Pharmacy management (0)

Lecture 1: The mountebank pharmacy.

• Price : 60% of average turnover on last 2 years + 10% of profits per year during next 2 years (võib olla kasumit ei tule, kuna on vaja investeerida).
  
• Quack bank  present buiseness plan by 8 november, presentation 9 november  long term loan (10 years), at 4,8% interest rate .
  

Conclusion – I need this sum of money from bank.

• Business plann:
  

1. management summary
2. organisational profile
3. internal analysis
4. external analysis
5. strategy
6. financial prognosis

• Group feedback 7/11.
  

Leadership and management

• A good manager is competent in all different management styles, and knows when to apply which style.
  

1. Autocratic
2. Democratic
3. Free reign (vabad käed, dellegeerimine)
4. Patriarchal (he knows best what is good for his children , “family” structure)

• The management process:
  

- policy function ( setting targets/ goals , planning, decision making);
- organizational (execution, monitoring, communication /information).

• The best managers select people on talent , not on intelligence, education or experience .
  

And do not try to improve their staff ’s weak points but rather strengthen their strong points.
Taylorism: rational model. Goal - productivity maximization. Monotonous, management by control , no personal initiatives.
Human relations approach : goal – employee satisfaction, participation, conflict solving, manager is MOTIVATOR , work still monotonous.
Revisionism : integration between social system and technological system, appreciation and interesting work are important motivators.

• McGregor X/Y theory
  

X: people are lazy , will avoid responsibility, avoid work, they desire only money.
Y: people need independency, responsibility, naturally want to work.
Sociotechnique: optimal mix of economic and social goals ( task extension, enrichment, circulation).
Open system: not just technical and social system but also open system (influence by outside ); adaptation to outer world, horizontal integration, segmentation (market is divided by groups of customs).
Contingency approach: world inside and outside the orgnaisation is unstable; quality management, customer orientation, continuous improvement; there is no simple solution , benchmarking (goal to be the best company in area), urgency (act and react very quikly).
What makes a leader ?

• Followers!
  

Transactional leadership: can be learned, linked to the position .
Transformationa: linked to people wanting to follow you.

• Natural leader is elected bottom up. Hi paces the group’s well-being above their own personal gains.
  

Priveleges: 3S – Status, Sex, Salary.

• Default leaders: parachuted top down. Dark triad: selfishness, aggressiveness, indifference. Management by terror.
  
• Characteristics : brain ( knowledge , vision , ambitions), heart (communication), intangible.
  

CONCLUSION:
1) Management is a job.
2) It requires various special skills.
3) A leader no = a manager. True leaders are not born, but they are made.
Lecture 2: Mission , vision and strategy.

• Mission – why are we here on earth?
  

For whom do we solve which problems and how? How do we wish to interact with our staff, customers?
A description of the activities of the organization in terms of branches, degree of vertical integration and geographical boundaries of markets to be covered.
Horisontal integration (слияние на одном уровне)

• Vision – where are we going ?
  

What do we want to achieve in the distant future?

• Strategy – how we get there?
  

How do we want to achieve our vision, given our current mission`?
Steps:
1. Situation appraisal
2. Choice of the best strategy
3. Operationalisation
4. Organisation, budgets and control

• Internal analysis: strengths and weaknesses
  

External analysis: opportunities and threats, the environment (CCC analysis: consumer, channel , competition).
Lecture 3: Finance and accounting

• Turnover ( sales ) in numbers = total number of units sold
  

Turnover in money = sales level, average sales price per unit x total number of units sold.

• VAT ( Value Added Tax) 9%.
  
• Landed cost: a special case
  

The total of: purchase price, shipment costs , insurance, customs clearance costs .

• Break even point – gives the relationship between costs, turnover and profit /margin.
  
• Costs:
  

- fixed costs: these are costs that do not vary with the change in sales.
- variable costs
- contribution : the amount of money per product sold that contributes to covering the fixed costs (sales price -/- variable costs per product).

• Example: product X
  

Estimated sales 5,000 units per annum
Variable costs 2,000 per unit
Fixed costs 2,000,000 per annum
Sales price 3,000 per unit
What is the break even point in items? 2000000/(3000-2000)-2000 units.
Lecture 4: Marketing

• A combination of activities designed to achieve exchange transactions.