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
