BBA 102, Essay, Chemist Warehouse PDF

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Environmental analysis on chemist warehouse...

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Introduction Chemist Warehouse is an Australian commercial enterprise that operates a retail pharmaceutical chain. The commercial enterprise is the biggest pharmacy retailer in Australia, employing more than 8,000 people. The enterprise itself brands as providing discounted pharmaceutical products prices. This enterprise works under the same Australian laws and measures that all other Australian retail drug stores hone, and emphasize on quality care. The organization’s quality control pharmacy practice is accredited for distant dispensing as well as retail pharmacy (Chemistwarehouse.com.au, 2019). This report identifies the two exterior stakeholders, which in this case, are suppliers and customers. In extension, the paper will analyze how these stakeholders influence the organization and how it functions. It will also elucidate the general environment forces identified in the PESTLE model of business analysis and will additionally address the impediments persisting for the organization by recommending strategies for the pharmaceutical agency.

Environmental analysis In the case with most companies and firms, Chemist Warehouse too depends strongly on the efficiency and reliability of its supplier in order to fulfill the desired objectives. Supplier selection is one of the most important strategy that impacts an organization. Using a dependable and capable supplier also guarantees quality of the product and ensures that the company does not have to unnecessarily use labor and resources to produce that specific product itself (Nair, Jayaram and Das, 2015). EBOS group has been informed that it has won the delicate to act as the elite third party wholesaler of pharmaceutical items to more than 400 chemist warehouse and My Chemist stores in Australia (Ebosgroup.com, 2019). Good relations with suppliers today are of paramount importance. A reliable supplier can go a long way in helping the business achieve its aims as timely material deliveries and trade discounts can immensely help Chemist Warehouse save storage and transport costs that would otherwise be incurred. Quality control from the supplier is also essential for Chemist Warehouse, as pharmaceuticals is BBA102, 2019, Session 2, Business Report, Muhammad Ali, SID 45933413, actual word count - 1260words

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a very vast but meticulous industry. Unlike other companies where a blemish on the reputation can be controlled, it is very tricky to restore reputation in healthcare and pharmaceutical companies as customers are extremely careful about medicines today due to increased awareness. Proceeding to develop our Healthcare trade remains a high priority for the Group and joining forces with Chemist Warehouse Group will be a natural movement of that. We are certain that EBOS will produce a satisfactory return on capital from this modern business. (Ebosgroup.com, 2019)

General Environment Social/Cultural: Times are changing, and so are consumer expectations. The increasing population, expectations, and life expectancy have forced pharmaceutical companies to change their strategies towards the consumer base. Today, unlike before, companies cannot overstep their boundaries and do as they please. To be successful in the pharmaceutical industry today, companies need to keep track with all modern norms, customer service and the strategic planning they have planned for the business (Numerof, 2019). As patients are becoming more informed and aware with each passing day, Chemist Warehouse should take special care and consideration to ensure that the demanding customers are satisfied and their needs are met. Otherwise, due to increased social activism, the company can earn a bad reputation, which can be detrimental to sales and the company's public relations (Harvard Business Review, 2019). Chemist Warehouse should focus on more price transparency and expansion, as growing health concerns signal a significant increase in market size in the coming years. To capitalize and gain an edge over competitors, Chemist Warehouse ought to react timely and wisely.

Political: Government policies, restrictions, and quality assurance is a major influencing factor in the pharmaceutical industry. There is a growing focus on modern day insurance policies, pricing decisions, availability, distribution of drugs, and healthcare systems. To cut costs, or to promote a more efficient healthcare system, government policies may BBA102, 2019, Session 2, Business Report, Muhammad Ali, SID 45933413, actual word count - 1260words

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introduce reforms that can drastically alter and influence Chemist Warehouse and its future proceedings (National Academies of Sciences et al., 2019).

Identified challenges In 2016 it was enforced to pay back $3.5 million to about 6000 in-store staff workers after a reasonable Work Ombudsman review which revealed that the wages were coming up short (Schneiders, 2019). The discount chain had not been paying their staff during training hours. Workers at its factories in Preston and Somerton claim the big issue is job security with the huge majority of onsite employees working as casuals and labor hire. The union expects at least 70 per cent of the workforce to be permanent, rather than the contemporary level amount of 25 per cent. Discount pharmacy chain Chemist Warehouse has come under fire from industry bunches, which have denounced the company of deluding buyers by printing a “normal price” and the sum a client has clearly saved on store receipts (Smart Company, 2019). National Pharmacies told the ABC that it has written to the ACCC to complain around the chemist warehouse dockets, whereas buyer gather choice said it has concerns approximately the way the retailer promotes a few of its “lowest” and “best price” ensures in the store.

Recommendations It is apparent that the organization has been facing an impediment with regards to worker rights. If the employees are not engaged and invested in their organization, it is likely that the organization will not be able to function smoothly. This is reflected in the case of Chemist Warehouse, where employees feel that they are not fairly compensated for their work. In order to rectify this problem, the first step would be to ensure that with regards to wage, every worker across every retail outlet needs to be compensated fairly to avoid industrial action e.g. strikes which will not only lead to bad publicity but an increase in costs as well. In fact, it may cost the organization less to pay fair wage to its

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workers rather than continuing on the route of discontent workers who have a very low productivity yield due to lower levels of motivation and commitment. Another concern for workers is the amount of shifts that they are appointed; since almost 70% of the workers are labor casual hires, employees also feel that their job security is not assuring at all. The organization should strive to build rapport with workers such that they are engaged and motivated at all times. This could include more job security (by providing more shifts); promotion opportunities for hard-working employees; discounts and benefits to employees etc. Furthermore, organizations can employ job rotation and job enrichment to ensure that the employees are always motivated and ready to seek new challenges. Often, the same tasks and responsibilities for employees can become monotonous and through job rotation, new tasks are available and employees are motivated. Under the umbrella of 'employee engagement', these strategies may result in a higher productivity yield, happier employees, and an alleviated work environment. The organization should plan strategically and retain their customers by satisfying their needs and wants and should also educate their products to attract new customers. The company should take customer feedback to know how they approach to the product development and how to position their strategy to gain competitive advantage (Cummings and Daellenbach, 2009).

Conclusion Conclusively, maintaining good terms with the organization is critical to its functioning since good business relations with customers and suppliers can boost efficiency and effectiveness towards achieving the goals and objectives of the organization itself. Furthermore, with rapidly changing consumer expectations, it is essential to maintain a benchmark quality for the products. Chemist Warehouse is on its way to ensure that its reputation is maintained amongst the public for the unwavering quality of its products. With regards to recommendations, it is imperative for the organization to ensure security BBA102, 2019, Session 2, Business Report, Muhammad Ali, SID 45933413, actual word count - 1260words

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for its workers along with fair wages. Also, it is necessary to motivate the employees to bolster the firm’s morale and productivity. These are indeed the most imperative pointers to keep in mind for an efficiently-functioning organization.

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Reference list Chemistwarehouse.com.au. (2019). About Us - Learn More About the Chemist Warehouse. [Online] Available at: https://www.chemistwarehouse.com.au/AboutUs [Accessed 1 Sep. 2019]. Competitionpolicyreview.gov.au. (2019). [Online] Available at: http://competitionpolicyreview.gov.au/files/2014/07/Chemist_Warehouse.pdf [Accessed 2 Sep. 2019]. Cummings & Daellenbach, 2009. A Guide to the Future of Strategy? The History of Long Range Planning. Long Range Planning, 42(2), pp.234–263. Ebosgroup.com. (2019). EBOS wins Chemist Warehouse tender to supply pharmaceuticals » EBOS Group Limited. [Online] Available at: https://www.ebosgroup.com/about-us/investor-news/ebos-wins-chemist-warehousetender-to-supply-pharmaceuticals/ Harvard Business Review. (2019). Reputation and Its Risks. [Online] Available at: https://hbr.org/2007/02/reputation-and-its-risks [Accessed 2 Sep. 2019].

Nair, A., Jayaram, J. and Das, A. (2015). Strategic purchasing participation, supplier selection, supplier evaluation and purchasing performance. International Journal of Production Research, 53(20), pp.6263-6278. National Academies of Sciences, a., Division, H., Services, B., Therapies, C., Nass, S., Madhavan, G. and Augustine, N. (2019). Factors Influencing Affordability. [online] Ncbi.nlm.nih.gov. Available at: https://www.ncbi.nlm.nih.gov/books/NBK493090/ [Accessed 2 Sep. 2019]. Numerof, R. (2019). Why Pharma Needs to Understand Population Health | eyeforpharma. [online] Social.eyeforpharma.com. Available at: https://social.eyeforpharma.com/column/why-pharma-needs-understand-populationhealth [Accessed 2 Sep. 2019].

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Schneiders, B. (2019). Strikes to hit Chemist Warehouse as workers seek huge pay boost. [Online] The Sydney Morning Herald. Available at: https://www.smh.com.au/business/workplace/strikes-to-hit-chemist-warehouse-asworkers-seek-huge-pay-boost-20190301-p5112c.html [Accessed 1 Sep. 2019].

Smart Company. (2019). Chemist Warehouse accused of misleading consumers with “normal price” - Smart Company. [Online] Available at: https://www.smartcompany.com.au/business-advice/legal/chemist-warehouse-accusedof-misleading-consumers-with-normal-price/? fbclid=IwAR3Ad5JceD6Ln9CvGBhlXbGReIk9g_YD3g1sP3MQNXohoVdXEJQ8Q_gscA [Accessed 2 Sep. 2019].

BBA102, 2019, Session 2, Business Report, Muhammad Ali, SID 45933413, actual word count - 1260words

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BBA102, 2019, Session 2, Business Report, Muhammad Ali, SID 45933413, actual word count - 1260words

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BBA102, 2019, Session 2, Business Report, Muhammad Ali, SID 45933413, actual word count - 1260words...