Getewell Pharmaceutical Company Objectives
Part A: Management’s Risk Assessment
Business: Pharmaceutical Company
I planned to start GetWell Pharmaceutical Company dealing in manufacture medicinal products, such as headache and cold remedies etc, as well as on demands of the customers at competitive rates in the market. Get Well Pharmaceutical Company will increase its market share in general and target a specific segment of the market related to dread disease through enhancement of research and development work.
Objective: It can be described as what business is looking for and for this purpose a company can define sub objectives which, if aligned with the main objective, will help the organization to achieve its goals. Objective is a broader term and for convenience it is sub divided …show more content…
These objectives are long term and takes time to achieve. It just gives an overview what way business will choose to be on strong footing and prosper in market.
Strategic objective of GetWell Pharmaceutical Company is to gain major market share in competitive market and secure goodwill in the sector of pharmaceutical.
b) Operational Objective
These are short term objective and are more precise and clear than strategic objectives. Operational objectives for Get Well Pharmaceutical Company are:
i. Profit maximization by reducing per unit cost of the product. This objective is relevant for the management so that they can design their processes in such a way that it would meet their objective and ultimately serve strategic objective. ii. Focus on human resource management as it is a key element for all types of businesses and includes the process from hiring to retention/ firing along with labor cost management. Efficient human resource management helps hiring required staff, prevent unnecessary brain out flow by reducing labor turnover ratios and keeping labor costs at optimum level, decreasing the use of more expensive contracted labor (outsourcing) and avoiding the need to work in extra shifts / …show more content…
The risk factor here is the role of government policies affecting pharmaceutical industry. Government policies include encouraging new entrants in pharmaceutical industry by making tax free industrial estates for promotion of pharmaceutical industry, subsidizing alternative or imported products etc. Due to these unpredictable circumstances, market may become saturated and make a tough competition environment will cut short our market share. Moreover, availability of cheaper alternative product a price war may start and reduce our profit margins.
b) Operational Objective Risk
i. As Getwell Pharmaceutical Company will be new in business, it may be difficult to be in a good relationship with suppliers to have sufficient control on price and supply of raw materials might causes cost overrun, which will increase the cost of product. This will make a risk factor as we are trying to reduce cost but on the other hand we might face cost overrun issues. ii. For Getwell Pharmaceutical Company as it is a pharmaceutical company and for this there is no need for just labor force like other production business hence it needs competent, trained and specialist persons which will add quality to your product and make it in less cost. Other competitors in the market can attract our manpower by offering attractive remuneration packages and brain outflow will severely damage the quality
Business: Pharmaceutical Company
I planned to start GetWell Pharmaceutical Company dealing in manufacture medicinal products, such as headache and cold remedies etc, as well as on demands of the customers at competitive rates in the market. Get Well Pharmaceutical Company will increase its market share in general and target a specific segment of the market related to dread disease through enhancement of research and development work.
Objective: It can be described as what business is looking for and for this purpose a company can define sub objectives which, if aligned with the main objective, will help the organization to achieve its goals. Objective is a broader term and for convenience it is sub divided …show more content…
These objectives are long term and takes time to achieve. It just gives an overview what way business will choose to be on strong footing and prosper in market.
Strategic objective of GetWell Pharmaceutical Company is to gain major market share in competitive market and secure goodwill in the sector of pharmaceutical.
b) Operational Objective
These are short term objective and are more precise and clear than strategic objectives. Operational objectives for Get Well Pharmaceutical Company are:
i. Profit maximization by reducing per unit cost of the product. This objective is relevant for the management so that they can design their processes in such a way that it would meet their objective and ultimately serve strategic objective. ii. Focus on human resource management as it is a key element for all types of businesses and includes the process from hiring to retention/ firing along with labor cost management. Efficient human resource management helps hiring required staff, prevent unnecessary brain out flow by reducing labor turnover ratios and keeping labor costs at optimum level, decreasing the use of more expensive contracted labor (outsourcing) and avoiding the need to work in extra shifts / …show more content…
The risk factor here is the role of government policies affecting pharmaceutical industry. Government policies include encouraging new entrants in pharmaceutical industry by making tax free industrial estates for promotion of pharmaceutical industry, subsidizing alternative or imported products etc. Due to these unpredictable circumstances, market may become saturated and make a tough competition environment will cut short our market share. Moreover, availability of cheaper alternative product a price war may start and reduce our profit margins.
b) Operational Objective Risk
i. As Getwell Pharmaceutical Company will be new in business, it may be difficult to be in a good relationship with suppliers to have sufficient control on price and supply of raw materials might causes cost overrun, which will increase the cost of product. This will make a risk factor as we are trying to reduce cost but on the other hand we might face cost overrun issues. ii. For Getwell Pharmaceutical Company as it is a pharmaceutical company and for this there is no need for just labor force like other production business hence it needs competent, trained and specialist persons which will add quality to your product and make it in less cost. Other competitors in the market can attract our manpower by offering attractive remuneration packages and brain outflow will severely damage the quality