Organizations and government agencies
A business plan is a written statement that contains the set goals of the business, how they are attainable and the set plans to reach those specific goals. The business plan may also include the information concerning the organization that is working towards the achievement of the given goals. The business plan may be set for a profitable or no-profitable organization. For the profitable organizations, the business plan is set on maximizing the profits as it focuses mostly on profits as non profitable organizations and government agencies focus mainly on the services given.
The business plans may have either internal or external focus. The external business plans may focus on the external stakeholders and mostly the financial stake holders. For the internal business plan, focuses on the internal stake holders that include the customers and investors.
The following business plan is for the Synormed pharmacy, it specializes in pharmaceutical services in Lynchburg town in the central state of Virginia.
The following are the objectives for the business plan:
To introduce the business successfully in the market within a period of 6 months, to ensure that there is a high level of awareness of the presence Synormed pharmaceutical services in the market by using effective business strategies, to put in place a wide range of business strategies available in the market to ensure that there is overall growth of the business in the market, to acquire about 10 percent of the market segment within period of 6 months from the introduction of the business in the market.
This business plan is looking to market Synormed pharmaceutical services in the market. The introduction of this brand in the market is based on an extensive research that was carried out in the US market which shows that there are social and cultural factors which have been preventing the population from seeking pharmaceutical services from private pharmacies.
The following are the expected outcomes of the business efforts: One of the most important expected outcomes of this project is that successful introduction of the business in the market. It is expected that the marketing effort will successfully introduce Synormed pharmacy in the market and increase the business portfolio for Synormed services in the market.
Apart from successfully introducing the business in the market within a period of six months, it is also expected that the marketing efforts will lead to increased financial performance of the company. This will be the short term expected outcomes of the market. It is expected the business will have acquired a large market segment of the population in the market. On the long term, it is expected that the business will acquire more than 10 percent of the market share.
Synormed is the market leader in the Lynchburg pharmaceutical market. In Lynchburg it has the largest share of the market with more than 8 percent of the market share. The following is the SWOT analysis for the business in the Lynchburg market:
- The Synormed Pharmacy has an already large established business in the Lynchburg pharmaceutical market. Since 1999, the business has established itself as a state leader in the pharmaceutical market. It has operated in Lynchburg since 1999. In line with its vision, the Synormed pharmacy has been striving to be the world leader in the pharmaceutical industry. Through innovation and strategic marketing, Synormed has acquired about 9% of the state pharmaceutical market.
- The target market is quiet large and there are fears the demand for the Synormed services may outdo the capacity of the business to satisfy the demands of the market. It is still not clearly established the rate of growth of the services in the market but there are expectation that the service will record a high growth rate. This means that Synormed will need to increase its production capacity in order to match the rate of growth of the market.
- The Synormed pharmacy is introducing its service in a demanding market. This is a unique opportunity for the business. A stagnant market becomes difficult to introduce new services because there are already other pharmaceutical which are likely to bring in competition.
- There are threats of entry of other pharmacies in the market. In this case there are threats of entry of new pharmacies in the market which will increase the level of competition in the market. There are other pharmacies which are likely to introduce the same services in the market once there is success of the initial service
- There is a threat of change of the current external environment which is likely to alter the nature of the market. For example change in the taxing regime, government laws regulating the industry, and other factors which are likely to impact negatively on the industry.
PRODUCT, PRICE, AND DISTRIBUTION STRATEGIES
This business plan will be offering pharmaceutical products in the market. The main services for Synormed pharmacy will include out patient care, clinical services and sale of medicine and other services offered by the pharmaceutical industry. The services will be offered with emphases of the quality of the products and services.
Since the services are being offered in what can be seen as a new market, Synormed pharmacy will use price penetration strategy where it will use low prices strategy to penetrate the market. However this will be combined with cost plus pricing since it will have to operate at a profit market. However the initial price set up will be based on the low prices to penetrate the market.
To ensure that the products and services reach the intended consumers, Synormed pharmacy will use the current existing pharmaceutical industry channels. Taking the product near to the consumers will be the main pillar for the success of the distribution strategy.
Budget limitations and assumptions
The budget for the implementation of the business plan will be $ 5,141 500. The total available fund for the project from the head office is $ 6,000,000. Therefore it is expected that the cost will be effectively met. The budget will be limited due to the risk of increase in the prices of products and services. The funding for the project is expected to come from the pharmacy’s head offices. It will be assumed that the cost of products and service will not change as benchmarked on the current cost.
This business plan aims at ensuring total returns of about $1.5 million every year which will be ploughed back for the growth of the products and services in the market. The main measure of the financial success of the business strategy will be the overall net profit that will be made every year. The total amount of sales will be used to assess the success of the business initiatives taken.
Objectives and tasks
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This plan will effectively meet the objectives of the business strategy. This is because the budget limitation which can impact negatively on the overall growth of the product in the market will be mitigated through cost cut strategies. However it is necessary to have on time alternative strategies which will ensure the success of the business.