CDU Business Case: Community Pharmacy Startup Project - Semester 1

This business case outlines the planning for a small pharmacy, "Community and More," in Australia, supported by a grant from Charles Darwin University. The pharmacy aims to offer discounted prescriptions, targeting affordability and community service. The plan includes market analysis, cost assessment, risk management, and a detailed timeline. It addresses the increasing medicine prices in Australia and proposes a solution to provide cheaper, quality medicines. The report details the business's objectives, potential benefits to the community, and strategies for achieving a solid market reputation. It also covers SWOT analysis, target market identification, and potential challenges, such as competition and regulatory constraints. The timeline includes major milestones and a Gantt chart for effective project management. Desklib provides access to similar solved assignments and study resources.

Running head: PROJECT MANAGEMENT
Preparation of a business case
Name of the student
Name of the university
Author Note:

Table of Contents
3. Executive Summary.....................................................................................................................4
4. Overview......................................................................................................................................5
Business Objectives on the Proposal...........................................................................................5
Identification of the problem.......................................................................................................5
Benefits to the community...........................................................................................................6
Expected outputs..........................................................................................................................6
Performance Measurement..........................................................................................................6
5. Current Situation and Market opportunities................................................................................6
a. Market Analysis.......................................................................................................................7
Current Market Trends................................................................................................................7
Is there market for the project?....................................................................................................7
SWOT Analysis...........................................................................................................................8
c. Output Analysis.......................................................................................................................9
Summary of the Market...............................................................................................................9
Specific Target Market..............................................................................................................10
Dis-Benefit.................................................................................................................................10
6. Project Requirements.................................................................................................................11
a. Needs for the Project..............................................................................................................11
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b. Possible Assumptions for the Project....................................................................................11
c. Constraints of the Project.......................................................................................................12
7. Costs..........................................................................................................................................12
a. Cost and Overall budget.........................................................................................................12
b. Tools used for cost analysis...................................................................................................12
8. Major Risks................................................................................................................................13
a. Five Major Risks....................................................................................................................13
b. Risks involved and ways to manage......................................................................................13
9. Timescale...................................................................................................................................13
a. Time taken to complete the project........................................................................................13
b. Major Milestones...................................................................................................................14
c. Gantt chart and Schedule.......................................................................................................14
Table No 1- Time Schedule.......................................................................................................14
Figure No 1-Gantt chart.............................................................................................................15
10. Conclusion...............................................................................................................................15
Bibliography..................................................................................................................................16
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3. Executive Summary
The following report is based on planning of a small business endeavor in Australia with
the grant offered by Charles Darwin University of Australia. The particular report has taken the
example of a small pharmacy named “Community and More”. The following pharmacy is a start
up business being pursued by only one person. The main goal of the following pharmacy will be
serve the community in its own limited way. The main target of the business will be to sell the
different prescriptions at a cheaper rate to the people and offer the most competitive price to the
people. The plan has been designed in such a way that it covers all the different requirements and
the necessary elements needed to start the commercial operations of the following business. The
planning begins with the introduction of the pharmacy, its aims and objectives, the ways it will
serve the community and proceeds to the internal and external market analysis of the following
pharmacy. Apart from this the cost analysis, Risk management policies and most importantly the
time schedule to develop the particular project has been provided in details. The time schedule
provided in the report will help in the effective planning of the new business.
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4. Overview
The Pharmacy named “Community and More“will be based in Portland and will basically
offer prescribed medicines at discounted prices to the different customers who will be visiting
the stores and also to the customers through an online portal. As mentioned earlier the company
is a one man venture that will be started by a MBA graduate of the following University. The
pharmacy will be operating from only one store and will have 5 employees to support the daily
activities of the business. The initial budget of the following organization will be $40000. The
key to the success of the company will be the employment of friendly and knowledgeable
personnel. The pharmacy will be obtaining registration from the Pharmacy Board of Australia.
Business Objectives on the Proposal
The main objectives for the first five years of the company will include the likes of the; Exceed the expectations of the customers in the business
 Ensure the sustainability of the business for the coming years
 Provide cheap and quality medicines that will help in the growth of the revenue
and the business
 Develop the business in such a way that it becomes self sufficient.
Identification of the problem
The regular increase of medicine prices in Australia and the high demand of medicines
have made it difficult for many people to afford such costly medicines. This is the main issue
that cripples the health sector of the country. The following business has pledged to offer the
medicines prescribed for use at a discounted price which will set a benchmark for the
organization.
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Benefits to the community
The success factors of the business are key to the benefits of the community. The benefits
that will be provided by the following pharmacy include;
1. Availability of cheap medicines
2. Satisfaction of the customers
3. Real help to the middle and lower income population
Expected outputs
The start of the commercial operations of the following pharmacy can usher in a change
in the pharmacy business practiced in Australia. The entrepreneur aims to gain a solid
reputation in the market which will help the start up to achieve a stronghold in the
competitive market. The planning has to make in accordance with the expected outputs of the
business.
Performance Measurement
5. Current Situation and Market opportunities
The pharmacy industries of Australia play a key role in the primary health care of the
Australian community. The popularity of retail pharmacies have increased with the passing of
time and most of the customers visits such stores because of the high flexibility that these shops
offer. The traditional community shops have gone through a major transformation in the last few
years. It has been easy for the people who visit the retail store of medicines to collect prescribed
as well as different types of on store medicines. The operating landscape of the pharmacies has
changed and thus the primary healthcare has seen a major shift.
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The industry statistics in Australia shows the market size of approx dollar 16 billion
which is a huge sum for this particular sector. The chance of the industry to diversify the revenue
streams in the business provides a great opportunity for the following business. Apart from this
the absence of any pharmacies offering discounts can also serve as a game changer in the market.
a. Market Analysis
Current Market Trends
The current market of the following industry has tremendous capability and thus the start
up can utilize these opportunities in an effective way to get the initial thrust in the market. As
mentioned earlier the huge scope of the medicine business will be helpful for the
entrepreneur to establish the business in a proper and efficient manner. The medicine shops
in Portland are mainly retail based. The customers generally prefer visiting such shops as
because all the different types of medicines are present there that includes in store medicines
and also the prescribed ones. The presence of online applications and portals of these
pharmacies nowadays serves as a major source of revenue for the organization.
Is there market for the project?
There is huge market for the new project. This is because of a number of different
reasons, which includes;
a. Absence of shops selling cheap medicines
b. No shops in the vicinity provides huge discount to the customers
c. The presence of friendly staffs can be useful
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SWOT Analysis
STRENGTH OPPORTUNITIES
 Unique current business solution
 Excellent and trained staffs
 Providing Discount to all
medicines
 Offering sales from both store and
online
 Presence of large market
 Rising demand for medicines in
Australia
 Helping the community
WEAKNESSES THREATS
 Absence of brand equity and
visibility
 The absence of expertise in the
business
 Too much rules and regulation
tends to weaken the revenue
stream of the business
 Presence of large retail
pharmacies in Portland
 Strict regulatory legislation is a
serious problem for the
organization
 Shortage of funds and lack of
strong sponsors will hamper the
advertisement and promotion of
the company
a. Strength- The following business proposal is a unique way to serve the community as
well as earn revenue. The presence of trained and friendly staffs is believed to be the
asset of the organization. Apart from this the major strength of the company lies in
the presence of proper discount facility to all the people in the organization and the
excessive rules and regulation that has the ability to weaken the revenue stream of the
following business.
b. Weaknesses- The absence of proper brand equity and visibility can be a major threat
to the business. The absence of expert advice in the business is a vulnerable spot for
the management as it will be difficult for the organization to take important decisions.
Apart from this the presence of excessive rules and regulation can be a major threat to
the business.
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c. Opportunities- The presence of a large market in the business will enable the start up
to venture into the industry with additional confidence. Apart from this it will also
have the opportunity to serve the community with its unique business plan because of
the rise in the demand for medicines in Australia.
d. Threats- As a start up business, the company will always face threat in the form of
other large businesses in the vicinity of Portland. This makes life difficult for the
business as they will struggle to get customers in the business. Apart from this the
presence of strict regulatory laws is a threat to the success of the new pharmacy. The
absence of funds and proper sponsors in the business will also affect its marketing
capability.
c. Output Analysis
Summary of the Market
The target market of “Community and More” will basically consist of two different
group’s namely local customer or the walk-in’s and the customers who order their products
through online procedures. At present there is an absence of pharmacy shops that provides
quality discount on medicines. Therefore it will be easy for the management of the
organization to follow a certain strategy that will be helpful for the popularity of the business.
The entrepreneur can proceed with two different marketing strategies to attain success
namely the target market segmentation strategy and secondly the Market Segmentation
strategy.
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Market
Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential
Customers
Walk-In
Customers
10,000 15,000 18,000 20,000 24,000
Online
Customers
15,000 20,000 22,000 25,000 26,000
Total 25,000 35,000 40,000 45,000 50,000
Specific Target Market
The selection of the target market is very much essential for the business. The target market
of the following business will be the ones who tends to abstain themselves from buying
medicines at a high cost. The opening of the shop will help these persons to get discounts on the
original price which will be easier for them to afford. On the other hand the company must also
target people who are used to online buying of medicines.
Dis-Benefit
The major dis-benefit that will be faced by the organization includes the likes of the;
a. Absence of retail set up may not attract a lot of customers
b. Being a small start up business there will be key absentees of different medicines
c. The company cannot offer discounts which are directly in violation of different trading
rights of Australia
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6. Project Requirements
a. Needs for the Project
The start up business will need a number of different resources to proceed accordingly.
This includes the likes of;
a. Location for the setting up of the shop
b. Finance for the setting up and the start of commercial operations of the shop
c. Information building Process
d. Human Resources
e. Need for Business Consultants who will provide the best strategies and solutions to
establish the business and help it to stand on a solid ground
b. Possible Assumptions for the Project
The possible assumptions for the particular business includes the likes of the;
a. Customers or more precisely the specific customers who are deemed to be the potential
customers of the business
b. Competition in the market
c. Identifying the main competitors in the market
d. Business strategies to be used
e. Financial resources in hand
f. Target or the goals of the organization for the first five years
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c. Constraints of the Project
There can be a number of different constraints in the build up to the following project.
this includes the likes of Financial constraint when the finances seems to dry up or the business
suffers from the absence of finance. Apart from this the failure to implement and commercialize
the operation of the business within the given time can act as the time constraint of the business.
Last but not the least in any way the project may suffer from the lack of additional scope.
7. Costs
a. Cost and Overall budget
The overall cost of the following project will be $40,000. The budget has been allocated
by the university and the different types of spending have been shown in the table given below.
Balance Sheet
Year 1 Year 2 Year 3 Year 3 Year 5
Assets
Current Assets $5,000 $8,000 $12,000 $15,000 $18,000
Cash $30,000 $32,000 $40,000 $45,000 $45,500
Inventory $5,000 $6,000 $12,000 $15,000 $16,500
Total $40,000 $46,000 $64,000 $75,000 $80,000
b. Tools used for cost analysis
The main tool that will be used for the cost calculation is the Cost Benefit analysis of the
project. The cost benefit analysis will help in the comparison of the monetized costs and benefits
of a proposal or different kind of options.
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