Management - Exam 2

What is found in the business description & background section (5)?

- Name - Rationale for the program - Mission Statement - Vision Statement - Value Statement

Where is the exit strategy located in the business plan?

In the financial plan

What is the purpose of the marketing strategy sub-section?

This section of the plan presents the pharmacy's strategy for promoting the service to the inteded target market.

What is the approximate length of the executive summary for a business plan? a. 1 to 2 pages b. At least 10 pages c. 30 to 40 pages d. No particular length is customary

a. 1 to 2 pages

Which financial document shows how much is owned and owed on a given date? a. Balance sheet b. Capital expense budget c. Profit and loss statements d. Cash flow statement

a. Balance sheet

The point in time when revenues meet expenses is called the: a. Break-even point b. Tipping point c. Balance point d. Projection point

a. Break-even point

In general how often should a business plan be updated? a. Monthly b. At least once a year c. Every 5 to 10 years d. Never

b. At least once a year

In financial terms, variable costs include: a. Training and pharmacy design change expenses b. Costs that fluctuate as the volume of service delivery changes c. Salary, utilities, insurance premiums, and building rent or mortgage d. The costs of lost opportunities

b. Costs that fluctuate as the volume of service delivery changes

Which part of the business plan provides a clear and succinct description of the service that can be stated in about 1 minute? a. Executive summary b. Mission statement c. SWOT analysis d. Title page

b. Mission statement

An example of a tool for market analysis is: a. A promotional flyer b. Pharmacy records c. A presentation at the health fair d. A patient satisfaction survey

b. Pharmacy records

Which of the following statements about writing business plans is true? a. All successful business plans follow the same format b. Student pharmacists or technicians can assist with gathering information for the business plan. c. A table of contents for the business plan should be listed on the title page. d. A SWOT analysis is necessary only if there are other pharmacies in the area that provide a similar service.

b. Student pharmacists or technicians can assist with gathering information for the business plan

The business plan is used ____(externally or internally)___.

both

In a business plan, an exit strategy describes: a. How the pharmacist closes up the pharmacy at the end of the day. b. The process used when a pharmacist's employment is terminated c. A contingency plan in the event that the service fails d. A process for terminating contracts

c. A contingency plan in the event that the service fails

When performing a market analysis, which of the following is an example of an intangible strength? a. New counseling area b. Automated dispensing system c. Good reputation in the community d. Well-trained pharmacy technicians

c. Good reputation in the community

What is found in the operational structure and management section (8)?

- Organizational structure - Staffing - Workflow - Hours of operation - Equipment and resources that will be used - Licensure and additional regulatory or clinical requirements = Insurance = Security

How many years worth of finances is predicted in a business plan?

3-5 years

Where would the vision and mission statement be found in the business statement?

Business description & Background

Which type of statement should pharmacists write to briefly describe a new service, what it intends to accomplish, and for whom it will be provided. a. Pro forma statement b. Marketing statement c. Mission statement d. SWOT statement

c. Mission statement

Which of the following statements about writing business plans is true. a. Pharmacists are advised to hire outside consultants to write their business plans b. A business plan is recommended only for pharmacists who require outside funding. c. Pharmacists should choose a conducive time and place to work regularly on the business plan d. Business plans should never be shared with outside reviewers, because they are unlikely to understand the service.

c. Pharmacists should choose a conducive time and place to work regularly on the business plan

A business plan should be written at least how long before the services is implemented? a. 1 month b. 2 months c. 4 months d. 6 months

d. 6 months

Approximately what percentage of new businesses fail to survive until their fifth anniversary. a. 10% b. 20% c. 60% d. 80%

d. 80%

Approximately what percentage of business failures are estimated to result from managerial weakness? a. 12% b. 55% c. 73% d. 98%

d. 98%

The mission of a company is used ____(internally or externally)___.

Externally

Where would the SWOT analysis be found in the business plan?

In the Market analysis sub-section (Inside of the Marketing plan section).

The strategic plan is used ___(externally or internally)___.

Internally

The vision statement of a company is used ___(internally or externally)___.

Internally

What are three functions for which a business plan can be used?

It is a communication tool, a management tool, and a planning tool

Which of the following would generally be located in the appendix of a business plan? a. Letters of support from potential business partners b. The marketing plan c. Income and expense statements d. Revenue projections

a. Letters of support from potential business partners

In a business plan, a key indicator is: a. Used to define and measure progress toward goals of the service b. A tool used to highlight essential components of the business plan c. The expected amount of time required before the service becomes profitable d. The result of the SWOT analysis.

a. Used to define and measure progress toward goals of the service

Strategic plan vs Business plan: Strategic plan answers __a__ and __b__ and the business plan answers __c__ and __d__

a. how b. when c. what d. how

What are the uses of the business plan after it is written?

- Bank loan

What are five reasons you may make a business plan?

- Helps clarify idea (does it make sense? is it feasible?) - Helps focus actions - May be needed to secure financing - Assists in training and guiding employees - Doing the "right" thing "right"

What are the financial statements and projections that are usually included in a business plan?

- Income and expense statements - Balance sheets - Cash flow statements - Start up costs - Fixed costs - Variable costs

What are the five elements of a good mission statement?

- Intended costumers - Core values - Services and products - Goals and philosophy - Desired public image

What is found in the market analysis and strategy section (5)?

- Location analysis - Competition - Demographics and trends - Products and services - Advertising and promotion

What is found in the Timetable section (3)?

- Plan for implementing the program - Short term and long term goals - May also include responsibility assignments

What is the purpose of a business plan?

- Prepares for implementation of a specific product or service - To proved data and proposed actions necessary to answer a business question - To project future risks and benefits of a proposed new business venture

What is the market analysis section about?

- SWOT - It should provide information about unmet health needs in the community that the new service can fulfill - Information on the pharmacy's competitors and an explanation of how the service will stand out from others in the marketplace. - Identify other partners who may have an interest in the planned service.

The strategic plan answers what four questions?

- Where am I now? - Where do I want to go? - How am I going to get there? - How will I know when I arrived?

In the pharmacy environment, what three related trends are shaping the market today?

-Health plans -Providers -Patients

What are the 10 core components of a business plan?

1. Cover and title page 2. Executive summary 3. Table of contents 4. Business description --> AKA Business description and background 5. Service description 6. Marketing plan (market analysis and marketing strategy) (AKA risks and opportunities) 7. Financial projeecionts 8. Operational structure and management (this can be separated into two different sections 9. Timetable: Milestones, schedule, and action plan) 10. Appendices

The strategic plan lasts for how long?

3-5 years

The business plan should be developed at least ________ before implementing the new service.

6 months

The acronym SWOT stands for: a. Sales, workflow, outcomes, therapeutics b. Services, work plan, operations, treatments c. Strengths, weakness, opportunities, threats d. Skills, work environment, objections, training

c. Strengths, Weakness, Opportunities, Threats

Which section of the business plan is often compared with the abstract in a medical journal article? a. Growth plan b. Title page c. Mission statement d. Executive summary

d. Executive summary

A description of strategies to ensure adequate staffing and efficient workflow should be located in which part of the business plan? a. Description of the business b. Description of the service c. Marketing strategy d. Operations

d. Operations