Pharmacy2U: Business Expansion Strategy for US Market - A Report

This report provides a comprehensive analysis of Pharmacy2U's business expansion strategy, focusing on penetrating both international and local markets. It explores various market entry strategies, including joint ventures, licensing, and franchising, alongside marketing strategies such as the 4Ps and social media marketing, which are crucial for attracting customers. The report also delves into HR and operational strategies, highlighting their importance in aligning organizational and personnel goals. Furthermore, it examines the financial strategies necessary for Pharmacy2U to expand into the US market, including projected profit and loss accounts, balance sheets, and cash flow budgets, identifying a need for $26,000 in funding from equity, debt, and cash sources. Finally, the report covers break-even analysis to optimize profit and cost management.

Project

EXECUTIVE SUMMARY
The study has been discussed on the strategy that will help the company in penetrating in
the international as well as local area of market. The report has also covered the entery strategy
that has given various option for expanding such as joint venture, licencing and franchising.
Along, with this the study has also defined the marketing strategy use by the quoted organization
such as 4 marketing P's and social media marketing that has contributed in attracting large
customer. In addition, to this the report has also discussed on HR strategy and operation strategy
that has been advantageous for the firm such as Specific and overreaching strategy that helps o
company in aligning the organizational and personnel aims so that it can be achieved in the
limited frame of time.
This report has been also discussed the financial strategies that Pharmacy2U company
need to adopt in order to expand their business in US market. In this context, the report has been
computed the projected profit and loss account, balance sheet and cash flow budget after
identifying the funds required to expand the business. The report has been also stated that
Pharmacy2U need $26000 to expand the business in US market, and they will acquire it from the
three main source. The source will be equity, debt and cash. lastly, this the report has been also
covered the break-even analysis of the company which also help them to increase their profit and
reduce their cost.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Presenting business strategy........................................................................................................4
Reflection...................................................................................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES................................................................................................................................1

INTRODUCTION
International market can be described as a geographical region that allow the company to
expand their business outside the local area. In simple, words it helps the organization to explore
the new area of the market that contributes in enhancing the efficiency of the company.
Moreover, it allows organization to sell their product and services outside the home country. The
main purpose of expanding in global market is that it allows the company to increase their brand
image that contributes in high sales (Watson and et.al., 2018). There are many challenges that are
faced by the business that are operating in international market such as culture, legal, political
that create conflict in thaw working of the organization.
The present report is based on Pharmacy 2U that is an online seller of medicine. The
company mainly detail in pharmaceutical retail product such as NHS repeated prescription
services as well as provide their customer with health tip advices. Currently, the organization
has focused on UK customer as there headquarter has been situated at Leeds, United Kingdome
in addition, to this it was founded by Daniel lee in 1999 (Paharmacy2U., 2021). The company is
mainly depended on the online market and provide their services through digital platform.
Furthermore, the company is operating in market of United States but has decide to
expand their business in US in order to attract more and more customer. As that will allow the
organization in enhancing their global presences in the competitive market.
Moreover, the study will discuss on the business plan of the quoted organization so that it
will company to develop business in selected market. The report will depict about the marketing
strategies and the human resources strategies of the business. Lastly, the study will also
recommend the organization for using the appropriate business techniques for overall
development in the market area.
MAIN BODY
Presenting business strategy
Business strategy can be defining as combination of various action that helps the
organization to attract the customer that contributes in improving the productivity of firm.
Along, with this it also helps company in coping up with the external and internal problems that
arise while conducting the business (Yuan and et.al., 2020). There is various business strategy
that has been used by Phramcy2U that are discussed in detail below:

Pestle Analysis of Pharmacy 2U:
Political: This include policies made by the government in order to sustain in the environment.
The company has faced the issues such Bruit policy and because of that company was not able
freely trade (Pan, Chen and Zhan, 2019). That has resulted in loss for the company
Economic factor: The organization has to spend more on the Research and development in
order to introduce new product in the market. Thus, organization has to spend more on the
operational cost.
Social: This factor is consisting of lifestyle and trends of the society and because of that
organization has to full fill the needs of them.
Technological: The firm has to make use of the innovative products in order to increase the
demands.
Legal: This factor is consisting of laws and regulation that are being enforced by the
government. Moreover, the firm is following all the rules and norms in order to reduce the legal
intervention.
Threat: the firm has high competition and that has decrease the growth of the firm.
Entry strategy: It is a planned distribution of delivery the good and services in the new
target market. The business has to make use of method such as export, licencing, franchising so
to select the appropriate area of market.
 Exporting: This is the first and most common step of marketing that allow the
organization to sell their product and services to the targeted customer. Generally, it
follows direct and indirect exporting such as organization make use of third party in
order to distribute its product in the market. This method allows the company to
explore in new area of market that helps in increasing the overall business revenue.
Moreover, this is very cost effective method as it allows the firm in making the
product in the home country and export in foreign market for sale. However, in
future the cost of transportation will be increasing thus it can increase the operational
expense (How to enter foreign market., 2021). Hence, in the whole process the firm
require the involvement of government, importer and a transport provider for the
smooth functioning.
 Licensing: This generally deal with the intellectual property of the organization that
allow other local company to manufacture and distribute its product. Moreover, it

gives legal permission to use the intangible property such as trademark and
production techquies. That help the organization in expanding in the new market
area. However, pharmacy 2U can use this strategy so that it can build up its brand
reputation. In addition, to this it does not require high investment and provide the
organization with high returned. As well as it also helps company in keep in touch
with the foreign market prices that contributes in attaining the manufacturing cost.
 Joint venture: This is a very common and famous business strategy that allow the
organization in entering the new area of market globally. This method can be
describing as framework in that two or more company out of that one will be local in
the foreign market (Pedada, K. and et.al.,2021). In general terms, it is a partnership
of organization that share the same management and have common goals to be
accomplished. Simply, it allows the partners to establish new brand in the
marketplace. Therefore, pharmacy2u should collaborate with small or large firm and
make an agreement that describe the common objective, rules and regulation of
conducting the business. As well as company can also decide about their roles such
as who will be distributes and manufacture as it will contribute smooth functioning
of business. Furthermore, it will benefit firm in knowing the taste and preferences of
foreign customer that will contributes in building the strong relation with them.
However, there can be negative effect about the investment, culture and profit split
that can be hindrance to the collaboration.
 Franchising: It is very similar to licencing that allow the organization to sell their
intellectual property to the local partner in order to run the business. this is one of the
fastest marketing process that allow the organization in entering the international
market (Morganand et.al., 2019). Therefore, pharmacy2U can use this is method in
that it can make use of the legal agreement that give permission to the other foreign
company to make use of brand material and marketing’s slogans. This will help the
organization in running the business in new area of the market. That will contribute
in targeting more and more customer.
Moreover, it is to be suggested to the company to make use of the joint venture as it will allow
the firm to rapidly expand in the international market. As well as allow the frim with numerous

opportunity and access to modern technology. Thus, it will enhance the global image and
performance of the firm.
Marketing strategies: This strategy can be describing as overall business plan of the
organization in order to attract more and more customer. This strategy allows the business in
identifying the opportunity by making use of limited resources as well as this framework mainly
include data of the target market, customer demographic as well as key brand position of the
organization in competitive environment (Vieira and et.al., 2019). Moreover, marketing strategy
of Pharamacy2U has been discussed in detail below:
The five P’s of the marketing are product, price, promotion, place a people that add value
to their business as it gives the demographic of the customer. That contributes in keeping the
customer satisfied as well as help in sustaining in the business environment.
 Product: It refers to the product and services offered by the company to their customer as
well as it offers their advantages and disadvantage of the item to their customer. It also
includes the function, packaging and quality of the services that are served by the
company. Currently the company is providing services such as writing prescription for
the client, vaccination and giving advice to the customer regarding wellness and healthy
lifestyle.
 Price: It refers to the pricing strategy of the company that will contribute in attracting
large customer. Moreover, along with selling price it also includes the amount of discount
and credit term (Gruszka and Tan., 2017). The company also emphasize more on the
competitor amount so that it can match their cost and reduce brand switching. Along,
with this the organization has to keep an eye on the marketplace situation before
launching their new price. However, pharmacy 2U provide their product and services on
reasonable amount and has distributed their price according to income rage of the
customer. That has contributed in increasing the overall sales.
 Promotion: This can be defining as process of advertising the product and services by
using various platforms such as direct marketing, sponsorship and digital technology.
This allow the organization in expanding their business globally as well as locally. It is
majorly use to attract more and more customer as it helps the company in enhancing its
productivity in the competitive market. Moreover, pharmacy2U is making use of digital

technology such as Social media promotion has allowed organization in improving their
brand image in the international market.
 Place: It refers to the physical store of the company for selling their product and services
to the targeted market. Currently the organization is serving the customer of UK and do
not have many local store. The firm has to make more store in the prominent areas as it
will help in increasing sales.
 People: It generally include staff, sales person and the people that are involved in the
business such as customer. The organization is has focused more on the customer of all
age group this has allowed the firm in increasing their overall revenue.
The company is also Social media marketing platform such as Instagram, Facebook and twitter.
The organization also have their official website that allow customer to buy product and services
on one click. This has helped firm in covering the large area of the market and has enhanced the
overall efficiency of the business. Beside, this social media helps the organization in identifying
the customer taste and preferences that has helped firm in building the healthy relation with
them.
Operations strategies: This strategy can be defining as aspect of management that allow the
organization in planning and implementing strategy for achieving the long and short objective.
Such as customer service and business strategy. Generally, it is made for accomplishing the main
goals of the company in the limited frame of time. Moreover, the strategic plan includes the new
technology for improving business but also include customer, supply chain, competitors and the
organization internal strength and weakness as well as the opportunity and threat of the external
environment (Liu, Zhu and Zhang2018). Pharmacy 2U has made their services and product
according to the demand of the customer. Instead of that it should analysis the competitor’s
product so that it can identify the area that need to be improved. Furthermore, the company
should also update their plan on yearly basis as it will allow the firm in knowing the budget that
has been require in manufacturing the product. Along, with this tracking the offer and discount
of the product will help the organization in identifying the threat and weakness of the company.
All this information allows the organization in making the appropriate strategy.
For expanding their business, the organization has to be ensure about the competitive
advantage such as:

 Ensuring the quality: This strategy will help the organization in identifying their quality
of their product and services that will contribute in achieving the organizational goals.
The form need to lay more emphasize on the quality as it represents the brand in the
competitive market. Moreover, pharmacy is providing great quality to their customer but
can also improve it by making use of various innovative technology (Liu, Y., Wang, Y.
and Luo, X., 2021.). Along, with this the organization can also reduce their cost while
remaking the product as it will contribute in saving the operational cost. Beside this
organization should decrease the return with low quality of the product. Improving customer satisfaction: In this stage the organization can make use of various
method to interact with their consumer (Lee, Choi and Edwin Cheng, 2021). Such as
company can conduct survey or make use of technological tool such as data analytical
that will allow the firm in understanding their demands. Thus, it will help firm in making
the product or services according to their targeted audience that will contribute in
satisfying their loyal consumer.
Human Resources Strategies This strategy can be sate as business plan that will help the
organization in managing its human capital in order to align personnel goals of the employees
with the organizational objectives. In simple words this strategy is adopted by HR in order to
dictates HR practice within the organization such as recruiting, performance development and
compensation (Thumiki, Jovancai-Stakić. and Al2019).The aim of this strategy is to maintaining
work culture and business ethics within the organization as well as provide their employee with
healthy work environment so to motivate them to work hard. Along, with this it coordinates the
action so to accomplish main objective of the firm. There are two type of strategy that
Pharmacy2U can follow such as specific and organized strategy that are mentioned in detail
below:
 Overreaching strategy helps in managing the employees and ways to retain the
employees in the organization by motivating them and keeping them engaged with the
commitment. Moreover, the human strategic helps in assessing the workforce of the
company such as identifying the knowledge, skills and ability that help the organization
in conducting the business efficiently. Tracking the employee performance also benefit
the company in knowing the strengths and weakness of the candidate. That help the
organization in making the development plan so to establish strong relation with them.

 Whereas, the specific strategy defines the procedure that company has ton adopt in
order to enhance the development of business. such as talent management that means to
hire those candidates that will benefit firm in creating Win-Win situation in the business
environment. It also helps in explaining the policy and procedure of the organization to
the stakeholders as well as making long term plans. That will contribute in meeting the
company goals as well as build the relation with stakeholders.
 The another important role that strategy play is that it helps in developing the success
plan of the business (Lucyawati and et.al., 2018). Such as it identifies the loop holes in
the team and give suitable solution so that team can achieve their goals without any
hindrances. In addition to this this strategy also align the goals of employee and
organization that help in enhancing the objective of the firm in the completive market.
Furthermore, it also helps organization in identifying the competitors and external and
internal threat and make use of management tools to reduce its effect on the business.
It is to be suggested to the company to use both this strategy as it go hand in hand while
conducting the business. Both this strategy will allow the firm in knowing the business position
of the organization and also provide the appropriate solution so that firm can sustain in the
environment (Zhu and et.al., 2020.). Both this framework will allow organization to gather
information of employees and competitors so that firm can make appropriate strategy to cope up
with the business issues. Thus, both will contribute in enhancing and growing the business in
international market.
Finance Strategies
This is an approach of proper planning of finance with the help of which the company
can develop and acquire funds in order to achieve business aims and objectives. Not only that,
the company can also use this funds for the business expansion purpose (Figueroa Hiraldo,
2021). The Pharmacy2U require $26000 funds for expansion and which are as follows:
Expansion Funding:
Particulars Amounts ($)
Business expansion expenses to fund 17000
Business expansion assets to fund 9000
Total 26000

Capital Structuring Planning: This is a planning which describe the sources from where the
company will acquire the funds from the market or internal savings. Pharmacy2U will acquire
the funds from the three main sources which are as follows:
Particulars Amounts ($)
Share capital 14000
Debt 7000
Cash Balance 5000
Total 26000
Projected Profit and Loss Account: This describes the list of income and expenses which will
be earned and incur by Pharmacy2U while expanding and operating business in US market
(Meraz, 2019). Not only that, this section will also describe the profit or loss they will face in
their expansion strategy.
Particulars Year 1 ($)
Sales unit 10000
Selling price 10
Sales Revenue 100000
Less Cost of Sales 38000
Gross Profit 62000
Gross Profit Margin 62.00%
Expenses:
Payroll 15000
Sales and Marketing 10000
Depreciation 1200
Utilities 2000

Insurance 2500
Rent 5000
Payroll tax 700
others 1300
Less Total operating expenses 37700
Profit before interest and tax 24300
Less Interest 1500
Profit before tax 22800
Less Tax @ 20% 4560
Net Profit 18240
Net profit Margin 18.24%
Projected Balance Sheet: This will describe the list of assets and liabilities along with the
capital structure of the Pharmacy2U company (Rottig and de Oliveira, 2019). This is part of
books of accounts which is relates to the company's operation that will locate in US country.
Particulars Details Year 1 ($)
Assets
Long term assets 50000
Less Depreciation 2500 47500
Current Assets:
Trade receivables 25000
Inventory 15000
Cash Balance 5000
Total Assets 92500

Liabilities
Current liabilities:
Trade payable 22500
Bank loan 50000 72500
Non-current liabilities
Debts 7000
Equities
Share Capital 14000
Total Equities and
liabilities
92500
Projected Cash Flow: This is an estimation of the Pharmacy2U company about the cash inflow
and outflow over the specific period which can be weekly, monthly and yearly. The projected
cash flow of the Pharmacy2U describe the estimated inflow and outflow of cash from its US
based operation (HANSEN and Naerland, 2017).
Particulars Details Year 1 ($)
Opening cash balance (A) 5000
Add Cash inflow:
Sales receipt 100000
Purchase of long term assets 50000
Total cash inflow (B) 150000
Less Cash outflow
Expenses excluding
depreciation
70000
Bill payments 25000
Total cash outflow (C) 95000

Net Cash flow (D) = (B) - (C) 55000
Closing cash balance (A) +
(D)
60000
Break-even Analysis: The break-even point is a sales point of the company at which the
company will neither earn profit not it will incur any loss. The break-even analysis of
Pharmacy2U for their expansion in US market is as follows:
Variable cost:
Cost of sales 38000
Total 38000
Fixed cost:
Payroll 15000
Sales and marketing 10000
Interest 1500
Depreciation 1200
Utilities 2000
Insurance 2500
Rent 5000
Payroll tax 700
others 1300
Tax 4560
Total 43760
Calculation of Break-even point:
Break-even Point (in units) = Fixed cost/ contribution per unit
= 43760/ 6.2 = 7058 units
Contribution cost per unit = 62000/10000 = 6.2 per units

Break-even Point (in pound) = Fixed cost/ contribution margin
= 43760/62% = €70580
Contribution margin = Contribution/ sales×100 = (100000 – 38000)/ 100000* 100 = 62%
Interpretation:
On the basis of above calculation and analysis of break-even, it is interpreted that
Pharmacy2U company will earn profit if they sell more than 7058 units at selling price of 10 in
the US market (Gloria and Leighton, 2019). The US market is highly competitive in which
entering and existing is quite tough. But on the basis of projected accounts, it can also be said
that the company will definitely exist in the US market as they will sell around 10000 units in the
first year. Pharmacy2U company will earn profit in the first year, if they able to use proper
marketing and sales strategies.
Reflection
The present business plan and report is helped me in enhancing my research and writing
analysis skills. With the help of project preparation, I am able to understand the internal and
external environment which can affect the company in long run. Basically, I have received all
positive comments from the company but beside this I need to improve my research skills more
in order to go deep in the external business environment factors. I have received a comment that
I have not analysed the external factors of the US country. In order to improve it, from the next
time I will also include the PESTLE analysis of the country where the company wants to expand.
Not only that this report has also helped me in improving my communication skills with my
colleagues or friends. I generally use communication skill to get the opinion of others on some
specific topics.
I have learnt the various type of entry strategies which helps the company to expand into
international market and on that basis, I have also recommended one strategy to Pharmacy2U
company. This strategy will help the company to expand their business in the US market. Along
with that I have also learnt the various marketing, operational and human strategies including
finance strategies. I have learnt how to prepare projected accounts such as profit & loss, balance
sheet and cash flow budgets. This project also helps in improving my analytical skills. With the
help of business project, I get to know that the capital structure and sources of funds must be low
in cost then only the company will able to earn profit and higher returns. The overall impact of

this project and company on me is that it will definitely help me in starting and expanding my
own business in the near future.
CONCLUSION
From the above report it can be concluded that international market provides every company
to conduct in new area of market beside locally. The above study has depicted about the
strategies that can benefit company in growing and sustain in the international market. Such as
human resources, marketing, operation and new enter strategy that contributes in the overall
development of the organization.
Moreover, the study has also summarized about the financial strategy that has cover the
budget, cost, profit as well as the break even analysis of the company. Lastly, the report has
thrown light on the reflection that has recommended the organization in improving or adopting
the new technology in order to explore the new area of the global market.

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