Luc Pharmacy Business Plan

Luc Pharmacy Business Plan

Executive Summary

The advancement of tough economic times is prompting most people to look prescription medications at discounted; therefore, Luc Pharmacy will main business will be to offer prescription medications to customers at affordable prices in the market. While seeking to offer prescriptions at lower prices, Luc pharmacy will also ensure that efficiency is maintained in their operations. The Pharmacy will be targeting a certain segment of the market which involves customers who pay for prescriptions themselves and thus avoiding the cash flow associated inefficiencies that come from medical insurance payment policies as well as ensuring excellent services to knowledgeable repeat customers who use maintenance type of medications (Brazeau, 2013).

Luc pharmacy will be operating from one major store that will attend to both mail-order customers and those that visit in person. We are seeking to hire friendly and knowledgeable personnel who coupled with the subsidized medication prices will help in maintaining the repeat business and thus growth in reputation; hence the growth in revenues that we will be relying upon. It is our expectation that as the prices of prescription medication continues to increase; Luc pharmacy will convince customers more and more for value and convenience (Zellmer, 2014). Luc pharmacy’s key competitors are either large pharmacies offering discounted prices but which are sparsely located or small pharmacies whose size cannot allow large scale price discounts. Therefore, we are seeking to fill the gap between the large and small pharmacies by offering a variety of prescription medication at a discounted price.

Our advertising will be done mainly through ads in magazines and thus targeting quite a number of customers who are seeking to save money on an expensive but necessary and regular expense. Luc pharmacy will be conspicuously and strategically located in the heart of the city of Chicago inside Water Tower Place Mall where all people visiting the mall for various reasons will be able to access the pharmacy services at their own convenience. This means, all the stakeholders in the city of Chicago and especially those who are situated in the mall, including students and first-time visitors will be able to access the Pharmacy (Peppas, 2019). The office space required will be minimal as the shelves will be highly used to sack the medicines. Luc pharmacy will be led by Doctor Peter Craymann, who holds an M.S.C. in Pharmacy from the University of Chicago, Pritzker School of medicine and has a vast experience in the pharmaceutical industry. We are seeking to minimize cost by maintaining only one pharmacist and a number of pharmaceutical technicians. We are also looking forward to attaining our profitability by the second year of operation and register reputable sales by the third year of operation. The chart below illustrates the pharmacy sales and profitability projections for the next three years.

Service Description

Luc pharmacy will be offering seven types of services at a subsidized price to its customers. One of the key services that Luc pharmacy will be offering is prescribing laboratory test as a way of confirming how a patient’s body is reacting to a particular medicine. Another service will be extending prescriptions to patients to avoid interruptions of medication before the next doctor’s appointment. At Luc pharmacy, we will also be prescribed medications to patients in a situation that does not require diagnosis by a doctor. Prescription of medication for minor health problems such as cold sores which have been diagnosed by a doctor will also be done at Luc Pharmacy (Knoer, 2014).

At the Pharmacy, we will also be assisting patients in administering drugs so as to demonstrate their proper use. This service will only be applicable where a patient is having difficulties using a new drug. In the event where a patient’s regular medication is out of stock, the Pharmacy will substitute it with another drug in the same category and inform the doctor (Murphy et al., 2010). Finally, at Luc pharmacy, we will also be adjusting drugs for our clients in order to manage interactions between two drugs, reduce the drug’s side effect, or adjust the dosage order to fit your schedule.

Vision Statement

In the next three years, the Luc Pharmacy is seeking to Increase the number of customers served each year by 30% while establishing a sustainable customer base through the superior pricing strategy that will enable the Pharmacy to survive off its cash flow.

Mission Statement

Luc pharmacy will be offering prescription medications to customers at the best affordable prices. We have a strong conviction that our convenience and level of services offered will exceed the expectations of the customers (Chudy & Schultz, 2010).

Keys to success

• Provide better and affordable prices than all our competitors
• Satisfy our customers so as to maintain them as repeat customers
• Ensure that operating and overhead expenses are minimal

Company Summary

Luc Pharmacy is located in the state of Chicago and offers prescription medication at low prices to customers either by mail order or over the counter services.

2.1 Company Ownership

Luc pharmacy is registered limited liability corporation with its major shareholder being Doctor Peter Cayman.

2.2 Pharmacy start-up summary

In order to kick start its operations, Luc Pharmacy will incur the following start-up equipment costs;

• Three computer terminals, that is, two at the point of sale and one for monitoring stock movement
• Main computer server with a laser printer and a back-up system
• Cash register, front counter, and a storage bin
• Office equipment such as desks, chairs, and cabinets
• Assorted boxes, envelopes, bottles for dispensing medications and shipment
• Software such as; QuickBooks Pro, drug interaction software, Microsoft office, physician’s desk software for performing a thorough examination of drug side effects on customers and keeping confidential information regarding the customer.
• A telecommunication system
• Scales for shipping of drugs
• Rent, utilities such as water and electricity, and insurance
• Start-up inventory
• A storefront build-out

All of the items above will be used in the Pharmacy for more than one year, and therefore they will be referred to as long term assets, and thus they will be depreciated using the straight-line method which has been approved by the generally accepted accounting principles (G.A.A. Ps). The chart below illustrates the expected start-up costs for the Pharmacy (Rao et al., 2016).

The start-up requirements and the associated cost will be as illustrated below

Products and Services

Luc Pharmacy offers a variety of drug prescription to customers both generics and name brands. Customers may either acquire medicines via mail order or over the counter. For a customer to acquire medication through mail order, they are first supposed to contact Luc Pharmacy through a telephone call; the customer is then supposed to send the prescription via mail, or fax. (Kaakeh et al., 2011) On receiving the order, Luc Pharmacy attendants package the medication and send via courier services to the customer. Mail order purchase is mainly made by customers who cannot easily access Luc Pharmacy due to distance. Local customers often pass by the Pharmacy and acquire the medications through the front counter.

The Pharmacy will only extend their services to customers who pay for themselves.  The extraordinary prices that will be offered by Luc pharmacy will attract a number of customers who are willing and able to pay for themselves without depending medical insurance covers to pay their medication bills. Most Americans, and especially those who are 65 years and above do not have a drug financing plans, and therefore s discounted plan on prescription drugs will mean a lot to them especially now that they will have to cope up with tight monthly budgets due to the hard economic times (Laverty et al., 2015).

Operating effectiveness garnered from the use of national mail-order services and the failure to accept insurance policy plan on drugs which hinders cash flow will enable the Pharmacy to thrive even in lower profitability margins. The Pharmacy will also be saving money by not paying a pharmacist to attend to customers (Tootehan et al., 2012). In the event a customer needs clarification on a certain prescription, the pharmaceutical technicians will chip in and offer the necessary assistance to the customer. Except in special cases where the pharmacist will be required to attend to customer questions, in most cases, the pharmaceutical technicians will be answering customer questions.

The model of cost-saving adopted by Luc Pharmacy of not allowing unlimited access to the pharmacist is credible as a great percentage of the customers will be repeat customers who come to buy a particular, and therefore they may not need assistance always except in the event of a new prescription. Also, the fact that the Pharmacy offers prescription drugs at subsidized prices will attract more customers and make them repeat customers (Oscar et al., 2011).

For each order given to a customer, there will be a printout on which there will be more information about the drug, directions on how to use the drug prescription as well as other drugs, foods and other drugs to avoid during the prescription period. The print outs will be produced by computer software and thus saving the extra cost of hiring a specialist to offer all this information to the customers (Helms et al., 2008). In this context, the fact that the customer has to self-pay means that the customer has to pay upfront either from their pockets or from the insurance companies by paying from their pockets and presenting the payment acknowledge slips for a refund from the insurance company.

3.1 Service Delivery

Customers placing their drug prescription orders either through the phone, or mail or even over the counter will be attended to by the pharmaceutical technicians. It will be the responsibility of the pharmaceutical technicians to extract the relevant information from the customer regarding the type of drug prescription they are in need of as well as the method in which they prefer to use for the drug to reach them (Saverno, 2011). Additionally, the pharmacy attendants will assist customers with the payment details for the drugs before the shipment is dispatched from the Pharmacy or before the drugs are passed to the customer over the counter. Often times, and according to the pharmacy customer records, repeat customers will be offered a 10% discount for every bulk purchase they make.

The pharmacy attendants will also be required to make follow up with customers who will be on regular treatment and ensure that they follow the prescription procedure promptly without failure. It will also be the responsibility of the pharmaceutical technicians to attend to customer complaints, as well as obtaining feedback from customers so as to ensure effectiveness in service delivery (Zellmer, 2014). The staff duty schedule will be prepared by the operations manager together with the pharmacist to ensure order and smooth operations at the Pharmacy. The administration will also arrange for training for the pharmacy staff in order to update their skills for maximum service delivery and also to be up to date with the current emerging issues in the pharmaceutical industry.

The Pharmacy’s key objective will be the provision of quality services to prescription drug customers’ at the most affordable prices ever while keeping the operational costs as minimal as possible (Zhou et al., 2014).

Market Analysis Summary

Luc Pharmacy’s target market will be focusing on two different groups of people, that is, the mail-order customers and the local or walk-in customers. In order to reach and give maximum service to these two diverse market segments, Luc Pharmacy will employ two different types of marketing strategies (Knoer, 2014).

4.1 Market Segmentation

There are two different classifications of Luc Pharmacy customers, that is, the mail-order customers and the walk-in or local customers. The mail-order customers make orders for their drug prescriptions through the mail as a way of saving money and times; typically, these are mostly the people who are advanced in age, that is, 50 years and above. The elderly group of people consumes more drugs compared to young people. In most cases, they purchase maintenance drugs to treat an ongoing sickness that requires consistent treatment. As a way of saving on cost and time, this group is likely to purchase drugs to take them through several months at a single order (Brazeau, 2013).

Walk-in customers walk around, looking for the lowest prices for their medication. In most cases, they purchase medications on a monthly basis from their local pharmacies at higher prices, therefore, coming across a pharmacy where they can purchase their prescription medication at lower prices will make them repeat customers at Luc pharmacy. Walk-in customers do not belong to a certain demographic group, but they are composed of people belonging to different age groups who live in metropolitan areas. Just like the mail-order customers, walk-in customers pay medications from their pockets while others pay and later submit claims to the insurance companies for reimbursement. The greatest market segment for Luc Pharmacy is the mail order customers. The pie chart below demonstrates the nature of market segments for Luc Pharmacy (Chudy & Schultz, 2010).

The following are projections for Luc Pharmacy market analysis for the next five years.

4.2 Target Market Segment Strategy

So far, Luc Pharmacy will have to focus on attracting two different groups of people and therefore, there is need to adopt two different strategies in order to reach and serve the two groups perfectly. Our projections so far indicate that our largest group of customers will be those that order through the mail. As a way of reaching this target group, we are seeking to create awareness by advertising through magazines, especially those that are meant for people who are 55 years and above. Most people in this age bracket tend to use medicines regularly and also they have a vast knowledge of their medication needs. In order to reach the walk-in customers, we will advertise our Pharmacy in the local newspaper and target on creating awareness regarding our discounted prices (Kaakeh et al., 2011).

4.3 Market Competition and buying patterns

In the pharmaceutical industry, competition may assume many different forms, such as the following.

Local pharmacies, in this kind of a pharmacy, the customer knows the pharmacist clearly, and the pharmacist has a vast knowledge about the medical history of the client. This kind of option is expensive as it forms personalized service and convenience.

Canadian Pharmacies, most of these pharmacies are located in Canada where the drug prices are too low compared to the prices in the U.S. Customers can access these pharmacies through mail orders, travel visits to Canada, or even through the internet. Recent news states that there has been a developing trend of arranged trips of people from the Northern States to Canada to buy their medical prescriptions at a cheaper price (Peppas, 2019).

Chain Pharmacies, most of these pharmacies are owned by the state or by national chains. They are known for offering drugs at lower prices because of conducting personalized services and enjoying economies of scale. Personalized services involve the chain pharmacy keeping a customer’s record of medication purchase as well as a record of any allergies that the client might have disclosed to the chain pharmacy (Murphy et al., 2010).

Mail order and internet pharmacies, their operations are similar to those of Luc Pharmacy as they serve both mail-order customers and walk-in customers.

Industry Analysis

According to statistics conducted in 2012, about 62,000 of mail order, speciality, and retail pharmacies operating in America had stocked approximately four billion prescriptions. Most of these businesses were taking place in locations which are dominated by the three major giants companies in the pharmaceutical industry, that is, CVs, Rite-Aid, and Walgreen. Statistics further indicated that in 2012, the total industry revenues streaming from the pharmaceutical sector was ranging between $275 billion to $290 billion out of which ole one third was streaming from independent community pharmacies. As of 2011, only 23,100 independent pharmacies were operating domestically, and this amounted to close to $90 billion of the total industry revenues (Peppas, 2019).

5.1 Growth

As of 2012, the retail pharmacy business was recording a growth of 1.6% over a duration of five years. However, the growth of independent pharmacies was stagnant over the same duration of five years, recording only a slight improvement. Various factors such as sun care, eye care, smoking deterrent, home health care, foot care, and first aid services have been fueling the growth of independent pharmacies since 2012 (Laverty et al., 2015).

5.2 Profitability

As at December 2011, independent pharmacies were recording a profit margin of 2.9% after being in operation for over five years. Previously, the number of independent pharmacies operating on a loss was increasing with 2008, recording 14.7% and 2011 recording 25%. Statistics did in 2011 also indicate that most of the sales were deprived of the sale of prescription drugs which are known for generating a low-profit margin compared to the sale of front end items. Even though the independent pharmacies have managed to keep their operational costs minimal, their payroll costs still remain high as independent pharmacies have to keep multiple rounds to the doctors consulting on the prescription drug therapy compared to large retail pharmacies (Oscar et al., 2011).

5.3 Competition

The retail pharmacy industry has been known to be so competitive over the years. However, the number of alternative providers of prescription medicine services such as dollar stores, mass merchants, mail-order firms, and grocery chains have grown over time. Large chain pharmacies often enjoy a competitive advantage by operating in superior pricing strategies, complicated technology, numerous locations, and reputable brand recognition (Rao et al., 2016). On the other hand, independent pharmacies maintain their competitive advantage by offering improved customer services and speciality pharmacy products and services. Pharmacies operating on small scales often focus on filling the market gap by providing services for high-risk patients as well as those with special needs as a way of maintaining their competitive advantage.

5.4 Market Trends

The anticipated health care reforms and the ageing baby boomer generation will play a critical role in boosting demand for prescription medications. Recent statistics show that between 2008 and 2012, the high rates of unemployment, coupled with inadequate disposable income, contributed greatly to the declined revenues streaming from the pharmaceutical sector. In 2011, government programs contributed up-to 49% of the total revenues streaming from the independent pharmacies. However, the contribution of the government is taken as a liability as it is the sole responsibility of the government to come up with ways of reducing the effects of the ageing population in a country. Medical prescription sold over the counter presents a viable opportunity of growth for independent pharmacies( Saverno, 2011).

Strategy and Implementation Summary

One of the key start-up equipment for Luc Pharmacy is the website. Therefore, the Pharmacy will make use of the website to create awareness of its existence and also share information regarding its operation to as many people as possible (Helms et al., 2008).

6.1 Competitive Edge

Luc Pharmacy’s competitive edge is the subsidized pricing strategy, and therefore in order to maintain the pricing strategy and keep the position of being the low-cost provider in the pharmaceutical industry, Luc Pharmacy has to make sure its operating expenses are kept minimal as possible.

One of the key strategies of keeping the operating expenses as low as possible is by eliminating some of the services which are known to be offered by pharmacies. Traditionally, it has been known that pharmacies employ pharmacists to offer pharmaceutical services to customers. However, in our case, we will only employ one pharmacist and make use of pharmaceutical technicians to offer pharmaceutical assistance to customers where necessary. The pharmacist will be on watch during the operational hours, and therefore the pharmaceutical technicians can offer assistance comfortably in areas where other pharmacies use the services of pharmacists. Another technique of lowering the operational expenses and thus creating efficiency will be by having a small front store while making great use of the mail-order services (Knoer, 2014).

In many pharmacies, it has been known that pharmacists have to interact with customers at the time of purchase so as to give those more details regarding the medicine. However, in Luc Pharmacy, we anticipate that our customers will be more knowledgeable regarding the use of the medicines and the side effects if any. We expect that our customers will make use of the information on our website regarding our medicines and obtain the necessary knowledge. Therefore, instead of spending time giving customers details regarding the drugs, we will be giving them print outs alongside the purchased drugs with all the information pertaining the drugs such as consumption, side effects, and any other relevant information (Brazeau, 2013).

6.2 Marketing Strategy

In order to come up with the most realistic marketing strategy for Luc Pharmacy, thorough research and development were conducted in the entire pharmaceutical industry in America. The research and development report indicated that a substantial marketing strategy would focus on the planned advertisements through the web page as well as through the local magazines in order to increase the sense of the value of drug prescriptions to the customers (Rao et al., 2016). The main objective of the Luc Pharmacy’s advertisement campaign will be to increase awareness of the services offered at Luc Pharmacy to the targeted market segment.

6.3 Sales Strategy

The sales strategy of Luc Pharmacy will be to establish a long-lasting relationship with the customers. In order to ensure the establishment of a long-lasting relationship with our customers, we will focus on ensuring we have adequate stock of medicines for both quick shipments and storefront pickups, ensure all our medication products are sold at discounted prices, as well as ensuring excellent customer service delivery to our customers at all times. Additionally, we will ensure all our sales agents are adequately trained to offer friendly and knowledgeable customer services (Tootehan et al., 2012).

The long term implication of maintaining the above simple but important business practices will ensure repeat customers for Luc Pharmacy as well as making it the best choice of Pharmacy for all their prescription medication needs. For some people, and especially those in the elderly age bracket, medication is an important part of their lives and therefore establishing a long term relationship with them will mean a strong and loyal customer base for Luc Pharmacy.

6.3.1 Sales Forecast

In the first month of our operations, we will be focusing on establishing the storefront and creating awareness of our services to the general public. We are therefore anticipating that the main sales activities will kick start in the second month of operation. It is also our expectation that sales for the first three to five months will be mainly local business through the storefront. As from the sixth month, we will be expecting sales through the mail-order services to start streaming into the Pharmacy (Chudy & Schultz, 2010). Generally, we are anticipating that sales for Luc Pharmacy will start growing gradually from the sixth month onwards. The bar chart below demonstrates the sales forecast or Luc Pharmacy from the second month of operation through to the twelfth month. With the passing of time, sales streaming from mail-order services are increasing steadily compared with sales from walk-in or local customers.

Attached at the appendices is an annual sales forecast for Luc Pharmacy in the first three years in operation. We anticipate that sales are going to increase gradually with mail-order services generating the greatest percentage of sales for the Pharmacy.

Annual sales Forecast for Luc Pharmacy with the expected respective cost of sales for each year is as shown below.

6.4 Milestone

Luc Pharmacy will have the following milestones to help kick start the operations soonest possible.

• Office or business setup
• Development of the first strategic business relationship
• Profitability

SWOT Analysis

7.1 Strengths

Just like all the other medical practices, pharmacies are expected to remain profitable at all times provided that customers will keep their need for medication constant. On the other hand, pharmacies also enjoy growth in revenues from incomes streaming from public and private funded healthcare programs. Pharmacies also enjoy a competitive advantage by establishing barriers for new entrants into the industry due to the high cost involved in owning and operating a pharmacy coupled with the minimum educational qualifications required to be a licensed pharmacist in America (Zellmer, 2014).

7.2 Weaknesses

The related costs of operating a pharmacy are relatively high. In most cases, the cost of goods sold amount to 70% or 80% of the total income generated in a single day. However, there are other political related risks of operating a pharmacy such as legislation regarding the affordable care act which requires pharmaceutical services and products to be made affordable for access by all citizens, private insurance policies, Medicaid, and Medicare are constantly changing with time.  These requirements of the law make it impossible for the pharmacies to be at par always with the law while keeping their operational costs at the minimal level as much as possible (Peppas, 2019).

7.3 Opportunities

The biggest growth opportunity for pharmacies emerges when new pharmaceutical prescription released by the doctors into the market. The implication is that Pharmacy goes up as many people seek to obtain the prescription from the Pharmacy near them. Just like the other businesses, pharmacies can expand their operations by establishing several dispensing pharmacies in different locations. Another growth opportunity in the pharmaceutical industry is the introduction of non-pharmacy products that are locally available used by the people around. Such non-pharmacy products include beauty and cosmetics products. These products boost pharmacy revenue without having to increase the drugs. Another opportunity for pharmacies to make their revenues grow is by introducing compounding services (Laverty et al., 2015).

73.4 Threats

One of the greatest threats to the smooth operations of pharmacies is the availability of regulatory issues such as affordable care act, Medicaid, Medicare, among others. It is also a developing concern that many large scale pharmacy chains are posing a threat to the existence and operations of independent pharmacies because their size of operations allows them to enjoy economies of large scale as well as offer superior pricing strategies. This has been a threat, and there is a likelihood that it will continue being a threat for a pharmacist who seeks to develop their own pharmacies (Kaakeh et al., 2011).

Future Expansion Plans of Luc Pharmacy

In the increasing revelation of unmet basic medical needs in the United States, local pharmacies who are driven by business strategies and incentives are working together towards filling the gap by providing better health care systems. Luc Pharmacy is one of the independent pharmacies that is seeking to fill the market gap by providing convenient and reliable access to prescription drugs while keeping elated costs minimal. Consumers, on the other hand, are presenting a golden opportunity for pharmacies to continue expanding their operations by becoming more and more accountable for their own medical care without relying on medical insurance covers (Murphy et al., 2010).

Like the other pharmacies, Luc Pharmacy is investing more in innovation as a key determinant of growth. Through innovation, we will be able to diversify to other services such as disease management services, wellness programs, and health screening. There is also an opportunity for expansion by using the local pharmacist to offer free counselling and coaching to diabetes patients (Saverno, 2011).

However, in order to achieve more and more expansion opportunities, there are certain barriers that pharmacies will have to overcome. Such barriers include; limitations that have been placed by regulations to hinder pharmacies from offering some kind of services. The other barriers to expansion that pharmacies and especially Luc Pharmacy need to overcome are keeping the operational costs as low as possible, equipping the pharmaceutical technicians with the necessary skills and knowledge by constantly training them, building a long term trust with the customers so as to achieve loyalty and enhance the brand reputation, and finally ensuring that the pharmacy stores are readily accessible by customers (Oscar et al., 2011).

Web plan Summary

Luc Pharmacy will develop a web page from where information will be distributed to various customers and also as a base of managing the company emails. At the beginning of our operations and especially in the first month, we are not anticipating a great use of mail-order services since many of our potential customers will not have established enough trust and reliability on our mail order services (Knoer, 2014).

8.1 Web page development Requirements

For the development of the Pharmacy web page, we are seeking to employ a fresh graduate with a bachelor’s degree in computer science to establish and manage the pharmacy website. The reason for choosing a fresh graduate is to minimize the cost of hiring a qualified and experienced specialist in computer science. On top of the fresh graduate with a degree in computer science, we will also need a reliable source of internet and a computer working station.

The Management Summary

Doctor and one of the key founders of Luc Pharmacy, Peter Craymann, have a vast experience working with major and reputable drug manufacturers in Chicago as a drug representative. Therefore, he is a more resourceful source of information regarding operating a description drug pharmacy, the expected profit as well as the some of the operation ineffectiveness that can lead to the downfall of a well-established and reputable drug prescription pharmacy (Rao et al., 2016).

While in Chicago University, school of medicine, Peter participated in an Innovative entrepreneurship program where he was awarded a token of $ 50,000 for producing the best business plan amongst the other competitors. The token of $ 50,000 alongside other investments will assist in catering for the start-up expenses for Luc Pharmacy. Peter also possesses an undergraduate degree in Chemistry from the University of Chicago ( Peppas, 2019).

9.1 Personnel Plan

As Luc Pharmacy, we are seeking to employ the following people

• Sales agents and phone representative, we will start with two from the third month to the fifth month and add another one in the sixth month of operation.
• Pharmaceutical technicians, we will start with two from the second month of operation to the fifth month and add another one at the sixth month of operation.
• We will also hire a pharmacist in the third month of operation.
• Order fulfilment agents, we will start with two in the fifth month of operation and add another one at the eighth month.
• Counter as well as a phone attendant, we will hire one at the third month of operation.

The table below shows the pharmacy employees and their respective salaries for the first three years of operation.

9.2 Employees with disability

Luc Pharmacy will be an equal opportunity employer, and therefore all eligible personnel will be given equal chances of working in the Pharmacy. This means, pharmaceutical technicians living with disabilities with be given equal opportunities and perhaps be given first priority in job consideration (Zhou et al., 2014). The Pharmacy will ensure a decent working environment for employees living with disability by making sure that the pharmacy store entrance and exit are accessible using a wheelchair. Job applicants with different mental impairments will not be left out during job interviews as long as their mental disorders will not prevent them from given their best at the workplace. Employees living visual and hearing problems will be assisted with the necessary resources to enable them effectively.

9.3 Luc Pharmacy Employees Compensation Plan

Like any other business, Luc Pharmacy will be seeking to maintain its employees by frequently motivating them and rewarding the best performers. The compensation will work as a competitive edge for the Pharmacy, as the rewards will compel the employees to increase their levels of production and customer service. Luc Pharmacy management will be working on sharing the Pharmacy with its employees based on two principles. The best performing employees in terms of sales and customer service will receive a pay rise as a compensation plan. Such form of compensation plan will make the employee feel appreciated and motivated to work more for better results and attraction of the same as the better compensation plan. The compensation plan also gives an employee a sense of belonging by keeping in mind that the success of the company is also their success (Brazeau, 2013).

Another compensation principle for Luc Pharmacy employees will be determining their wages mercifully keeping in mind the employees’ well-being in mind. All employees will be entitled to receive consideration according to the level of responsibilities bestowed to them so as to ensure maximum performance.

9.4 Finding and maintaining the best employees

Luc Pharmacy will be seeking to employ staffs who will be committed to the overall success of the Pharmacy. In order to employ qualified staffs, Luc Pharmacy management will consult the Chicago University medical school as well as the reputable drug manufacturers so as to source the best and refined staffs to work in the Pharmacy. The first key employees to hire will be the operations manager and the pharmacist, who will then take over the responsibility of hiring the other staffs (Peppas, 2019).

When new employees join the Pharmacy, they will be taken through a period of training as well as orientation on the various types of services offered at Luc Pharmacy by the pharmacist and the pharmaceutical technicians. Luc Pharmacy will work towards providing a conducive work environment for its employees in order to enable them to balance between social life and work life. In the event where an employee assumes extra duties in the position of another employee who might be on leave, the employee will be compensated for the extra duties done as well as the extra hours worked. Employees on long leaves such as those pertaining maternity or paternity leaves as well as those dealing with health problems will be entitled to their full monthly salary but only that they not be eligible to receive bonus payments for work done (Helms et al., 2008).

All the pharmacy employees will be entitled to a salary and will only be needed to be at the pharmacy store provided their work station is located at the store. Some employees who can perform their roles even at home, such as the Information Communication Technology (I.C.T.) officer who will be managing the pharmacy web page will be allowed to work from home at times and telecommute if need. Other trivial but important services such as general cleaning services will be outsourced from other companies who specialize in that field. Outsourcing such services will enable the pharmacy staff to actively attend to their duties without giving excuses for having additional duties (Tootehan et al., 2012).

We are committed to treating all our employees with due respect they deserve as adults. We are well aware that treating the employees in the right way will create an interactive atmosphere at the workplace and thus boosting employee productivity. We are also aware that, maintaining respect and discipline at the workplace will assist in eliminating a multitude of workplace conflicts that result from lack of office etiquette. Employees who will breach the pharmacy policy of maintaining respect and optimal discipline will face disciplinary actions such as suspension from work for a certain duration of time in order to restore normalcy and ensure the smooth running of the pharmacy operations ( Murphy et al., 2010).

The Pharmacy is anticipating that the employees will maintain required policies regarding workplace ethics and work towards giving the best ad quality services to the pharmacy customers. Luc Pharmacy is looking forward for growth and expansion, therefore, throughout the first years of operation, the employees who will demonstrate devotion in service delivery and achievement of the pharmacy vision and mission will be first to be considered for promotions to undertake external duties (Oscar et al., 2011).

Financial Plan

The following section will be useful in explaining the financial plan for Luc Pharmacy

10.1 The Break-Even Analysis

Break-even analysis indicates the level of monthly sales that will be equal to the total monthly expenditures. Studies indicate that, until a company reaches the break-even point, it cannot start enjoying substantial profits (Zellmer, 2014).

The break-even analysis of Luc Pharmacy will be as follows

10.2 Projected Losses and Profits of Luc Pharmacy for the next three years of operation

10.3 Luc Pharmacy Projected Cash Flows

The following table displays Luc Pharmacy’s projected cash flow for the next three years of operation.

10.4 Important Financial Assumptions

The general assumption behind the financial analysis of Luc Pharmacy is that the current interest, long term interest rate, tax rates remain at 10%, 10%, and 30% respectively per month.

10.5 Luc Pharmacy Projected Balance

The Pharmacy’s projected balance sheet for the next three years will appear as illustrated on the table below.

Conclusion

Luc pharmacy will be thriving in the competitive pharmaceutical industry by effectively devising and implementing efficient pricing and marketing strategies for its prescription drugs. While seeking to offer the most competitive prices in the industry as possible, Luc pharmacy has to keep the operating cost as low as possible by eliminating all the unnecessary costs and substitute others with cheaper alternatives. The huge investment into research and development will be needed in order to unveil all the possible and available expansion opportunities for Luc Pharmacy.  In order to build a reputable and strong customer base, Luc Pharmacy will focus on providing all varieties of drugs for access by its diverse market segments.

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Appendices

The break-even chart for Luc Pharmacy will be as shown below

Luc Pharmacy projected losses and profits charts are as shown below.

Luc Pharmacy Sales Forecast