E-Commerce Supply Chain Strategies

This assignment focuses on the critical role of supply chain strategies in driving e-commerce success. It requires an in-depth exploration of how various supply chain elements, such as logistics, inventory management, and order fulfillment, influence the overall performance of online businesses. Students are expected to analyze key considerations for optimizing supply chains in the context of e-commerce, including factors like customer expectations, delivery speed, and cost efficiency. The assignment also encourages the examination of best practices employed by successful e-commerce companies to effectively manage their supply chains and achieve competitive advantage.

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Executive Summary
In the below presented analysis the business plan of Herbal company has been presented. The
main objective of the development of the business plan is to establish the market for the new
product of the entity that is the painkiller which has been manufactured for curing the disease of
cancer. The business plan comprises of various segments which are the most integral apart of the
plan and also significant for the firm. The first part involves the description of the company and
the product. This offers a brief view over the product and the entity. The next segment consists
of the statement of resilience which is the key performance measures and the market analysis.
The next is the marketing activities executed for developing the market for the entity. The nes=xt
are the operations which forms the core functionalities within the organizational structure.
Further analysis comprise of the legal aspects and the statements which are required to be
followed by the entity. The next part demonstrates the organizational and the legal structure of
the enterprise. Moreover, the further part includes the financial statement or the budget which
has been pre-determined and also a critical analysis over the risk which can be faced by the
entity. The end part of the business consists of the exit strategy which can be considered as the
back-up plan for the entity. And last are the timelines and the deadlines which are set-up for the
completion of the business.

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Contents
Introduction.................................................................................................................................................4
Business description....................................................................................................................................4
Statement of resilience................................................................................................................................5
Key performance measures......................................................................................................................5
Market analysis........................................................................................................................................5
Marketing....................................................................................................................................................6
Target market..........................................................................................................................................6
Market size..............................................................................................................................................6
Competitive analysis...............................................................................................................................7
Estimated market share............................................................................................................................7
Operations...................................................................................................................................................8
Location of business................................................................................................................................8
Advantages of location............................................................................................................................8
Zoning issues...........................................................................................................................................9
Operations...................................................................................................................................................9
Tax implications......................................................................................................................................9
Transportation and logistics analysis.......................................................................................................9
Legislations/compliance............................................................................................................................10
Management..............................................................................................................................................10
Profiles of key management..................................................................................................................10
Legal structure of the entity...................................................................................................................11
Financials..................................................................................................................................................11
Critical risk analysis..................................................................................................................................12
Identification of problems and mitigation strategies..............................................................................12
Environmental risk................................................................................................................................13
Exit strategy...............................................................................................................................................13
Plans for investors to exit the business within their timeframes............................................................13
Plans for transferring asset at point of exit.............................................................................................13
Continuity of business strategy..............................................................................................................13

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Identification of successors....................................................................................................................13
Project plan/Timeline................................................................................................................................14
Statement of objectives..........................................................................................................................14
Project timing plan................................................................................................................................14
Deadlines and milestones......................................................................................................................15
Conclusion.................................................................................................................................................15
References.................................................................................................................................................15

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Introduction
The road-map or guide for the business which aids in outlining the desired objectives and goals
and also offers details to the plan which will assist in attaining the determined targets. A business
plan has been considered as a formal plan that is developed by business entity and this has to be
done when the business is planning or expecting to launch a new business or idea in the market.
The concept of a business plan is a broader term which includes data on varied range of grounds
and aspects such as; goals and objectives, operations and reasons etc. These all the aspects are
associated to the business organization and the new business idea (Armstrong et al., 2015).
Developing a business plan has been considered as one of the basic requirement for launching
the new products and services in the new market or the regions. Modernization and globalization
are the revolutionary concept which has brought an increase in the use of the internet has been
observed and which has brought a number of technology advancements in the business
environment. Moreover, a business plan has been also considered as a written description of the
business’s future. This document describes what the plan needs to do and how to do. The
document can also be referred as the blueprint for how the entity will operate the business. There
are various purposes for developing a business plan such as seeking the investors for getting a
loan for the company and other types of benefits will also be served to the firm (Baker, 2014).
The below executed is the business plan which has been summarized and will be developed for
the Herbal company which is a drug manufacturer in Abu Dhabi.
Business description
The chosen business organization for the below presented report is Herbal company in Abu
Dhabi. The business corporation is a pharmaceutical manufacturing entity which has been
involved in producing life-saving drugs for the needed one (Chaffey, 2015). The business entity
has been majorly and currently observed to be engaged in the man8ufacturing process of a pain
killer which is known as Herbal. On the basis of the research it has been noted that during the
clinical trails the medicine Herbal found successful in diminishing one type of cancer of lab rat
by 75%. The owners of the company carried out more research and through which they observed
that the drug is working and it completely cured the lever cancer of the lab rats. The discovery
has been considered as one of the biggest discoveries for the business organization and it has also

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been assumed that this discover will built step ahead for the success and developments of the
entity. Now the business corporation has been expecting to try Herbals on humans. This has been
considered as the main objective for the development of the business plan. The business entity
has estimated a budget of about AED 3 Million and for which the owners have decided to take a
personal loan which will be spend on refining the new discovered drug so as to enhance the
effectiveness of the drug to target organ cancer (Clarke et al., 2015). The business entity has
been planning for the additional trials, refinement, regulatory, approvals, and marketing. Another
objective of the has been determined by the business corporation is that the business entity has
planned to attain a target of 2 Billion dollars in sales that to with a profit margin of 100%.
Statement of resilience
Key performance measures
The below mentioned are the key performance measures which are dictating the steps which has
been taken by the entity for bringing an enhancement in the performance and productivity:
Generating value throughout the product life cycle: Due to the generic IP challenges and the
intensification in the competitive environment within the industry has made attainment of this
measure harder comparatively (Combs Jr and McClung, 2016). One of the main boost which is
termed as the regulatory incentive which has been considered as liable for lengthening the
periods of market exclusiveness in the most capable therapy aspects, which is led by biologics.
Pharm Exec's has conducted an Industry Audit of 27 big members in biopharma industry and
through this the prioritization of the value agenda has been reflected. This will make the business
entity to gain a higher average return on invested capital (ROIC). And this is the reason for
which this key performance measure has been considered as a critical differentiator of success.
Market analysis
Market trends: On the basis of the close study on the pharmaceutical industry it has been
observed that the business industry has been experiencing a rapid expansion. And this hike has
been observed due to the rise in the demand of the products by the aging population suffering
more from chronic illness (Dickinson and MacKay, 2014). Moreover, there has been an increase
in the opportunities for product development due to the regulatory provisions of the Patient
Protection and Affordable Care Act made by the governing bodies and which has been

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expanding consumer access to prescription insurance (Global Industry Analysis, Inc 2015). The
industry revenue growth has been expected to be outpaced and which will bring growth for
Herbals.
Marketing
The below executed analysis has been executed for determining the components of marketing
which forms the most integral part of the business environment of “Herbals”.
Target market
In case of the pharmaceutical products, this industry has been benefited as there is wide range of
available consumers (Hill, Jones & Schilling, 2014). And this is the reason the target market is
not restricted for Herbal Company. On the basis of the conducted research it has been analyzed
that, as the business entity is involved in manufacturing of generic drugs and also marketing and
distributing of the same is done the below mentioned is the list which has been considered as the
targeted segments of the consumers:
 Organizations involved in providing health facilities
 Hospitals
 Wholesalers who deal in pharmaceutical products
 Retail pharmacy and medical stores
 Individuals who are in the location of the target market
Market size
The UAE has been continuing to be the strongest in the economy. Healthcare, Regulatory and
Reimbursement Landscape - United Arab Emirates is 266 pages, 2014 market research report.
On the basis of this research it has been concluded that the United Arab Emirates (UAE) has
been considered as the second largest industry in Saudi Arabia in terms of pharmaceutical
investment in Middle East countries (Lam and Harker, 2015). Moreover, there has been
developments of tax-exempt drug development zones which are aiding in ensuring excellent
growth and development prospects. It has been also observed that the medical tourism and
according to the straightforward regulatory guidelines and hike in the healthcare expenses has
been considered as the prime factors which are aiding in driving the UAE's pharmaceutical
market, and this is the forecast which is worth $3.7 billion by 2020.

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Competitive analysis
On the basis of the close study it has been observed that the pharmaceutical manufacturing
company has undergoing under a high intensification of competitive environment over the last
decade (Lu and Liu, 2015). Being highly creative, proactive and customer centric are some of the
key factors which have been considered as the most relevant components for surviving in this
business environment. Herbal should be ready for the stiffer competition and also should be
favorable prepared for facing the other generic pharmaceutical manufacturing companies.
Estimated market share
On the basis of the research it has been estimated that the pharmaceutical industry shares
approximately a market of value of worth $3.7 billion by 2020. On the basis of the research it has
been concluded that the nation is looking forward towards building on the foundations in the
sector of life sciences industry (Abdulaziz 2016). It has been estimated that the sector will
present a hike in growth in the coming years and that to with huge amounts. On the basis of the
report presented by BMI The pharmaceutical sector has been expected to increase and reach
Dh69.3 billion by 2019, representing 37 per cent growth from 2014’s Dh50.7bn. Moreover, it
has also been observed that the industry has become a hotbed for the new entrants, mergers and
joint ventures by taking advantage of the innovative new products.
Figure 1Estimated market share
(Source- Estimated market share of pharmaceutical industry UAE, 2017)

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Operations
Operations are the functionalities and the business practices which are executed by the business
entity. The below mentioned are some of the key factors which are considered the most relevant
factors contributing in the growth and success of the business plan:
Location of business
Locations are the places through which the business entity operates the business and carry’s out
other business functionalities (McKeever, 2016). For instance, the manufacturing process, the
packaging and distribution of the goods and services are some of the core functionalities and the
same are required to be executed. For the same the business firm requires a location which is
equipped with all the basic amenities and facilities. There are number of other factors which are
required to be considered as relevant while deciding for a location for a entity. In case of Herbal
Abu Dhabi, the business entity has been developing and expecting to start a new business and for
the same they are in a need of a location (Myerson 2016). The location should be well versed
with all the basic amenities such as drinking, electricity etc. The location should be so chosen
that it should be easily accessible to the suppliers and also the distribution of the goods should be
made easily available. A detailed demographics analysis should e executed so as to analyze the
people in the area. The target market should be considered while selecting the location.
Moreover, the risks and the challenges should also be considered and appropriate provisions
should be made for them (Pardalos and Tsitsiringos, 2013).
Advantages of location
The geographical conditions are very much suitable for the manufacturing of the medicines and
pharmaceutical products. And this will be considered as one of the biggest location based
advantage for the business entity which will be proven very much beneficial for the firm. The
geographical conditions will be proven very much supportive for in the manufacturing process
which in-turn will be reflected in an increase in the sales and profitability (Renton et al., 2015).
As mentioned in the scenario the entity is based in Abu Dhabi which is one of the biggest
tourism destinations and which becomes the reason for an increase in the illness which comes
with the coming travellers. This generates a high demand for the products. And hence Abu Dhabi
is one of the favorable locations for the Herbal Company.

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Zoning issues
The zoning procedure has been considered as one of the complex procedure which comprises of
number of formalities (Scarborough, 2015). These formalities are time and money consuming
and the same can be counted under the list of the zoning issues. The business enterprise will have
to follow lengthy procedures. There are various set of rules and regulations, for instance,, Herbal
will require environmental clearance certificate from the authorities which is a tough task. The
report should be positive for the approval (Yu et al., 2016). There are number of restrictions
which will be applied such as addition to meeting local building codes, minimum setbacks at the
front should be observed, side, and rear of the structure; maximum floor space in relation to land
area; maximum heights; minimum provisions for parking are some of the factors which are
required to be considered so as to avoid the restrictions.
Operations
Tax implications
On the basis of the conducted research by Ameinfo (2017) it has been estimated that from
January 1 2018, the UAE will be recognized as one of the 150 countries to implement value
added tax (VAT). As the economy has been making stepping ahead towards establishing the
business on global level and also wants to secure a position of an international leader in the
healthcare sector (Cool & Schendel, 2010). The below mentioned are some of the impacts of the
VAT on the economy:
 A zero rate VAT has been applied to the healthcare and education sector.
 The VAT will bring a hike in the cost of living
 Governing authorities has imposed any specific guidelines for VAT on residential and
commercial properties
 Moreover, exempt has also been offered to healthcare, education, 100 food items and
social services
Transportation and logistics analysis
On the basis of the analysis it has been noted that with the real developments crosswise over
land, ocean and air associations as of now under way, Dubai's transport sector keeps on driving a
great part of the emirate's monetary and worldwide achievement (Dant, 2009). The

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administration is completely dedicated to the ceaseless change of this foundation, with new
guidelines for open private associations intending to upgrade conveyance in the area. In the
interim, Dubai winds up in an undeniably aggressive provincial monetary condition. The present
stoppage in worldwide development, falling oil and gas costs, provincial vulnerabilities and a
reinforcing dollar are additionally all influencing the emirate and its vehicle segment. However
Dubai gets itself interestingly set to confront these difficulties, with certainty high that it will
keep on being the area's pre-famous transportation center point.
Legislations/compliance
The below mentioned are names of the legislations which will be levied on the Herbal company
while operating the business in Abu Dhabi:
1. Federal Law No. 4 of 1983 (Pharmaceuticals Law 1983) governs:
 Pharmacists.
 Establishments of Pharmaceutical.
 Import, production and distribution of pharmaceutical products.
2. Federal Law No. 14 of 1995 (Counter Measures against Narcotic Drugs and Psychotropic
substances) which regulates the import of medical products within the UAE.
3. Federal Law No. 5 of 1984 which has been noted to be dealing with regulating the
licensing and registration of physicians, pharmacists and other associated healthcare
experts within both public and private healthcare establishments.
Management
Profiles of key management
The managerial structure or the key profiles of Herbal Company are mentioned as below:
 Board of Directors
 Managing director
 Chief Executive Officer

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Legal structure of the entity
Figure 2 Managerial structure of a company
(Source- Managerial structure of a company, 2017)
The board of directors is at the top managerial authorities and is leading the structure. The next
level comprise of the CEO Chief Operations Officer which are held liable in handling all the
operations within the business organization (Dentchev, 2009). The next hierarchy is of the
various divisions or the departments where the operations and the core functionalities are
executed.
Financials
Start-up Expenses Amount
Legal $50,000
Stationery expenses $5000

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Web Development $15,000
Start-up Assets
Required Cash
Long term Assets
Current Assets
$2,05,000
$25,000
$0
Total Assets $2,30,000
Total fund Requirements $3,00,000
Critical risk analysis
Identification of problems and mitigation strategies
The below presented are some of the issues or the risks which can be faced Herbal while
operating business in Abu Dhabi:
Rising customer expectations: The harshness in the commercial environment has been increasing
as the healthcare payers has started imposing new cost restrictions on the companies and also
scrutinize the value medicines offer more carefully (Drummond, Ensor & Ashford, 2012). New
therapies and medications are demanded and which are clinically and economically beneficial.
Mitigation strategies: The below mentioned are the steps which can be termed as the mitigation
strategies which can be adopted by the business entity while facing the various operations within
the organization (Farahmand, 2011).
 A measurement should be kept over the strength of the quality management system and
this should be done against the regulatory standards and verification of the company-wide
implementation.
 A partner should be selected who have a risk management plan and which should align
with the company’s approach (Glowik & Smyczek, 2011).
 A reduction should be brought for the risks of the future quality issues by making use of
the past performances for evaluating the manufacturing capabilities.

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Environmental risk
The natural exposure courses of pharmaceuticals into the environment are producing units and
healing center effluents, land applications (e.g., bio solids and water reuse) and so on. However;
sewage treatment administrations are not generally effective in expelling the dynamic chemicals
from squander water (Gruca & Rego, 2009). Thusly, pharmaceuticals discover their way into the
oceanic condition, where they straightforwardly influence sea-going creatures furthermore, can
be fused into natural ways of life. For instance, on the basis of a research it has been observed
from a current report, the phenomenally abnormal states (mg/L) of a few medications were found
in the effluents from neighborhood wastewater treatment plant close Visakhapatnam in India.
Exit strategy
Plans for investors to exit the business within their timeframes
The below described are the exit strategies which can be adopted by investors of Herbal:
Liquidate: In this strategy the business entity and the owners are required to sell everything at a
market value. The company should make use of the revenue earned after selling everything in
making the payments of the remaining debts (Hoskisson, 2009). This has been considered as a
simple approach which is likely to reap the least revenue as a business exit plan. Since, the
entity will be simply matching the assets with the buyers there will be eagerness while selling
and wich wikll be proven disadvantageous for the firm.
Plans for transferring asset at point of exit
This point of the plan comprises of the transferring of the assets which are available with the
entity. In other terms it can also be termed as the change of the ownership (Jones & Hayes,
2008). This process will make the transfer of the ownership under which an agreement or a
contract will be signed between the two owners. The possession of the assets and the property
will be transferred.
Continuity of business strategy
This will involve of the approaches which can be adopted by the business entity for making the
business run or in a running position. This approach can also be termed as the Business
Continuity Strategy which has been considered as an integral phase within the BCM planning
process. The approach is a conceptual theory which must be executed between the occurrence of
a disaster and the time when the normal functionalities are executed.
Identification of successors
 The below described are some of the points which can be considered as relevant while
identifying the successor for the business entity:
 Identification of a potential partner who can make appropriate investments for running
the business

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 A BEE partner can be considered an integral component who have the skills which will
influence the future feasibility of the business
Project plan/Timeline
Statement of objectives
 The prime objective of Herbal is to bring improvements in the sustainable availability
and access of economically affordable medications.
 Harmonizing a standard treatment guidelines and lifesaving drugs
 Offering the individuals in UAE, with a varied range of lifesaving drugs so as to keep
them healthy and safe from various chronic diseases (Joshi, 2009)
 Facilitating trade pharmaceuticals with other national and international business partners
 Development of a safe and healthy environment in Abu Dhabi
Project timing plan
Activity Starting date End Date Manager Concerned
Department
Business plan
formation
1/1/2018 1/4/2018 Marketing
Manager
Marketing
Department
Office set up 1/4/2018 1/7/2018 - Owners
Website
Creation
1/7/2018 1/10/2018 Managers Information
Technology
department
Hiring of the
people
1/10/2018 1/12/2018 HR manager Human resource
department

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Deadlines and milestones
The above presented is the estimated deadlines which are required to be attained by the business
entity within the given timelines which has been determined. The deadlines will aid the entity in
providing a diversion to the efforts and will also provide a speed. This will increase the
efficiency and effectiveness in the attainment of the pre-determined goals and objectives.
Conclusion
In the limelight and after summing up the of the above executed report it has been analyzed that
the Herbal company which is a pharmaceutical brand name in Abu Dhabi is planning to develop
a business and introduce a new product. The new product is a pain killer which is expected to
cure the disease of cancer. The business plan has been made focused on developing the business
and establishing the new product in the markets of Abu Dhabi. The report comprises of various
segments which will be considered as an integral part in the development of the product within
the new market regions. The business plan will aid the entity in analyzing the market and all the
other required aspects which are considered as relevant for the development of the concerned
product.

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