmacy

Services Program

FACTORS

1. Competition

2. Technology

3. Regulation

4. Reimbursement

5. Costs

6. Market/Customers


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Typical Table of Contents of the Business 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

Management - PRELIMS

Documents

Transcript of Management - PRELIMS