Business Exam 1

Current ratio =

Current Assets / Current Liabilities (CA/CL)

Situation analysis

Looking at community profiles to create SWOT for a business and creating goals and objectives from that

Management v leadership

Management = "boss" leadership= "mentor"

Describe how influence relates to leadership/management

titles do not make a successful leader, but being influential makes success more likely

Manage

to handle or direct with a degree of skill

4. conduct competitor analysis

identify and gauge potential competitors market share (how much do they own?) years in business number of customers -competitors strengths and weaknesses

What is forecast?

trends or anything that can influence -consider season, past trends, current trends, planned events, current market, advertising

Management

the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources

T or F: Management and leadership are complementary

true

value

ratio or difference between perceived benefits and perceived costs

quality

superiority or excellence -objective, perceived, service, technical, functional

Describe and integrate the financial information depicted in a balance sheet and an income statement in community pharmacy practice

"profit centers"

Gross Profit margin=

(sales-costs of goods sold) / total sales

Describe the essential steps when preparing to market good or services in a pharmacy

-analyzing market environment -goals and objective formulation -determine target market -formulation and designing (4 Ps) -design a marketing control process

Identify barriers to planning

-failure to commit sufficient times to planning -interpersonal issues -lack of planning skills -failure to plan far enough into future -constantly changing environment -failure to implement owing to lack of time or resources -failure to monitor progress -lack of support from higher ups

Summarize entry level pharmacy knowledge and skills required

-foundational administrative knowledge -managing medication use systems -problem solving -patient advocacy -communication -leadership and innovation -professionalism -organizational culture -strategic planning

different types of product offerings

-goods (physical things like drugs or medical equipment) -services (vaccinations, bp readings, etc)

Describe and apply the "four Ps of modern marketing"

-people -processes -programs -performance

6. Define processes and operations

-plan optimal organization structure, staffing levels, personnel requirements and reporting relationships -plan physical structure, equipment and resources

List and explain 5 purposes of budgeting systems

-planning -communication and coordination -allocating resources -controlling profit and operations -evaluating performance and providing incentives

Describe the importance of marketing control

-process of measuring and evaluating outcomes of marketing strategies (used to track performance and compare to expected performance to make corrections to mix or goals)

Standard of quick ratio

1

Discuss important components of a business plan

1. define business or program 2. conduct market research and analysis 3. identify the target market 4. conduct competitor analysis 5. assess clinical and quality requirements 6. define processes and operations 7. develop marketing strategy 8. develop financial projections 9. identify action plan 10. assess critical risk and opportunities 11. establish exit plan

Describe general process common to all types of planning

1. define or orient planning process to singular purpose or result 2. assess current situation 3. establish goals 4. identify strategies to reach goal 5. establish objectives that support progress towards goals 6. define responsibilities and timeliness for each objective 7. write communication plan 8. monitor progress towards meeting goals and objectives

Highlight examples of strategic planning in pharmacy organizations

1. preplanning phase -planing for planning (objectives, people, where, time) 2. planning phase -future destination and current recognition, determine all routes and milestones 3. post planning phase -communicating plan, implementing plan, monitoring progress and results

Importance of budgeting product lifestyle costs

1. product planning and concept design 2. preliminary design 3. detailed design and testing 4. production 5. distribution and customer service

Identify key steps in PLUS model for ethical decision making (EDM)

1: define problem 2: seek assistance and support 3: identify alternatives 4: evaluate alternatives 5: make decision 6: implement decision 7: evaluate decision

Current ratio goal

2-5

Short range budget

<1 year

Long range budget

>1 year

Asset

Anything of value that is owned

loyalty

Faithfulness and devotion to a person or an ideal

Mass marketing v market segmentation

Market segmentation: process of dividing the market into districts/ meaningful groups Mass marketing: everyone

Return on equity (ROE) =

Net Income/Total Equity

Compare and contrast the fundamental objectives of a balance sheet and income statement

Obtaining financing making investments conducting profitable operation

PLUS stands for

P- policies (consistant with organization's policies) L- legal? U- universal (does it align with universally adopted principles and values of organization?) S- self (does it satisfy my definition of good, right and fair?)

Differences between PLUS and Markula framework

PLUS incorperates ethical filters Markula points to classic philosophical theory to evaluate actions

Apply marketing-mix components

Product Price Place -intensive (services available from a large number of locations) v exclusive (services available at select few locations) promotion

What is SWOT and which are internal and external

S- strengths W- weaknesses O- opportunities T- threats S & W are internal O & T are external

Describe what is meant by sensemaking as it applies to problem solving

Sensemaking- cognitive process associated with making sense of situations -cognitive process that occurring prior to EDM, constraining factors can change mental models

Behavioral implications of budgetary slack and participative budgeting

Slack: padding the budget participative budgeting: involve employees so you have "our budget"

Differentiate a vision statement from a mission statement

Vision: concise, make people think and motivate them -what they want to be at some point mission: creates sense of purpose -what it is or does

5 dysfunctions of a team

absence of trust inattention to results fear of conflict lack of commitment avoidance of accountability

Discuss the purpose of marketing within a business

allows businesses to get, keep and grow customers through superior customer value therefore keeping a business open

5. Assess clinical and quality requirements

analyze applicable regulations and requirements plan on how to comply with regulations and requirements

Assets =

assets = owner's equity + Liabilities

Identify key steps in Markula for ethical decision making (EDM)

assumes ethics refers to standards of behavior that tells us how human beings should act -key assumption is what ethics is NOT: not feelings, religion, following the law, following culturally accepted norms, science

Relationship between a balance sheet, an income statement, and a statement of cash flows for a fiscal year

balance sheet: snapshot of firm's investments (assests) and how they are financed (liabilities and equity) income statement: connects beginning and ending balance sheets in any given period by providing the details of operating activities Statement of cash flows: connects beginning and ending balance sheets by indicting impact of investments, financing and operations on cash flows

Similarities between PLUS and Markula framework

both begin with esstablishing awareness of problem as first step, rely on consultation, incorporate moral reasoning activities

What type of planning? short term, can be used to make decisions to start new business, expand business or terminate -determines feasibility of specific business or program, used to make decision about investing in and moving forward with program

business

Marketing is what?

choosing target markets and through a set of processes growing customers through increased customer value

What type of planning? short to long term, scope is specific to particular situation that may occur and viewpoint is both external and internal -provide fallback option or direction should original strategy fail or something unexpected occur

contingency

Rolling budgets

continuously updated

Inventory=

cost of goods sold / average inventory

Receivables =

credit sales / average account receivable

What type of planning? mid term, scope specific to particular situation that may occur, viewpoint is both internal and external

emergency

Beginning concepts of leadership

emotional intelligence rapport building and networking identify individuals with complementary traits -identify shared values -be intentional

Explain the relationship between empowerment and delegation with problem solving

empowerment and delegation help the organization succeed via success of others, helps those individuals grow and reach potential, is essential to leadership, help impart many skills -can only happen since a variety of elements are present -empowerment translates into ability to address situations as they arise

Define the concept of exchange and its importance to marketing

exchange is a process of obtaining a desired product from someone by offering something in return ex: obtaining service/profit by marketing and offering customers deals or exceptional customer service

11. establish exit plan

formal protocol for determining when and why a decision would be make to terminate program

1. Define business or program

formalize definition of business -mission statement -specific statement to purpose

Financial planning models help with

helps cope with uncertainty and "what ifs"

Capital budget

includes buildings and equiptment

Benefits of good business in pharmacy

increased volume increased availability of clinical services -increased profit -improved care high quality of care to keep patients/business and stay in business

Distinguishing services from physical goods

intangible, variable, inseparability, inventoried, interaction

Management or leadership? -determines vision for team -guide individuals towards vision -inspire and motivate -direction

leadership

Analyzing a target market

looking at selected group and determining best goods and services they will need/want and how to cater to it

Explain the concept of relationship marketing

make realistic promises in the first place and allow employees and systems to keep and deliver on promises to customers -developing relationships is important!

Management or leadership? -achieve goals and objectives -plan -problem solve through policy/process -control resources, fill positions

management

Identify and explain dimensions of management process

management activities, management resources, management levels

Explain the relationship between financial planning and master budget

master budget is a comprehensive budget financial planning is determining how to allocate budget

Distinguish between the micro and macro environment of an organization

micro: structure, resouces, culture, personnel macro: economics, technology, nature, politics

Financing

money needed to acquire assets

Liabilities

money owed

Net profit margin =

net income (after tax) / total sales

Return on Assets (ROA) =

net income/average total assets

Manager

one who performs management activities

What type of planning? -short term, scope is specific to immediate actions that need to be taken to move organization forward, viewpoint is internal (day to day accomplishment of tasks) -ensures organization is prepared, preforms immediate taskes and objectives to meet goals and strategy of organization

operational

What type of planning? mid term, scope is specific to structural aspects of organization including: divisions, reporting relationships, coordination, control, viewpoint is internal -ensures the an organization is organized appropriately to meet challenges of future, key elements include reporting relationships, definitions of responsibilities and authorities

organizational

What are the 3 management levels?

organizations management interpersonal management self-management

Owner's equity

owner's own funds

What are the 5 management resources?

people time materials money information

satisfaction

person's feelings of pleasure or disappointment resulting from comparing a product or services performance to expectations

Identify limitations to planning

planning is guesswork plans are only as good as data and information that go into them not substitute for action

What are the 4 management activities (with explainations)

planning: course of action needed for goals (consider external and internal environments) organizing: arrange activities and resources needed for goal leading: "doing" evaluating: review process made towards goal repeat as needed

Describe the basic financial and productivity reports used in hospital pharmacy practice

primarily comprised of drug costs and labor "cost centers"

orientations towards the marketplace that organizations might take when conducting marketing activities

production concept (product availability and low cost) product concept (high quality products) selling concept (high promotional efforts) marketing concept (focus on customer needs) customer concept (individual products and services) societal marketing concept (guided by social and ethics) holistic marketing concept (combo)

Discuss importance of accounting principles in pharmacy practice

provides the framework for critical decision making processes essential for success -process to determine how they finance activities and use their money

Describe the purpose of "business plan" planning

purpose is to provide data and proposed actions needed to answer a business question -exploring business concept--> determines if idea merits the development of a complete business plan -literature search to see what has been done -consider market (demand, audience and stats) -revenue/potential cost -address specific goal in plan

Describe the purpose of strategic planning and illustrate the specific steps to develop a strategic plan

purpose: to ensure the organization is doing the right things now and in the future -selecting goals -determining policies and programs to achieve set goals -ensure policies and procedures are implemented

Quick ratio=

quick assets/current liabilites

Describe the difference between rationalist and nonrationalist approaches to EDM

rationalist: looks at reasoning leading to judgement, private, individual reasoning nonrationalist: moral reasoning happens after judgement, emphasis places on social/cultural influences

What is planning

represents the purposeful efforts taken by an organization to maximize its future success

Purpose of the Integrated EDM model

resolve conflict between rationalist and nonrationalist approaches -awareness of problem followed by judgement phase leading to intention and behavior, reflects that everyone acts differently to different problems

What type of planning? mid term, scope is specific to resources defined in plan, viewpoint is internal (resource needs of organization) -ensures the resources needed to achieve the goals and strategy of organization, can be comprehensive or can focus on specific type

resource

Activity based costing system

resources --> activities --> cost objects

Activity based budgeting

resources --> activities --> forecast

Describe the utility of financial ratios

see profitability, liquidity and turnover

which level of management level is more frequent?

self management

Describe and apply the "marketing mix"

set of tools and organization uses to pursue its objectives with respect to its target market -product -price -place -promotion

Financial budget

shows financial resources

Budgeted financial statments

shows the 3 financial statements at a set time

Operational budgets

specify how operations will be carried out to meet demands for goods and/or services

expectations

standards used by customers when evaluating products or service

Sales revenue budget

starting point for any master budget -based upon sales forecast

Type of planning: long term, scope includes all aspects of organization, viewpoint is external (how organization interacts with or controls environment) -ensures organization is doing the right things, provides framework for more detailed planning and day to day decisions

strategic planning

Wants v needs v demands

want- a desire for a specific satisifier of a need need- state of felt deprivation, basic human requirement demands- want that is backed by ability to pay