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Report briefYou are required to prepare a strategic analysis related to the development of a new businessopportunity in your area of expertise/field. You are required to use theories and frameworkspresented during the module to inform your ideas and structure your thinking. This will form thebasis for your individual written assignment.Please note: markers will be focusing on how you have applied models, frameworks and theoryfrom the module rather than judging the quality of the final business opportunity.Each student will submit a 3,500-word report in which they will: describe the business opportunity and how it is consistent with their organisation’s vision andvalues describe and justify, using relevant models, frameworks and theories, the process used toreach your conclusion reflect on the process that you went through in completing the assignment and the learningachievedExecutive summary (10 marks) (200 words)You should provide a concise executive summary at the front of your assignment reportpresenting a high-level summary of your findings.Increasing demand for pre-labelled medicinal products has opened up business opportunity forsupplying such products to wards and clinics. Additional labels on medicine packages give specificinstructions for use and warning statements in accordance with local clinical prescriptions.Prescribing commonly used medicines to individual patients deemed to be repetitive, laborious,costly, and time-consuming. There is a need for a steady and continuous supply of readily labelledmedicines both in and out of pharmacy opening hours.This study examined the macro-environment analysis and the strategic position on this new businessopportunity on labelling medicines in bulk at Imperial NHS Trust. PESTEL analysis suggested thatthere are political, social, and economic needs for this business opportunity. Business forecastingrecognised demographic factors such as the aging population and obesity are likely to increasemedical demands for at least 20 years.Business competitiveness was evaluated by Porter’s five forces principle. The threat of rivals and therest of threats, i.e. new entrants, substitutes, suppliers, and customers, are low to mediumsuggesting sustainable profits can be generated with this business plan.Resources and capabilities analysis identified that low cost and swift product despatch are thesustainable strategic advantages of this business proposal.To conclude, the external and internal factors support this business opportunity.
Part 1 (15 marks) Opportunity description (600 words)You should summarise your new business opportunity. This should identify the linkages betweenyour idea and your organisation’s vision and values as well their existing strategy.National Healthcare Service’s (NHS) core value is providing quality care for patients (The NHSConstitution, 2021). Lord Carter (2016) published a report on hospital efficiency leading to HospitalPharmacy Transformation Plan (HPTP). “HPTP plans include a review of these services and have aplan in place for improving productivity and efficiency, including consideration of alternative supplyroutes, such as homecare providers or community pharmacies.”. This business plan aims to supplymedicines to patients safely, effectively and economically by dispensing commonly used medicines inbulk. The commitment on the quality of care and patients’ hospital experience is the drive of thisproject and is in-line with NHS’s visions.Pre-labelled medicines, that manufactured under a good quality management system, play a criticalrole in quality patient care. Imperial NHS Trust dispensed nearly 170,000 medicines in 2019. Theannual financial turnover on dispensed medicines was about £424,000 at this Trust. There is abusiness and clinical need for the pre-labelled medicines both in and outside of pharmacy openinghours. Front-line clinical staff benefits from the ready supply of pre-approved medicines, andtherefore able to divert their focus on other important tasks for better patient care.A studyconducted by Gross (2001) advocated that patients’ waiting time could be reduced from six to sevenhours to the same morning at 10 am for 90% of dispensed items. Because of the efficient discharge ofpatients, bed spaces were saved, and this result in extra capacity on patient admission.Abderrahmane M. (2019) also concluded such an approach led to better drug availability and patientsatisfaction.Apart from the HPTP recommendation, patient safety also plays a crucial role. All medical errors,including prescribing errors that pharmacy can clinically screened, cost the NHS £98.5m per year,which consumed 181,626 bed-days, caused 712 deaths, and contributed to 1,708 deaths. (Cousins,2019). Whittlesea (2011) suggested labelling errors contributed 27%, with another 16% combineddrug and labelling errors in 1005 dispensing incidents. A similar finding in a US journal (Berman, 2004)showed 33% of medication error was contributed by packaging and labelling confusion. Mostdispensing errors result in no harm or low to moderate harm, but some could cause severe harm ordeath to patients.As labelling error is one of the most common dispensing errors, Medicines and Healthcare ProductsRegulatory Agency (MHRA) established the maximum limit on overlabelling medicine of 100 packsper month in an unlicensed pharmacy unit. An MHRA license is required for over-labelling activityexceeding that volume. The license, that ensures consistent product quality is met with a highvolume of repackaging/ over-labelling activity, safeguards public health with controlled processes.The adequate facility, equipment, quality management and training, etc are essential to grant a
license for the labelling of medicinal products. Not all hospitals have the capability and resources tosupport such an over-labelling activity. Imperial Trust has a license for compounding aseptic productsthat helps approval of the MHRA labelling license.The last reason to support this business opportunity is the potential for income generation. Somehospitals rely on their local clinical staff to dispense medicines or buy-in the pre-labelled drugs fromcommercial units. Imperial NHS can be one of the suppliers of the labelled products to otherhospitals.To summarise, developing an over-labelling unit in Imperial Pharmacy Department can improvepatient services, safeguard public health, increase staff capacity and potentially improve financialperformance in the pharmacy department at Imperial NHS Trust.Part 2 (60 marks) Critical evaluation (2,200 words) Describe and justify, using relevant models, frameworks and theories, the process used togenerate your business opportunity. Critically analyse the frameworks and theories used. Propose further research/work you would want to do to improve your proposal.External and internal factors were categorically assessed on this business proposal. Not one singlestrategic management tool could offer a full picture of a particular business. A range of strategic toolswith suitable modifications were used to examine these factors in this strategic analysis report in amore integrated manner. Another limitation of some strategic tools was the robustness to futurechanges. Therefore, forecasting and scenario analysis were conducted for recent and foreseeableevents such as pandemic, demographic factors, and Brexit, as part of the external factor analysis.Opportunities and threats of the external macro-environment were evaluated more comprehensivelyin conjunction with PESTEL analysis. Porter’s five forces analysis was conducted to examine the levelof rivalry. Similarly, the internal strength and weakness of this business opportunity and VRIO analysisare assessed alongside the resources and capabilities.The above findings were summarised in SWOT analysis to provide a strategic position of this businessopportunity.
External factorsThe following key factors: political, economic, social, technological, ecological and legal, are assessedin the PESTEL analysis.OpportunityThreatsNHS provides essential medicinalinstructions on the medicine packagesthat comply with the regulation.Lord Carter’s report (2016) recommendsa review on medicine supply in a cost-effective way.PBrexit may affect the medicine supply chainresulting in longer delivery times and highercosts.Studies had shown supply of pre-labelledproducts saves patients’ waiting time,bed space and reduces the workload ofclinical staff.The cost of batch production of labelledmedicines is lower. The salary ofpharmacists who responsible fordispensing individually is significantlyhigher than pharmacy operators whopack medicinal products in bulk. Theproductivity packing in bulk is also higher.The supply of medicines is more agilebecause the usage of medicines can beforecasted.At least 170,000 packs of pre-labelledmedicines were needed in 2019 atImperial NHS Trust. The annualestimation of outsourcing this activity isin a region of£200K which is too costly.Services can be extended to other trustsas an income generation.EInvestment is required for additional staff,equipment, software, and facility for the over-labelling process.Competition may be raised against other NHSover-labelling suppliers.Better and quicker discharge in hospitalsand clinics leading to a positivereputation for NHS.Aging population and obesity drives thedemand of labelled medicines.SUndesired public relationship if major errorsare made.New labelling technology that complieswith regulatory expectations is alreadyavailable for the over-labelling process.TEAn insignificant increase in energy consumptionfor additional over-labelling facility.LOver-labelling is a regulated activity thatgoverned by MHRA.The PESTEL analysis on this business plan indicates more opportunities than threats. The keystrategic drivers are political, economic, and social factors. Preparing medicines used in advancecan deliver improved patient care experience with lower cost.