Financial Strategy for Pharma Technoline

This project report shall be focusing on the formulation of a new business plan which is opening of a new online medical store. Pharma Technoline shall be providing online medicines with smart packages of healthcare. The plan shall be constituting the business strategy as developed, the objectives, the mission statement etc.

FINANCIAL STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Task 1:-........................................................................................................................................3
Task 2:-........................................................................................................................................5
Task 3:-........................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10
Business Plan. 2019. [Online]. Available through:
<https://www.catalyze-group.com/service/business-plan/?utm_campaign=Business
%20plan&utm_term=Business%20plan
%20industries&gclid=EAIaIQobChMI09Xb9tvR7QIVGDErCh30QwZpEAAYASAAEgKk1vD
_BwE>...........................................................................................................................................10

INTRODUCTION
This project report shall be focusing on the formulation of a new business plan which is opening
of a new online medical store. Pharma Technoline shall be providing online medicines with
smart packages of healthcare. The plan shall be constituting the business strategy as developed,
the objectives, the mission statement etc. It shall be reflecting that the focus of the business
remains to perform its corporate social responsibility. It shall be highlighting the major revenues
and expenditure as incurred within the financial year and reports prepared accordingly. It shall
also disclose the funding structure used by the company.
MAIN BODY
Pharma Technoline is the new establishment in Northampton, UK which is providing online
medical supplies. Since online medication requirement is the need of the hour in the pandemic
times so a business facilitating so has been developed. It shall provide a smart package including
online medicines, health insurance and services of certain tests (Belew and Elad, 2020). The
concept is defined by the company's tag line “Miles apart yet healthy and safe”. It ensures health
and safety for the citizens and making the country a better place to live.
Task 1:-
Business Strategy for Pharma Technoline
Pharma Technoline shall be providing online services for medication. Its product shall be a smart
package involving minimal charged consultation and prescription, ordering medicines, certain
tests available at doorstep and medical insurance of limited amounts. All these services are
provided with express delivery. The company has expanded its area to online stores catering to
newer segments of the society.
Vision of Pharma Technoline says that it wants to be positioned as UK's most trusted pharmacy.
It wants to give convenience loaded with quality exceeding the expectations of the customers. It
wants that patients should not visit the pharmacy but the pharmacy to be built around them. It
sees to be huge health company providing secure services for a better tomorrow.
Mission of Pharma Technoline creates the customer centric pharmacy providing real time
services at preferred location. To ensure a successful integration of technology and the healthcare
and deliver quality services at the doorstep. As its tag line claims that customers miles apart

staying healthy and safe, so it wants to build trustworthy relations with patients and grow by
creating safety.
Objectives of the newly established business are:-
 The main objective of the online pharmacy shall be maximization of the wealth of its
shareholders. As its major funding is through the issue of shares so it needs to grow in
such a way that it ensures the maximization of the wealth of its shareholders. Profitability
shall be a shorter goal but mainly it focuses on the establishing a trusted brand to meet
the needs of their shareholders.
 Another objective of the company is building customer satisfaction and trustworthy
relations with their patients. This shall be ensured by providing 24/7 quality services at
their preferred time and location. The convenience with good health should be provided
meeting all the expectations prior hand.
 Corporate social responsibility is also the area that company wishes to cater effectively. It
has build policies so that it can fulfil its responsibilities towards the society. To be
positioned as trusted brand in the minds of people it has to excel in this sector. Sustainable growth and development is also one of its objectives which it assumes by
constant innovations and expansions, good research team and satisfied employees in the
organization.
Corporate Social Responsibility- It is one of the important sectors where company wishes to
establish a good record. It has developed various ethical, legal, social and ecological standards
that are ought to be followed by the workforce. Through this it wants to convey that it has
prioritized the society within its business structure. It has assumed this by certain contributions
like environmental friendly activities, lowering down the charges with poor sections of the
society and maintaining quality standards. This shall surely help it to grow in both the minds of
the people and the market.
Impact of objectives on developing strategies- The long term and short term objectives of the
company shall be considered to design the business strategies that the company shall follow in its
operations. As in case of Pharma Technoline it can be observed that the vision and the mission
statements are designed as per the objectives of the company (Dabora, Turaga, and Schulman,
2017). Sine the company wants to maximize customer satisfaction its mission is designed having
completely customer centric approach. Apart from that since its main objective is to maximize

the wealth of shareholders so its vision also wants to build a trusted brand in the eyes of the
people.
Business Environment
 Political- The political environment of the pharmaceutical industry is very complex as
there is strict regulatory framework and drug laws formed. To maintain health and safety
there are laws formed and also pricing pressures for the medicines (Galai, Hillel and
Wiener, 2016).
 Economical- The various economic factors are in favour of the healthcare industry as the
spending on the health is constantly increasing because of awareness among people.
 Social- The social factors like trend to stay healthy and fit, increased awareness has led to
boost in the industry. Also since the intake is artificial it require more of such healthcare.
Apart from that the population is also aging. Technological- The innovations in the technology are there, digital services etc. are some
factors which has evolved the company into online business.
Swot Analysis:
Strengths
 High degree of potential customers
 Established brand image
 Corporate Social Responsibilities
Weaknesses
 Huge funds requirement for a tech
savvy establishment
Opportunities
 Trend of customized services
 Lock down and social distancing norms
under covid-19
Threats
 Competition as posed by the existing
online medical platforms
Task 2:-
Financial forecasting of Pharma Technoline
CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH 2021
In £
PARTICULARS AMOUNT
1) Cash in the beginning of the year 1000

2) + Cash Inflows
Sales of Medicines 70000
Insurance Premium 7000
Consultation Fee 5000
Prescription Fee 3000
Miscellaneous charges 2000
Total 87000
3) - (Cash Outflows)
Inventory purchased 50000
Purchase of Intangible Assets 10000
Capital Expenses 500
Revenue Expenses 100
Tax Paid 200
Rent Paid 400
Dividends Paid 300
Wages and Salaries 700
Interest Paid 550
Insurance Expenses 335
Selling and Marketing Expenses 570
Administrative Expenses 650
Loan Repayment 90
Total 64395
4) Cash at the end of the year 22605
INCOME STATEMENT FOR THE YEAR ENDED 31st MARCH 2021
PARTICULARS AMOUNT
1) NET SALES 85000
Sales of Medicines 70000
Insurance Premium 7000

Consultation Fee 5000
Prescription Fee 3000
2) - (COST OF GOODS SOLD) 50000
3) GROSS PROFIT 35000
4)
-(SELLING AND
MARKETING) 570
5) -(ADMINISTRATION) 650
6) -(SALARIES) 700
7) -(OTHER EXPENSES) 1385
Revenue Expenses 100
Rent Paid 400
Interest Paid 550
Insurance Expenses 335
8) -(DEPRECIATION) 100
9) -(AMORTISATION) 80
10) + OPERATING INCOME 2000
Miscellaneous charges 2000
11) NET PROFIT 33515
12) -(TAX) 200
13) PROFIT AFTER TAX 33315
14) -(DIVIDEND) 300
15) SURPLUS 33015
The above two statements of the Pharma Technoline shows the financial forecasts of the
company for the coming period. It discloses the various cash inflows and the cash outflows that
can take place in the coming financial year. The income statement shows the profitability of the

company for the year ended 31st March 2021 by accounting for all the revenues and expenditures
that can be incurred by the company (Hattingh and et.al. 2020). It shows surplus of a decent
amount which helps the promoters of the company to know that the venture is profitable and
shall show lot of growth prospects.
Problems faced by the business- There are certain problems faced by the business which are
related to funding, promotional activities, competitors, tech savvy employees, developing
technologically updated systems and capturing market share.
Task 3:-
Funding Structure of the Pharma Technoline
Since 2019, the pharmaceutical industry has seen a major boom. Mainly the online pharmacies
has seen investments doubled up because of the growth potential that it carries (Koh, Singer and
Edmondson, 2019). The venture capitalists and the private equity holders have been seen
investing more in this industry seeing its growth prospects in the future. Even experts are
expecting more activities from this segment in the coming years. In the pandemic times the scope
has grown tremendously more and such online services have become the need of the hour. So
generating the funding for establishment of such company wont be a difficult task. For this
growth oriented venture the investors must be easily available which will facilitate company to
start its operations soon (McKeever, 2016.).
The various funding options are as follows:-
 Venture Capital- It is a type of financing option that the start up businesses use in order to
get funds. Venture Capitalists provide funds to the innovative business idea which has
long term growth potential. By providing monetary support they take the ownership in
the company. Equal scope of profits and losses are there.
 Raising money through bank loan- Banks are supposedly the first choice of a start up
entrepreneurs where they go for funding by raising loan. A proper report has to be
prepared of the business plan and valuation details based on which the loan is sanctioned
by the bank.
 Equity Financing- It is another major option wherein the funds are arranged by the issue
of shares of the company. The funds are provided against the ownership of the company.
They get the returns in the form of dividend from the surplus profits.

 Bootstrapping- It is also an option to fund the business in which the surplus with the
company is used in financing the operations (Mullan, 2017).
The most appropriate funding structure for Pharma Technoline shall be the one which has
minimum cost with maximum benefit. The funding structure shall be designed in such a way that
it has both debt equity mix which minimizes the risk factor and helps in retaining certain amount
of ownership with the company (Vidgen, Shaw and Grant, 2017). For Pharma Technoline the
suggested mix would 60:30 where it has 60% equity and the remaining 30% from debt. The
equity portion shall include funds that are provided by the venture capitalist who shall take
ownership in the company and funds can also be generated by selling shares to the existing
shareholders of previous branches. The debt proportion shall include the loan taken from banks.
The risk would be the rate of interest that is to be provided on the loan.
CONCLUSION
This project describes the business plan of setting up of a digital pharmacy. The business plan is
disclosing the product and services as provided by Pharma Technoline. It highlights the business
strategy formulated based on the vision, mission and the objectives of the company. Based on
these the forecast is done regarding the cash flows within the year and the financial position at
the end of the financial year. And lastly the report shows the appropriate funding structure that
the company follows to get the necessary investments.

REFERENCES
Books and Journals
Belew, S. and Elad, J., 2020. Starting an online business all-in-one for dummies. John Wiley &
Sons.
Dabora, M. C., Turaga, N. and Schulman, K. A., 2017. Financing and distribution of
pharmaceuticals in the United States. Jama. 318(1). pp.21-22.
Galai, D., Hillel, L. and Wiener, D., 2016. How to create a successful business plan: for
entrepreneurs, scientists, managers and students. World Scientific.
Hattingh, L. and et.al. 2020. Successful implementation and provision of enhanced and extended
pharmacy services. Research in Social and Administrative Pharmacy. 16(4). pp.464-
474.
Koh, H. K., Singer, S. J. and Edmondson, A. C., 2019. Health as a way of doing
business. Jama. 321(1). pp.33-34.
McKeever, M., 2016. How to write a business plan. Nolo.
Mullan, F., 2017. Social mission in health professions education: Beyond Flexner. Jama. 318(2).
pp.122-123.
Vidgen, R., Shaw, S. and Grant, D. B., 2017. Management challenges in creating value from
business analytics. European Journal of Operational Research. 261(2). pp.626-639.
Online
Business Plan. 2019. [Online]. Available through:
<https://www.catalyze-group.com/service/business-plan/?
utm_campaign=Business%20plan&utm_term=Business%20plan
%20industries&gclid=EAIaIQobChMI09Xb9tvR7QIVGDErCh30QwZpE
AAYASAAEgKk1vD_BwE>
Healthcare Projects. 2018. [Online]. Available through:
<https://www.creanovagroup.com/en/creanova/projects?
gclid=EAIaIQobChMI09Xb9tvR7QIVGDErCh30QwZpEAAYAiAAEgI7l_D_BwE>
Pharmacy Business Plan. 2020. [Online]. Available through:
<https://www.bplans.com/pharmacy-business-plan/>