business plan

Health and Total Care Pharmacy Living with Diabetes Business Plan Page 1 of 78
“Your Friend in health and diabetes.”

DISCLAIMER
Whilst this plan has been based on a hypothetical scenario of the purchase of O’Loughlins
Medical Pharmacy, only the location and shop size are true. All financial data is totally
fictional.

Contents
1 Introduction ...................................................................................................6
2 Executive Summary......................................................................................8
3 Aims............................................................................................................11
3.1 Vision ...................................................................................................11
3.2 Mission .................................................................................................11
3.3 Goals and Objectives ...........................................................................12
3.3.1 Financial ........................................................................................12
3.3.2 Customer .......................................................................................13
3.3.3 Internal Business ...........................................................................13
4 Situation Analysis........................................................................................15
4.1 SWOT: Retail Pharmacy Industry Analysis ..........................................15
4.2 SWOT: Living with Diabetes Program..................................................17
4.3 Competitor Analysis .............................................................................21
4.4 Planning Assumptions..........................................................................27
5 Keys Issues/Keys to success......................................................................28
6 Marketing Strategy......................................................................................29
6.1 Products and Services .........................................................................29
6.2 Price.....................................................................................................35
6.3 Place ....................................................................................................36
6.4 Promotion.............................................................................................37
6.5 People ..................................................................................................38
6.6 Physical Evidence ................................................................................38
6.7 Process ................................................................................................42
7 Operational Plan .........................................................................................43
7.1 Delivery of Living with Diabetes, Diabetes One and Get Healthy
Program .....................................................................................................43
7.2 Procedures...........................................................................................43
7.3 Advertising............................................................................................43
7.4 Refund Policy .......................................................................................44
7.5 Credit Policy .........................................................................................44
7.6 Inventory Policy....................................................................................44
7.7 Equipment and Software ......................................................................44

7.8 Suppliers ..............................................................................................45
7.9 Ordering, Receiving, Storage and Pricing Stock ..................................45
7.10 Ordering Stock ...................................................................................45
7.11 Receiving Stock..................................................................................46
7.12 Storing Medicine.................................................................................46
7.13 Pricing of Stock ..................................................................................46
7.14 Customer Service...............................................................................47
7.15 Security ..............................................................................................47
7.16 Occupational Health and Safety.........................................................48
8 Financial Plan .............................................................................................49
8.1 Corporate Ownership ...........................................................................49
8.2 Establishment Cost ..............................................................................49
8.2.1 Value of the Business ....................................................................49
8.2.2 Start up Expenses .........................................................................50
8.3 Financial Forecast before implementation of the Membership Programs
...................................................................................................................51
8.3.1 Profit and Loss Statement..............................................................51
8.3.2 Balance Sheet ...............................................................................53
8.4 Financial Forecast of Membership Program.........................................54
8.4.1 Sales Forecast...............................................................................54
8.4.2 Expense Forecast..........................................................................57
8.4.3 Income Projection of the Membership Program Only ....................58
8.4.4 Profit and Loss Statement for the Membership Program, Diabetes
and Weight loss related product .............................................................59
8.5 Financial Forecast of the Whole Business ...........................................59
8.5.1 Profit and Loss Statement..............................................................60
8.5.2 Sales Forecast...............................................................................62
8.5.3 Break Even Analysis......................................................................63
9 Human Resources Plan..............................................................................64
9.1 People ..................................................................................................64
9.2 Key Responsibilities and Tasks............................................................67
9.3 Organisation Chart ...............................................................................70
10 Action Plan................................................................................................71
11 Evaluation .................................................................................................74

12 Legal Matters ............................................................................................75
13 References................................................................................................76
14 Appendices ...............................................................................................77
15 Business Plan Team Members ………………………………………………75

1 Introduction
O’Loughlins Medical Pharmacy which is located in St Ives, in Sydney's lower North Shore,
has been bought by three partners (Daniel Rifkin, Fiona Bournazos and Joanne Chang).
Renamed Health and Total Care Pharmacy (HTCP), it will continue as a general community
pharmacy, serving its previous customer base and we expect this business to continue and
grow at a steady rate consistent with the industry average.
However, the implementation of an additional, extensive and innovative diabetes program
(named Living with Diabetes (LWD)) is the focus of this Business Plan. The diabetes program
will be initiated because diabetes is a complex disease with a rapidly increasing incidence in
Australia, which has significant morbidity and mortality.
The Pharmacy Diabetes Care Program, a project lead by Dr Ines Krass of the University of
Sydney, showed that services including patient education, support and monitoring to facilitate
self-management in those with established diabetes benefited from the clinical impact of a
pharmacist. Diabetes Medication Assistance services improved adherence to medication,
glycaemic, BP and lipid control, quality of life and overall satisfaction in intervention vs control
patients.
• 3.6% of the Australian population suffer from diabetes (International Diabetes Institute
2006) which is approximately 700 000 people.
• The number of adults with diabetes has more than doubled since 1981 (International
Diabetes Institute 2006).
• Diabetes is a chronic disease, which represents a major part of the burden of disease
on Australia (ABS Diabetes in Australia: A Snapshot 2006)
• The presentation of diabetes can be prevented or delayed by lifestyle interventions
and optimal management and therapy.
• Diabetes can contribute to illness, disability, poor quality of life and premature death,
especially if it is undetected or poorly controlled (AIHW 2006a).
• The number of deaths from diabetes as an underlying cause has been steadily
increasing over the last twenty years, from approximately 1 800 deaths in Australia in
1984 to approximately 3 600 deaths in 2004 … a further 6% of deaths (approximately
8 000 deaths) had diabetes as an associated cause in 2004, making a total of 8.9%
of deaths (approximately 11 700 deaths) which were related to diabetes (ABS
Diabetes in Australia: A Snapshot, 2004-05).
More detailed statistics regarding the incidence and costs of diabetes are included in
Appendix 1.

There is a resultant increasing need for diabetes advice, products and services which
pharmacies are in an ideal position to meet. This in turn allows for a financially rewarding
business based on diabetes care.
This Business Plan focuses on offering a comprehensive service to educate and assist
diabetic patients in all aspects of their health management. This will be achieved through the
provision of one on one consulting in private rooms, group education sessions on a range of
relevant topics and the availability of a complete range of products and services for diabetic
care. Initially this will be offered to the 100 diabetic patients of Health and Total Care
Pharmacy, however this two year plan outlines the strategies for growth to a business caring
for 550 patients by 2009. The additional general pharmacy business from these new diabetic
patients will add significantly to revenue and profitability.
We also aim to expand into larger premises within the St Ives centre within the next 5 years.

2 Executive Summary
Health and Total Care Pharmacy’s long term view is to provide an integrated diabetes
program that encompasses all aspects of therapy and management which will improve the
quality of life of our patients. This business model will enable us to run a successful, profitable
and sustainable community pharmacy. The key is to build a positive rapport with our diabetes
program members to create strong ongoing relationships, customer loyalty and promotion by
word of mouth.
In the recently signed Community Pharmacy Fourth Guild Agreement, the Minister for Health,
Tony Abbott, allocated funding specifically towards implementation of a Diabetes Pilot
Program. We are using this initiative and expanding upon it to provide a holistic approach to
diabetes management and education.
Financial Objectives
• 2007-2008 net profit of 9.66% of annual turnover after implementation of the
Membership programs.
• 2008-2009 net profit of 8.27% of annual turnover after implementation of the
Membership programs.
• Average Gross Margin of 33%
• Business growth of 30% in the first year and 36% in the second.
• Diabetes Membership/Weight loss program Growth of 100% in the first year.
Marketing Objectives
• Grow the Living with Diabetes program membership to 350 by the end of the
first year and 525 by the end of the second.
• Achieve a customer satisfaction rating of 9/10 by June 2009
• Achieve a customer retention of 95% for the Living with Diabetes program
A SWOT analysis demonstrated that the proposed business model exhibits significant
strengths due to the dearth of similar integrated full service competitors. The major strengths
are the use of a membership club concept which will enhance the patients’ participation in
their own health care, whilst providing peer support, which leads to customer goodwill and a
sense of community associated with the pharmacy. The location in St Ives, in Sydney’s
Northern suburbs offers us a relatively wealthy and educated clientele who are interested in
addressing their health issues and able to pay for heath services. The weaknesses are
largely around the innovative nature of the concept and the risks inherent in such a new
direction. The store’s physical size may become a weakness as the business grows. The

opportunity is immense. Diabetes is a disease with a relatively high incidence (estimated at
approximately 3.75% of the Australian population) and a high growth rate of 0.48% p.a. (with
one person diagnosed with diabetes every 7 minutes in Australia). The threats are those
common to pharmacy as a whole, such as the possibility of deregulation, as well as more
local ones such as the danger of a competitor imitating our strategies.
Competitors are identified as:
• Other local Diabetes Australia sub-agent pharmacies, which supply patients with
diabetic supplies such as needles and testing strips
• The Diabetes Education Centre at the Royal North Shore Hospital, which provides
some education and diabetic equipment
Our target market is diabetic patients and those who have associated risk factors and live in
Sydney’s North Shore and Northern Beaches.
The key issues have been identified as
• Provide excellent service to trump our present and future competitors
• Building good relationships and rapport with the diabetes program participants, which
leads to increased compliance with therapy, identification of concerns or issues,
customer loyalty, customer service, referral (word of mouth), business growth, better
health outcomes and creates the feel of a community
• Good relationships with other health care professionals, which can lead to referral
through doctors (GPs and Endocrinologists), Diabetes Australia and other
pharmacies, and increases awareness of the program
• Enhance the reputation of Health and Total Care Pharmacy as a diabetes specialist
service provider
• Attract, develop, educate and retain competent and talented employees
• Acquire new customers, specifically diabetes patients
• Improve internal protocols to ensure increased efficiency of the Living with Diabetes
program
• Becoming self-sufficient, as to not require dependence on the Government or Guild
funding
Marketing Strategies have been developed using the 7 P model. We will have a complete
range of high quality products for diabetes and associated co morbidities at reasonable
prices, in addition to an extensive auxiliary pharmacy service and high quality knowledge and
information regarding diabetes from all staff members. The Living with Diabetes membership

Program will be promoted through staggered direct mail outs, newspaper articles, diabetes
magazines advertisements and through endocrinologist and local GP referrals.

3 Aims
3.1 Vision
That all diabetes patients should have comprehensive access to integrated healthcare
services in order to achieve optimal long term management and control of their condition.
3.2 Mission
Health and Total Care Pharmacy will:
• dedicate our pharmacy services to the growing epidemic of diabetes in Australia
• work as a part of a Health Care Team to increase the awareness and improve the
management of diabetes in the wider community through our Living With Diabetes
Program
• provide high quality accessible services that are responsive to the needs of our
patients
• generate significant returns for shareholders

3.3 Goals and Objectives
3.3.1 Financial
GOAL To build a financially stable business
where there is strong ongoing growth to
ensure the business will survive, succeed
and prosper.
OBJECTIVES MEASURES
Achieve:
Have a high annual turn over (TO) 2007-2008 annual sales of $3,414,940
2008-2009 annual sales of $4,646,594
Ensure business is profitable 2007-2008 net profit of 9.66% of annual
turnover.
2008-2009 net profit of 8.27% of annual
turnover.
Average Gross Margin of 33%
Achieve high business growth • Business growth of 30% in the first
year.
• Business growth of 36% in the
second year.
• Living with Diabetes Membership and
Weight loss program Growth of 350
people at the end first year.
• Living with Diabetes Membership and
Weight loss program of 525 people at
the end of the second year.

3.3.2 Customer
GOAL To provide exceptional integrated health
services and a wide range of diabetic
products for patients in the Northern
Beaches and North Shore areas.
OBJECTIVES MEASURES
Achieve:
Customer Satisfaction Customer satisfaction rating of nine out
of ten by June 2009.
Membership Program Launch membership program on the 1st
August 2007.
Customer Retention • Customer retention for the Diabetes
Membership Program of 95%.
• Customer retention for the Weight
Loss Program of 70%.
3.3.3 Internal Business
GOAL
To ensure all processes are very
professional and efficient.
OBJECTIVES MEASURES
Achieve:
Responsive Supply Maximum waiting time for scripts of 5
minutes.
Appointment waiting time Appointments will never run more than 5
minutes late.
QCPP Accredited To maintain QCPP accreditation.
Diabetes Australia Sub-agency To maintain the association with
Diabetes Australia.

3.3.4 Learning and Growth
GOAL
To have stable well trained staff that are
committed, engaged and enjoy their work.
OBJECTIVES MEASURES
Achieve:
Employee Satisfaction Employee satisfaction of:
• Year one 80%.
• Year two 90%.
Employee Retention Employee retention of:
• Year one 45%.
• Year two 50%.

4 Situation Analysis
4.1 SWOT: Retail Pharmacy Industry Analysis
Strengths
• First point of contact for education and advice on health issues
• Last HCP encountered before the patient goes home with medicine
• Politically aware and successful lobby groups such as the Pharmacy Guild of
Australia, represent the Pharmacy industry
• Strong support from professional organisations such as PSA
• Currently regulated industry, meaning we are protected from supermarket takeovers
and external competitors to some extent
• Pharmacy is the second most trusted profession in consumer surveys
• Pharmacists are experts in all health issues and in their management
• Government is putting funding into pharmacy via the Guild Government Agreements
• The PBS covers the cost of medicines, through this government initiative
• Retail Pharmacy is an $8 billion industry (The Pharmacy Guild of Australia, 2006)
Weaknesses
• The majority of pharmacies are out-dated in terms of business efficiency, including
poor management skills
• Not all pharmacies are QCPP accredited and there is no unity or consistency in
providing general services
• Time constraints exist, which limit the thoroughness of patient counselling possible
• Business vs. professional battle. Some customers and pharmacists see the pharmacy
as a retail store, not as a HCP
• Discount pharmacies lower the image of pharmacy as a profession and initiate price
reductions, which may tilt the balance towards business rather than professional
priorities
• Pharmacists have fewer business and entrepreneurial skills than other retailers
because there is relatively little Management taught at university

Opportunities
• There is an ageing population
• There is a growing need for pharmacies at the forefront of healthcare
• Disease state management is needed and government funding is available
• Increasing incidence of diabetes, asthma, cancer, cardiovascular disease,
hypertension, obesity and other health priorities
• More health conscious and independent population, which are interested in
prophylactic health care
• The information available on the internet may not be valid and is at best impersonal
Threats
• Deregulation, which would lead to increased competition
• A change of government, which may not demonstrate the same level of support as
currently exists for Pharmacy
• The Internet, which facilitates mail order purchasing and which provides extremely
large amounts of free information to patients quickly and conveniently.

4.2 SWOT: Living with Diabetes Program
Strengths
• First and only full service diabetes pharmacy
• Education seminars, which will draw customers and provide income
• Builds on pharmacist as a health care professional
• Provide a club, which enhances the patients’ participation in their own health care,
whilst providing peer support, which leads to customer goodwill.
• Works in alliance with other health care professionals
• Optimal location, in an affluent metropolitan area
• Located in a shopping village, which attracts customers and has parking as outlined
below
• Adjacent to a medical centre
• Trained and knowledgeable pharmacists that are fully trained in diabetes
• Excellent customer service
• Private consultation, which leads to better patient outcomes, rapport with patients and
also provides a personalized service
• Wide variety of high quality diabetes products
• A significant amount of free, close parking in and around the shopping village, making
the pharmacy easily accessible and convenient
• The fourth pharmacy owned by this group of pharmacists, which leads to better
purchasing power, established accounting and marketing infrastructure
• Targeting all types of diabetes including Type 1, Type 2, pre-diabetes and prevention
of diabetes in patients with high risk factors
• Strong retail skills, experience and customer service of pharmacy assistants

Weaknesses
• Physical space, the pharmacy is relatively small at 200m
2
• Unforeseen logistic problems because it has not been done before ( from the
government end and balancing busy and quiet periods for consultations and
education sessions etc)
• Low customer awareness
• No existing branding as a diabetes pharmacy
• The difficulties inherited in working around the timetable of other health care
professionals
• Short-term chaos with renovation, consulting rooms and new stock
• New supplier relationships need to be formed for more specialized equipment
• Currently employed pharmacy assistants not adequately educated in diabetes
specifically
• Balance between general business and diabetes program
• Limited financial resources
• Defining roles of the 3 shareholders and managing who will be the Pharmacist In
Charge when and considering other pharmacy commitments
Opportunities
1. A large number of diabetic patients in the community. 3.75% of the Australian
population reported that they had diabetes, which is approximately 780 000 people
(Diabetes Australia)
2. Diabetes is increasing at 0.48 % pa in Australia. 100 000 people are developing
diabetes each year in Australia, which in turn doubles their chance of dying within the
next 5 years (Healey, 2007)
3. Patient demand for better treatment and earlier diagnosis of diabetes
4. Patient demand for better management of diabetes
5. Growing economy
6. Government funding and pilot program in the Community Pharmacy Fourth
Agreement

Opportunities matrix
Impact on HTCP
High Relatively Low
Probability of
occurrence
High Incidence of diabetes
Increasing rate of prevalence
Patient demand for HC Services
Economy growth
Gov Funding 4th
Agreement
Low
Figure 1. Opportunities matrix
Threats
1. Change of government, because the Liberal Government has been very supportive of
Pharmacy, as seen by the initiatives and funding allocated in the Community
Pharmacy Fourth Agreement. If the Labor Government came into power, we are not
aware of their level of support for Pharmacy
2. Community Pharmacy Fifth Agreement, which has an unknown level of support for
diabetic programs
3. High possibility of imitation and competition as there is Guild and Government
support of Diabetes Pilot programs, which may lead to an increasing trend in diabetes
specific pharmacies
4. Diabetes Australia pharmacy sub-agencies, which supply patients with diabetic
supplies such as needles and testing strips may attract diabetes customers who
choose to purchase additional diabetes supplies and other pharmacy needs from
those pharmacies
5. Diabetes education centre at the Royal North Shore Hospital, which provides some
education and diabetic equipment
6. Diabetes clinics in other hospitals such as at the Royal Prince Alfred Hospital and St.
Vincent’s Hospital
7. Interest rate and inflation, which will lead to high and increasing cost of insurance
premiums and loan repayment
8. High insurance for employees
9. Deregulation of Pharmacy by the Government
10. Competition competing on low price, such as discount pharmacies selling diabetes
equipment at lower prices

11. Finding competently trained staff as the program grows, so too will the number of
staff required
12. Possibility of blood borne diseases as we are dealing with blood when monitoring
BSL
Threats Matrix
Impact on HTCP
High Relatively Low
Probability of
occurrence
High Competitive imitation
Attracting high quality staff
Gov Guild 5
th
Agreement
Diabetes Australia
pharmacies
Diabetes Education
Centre at RNSH
and other hospitals
Discount
pharmacies
Low Change of government
Inflation
Insurance
Deregulation
Blood borne diseases
Figure 2. Threats Matrix

4.3 Competitor Analysis
Figure 3. Bull’s Eye of Competitors
The above diagram is a summary of our competition. The Bull’s Eye concept allows us to rank
our competition from most important which is in the centre circle of the Bull’s Eye, and
gradually decreases in competitiveness as we move towards the outer circles. We rated each
of our competitors on factors which influence consumers’ choice such as the location and
whether the pharmacies are Diabetes Australia Accredited Pharmacies.
Diabetes Australia
Pharmacies on the
Northern Beaches and
North Shore
Non-Diabetes
Australia Pharmacies
on the Northern
Beaches and North
Shore
Diabetes Australia
Pharmacies in St Ives
Royal North
Shore Hospital
Clinic
Non-Diabetes Australia
Pharmacy’s in St Ives
Diabetes Australia
NSW Branch

Below are outlines of each of our competitors in decreasing order of direct competitiveness.
Refer to Appendix 2 for a map of the St Ives area with local pharmacies highlighted.
Diabetes Australia Pharmacies in St Ives
Cater’s Pharmacy
Located in the St Ives Hassel Park Shopping Plaza, it is 5km further up Mona Vale
Road from the St Ives Shopping Village. It is a Diabetes Australia accredited
pharmacy and has regular Diabetic patients who purchase subsidized diabetic
products. Cater’s Pharmacy is a medium sized Pharmacy.
St Ives Pharmacy
Located on Mona Vale Road outside the St Ives Shopping Village. It is a Diabetes
Australia accredited pharmacy and has regular Diabetic patients who purchase
subsidized diabetic products. It has recently changed ownership, and has been taken
over by a young new pharmacist. St Ives Pharmacy is a small sized pharmacy.
Diabetes Education Centre, Royal North Shore Hospital
A diabetes Clinic that is located in the Royal North Shore Hospital at St Leonards which is
approximately 15 km from St Ives. It offers a wide range of health services and products.
They have incorporated certain health care professionals into their diabetes Clinic to conduct
specific health seminars as well as offering a wide range of subsidized diabetes products
since they are Diabetes Australia accredited. However the clinic is very much dependant on
hospital funding and has numerous other hospital operational drawbacks such as long waiting
lists, overcrowded clinics and efficiency problems due to limited funding. In addition it treats
Diabetic hospital in-patients and is not readily available to diabetic patients in the wider
community.
Whilst this centre is considered a competitor since it sells diabetes products, it is also a
potential referrer of customers to our pharmacy and thus will be the target of promotional
activity.

Non-Diabetes Australia Pharmacies in St Ives
Blooms the Chemist
Located in the St Ives Shopping Village, it is a medium sized pharmacy that offers
typical pharmacy services. Currently competing on low prices, it belongs to the
Blooms banner group that releases monthly catalogues in the local area.
McDonald’s Price Rite Pharmacy
Recently became a Price Rite Pharmacy, it is located near the St Ives Shopping
village on Mona-Vale Road strip shops. Small sized pharmacy that has started to
compete on low prices.
Diabetes Australia Pharmacies on the Northern Beaches and North Shore
There are 83 Diabetes Australia Pharmacies on the North Shore and Northern Beaches of
Sydney. They differ in terms of the pharmacy size, ownership structure and health services
that they provide. They all however are Diabetes Australia Accredited Pharmacies and offer
subsidized products to diabetes patients in this area.
Diabetes Australia NSW Branch
Non-profit, non-government charity dedicated to helping people with diabetes, lobbying
government, raising funding for research and increasing community awareness of diabetes.
Located in the inner Sydney suburb of Glebe, it is a large organization that provides
numerous services and products to its members in New South Wales. It was founded in 1937
and is the third oldest diabetes Organization in the world. The Diabetes Australia NSW branch
offers patients a wide range of subsidized products. Additionally they give their members the
option to order their products online. They also offer numerous publications and education
sessions for their members.
Whilst this association is considered a competitor since it sells diabetes products, it is also a
potential referrer of customers to our pharmacy and thus will be the target of promotional
activity.

Non-Diabetes Australia Pharmacies on the Northern Beaches and North Shore
These Pharmacies cannot offer subsidized diabetic products to diabetes patients. They have
no particular focus on diabetes and thus are not considered a major source of competition to
Health and Total Care Pharmacy.
Competitor Strength Grid
Below is a competition strength grid, which compares HTCP against the major competitors on
a range of determinant criteria. Each of these is described below.
Assets & Competencies HTCP SDEC DA
Non -
DA
DA-
NSW
Product Range
Customer Service
Professional Service
Pre-Diabetes
Location Convenience
Community Feel
All Aspects diabetes care
Non-Reliance on Public
Funding
Consultation Privacy
Short Waiting Time
3 Point Colour Scale HTCP Health and Total Care Pharmacy
less then average SDEC
St.Leonard's Diabetes Education
Centre
average DA
Diabetes Australia
Pharmacies
above average Non-DA Non-Diabetes Australia Pharmacies
DA-
NSW Diabetes Australia New South Wales
Figure 4. Competitor Strength Grid

Product Range
This includes the types of products offered by the Pharmacy and the product range.
Currently Diabetes Australia Pharmacies offer subsidised diabetic products. The
Diabetes Education Centre at the Royal North Shore Hospital is our only competitor
to offer diabetic products that go beyond standard subsidised products.
Customer Service
This focuses on the service that employees provide to patients. We believe that our
competitors offer average customer service and as we increase the number of staff
and staff expertise, customer service will increase in our pharmacy as we focus on
friendliness, acknowledgment and empathy towards our patients.
Professional Service
The level of advice and education that is available to the patient on specific diabetic
health related issues. We will have state of the art knowledge and expertise to offer
our patients as well as promoting increased awareness and using cutting edge
diabetes research to improve our Living with Diabetes Program.
Pre-Diabetes
We will be the first Pharmacy to target pre-diabetes thus aiming for prevention as
well as treatment.
Location Convenience
This takes into consideration customer parking, disabled parking, access via public
transport and access within the local community.
Community Feel
This is defined as the sense of community that is brought into the pharmacy
environment. Through our weekly health seminars, and private consultations we
believe this will increase the sense of community in our pharmacy.

All Aspects of Diabetes Care
Targeting all areas of Diabetes Management, including treatment, exercise, diet and
education. Our point of differentiation is that we are targeting all areas of diabetes
care through our pharmacy. Our competitors offer some services, however our
pharmacy aims at offering all services that give diabetic patients greater control. Not
only will we be offering new pharmacy services we will be incorporating the expertise
of specific Health Care Professionals into the Living with Diabetes Program.
Dieticians, Podiatrists, Exercise Trainers, Doctors, and many other Health Care
Professionals will be involved with the program.
Non-Reliance on Public Funding
Whether Pharmacy services are reliant on government or hospital funding. This is the
case for the Diabetes Education Centre at the Royal North Shore Hospital. Given the
Government’s budget constraints this is perceived as a negative.
Consultation Privacy
This takes into consideration the nature of the consultation in the Pharmacy and
whether it’s a one on one consultation in a private room or whether the consultation
occurs in the general pharmacy area. We have incorporated a private consultation
room in the pharmacy specifically for the Living with Diabetes Program. We believe
this will increase the quality of the services that we are providing to our patients.
Short Waiting Time
This includes both the waiting time in the Pharmacy, and the waiting time to join
specific pharmacy run health programs. Unlike Diabetes Education Centre, a great
strength for us is that our patient waiting time will be minimal.

4.4 Planning Assumptions
• There will be 100 LWD Members by December 2007 and this will
progressively increase to 525 in 2009
• LWD Members will pay their accounts monthly
• The price of the program will increase by 3% due to inflation
• 80% of LWD Members will join the Gold Membership program
• 20% of LWD Members will join the Silver Membership program

5 Key Issues/Keys to success
• Provide excellent service to trump our present and future competitors
• Building good relationships and rapport with the diabetes program participants, which
leads to increased compliance with therapy, identification of concerns or issues,
customer loyalty, customer service, referral (word of mouth), business growth, better
health outcomes and creates the feel of a community
• Good relationships with other health care professionals, which can lead to referral
through doctors (GPs and Endocrinologists), Diabetes Australia and other
pharmacies, and increases awareness of the program
• Enhance the reputation of Health and Total Care Pharmacy as a diabetes specialist
service provider
• Attract, develop, educate and retain competent and talented employees
• Acquire new customers, specifically diabetes patients
• Improve internal protocols to ensure increased efficiency of the Living with Diabetes
program
• Becoming self-sufficient, as to not require dependence on the Government or Guild
funding

6 Marketing Strategy
6.1 Products and Services
We will offer the following products and services.
Range
A. Services
a. Diabetes pilot program (Guild Fourth Agreement)
i. 5 private consultations per 6 months
b. Living with Diabetes Program
i. Gold
ii. Silver
iii. Get Healthy
c. Home-delivered Food
B. Physical products (refer to Figure 5 below)
a. Diabetes
b. Weight loss
c. Exercise-related
d. Other items associated with co-morbidities

Diabetes Program Membership
Living With Diabetes Gold Club
Membership is $75 per month and includes:
• Monthly one on one consultation with a pharmacist regarding all aspects of
the patient’s health as well as diet and weight loss if appropriate (15 minute
appointment)
• Weekly consultation with Weight Loss Consultant pharmacy assistant
• Diabetes Recipe book
• Diabetes Health Diary
• Weekly educational seminars on diabetes related issues presented by topic
experts
• Access to a fitness program provided by Fitness First tailored to the physical
needs of people with diabetes e.g. Tai Chi, Pilates and dance.
• Optional: At an additional charge, members can order home delivered
healthy, low GI meals through us that will meet their dietary requirements.
Living With Diabetes Silver Club
Membership is $46
This has all the features included in the Gold program excluding access to the fitness
program. It includes:
• Monthly one on one consultation with a pharmacist regarding all aspects of
their health as well as diet and weight loss if appropriate (15 minute appointment)
• Weekly consultation with Weight Loss Consultant pharmacy assistant
• Diabetes Recipe book
• Diabetes Health Diary
experts

Diabetes One
• $320 over a 6 month period for 5 private consultations with the pharmacist (funded by
the Government).
• Requires GP referral to meet the Government payment criteria (Community
Pharmacy Fourth Agreement: Diabetes Pilot Program, refer to Appendix 3).
Get Healthy Program
Membership is $75
This program is designed for people who have a BMI of greater than 30 and are at risk of
diabetes and include:
• 1st session: a private consultation with the pharmacist to screen for diabetes.
• Weekly consultation with a trained shop assistant to monitor their weight loss
progress.
• Weight Loss Recipe book
• Health Diary
experts

The services we will provide in the LWD program include
• Consultations with doctors and specialists in the adjacent medical centre
• Education sessions
• Exercise programs outsourced through Fitness First
• An option for a meal plan through Lite n Easy
• In-pharmacy service, which involves monthly consultation with the pharmacist to
measure weight, BMI, waist circumference, waist:hip ratio, blood pressure and blood
sugar levels in order to monitor the patient’s progress with their diabetes program
and control
• Counselling every patient on the use of all equipment and medication before and
after sale for example, glucometers, BP monitors, weight loss products
• Counselling regarding other issues associated with referral for example, when to see
a doctor, specialist or other HCP and the importance of regular monitoring (including
self and lab pathology data, signs and symptoms of uncontrolled diabetes and
related disease states)
• Ask every patient who is sold foot care products containing salicylic acid whether
they are diabetic or not.
We will provide the highest quality products, which have warranties and are from reliable
wholesalers. Some examples of these products, brands and pricing mark ups are listed in the
table below.

Area Product Brand % Mark up
Diabetes BSL Record book DA and own brand 100
Glucometers Roche Accu-Chek, Ascensia,
Bayer, Medisense
50
Low GI food/bars Go Natural 100
Jelly beans GoldX 100
S4 oral hypoglycaemics Diabex, Diaformin, Chem mart,
Formet, GenRx, Glucohexal,
Glucovance, Amaryl, Daonil,
Diamicron, Dimirel, Glimel,
Glyade, Melizide, Minidiab,
Nidem, Avandia and Actos
NHS
Insulin Novorapid, Mixtard, Lantus,
Actrapid, Humalog, Humulin,
Hypurin, Levemir, Monotard,
Novomix, Protaphane and
Ultratard
NHS
Testing supplies
(eg needles, strips)
Roche Accu-chek, Ultra fine, BD
Micro-fine, Novofine, Ascensia,
Bayer, Betacheck, Clinistix,
Glucoflex-R, Abbott, Medisense,
Terumo, Braun Omnitest ez,
Unistik2, Owen Mumford
DA subsidy
Lancets Softclix, Multiclix, Soft Touch 50
Insulin pens Sanofi Aventis 0
Diagnostics Ketostix 50

Weight loss OTC Product Optifast, Tony Ferguson,
Exolise, Bioglan and
Blackmores Product, Herron,
MediSlim
100
S3 Products Xenical 25
S4 Products Reductil, Duromine, NHS
Recipe book A range 200
DVD eg cooking
program
A range 200
Scales A range 50
Exercise DVD eg yoga, Pilates,
step
A range 200
Fitness ball Fitness First 100
Weights or weight
resistant equipment
Thera-band and a range 100
Other risk factors BP monitor Omron, Roche, Braun 50
Aspirin Cartia, Cardiprin, AsproClear,
Asasantin SR, Astrix, Bayer,
DBL Aspirin
100
Foot care Homyped shoes and a range 50
Smoking cessation Nicabate, Nicorette, Quit X 50
Eye care eg glasses,
vitamins
Blackmores, Bioglan, Nature’s
Own
50
Hyperlipidaemia Ausgem, Chem mart, Colestid,
Gemhexal, Jezil, Lescol, Lipazil,
Lipex, Lipidil, Lipitor, Lipostat,
Lopid, Metamucil, Nicotinic acid,
Pravachol, Questran Lite,
Simvahexal, Zimstat, Zocor
NHS
Antihypertensives Accupril, Accuretic, Acenorm,
Adalat, Addos XR, Adefin,
Aldactone, Aldomet, Alphapress,
Alphapril, Amizide, Amprace,
Anpec, Anpec SR, Apresoline,
Asig, Atacand, Atehexal, Auspril,
Avapro, Barbloc, Betabloc,
Capoten, Captohexal, Captopril,
NHS

Cardizem CD, Catapres,
Corbeton, Cordilox, Coversyl,
Dapa-tabs, Deralin, Diltatrend,
Dilzem CD, Dithiazide, Felodur,
Fibsol, Frusehexal, Frusid,
Gopten, Chem mart, GenRx,
Hydopa, Hydrene, Hygroton,
Hytrin, Inderal, Insig, Isoptin,
Kaluril, Karvezide, Lasix,
Lisodur, Loniten, Lopressor,
Metrol, Micardis, Minax,
Minipress, Moduretic, Monoplus,
Monopril, Natrilix, Norvasc,
Noten, Plendil, Pressin,
Presolol, Prinivil, Ramace,
Renitec, Spiractin, Tenormin,
Tensig, Teventen, Topace,
Trandate, Tritace, Uremide,
Urex, Vasocardol, Veracaps SR,
Visken, Zanidip, Zestril
Figure 5. Products
6.2 Price
The percentage mark up is included in Figure 5 above.
• Generally, we will not be discounting products because we want to create the image
of a high quality health service provider. This will not be detrimental, as we are
targeting a generally affluent patient market. Discounts and the resulting low margins
would not enable us to offer the high quality service that we perceive to be our
competitive advantage.
• However, when we receive good deals when bulk buying (especially electrical
equipment and glucometers etc) we will mark down the price from the RRP to pass
the savings to our customers or LWD Members, however we will maintain the mark
up as listed in Figure 5 above.
• Pension, concession and safety net cards will be covered for products on the PBS list
and will have NHS pricing such as S4 oral hypoglycaemics and insulin preparations.

• Diabetes Australia (DA) products will be priced according to DA subsidy (according to
concession status). These two areas are government and DA price regulated
respectively.
• Members of LWD will be entitled to VIP promotions on the night of education
sessions only.
• LWD Members will be offered a credit facility paid monthly.
• Overall, our pricing objective is for prices to be moderate. We will pay particular
attention to customer Known Value Items (KVIs).
6.3 Place
Location
When choosing a location for our business we faced a challenge which was to weigh up the
prevalence of diabetes in a certain area, and whether these potential patients would be able
to afford the health services that we plan to offer. Taking these two factors into consideration,
we decided that the upper North Shore suburb of St Ives is a perfect location because:
• The incidence of diabetes in Sydney's North Shore is 2-4% and in the Northern
Beaches is 4-6% (Appendix 4). These figures are respectively equal to and higher
than the national diabetes prevalence of 3.75% (Diabetes Australia NSW).
• Average taxable income per annum per person in the North Shore and Northern
Suburbs areas is $54,986 compared to the average combined household income for
Australia of $55,224 (Appendix 5).
Accessibility
For patients who are driving to the Pharmacy there is adequate parking provided in the
Shopping Village. There is sufficient amount of disabled parking spaces provided throughout
the Shopping Village Car Parks and flat access ramps at all main entries for wheel chair
access. The location of HTC Pharmacy is convenient within the shopping village and is
adjacent to the St Ives Medical Centre where Living with Diabetes Health Seminars will be
held. It is also in close proximity to cafés, supermarkets and toilet facilities as well as lifts and
escalators to other areas of the Village (Refer to Appendix 6 for the Village layout).
The Pharmacy is accessible by public transport. For patients coming from the Northern
Beaches to St Ives Shopping Village buses are very frequent, and for patients travelling from
the Lower North Shore, or Upper North Shore there are frequent train services available and
buses from the local train station, Gordon train station to the St Ives Shopping Village very
regularly.

6.4 Promotion
Advertising/Sales Promotion
Given that the target market is diabetic patients living within the North Shore and Northern
Beaches of Sydney, the promotion of the pharmacy's Living with Diabetes Program will not
include non targeted media such as television or radio. Since our target audience represents
only approximately 4% of the population, this is not considered to be cost effective. Nor will
catalogues be produced since they would position the pharmacy on price, which is
inconsistent with our positioning strategy. They also represent a non targeted method of
promotion.
Therefore, the focus of promotion will be mainly on direct marketing channels such as:
• Direct mail to General Practitioners (GPs) in the target areas
• Direct mail to Endocrinologists in the target areas
• Direct mail to patients who agree to an opt in database
• Interactive website for HTCP and LWD
• E-Newsletter to patients who agree to an join our database
The majority of the advertising will be in diabetes specific newsletters and magazines such
as:
• Issues- the Quarterly journal of Diabetes Australia-NSW
• Conquest-Diabetes Australia's National Magazine
• Invigorate-Twice yearly publication aimed to prevent Type 2 diabetes
• You Said What?!-Quarterly magazine for teens
PR with a small amount of associated advertising will be conducted in local community
newspapers (Refer to Appendix 7 for current advertising rate sheets):
• The Manly Daily
• The North Shore Times

And sales promotions will include:
• Posters in the Pharmacy and local GP surgeries
• Pharmacist directly asking diabetes patients in the Pharmacy
• Flyers included with diabetes scripts
• Co promotions with other Health Care Professionals involved in the program
promoting LWD
Personal Selling
Personal selling to GP's and endocrinologists in the North Shore and Northern Beaches of
Sydney is very important to the growth of the program. We will start by mailing GP's then
following up with visits explaining the Living with Diabetes Program. This is expected to lead
to increased referrals from doctors in the local area. Follow up phone calls will be made after
each visit.
6.5 People
Refer to Human Resources Plan (Section 9)
6.6 Physical Evidence
The physical evidence and facilities of Health and Total Care Pharmacy play a vital role in
influencing the atmosphere, image and personality of the pharmacy. Therefore, the physical
environment must appeal to the customers and promote the image of professionalism. In
appraising the physical environment, such features as layout, lighting, colour, interior design,
furnishing, noise level, pictures and general cleanliness all need to be taken account.
• We will follow Standard 5:1, 2, 3, 4, 5, 6, 7, 8, 9 and10 presented in the QCPP 2nd
Edition as outlined in Appendix 8.
• Refer to Appendix 9 for an indication of the type of appearance we plan for the
pharmacy.

Layout
• The pharmacy is 200 m
2
.
• The layout of the pharmacy will comply with Standard 5: 2, 3 from the QCPP 2nd
Edition as outlined in Appendix 8.
• The layout is designed to optimize traffic flow. The dispensary is the main point of
attraction in the store and is placed in the back whilst the cashier and exit is in the
front. This will cause the customer to move more through the store and consequently
more exposure to our retail products and prevent “dead spots.”
• The average distance between the shelves is 1.2m, allowing customers to feel
comfortable to move around the pharmacy.
• Three small rooms will be used for private consultation with the pharmacists or
dietary counselling.
• Refer to Figure 6 on page 35 for the layout of the store.

Figure 6. HTCP Layout

Colour and Lighting
• We want to create a cheerful, friendly, professional environment for our customers.
White would be our main colour as it is the colour associated with health care.
• We also use the colour orange; as it would soften the sterile feel of white and create a
fresher, vibrant, friendly environment. It is also the same colour we use for our logo,
which will fit with the brand image.
• Bright lighting will be used to illuminate and create an open, modern, vibrant, pleasant
looking environment. The lighting of the pharmacy will follow Standard 5:7 (Appendix
8), which will require us to have the lighting level above 400 lux.
Furnishings
• We will be using white shelving and storage systems to give the pharmacy a greater
capacity to store items, promote logical stocking and allow greater room for
customers to move around the pharmacy. The height of the shelves at the front of the
shop will be approximately 1.5-1.7 m.
• The waiting section will include 6 new comfortable of orange, vinyl chairs for our
customers’ use.
• Each counselling room will include a table, three chairs and a shelf containing books
and magazines related to diabetes. The room will provide privacy and promote an
aura of professionalism.
Noise Level
We will play contemporary easy listening music softly in the background, which will enhance a
more casual, friendly atmosphere in the store. Music has the power to entertain and improve
the mood of the customers and the staff.
Goods
• Stock will be categorised according to their use, making it easier for the customer to
select items. The main departments are:
1. Dispensary: Which includes pharmacy only medicine, pharmacist only medicine,
prescription.
2. Diabetes Products: Glucose strips, blood glucose monitors etc (refer to the
Products in Section 6.1). These will be located near the counselling rooms.

3. Weight Loss: Protein shakes and bars weight loss recipe books and exercise
DVDs. These will also be located near the counselling rooms
4. Over-the-counter/Retail products: this includes vitamins, first aid, baby
products, and feminine hygiene and skin care.
5. Scheduled Pharmacists and Pharmacy Only Medicine will be placed near the
pharmacists to ensure the quality cared of medication is achieved.
Interior and Exterior Signage
• Department signs are placed on the shelves or the walls to create convenience for
the customers.
• Images portraying people smiling, enjoying life will be placed against the shelves and
the walls in the dispensary (refer to Appendix 10). This will create an image of the
pharmacy as a place where health solutions are achieved and as a result, people are
able to be healthy and happy.
General Cleanliness
We will follow Standard 5:1 from QCPP 2nd Edition (Appendix 8) to ensure that the pharmacy
maintains a high level of cleanliness. This involves making sure:
• The floor is clean.
• No boxes in aisles.
• Glass windows are wiped down and cleaned on a weekly basis.
• Shelves are shiny.
• Benches and counters are kept clean.
• Prescription assembly area is kept free of stock, paper and invoices.
6.7 Process
Refer to Operational Plan (Section 7)

7 Operational Plan
HTCP aims to maintain the accreditation with QCPP. We aim to meet the 18 standards
provided by the Pharmacy Guild of Australia. HTCP would have to ensure that all original
accreditation processes of O’Loughlins Medical Pharmacy remained in place.
7.1 Delivery of Living with Diabetes, Diabetes One and Get Healthy Program
• We will be required to follow standard 3: 1,2,3,4 from the QCPP 2nd Edition
(Appendix 11).
• We will maintain our association with Diabetes Australia as a subagent.
• This will require us to provide trained/qualified personnel to deliver and present the
educational sessions in the Living with Diabetes, the Diabetes One and Get Healthy
programs.
• With the patients’ consent, a database will store information about their diabetic
condition, BMI etc. The information obtained will be kept confidential as required by the
Pharmaceutical Society of Australia (PSA) and Pharmacy Guild of Australia.
7.2 Procedures
We will follow standard 2: 1, 2, 4, 5, 7a, 7b, 8, 9, 10 from QCPP 2nd Edition (Appendix 12) in
dealing with the supply of medicines, medical devices and poisons.
• Dispensing Medication: We will follow the guidelines given by the
Pharmacy Defence Limited (PDL)
• Over the Counter Medicine: We will follow the guidelines given by the
PDL.
7.3 Advertising
In terms of promoting the programs we will comply with the TGA advertising code and price
policy and standard 4: 1, 2,3,4,5 from QCPP 2
nd
Edition.

7.4 Refund Policy
• Customers can have their membership fully refunded within the first 7 days of
joining.
• Customers must provide receipts to have their items refunded within a one month
period from purchase. The items must be in good condition and not opened.
• Faulty items will only be refunded if the customer returns the item with a receipt
within one month of purchase.
• All prescriptions are non-refundable.
7.5 Credit Policy
We will be using Commonwealths’ bank financial services. We accept credit and debit cards
and cash. We accept all Credit Cards except for Diners where there is a high surcharge and
is not commonly used. It is assumed that MasterCard and Visa will surcharge us 1.5% of
customer’s purchase and American Express will surcharge us 3%.
7.6 Inventory Policy
• We want to stock only products that have a five stock turn
• We realize that 20% of our products will provide 80% of our revenue and as a result
we use Simple Retail to provide us with data regarding our “hot items”.
• Most orders will be placed at the end of the month. Special and routine orders will be
ordered daily or weekly.
7.7 Equipment and Software
• We will purchase a QCPP compliant vaccine refrigerator- certified by the Cold Chain
Testing Centre.
• The following software programs will be used:
a) Amfac
b) Simple Retail

7.8 Suppliers
• Our main suppliers for prescriptions, OTC and complementary medicines will be:
Sigma, API, Symbion and Diabetes Australia.
• There will also be direct purchasing from manufactures such as AusPharm for our
prescriptions and generic brands.
• We will have an account with the manufacturing companies e.g. Omron and Roche
for most of our diabetes products.
• Diabetes Australia will subsidise certain diabetic products such as glucose meters.
7.9 Ordering, Receiving, Storage and Pricing Stock
We will employ Standard 9: 1, 2,3,4,5 (Appendix 13) and Standard 8: 1, 2, 3, 4, 5, and 6 from
the QCPP 2nd Edition (Appendix 14) for ordering, receiving, storing and pricing stock.
7.10 Ordering Stock
• Simple Retail will be used to provide POS data so that we can make an informed
decision in purchasing stock.
• The manufactures and the wholesalers will deliver our products. We will purchase our
products according to POS. Simple Retail will inform us if there is shortage of items. Most
of our items will be ordered on Monday. Joanne and Fiona will be in charge of purchasing
and dealing with Simple Retail.
• Bulk Buying: this will be the fourth pharmacy in the buying group and we will be able
to buy most of our products in bulk. We have been loyal to some of the suppliers and are
able to achieve discounts in purchasing items. As a result, we can become more efficient
in our purchase policy through reduced ordering and multiple deliveries.
• Routine Re-orders: standard items are re-ordered when a manual count or Simple
Retail indicates that the stock has fallen to the point where re-order is necessary.
• Special Orders: We will call our suppliers and order the products to be delivered the
next day if possible. We will have a small book for staff to make special orders for
customers.
• Emergency Orders/Stock outs: In case of an emergency when we are unable to
receive the stock from our suppliers, items will be purchased from pharmacies in St Ives
that have a reciprocal agreement with us: Blooms the Chemist and McFadden Chemist.

7.11 Receiving Stock
Products will be delivered to our store when there is least traffic flow in the pharmacy, which
is usually Tuesday and Wednesday morning and evenings. The stock will be immediately
placed in the storeroom in the back of the store.
7.12 Storing Medicine
• Scheduled and Pharmacy Only Medicine must be immediately be placed in the
dispensary and be out of reach of the public. If some medicines are temperature
sensitive, they must be delivered in an esky and immediately placed in a QCCP vaccine
refrigerator.
• Vaccine Refrigerator would be maintained between 2-8
o
C.
• We will use appropriate equipment to ensure the temperature in the
professional, trading and storage areas does not exceed 25
0
C.
• Out of stock, faulty and recall medicine will be placed in a special bin. We will use the
company Recall, a specialist company to secure destruction of sensitive material.
7.13 Pricing of Stock
We will have a retail manager who is required to check that displayed and advertised stock
prices are consistent with the pricing data in Simple Retail.

7.14 Customer Service
• We will follow Standard 11: 1, 2, 3, 4, 5, 6, 7, and 8 from QCPP 2nd Edition
(Appendix 15) in serving customers.
• Customers’ information will be kept confidential at all times.
• Uniforms and badges must be worn during work hours to allow customers to
recognise staff (refer to Appendix 16 for drawings)
• Staff members should follow these procedures in dealing with customers:
1. recognise and acknowledge
2. identify their needs
3. match assistance to the needs
4. resolve the situation
• Staff members are required every fortnight to attend staff training to improve their
skills.
• Home deliveries are made for prescriptions on a daily basis.
• One of the duties of the retail manage is to coordinate the membership programs
(LWD, Diabetes One and Get Healthy) and all subcontracting activities.
7.15 Security
• We will follow Standard 17: 1,2,3,4,5 and 6, which will require us to follow the
procedures P17: A, B, C, D, E, F, G, H, I, J, K, L, M, N, O,P,Q,R (Appendix 17) and
templates T7: A,B,C,D (Appendix 18), T15B (Appendix 19) and T17: A,B,C,D,E
(Appendix 20) from the QCPP 2nd Edition to prevent loss of items, fraudulent
transactions and processes for emergency situation e.g. armed robbery.
• If a person is suspected of or has stolen items from the pharmacy, staff can politely
ask the person to inspect their bags. If they refuse to cooperate, staff should inform the
pharmacists, police and shopping centre security about the theft.
• We will conduct a brief, visual inspection to ensure goods are brand new and are
received in good condition from our suppliers.
• We will ensure that the quantities of goods delivered match the invoices. Invoices are
kept and recorded.
• We will have prominent signage warning potential thieves about our anti-theft
systems e.g. monitored alarm system etc.

7.16 Occupational Health and Safety
• We will follow SAF 1,2,3,4 from the Team Standards Manual in the QCPP 1st Edition
(Appendix 21).
• Any safety concerns from the staff should be reported to the pharmacists.
• We will conduct an audit of pharmacy safety every three months to identify and
reduce hazards in the pharmacy environment.
• We will follow the recommended procedures provided by the government to minimize
injury during manual handling.
• Smoking is prohibited in the pharmacy.
• If a customer displays rude or violent behaviours in the pharmacy, we will politely ask
them to leave and follow SAF4 provided in the QCCP 1st Edition (Appendix 21) Team
Standard Manual.

8 Financial Plan
8.1 Corporate Ownership
• Health and Total Care Pharmacy is a privately held corporation. The three founders:
Daniel Rifkin, Fiona and Joanne Chang will have equal share of the ownership of the
pharmacy.
• Each of the founders owns a well established pharmacy and would like to invest in a
pharmacy focusing more on health.
8.2 Establishment Cost
8.2.1 Value of the Business
Price= Adjusted Net Annual Profit 100
ROI%
Adjusted Net Annual Profit= 250,000 ROI=19
Thus, the value of O'Loughlins Pharmacy= 1,315,789
Table 1. Business Valuation
• The pharmacy experienced some financial difficulties due to poor business and
financial management in the previous year.
• This placed us in a better position in the negotiation the price of the business.
Stock at Valuation 350,000
Fixtures and Fitting 30,000
Equipment 20,000
Good Will 915,790
Total Cost of Purchase 1,315,789
Table 2. The price of purchasing the pharmacy
We have negotiated with the owner and agreed to purchase the pharmacy for $1,315,000.

8.2.2 Start up Expenses
• Each partner has contributed $410 000 for the establishment of the business. We will
borrow $450 000 from the Commonwealth Bank, for an eight- year period, with 8%
p.a. compounded interest. The loan shall be paid every month.
• Additional expenses in starting the pharmacy will be spent in improving 50m
2
of
pharmacy fitting, bond, purchasing capital equipment, consultancy and
advertisements. The total cost of the additional expenses is $327797. (More detail of
the start-up cost are provided in Appendix 22)
• We have a surplus of approximately $36414, which will be placed in the bank to gain
interest and used to improve our cash flow. This was calculated by Total Source of
Capital minus Total Start up Expenses.
Sources of Capital
Owners' and other investments $ 1,230,000
Bank loans 450,000
Total Source of Funds $ 1,680,000
Start-up Expenses
Buildings/real estate $ 1,315,789
Leasehold improvements 75,000
Capital equipment 155,000
Location/administration expenses 91,312
Advertising/promotional expenses 6,485
Total Start-up Expenses $ 1,643,586
Table 3. Start-up expenses

8.3 Financial Forecast before implementation of the Membership Programs
The analysis made in this section will look at the general business activity before Membership
Programs are implemented.
8.3.1 Profit and Loss Statement
8.3.1.1 Business Growth and Inflation
• Sales are expected to grow 5% based on the previous owner’s profit and loss
statement.
• Inflation is expected to be 3%.
8.3.1.2 Gross Margin
• The previous owner had gross margin of 29-30%
• We expect to have a higher gross margin of :
o 2% in the first year
o 33% in the second year
• Due to selling products that have a higher mark-up, greater purchasing power,
reduction of theft and tighter control of inventory.
8.3.1.3 Expenses
Most of our business expenditure will be hiring labour and rent. Rent is charged at
approximately $1000 per m
2
on an annual basis. Labour will account for 12% of our total
revenue in hiring people.
8.3.1.4 Net Profit
• With better business management, net profit is expected to improve in the next two
years increasing from 3.11% in the 2006 financial year to 5.17% in the first year of
takeover.
• The net profit is also expected to grow slightly from 5.17% to 6.97% in the second
year of takeover.
2007 % to 2008 % to 2005 % to 2006
Annual TO Annual TO Annual TO
Sales 2,757,008 0 2,894,858 0 2,500,687 2,625,722
Purchases Budget 1,874,765 68 1,939,555 67 1,750,481 70.00% 1,864,263 71
Gross Profit 882,243 32 955,303 33 825,227 33.00% 761,459 29
Total Revenue 882,244 32 955,303 33 825,227 33.00% 761,459 29

Table 4. The Profit and Loss Statement of the business before implementation of the
Membership Program.
Hire of Labour 330,841 12 347,383 12 300,082 12.00% 288,829 11
Advertising 35,827 1.3 43,423 1.5 37,510 1.50% 26,257 1
Telephone 11,937 0.43 12,295 0.42 11,253 0.45% 11,591 0.44
Cleaning/Laundry 3,184 0.12 3,280 0.11 3,001 0.12% 3,091 0.12
Consultancy 2,800 0.1 2,884 0.1 2,641 0.11% 2,720 0.1
Freight 981 0.04 1,010 0.03 924 0.04% 952 0.04
Printing/Stationary 15,278 0.55 15,736 0.54 14,400 0.58% 14,832 0.56
Repairs and
Maintenance 2,959 0.11 3,048 0.11 2,792 0.11% 2,876 0.11
Staff Training 1,920 0.07 1,978 0.07 1,800 0.07% 1,854 0.07
Subscriptions 3,192 0.12 3,288 0.11 3,000 0.12% 3,090 0.12
Telephone 13,896 0.5 14,313 0.49 13,098 0.52% 13,491 0.51
Wrapping 2,928 0.11 3,016 0.1 2,757 0.11% 2,840 0.11
Postage 927 0.03 955 0.03 875 0.04% 901 0.03
Uniforms 2,624 0.1 2,703 0.09 2,474 0.10% 2,548 0.1
Motor Vehicle
Expenses 1,020 0.04 1,051 0.04 960 0.04% 989 0.04
Registration 1,279 0.05 1,317 0.05 1,206 0.05% 1,242 0.05
Sundry 3,562 0.13 3,669 0.13 3,358 0.13% 3,459 0.13
Staff amenities 942 0.03 970 0.03 894 0.04% 921 0.04
Security 2,617 0.09 2,696 0.09 2,468 0.10% 2,542 0.1
Superannuation 29,776 1.08 31,264 1.08 27,007 1.08% 25,995 0.99
Controllable
Expenses 468,479 16.99 496,279 17.14 432,500 17.30% 411,020 15.65
Rent 201,571 7.31 207,612 7.17 190,000 7.60% 195,700 7.45
Bank Charges 13,265 0.48 13,663 0.47 12,504 0.50% 12,879 0.49
Insurance 10,824 0.39 11,148 0.39 10,200 0.41% 10,506 0.4
Total Fixed Expenses 225,648 8.18 232,423 8.03 211,653 8.46% 219,085 8.34
Total Operating
Expenses 694,127 25.18 728,702 25.17 644,153 25.76% 630,105 24
Net Operating Profit 188,117 6.82 226,617 7.83 181,073 7.24% 131,354 5
Interests 45,600 1.65 51,000 1.76 50,400 2.02% 49,800 1.9
Total Expenses 739,727 26.83 779,702 26.93 262,053 23.74% 630,105 24
Net Profit 142,517 5.17 175,617 6.07 130,673 5.23% 81,554 3.11

8.3.2 Balance Sheet
BALANCE SHEET (2/07/07)
Current Assets
Cash 35,414
Accounts Receivable 4,000
Stock on Hand as of 2/07/07 500,000
Prepaid Insurance 15,150
TOTAL CURRENT ASSETS 554,564
PROPERTY AND EQUIPMENT
Security 25,000
Improved Fixtures 75,000
Fixtures of the Current Business(4 years ago): 30,000
Current Equipment 20,000
IT 5,000
Signage 1,000
Less Accumulated Dep. 8,000
Net Fixed Assets 148,000
Other Assets:
Goodwill 915,790
TOTAL ASSETS 1,618,354
Current Liabilities
Account Payable on New Stock 150,000
Short Term Loans 0
Other Short Term Liabilities 0
Accrued Salaries 3,157
GST Payable 2,000
TOTAL CURRENT LIABILITIES 155,157
Long Term Liabilities
Loan 450,000
TOTAL LIABILITES 605,157
NET WORTH
Owners' Total Equity 1,013,197
TOTAL LIABILITIES & NET WORTH 1,618,354
Table 7. Balance Sheet

8.4 Financial Forecast of Membership Program
This section will provide a financial forecast of the LWD Membership Program only.
8.4.1 Sales Forecast
8.4.1.1 LWD membership
• We aim to achieve a high growth in membership for LWD program over a two- year
period.
• Every 6 months we will increase the number of people to become members of the
program.
• Price of the program is expected to increase by 3% due to inflation.
• Lite n Easy incorporated into monthly cost (refer to Appendix 23 for quotes).
2007 2008 2009
2
nd
Half 1
st
half 2
nd
Half 1
st
half
Members 100 200 350 525
% increase
100 75 50
Table 8. The total number of people that will join LWD and the growth of the membership over
a two-year period.
We assume 80% of diabetic patient will join LWD Gold.
2007 2008 2009
2
nd
Half 1
st
half 2
nd
Half 1
st
half
Members 80 160 280 420
Price per person (p/m) $75 p.m. $77 p.m. $77 p.m. $79 p.m.
Table 9. The total number of people that will join LWD Gold and the price of the membership
over a two- year period.

The remaining 20% will choose to be a member of LWD Silver.
2007 2008 2009
2
nd
Half 1
st
half 2
nd
Half 1
st
half
Members 20 40 70 105
Price per person (p/m) $46 p.m. $47 p.m. $47 p.m. $48 p.m.
Table 10. The total number of people that will join LWD Silver and the price of the
membership over a two- year period.
8.4.1.2 Get Healthy Membership
• Compared to LWD, we expect growth for the Get Healthy program to be slower as
our pharmacy is mainly targeting diabetics.
• Lite n Easy incorporated into monthly cost (refer to Appendix 23 for quotes).
2007 2008 2009
2
nd
Half 1
st
half 2
nd
Half 1
st
half
Members 50 70 100 140
Price per person (p.m.) $75 p.m. $77 p.m. $77 p.m. $79 p.m.
Table 11. The total number of people that will join Get Healthy and the price of the Program
8.4.1.3 Diabetes One
• It is a diabetes pilot program funded by the Government.
• Initial Funding of $500 per patient (max 10 patients) by the government plus
• Stage 1: Government funds $320 over a 6 month period for 5 private consultations
with the pharmacists (a maximum of 10 patients) plus
• Stage 2: Government funds $320 over a 6 months period for 5 private consultations
with the pharmacists (a maximum of 14 patients).
• Refer to Appendix 3 for more information on the funding and the number of patients
eligible on the Diabetes Pilot Program)

Membership Program Half-Yearly Sales Forecast
JUL 2007- JAN 2008
MEMBERSHIP REVENUE No of people Price per month No of Months Revenue
LWD Gold 80 75 6 36,000
LWD Silver 20 46 6 5,520
Get Healthy 50 75 6 22,500
Gov funding (Diabetes One) 10 54 6 3,240
Initial Gov Funding 10 500 1 5,000
TOTAL 72,260
JAN 2008-JUL 2008
MEMBERSHIP REVENUE
No of people Price per month No of Months Revenue
LWD Gold 160 77 6 73,920
LWD Silver 40 47 6 11,280
Get Healthy 70 77 6 32,340
TOTAL 122,076
JUL 2008-JAN 2009
LWD Gold 280 77 6 129,360
LWD Silver 70 47 6 19,740
Get Healthy 100 77 6 46,200
TOTAL 199,836
JAN 2009-JUL 2009
LWD Gold 420 79 6 199,080
LWD Silver 105 48 6 30,240
Get Healthy 140 79 6 66,360
TOTAL 300,216
Table 12. Membership Program Half-Yearly Sales Forecast

8.4.1.4 Products
We expect the implementation of the Membership Programs will generate more revenues to
our store especially products relating to diabetes and weight loss.
8.4.1.4.1 Diabetic Related Product
Refer to Appendix 24 for a very detailed analysis of the half yearly sales forecast and the
assumptions made.
8.4.1.4.2 Weight Loss Related Products
Refer to Appendix 25 for a very detailed analysis of the half yearly sales forecast and the
assumptions made.
8.4.2 Expense Forecast
8.4.2.1 Membership
The following assumptions have been made:
• The price of Fitness First Cooperate membership is $34 per month (bulk buy
membership). Will negotiate decreases in line with increased membership numbers.
• Pharmacist will provide 15 minutes consultation on a monthly basis for LWD
Members
• Pharmacist will provide 40 minute private consultation in the Diabetes Ones program
and this is funded by the Government.
• Shop assistants will provide weight loss consultation for 15 minutes per week.
• Total cost of publishing the weight loss/diabetes diary and purchasing the diabetes
recipe book is $4.
• Average cost of hiring room is $60 per hour. We will aim to have 25-50 people in a
class. Initially 5 classes will be held. Three classes are for diabetics and 2 classes are
for weight loss.
• The average cost of hiring health care professionals is $33 per hour. This is due
agreements that have been made whereby the majority of health care professional
involved in the program will provide for free as our program is generating business for
their private practices.

2007 2008 2009
2
nd
Half 1
st
half 2
nd
Half 1
st
half
Fitness First
Membership (per month)
34 32 32 30
Pharmacists (p/h) 34 35 35 36
Presenters (p/h) 33 35 35 36
Promotion (p/m) 2600 2600 3600 4000
Rent(p/h) 60 61 61 62
Shop Assistant (p/h) 16 17 17 18
Books 4 4 4 4
Membership Manager
(p/h)
21 22 22 23
Table 13. Expenses required running the Program.
Refer to Appendix 26 for a more thorough calculation of the expenditure
8.4.2.2 Diabetes Products
Refer to Appendix 24 for a thorough detail on the expenditure of these products.
8.4.2.3 Weight Loss Products
Refer to Appendix 25 for a very detailed analysis of the expenditure of purchasing these
products.
8.4.3 Income Projection of the Membership Program Only
• In the first year of implementing the Membership program, the business will
experience a loss of $11001.88. However, implementing the Membership program
will be worthwhile because of the increase in revenues in diabetes and weight loss
product, which compensate with the loss from the membership program and turn it
into profit.
• By the second year we will be making a profit due to greater efficiency in running the
program and better negotiation with Fitness First.
• We will require approximately 350 people in LWD, 100 people in Get Healthy and 10
people in Diabetes One to break even in the Membership Program.

2007 2008 2008 2009
2nd Half 1st Half 2nd Half 1st Half
MEMBERSHIP REVENUE
LWD Gold 36000 73920 129360 199080
LWD Silver 5520 11280 19740 30240
Get Healthy 22500 32340 46200 66360
Gov funding (Diabetes One) 3240 4536 4536 4536
Initial Gov Funding 5000 0 0 0
TOTAL 72260 122076 199836 300216
Membership Expenditure
Fitness First Membership 28730 47840 79040 109200
Promotion 16900 16900 23400 26000
Hire of Room 7800 12688 22204 29016
Books 3900 7020 11700 2992.5
Pharmacists 7072 13650 22031.1 30888
Shop Assistants 5200 7735 11050 16380
Retail Manager 5460 8580 11440 14950
Superannuation(not including presenters) 1595.88 2697 4007 5599.62
Presenters 4290 7280 12740 16848
TOTAL 80947.88 124390 197612.1 251874.1
Net Profit -8687.88 -2314 2223.9 48341.88
Table 14. Income Projection of the Membership Program only
8.4.4 Profit and Loss Statement for the Membership Program, Diabetes and Weight loss
related product
Refer to Appendix 27 for a very detailed analysis of the profit and loss statement.
8.5 Financial Forecast of the Whole Business
This section will provide financial forecast analysis of the whole business activity.

8.5.1 Profit and Loss Statement
8.5.1.1 Business Growth and Inflation
8.5.1.1.1 1st Year
• The implementation of LWD and Get Fit will allow our business to grow at an
incremental rate of 30% p.a. in the first year compared to the results that are
projected to have been achieved without the new Diabetes Programs (5% p.a.).
• The rapid business growth is due to the revenues from the membership program and
then the increase in revenues from the weight loss and Diabetes products, and the
additional general business generated from these new patients.
8.5.1.1.2 2nd Year
• The growth of the Membership program will have a significant influence on the
growth of the whole business with business experiencing a growth of 36%.
8.5.1.2 Expenses
First Year
• Expenses are expected to rise by 38% compared to the previous owner’s
expenditure. The rapid increase in expenditure is due to hiring more labor to provide
health services and renting rooms from the Medical Centre for educational seminars.
• However, in terms of expenditure of the annual business turn over, there is no
significant increase compared to the previous owner because the high growth of the
sales will compensate with the rising cost and expenditure.
8.5.1.3 Net Profit
Net profit is expected to increase from 3.11% to 9.66% from the first year of implementing the
program. The higher net profit is due to providing products that have a higher mark up, the
profit made from the membership program, and greater efficiency in running the pharmacy.

2007% TO 2008 % TO
Annual TO Annual TO
Sales 3,414,940 4,646,594
Purchases Budget 2,213,748 64.83 3,154,336 67.88
Gross Profit 1,201,192 35.17 1,492,258 32.12
Total Revenue 1,201,192 35.17 1,492,258 32.12
Hire of Labour 394,401 11.55 557,591 12
Advertising 69,627 2.04 83,639 1.8
Telephone 11,937 0.35 12,295 0.26
Cleaning/Laundry 3,184 0.09 3,280 0.07
Consultancy 2,800 0.08 2,884 0.06
Freight 981 0.03 1,010 0.02
Printing/Stationary 16,078 0.47 16,536 0.36
Repairs and Maintenance 2,959 0.09 3,048 0.07
Staff Training 2,920 0.09 2,978 0.06
Subscriptions 3,192 0.09 3,288 0.07
Utilities 14,896 0.44 15,313 0.33
Wrapping 2,928 0.09 3,016 0.06
Postage 927 0.03 955 0.02
Uniforms 2,624 0.08 2,703 0.06
Motor Vehicle Expenses 1,020 0.03 1,051 0.02
Registration 2,679 0.08 2,317 0.05
Sundry 3,562 0.1 3,669 0.08
Staff amenities 942 0.03 970 0.02
Security 2,617 0.08 2,696 0.06
Superannuation 35,496 1.04 50,183 1.08
Controllable Expenses 575,770 16.86 769,422 16.56
Rent 222,059 6.5 258,832 5.57
Bank Charges 17,075 0.5 17,587 0.38
Insurance 10,824 0.32 11,148 0.24
Total Fixed Expenses 249,958 7.32 287,567 6.19

Total Operating Expenses 825,728 24.18 1,056,990 22.75
Net Operating Profit 375,464 10.99 435,268 9.37
Interests 45,600 1.34 51,000 1.1
Total Expenses 871,328 25.52 1,107,990 23.85
Net Profit 329,864 9.66 384,268 8.27
Table 15. Profit and Loss Statement of the Whole Business
8.5.2 Sales Forecast
The implementation of the Membership programs will increase sales of diabetes related
product by:
• 11.5% in the first year of takeover
• 32% in the second year.
It will also increase the sales of weight loss products by:
• 5% in the first year of takeover
• 10.3% in the second year.
2006 2007 2008
Revenue
Diabetes Related
Product 284731 317475 953433.6
Weight Loss Product 139163 146121 298250.1
Table 16 Revenue from diabetes related product and weight loss product over three years.

2007
% to
Revenue 2008
% to
Revenue
Total Membership Sales 194336 6 500052 11
Total Diabetes Product Sales 317475 9 953433.6 21
Total Weight Loss Product Sales 146121 4 298250.1 6
General Business Sales 2757008 81 2894858 62
Total Business Revenue 3414940 100 4646594 100
Table 17. Annual Sales Forecast
8.5.3 Break Even Analysis
For our monthly break-even analysis, we have chosen $25 to represent our average revenue
per unit. The break-even analysis is merely a gauge by which we can measure our monthly
revenue streams to predict long-term profitability.
Break Even= Total Expense / Gross Margin
2007 2008
Total Expenses 872328 1107990
Gross Margin 0.35 0.3234
One Year of Sales 2492366 3426067
to Break Even
Monthly Sales 207697 285506
to Break Even
Break Even Units 8308 11420
(average revenue per
unit =$25)
Table 18. Break even analysis

9 Human Resources Plan
Our Pharmacy will be incorporating Quality Care Pharmacy Program Standards from QCPP
1st Edition March 2000 and QCPP 2nd Edition May 2006 Version 1.0 into our Management
and Personnel Team Standards. We will be using both versions of QCPP in regards to
Management and Personnel as our present successful businesses have used human
resource strategies from the first edition and we are currently updating our strategies and
incorporating the updated second edition of QCPP.
9.1 People
Personnel in Health and Total Care Pharmacy include:
• Partners
• Pharmacy Manager
• Pharmacists
• Diabetes Program Manager
• Pharmacy Assistants
• Specialised Health Care Professionals (HCPs):
• Podiatrist
• Optometrist
• Nurse
• Dietician
• Diabetes Educators
• Doctors
• Endocrinologist
• Physiotherapist
• Exercise Trainer
• Weight loss consultants
Attract
Having competent staff is critical to the operations of our business. We will have a broad
range of personnel in the Pharmacy and we will be using different strategies to attract staff
dependent on their qualifications and education.

Pharmacists/Diabetes Manager/Pharmacy Manager
For these positions we will be placing employment advertisements in Sydney metropolitan
newspapers as well as local papers, we will also be using staff from our other pharmacies and
word of mouth from colleagues in the industry. We will also be placing employment
advertisement online at specific employment website such as careers.com.
Pharmacy Assistants/ Weight Loss Consultants
Weight Loss Consultants who are experienced Pharmacy Assistants will specialise and work
predominantly in the Get Healthy diet operations of our Living with Diabetes Program. They
will be fully trained in these relevant areas. To advertise for these positions will place
advertisements in the local newspapers and source individuals from our other partner
pharmacies.
Other Health Care Professionals
We will be using Health Care Professionals from the adjacent Medical Centre and directly
targeting certain professionals to join the program. Additionally we will be also advertising in
local papers.
We will also be following Quality Care Pharmacy Program (QCPP) 1st Edition Recruitment
and Selection Business Management Standards to attract staff (Appendix 28). These Seven
steps include:
• Write Position Description
• Set Selection Criteria
• Source Candidates
• Interview Appropriate Applicants
• Reference Check
• Select and Notify Applicants
We believe that by offering a salary that is ten percent above the award wage, include two
weeks holiday pay per year and subsidising further education opportunities for our staff our
business is very attractive to potential employees. There are numerous other factors that will
attract staff and they are covered below in Retain and Development sections of our Human
Resource Plan.

Retain
Staff retention is very important to our business. To do this we aim at keeping staff from the
beginning, to achieve this we will follow QCPP 2nd Edition Staff Induction and Staff Training
standards T13A, T15A, T15B, P13A,P15A (Appendices 29-33 respectively).
In order to keep staff past the first few months and further along into their careers we plan on
offering staff continual training. Our pharmacy will be following QCPP 1st Edition Staff
Training steps (Appendix 34):
• Determine what team members should be doing on the job
• Determine whether they currently have the necessary skills or knowledge to do
what’s required
• Decide the target audience
• Set your training objective
• Decide whether any materials and/or equipment is required
• Deliver the training
• Assess understanding
• Summarise key points
• Evaluating training
We believe that it is important to offer staff continual training and further education to enhance
their professional careers and we believe this a vital factor to improve staff retention. We will
also be following QCPP 2nd Edition Ongoing Staff Training Standards 15A (Appendix 35).
We will be conducting an upfront diabetes training weekend for all Pharmacists and
Pharmacy Assistants to ensure that all staff members have adequate knowledge upon
opening of Health and Total Care Pharmacy.
As a business we will be focusing on a healthy work environment that will include fortnightly
meetings, quarterly dinners and an environment that supports employee feedback. Staff
turnover will be expected, as it is an unavoidable outcome of business, however we believe
by taking this team approach to our business, staff turnover can be minimised.

Development
Further development of our staff is critical to business success. We will once again be
following QCPP 1st Edition Staff Training steps and QCPP 2nd Edition Ongoing Staff Training
Standards (Appendix 34,35). This will be integrated into our bimonthly training schedule
(Appendix 36). It is important to give staff recognition and feedback to encourage repeat
positive performances; our pharmacy will be following QCPP 1st Edition Providing
Recognition and Feedback Standards (Appendix 37).
We also feel that it is important to conduct staff performance appraisals in order to allow for
optimal staff development. We will follow QCPP 2nd Edition Standard P14C with respect to
staff performance reviews (Appendix 38).
9.2 Key Responsibilities and Tasks
The following Key Responsibilities and Tasks have been built upon suggested responsibilities
in QCPP 1st and 2nd Edition and our past experiences in Community Pharmacy.
Pharmacy Manager
• Daily opening and closure of the Pharmacy
• Preparation of monthly trading figures and a monthly report of pharmacy operations
• The organisation, delegation and supervision of all staff
• Conduct performance appraisals of all staff
• Report to the Partners any and every error or discrepancy that occur in relation to the
pharmacy
• Ensure that all advertising and promotion in the pharmacy is conducted according to
pharmacy policies
• Any other duties or directions as required by the Partners

Diabetes Program Manager
• Strategic Planning
• Full business administration with regards to the Living With Diabetes Program and
Get Healthy Program
• To ensure all Health Care Professionals, Weight Loss Consultants and Pharmacists
conform with the legislative requirements governing pharmacy operations
• The organisation, delegation and supervision of all staff in the Living With Diabetes
Program and Get Healthy Program
• Organisation of weekly diabetes health seminars
• Ordering of diabetic products
Pharmacist
• Dispense prescriptions in accordance to Pharmacy Board regulations
• Counselling of patients on the use of prescriptions as necessary
• Counselling in private consultation rooms to Living With Diabetes patients
• Computer housekeeping and back ups to be performed on a daily, weekly and
monthly basis
• Be available to other staff members to assist in dealing with customers
• To ensure that professional knowledge in relation to drugs, usage, dosage and side
effects remains up to date
Dispensary Assistant
• Maintain dispensary stock levels
• Assist pharmacist to process patient information
• Maintain dispensary information system
• Perform operational duties in a pharmacy dispensary under the supervision of a
pharmacist
• Communicate with customers, the Pharmacist and other Health Care Professionals

Weight Loss Consultants
• Counsel patients in the Living With Diabetes Program and Get Healthy Program
• Perform regular follow up progress consultations with these patients
• Communicate with customers, the Diabetes Manager, the Pharmacist, and other
Health Care Professionals
• Process sales and transactions
• Handle non-dispensary diabetes stock
• Provide general pharmacy services and products to customers
• Any other duties or directions as required by the Diabetes Manager
General Pharmacy Assistant
• Merchandise Pharmacy products and services
• Assist with prescriptions
• Provide general pharmacy services and products to customers
• Provide basic product knowledge to customers in regard to over the counter products
• Process sales and transactions
• Handle non-dispensary over the counter stock
• Any other duties or directions as required by the Pharmacy Manager
Health Care Professionals
• To work closely with the Diabetes Manager
• To be organised and prepared for weekly diabetes health seminars
• To be available to patients in the Living With Diabetes Program and Get Healthy
Program in regards to follow up private consultations, emails and queries
• Maintain dress standards and other policies in accordance with the Pharmacy’s
policies and procedures

9.3 Organisation Chart
Figure 7. Organisation Chart of employees
THREE PARTNERS
PHARMACY MANAGER
PHARMACISTS
DIABETES PROGRAM
MANAGER
DISPENSARY
ASSISTANTS
PHARMACY
ASSISTANTS
HEALTH CARE
PROFESSIONALS
WEIGHT LOSS
CONSOLTANTS
(PHARMACY ASSISTANTS)

10 Action Plan
We will assume ownership of Health and Total Care Pharmacy on 1 July 2007.
Business Operation Due Date Responsibility
Physical Evidence
Contact pharmacy shop
fitters, obtain three quotes for
pharmacy refit
Mid July Daniel
Buy CD’s, set up surround
stereo to play easy listening
music
Mid July Daniel
Review cleaner’s contract
and set specifications for
cleaning requirements
July Daniel
Promotion
Write letters for direct mail to
send to Doctors,
Endocrinologists in the local
area
Late July Fiona
Send direct mail to patients August Fiona
Set up interactive website June Fiona
Write articles for diabetes
newsletters and magazines
Issues, Conquest and
Invigorate
August Fiona
Place adverts in local
newspapers the North Shore
Times and Manly Daily
September Fiona
Design posters and flyers September Fiona
Create and send through first
Living With Diabetes E-
newsletter to patients in the
program
September Fiona
Operational
Finalise negotiations with
Fitness First
Early June Joanne
Finalise negotiations with Lite
N Easy
Early June Joanne

Database setup for
membership program
Mid June Joanne
Organise printing of diary Mid June Joanne
Source range of health recipe
books for the Get Healthy
Program
Mid June Joanne
Source health related DVD’s Mid June Joanne
Contact suppliers of fitness
and sports equipment
Mid June Joanne
Negotiate improved terms of
diabetic products
Mid July Joanne
Contact new suppliers the
pharmacy has not dealt with
previously
Late July Joanne
Set up reordering systems for
new suppliers
Late July Joanne
Pricing
Review pricing for every item Late June Daniel
Perform and co-ordinate
stock take
June Daniel
Set up customer account
system
July Daniel
Human Relations
Assess competency of
current employees
Mid June Fiona
Order new uniform design
and badges
Mid June Fiona
Staff manual needs to be re-
written with updated QCPP
2nd Edition standards
Early June Fiona
Advertise for and appoint a
Diabetes Program Manager
Early June Fiona
Advertise for and appoint a
Pharmacy Manager
Early June Fiona
Advertise for and appoint
Pharmacy Assistant and
Weight Loss Consultant
positions
Early June Fiona
Set up staff training July Pharmacy Manager

programs, both the customer
related training and the
Diabetes related training
Confirm seminar schedule
with Health Care
Professionals
July Diabetes Manager
Organise first staff fortnightly
meeting
Late July Pharmacy Manager
Provide staff feedback August Pharmacy Manager
Services
Set up membership club Early June Daniel
Organise membership card
used for monthly account,
fitness first and Lite N Easy
Early June Daniel
Set up membership swipe
system to accommodate
member cards
Mid June Daniel
Set up needle exchange
program
August Pharmacy Manager
Products
Place order for more
Diabetes Australia Stock
Investigate all available
products for smoking
cessation, eye care, and
diabetic foot care
Perform and co-ordinate
routine daily orders of
pharmacy stock
July Pharmacy Manager
Figure 8. Action Plan table

11 Evaluation
We will undergo regular review amongst our customers, staff and peers by conducting Market
Research Surveys in-store, after education sessions and after patients complete the LWD
program. We will also allow staff to ask questions at the staff meeting and ask for feedback
from the Pharmacy Manager.
See Appendix 38 for QCPP Standards of conducting a performance review
We will evaluate our financial status after 12 months of opening HTCP and if we have made a
significant loss then we will cease the LWD program and remain as a community pharmacy.

12 Legal Matters
We will hire Malcolm Brown, a lawyer who specialises in Pharmacy who will deal with some of
the legal matters of the business including:
• Business Registration
• Trademark Registration
• Pharmacy purchasing issues
• HIC Approval
• Pharmacy Board issues
We will use the Pharmacy Guild of Australia lawyers for:
• Unfair dismissal
• Occupational Health and Safety
• Other Human Resources Issues
Refer to Appendix 39 for QCPP Standards with regards to compliance with Legal and
Professional obligations.

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