HARROLDS PHARMACY

1
HARROLDS PHARMACY

• Strategic Plan By
• Nicholas Budzyn
• Christina Carr
• Melanie Davis
• Joanna Marinelli
• Daniel McCarron
• Anita Ostrowski

2
Agenda

• Organizational History
• External Analysis
• Internal Analysis
• Strategic Intent

3
Agenda Cont

• Key Result Areas
• Strategic Objectives and Goals
• Strategies and Tactics
• Functional Planning Summary

4
History

• In 1947, Harrold Lefkowitz established the
  pharmacy.
• Soda Fountains
• 1972-Agnes Flood
• Operating out of a trailer

5
External Analysis

• Opportunities and Threats of the Organization
• Legal issues-Government Regulations
• Technological Advances

6
Organizational Goals

• Providing high quality pharmaceutical therapies.
• 24 hours, 365 days a year
• New innovated technology.

7
Competition

• Major Competitors
• CVS
• Walgreens
• Wegmans
• Rite Aid

• Minor Competitors
• Sheehan's Drug Store
• Cooks Pharmacy
• College Health Center

8
Internal Analysis

• Strengths
• Compounding abilities
• On site compounding lab
• Pet meds
• Pillbox refill system
• Free delivery system (service area)
• Professional Staff
• 6 pharmacists
• 1 infusion specialist
• 5 pharmacy technicians
• 1 dietician

9
Internal Analysis Cont.

• Weaknesses
• Location
• No main road traffic
• Limited parking
• Size
• Congestion
• No waiting area
• Aisles very close to each other
• Minimal storage space
• Growing Competition
• CVS, Eckerd, Walgreens
• Simplistic Website
• No 1-800

10
Resources

• On site Compounding lab
• Highly trained staff
• 7 delivery cars
• Pet meds
• Internship program

11
Capabilities

• Management
• Small internal structure (1 person in control)
• Technical
• Compounding abilities
• On site compounding lab
• Marketing
• Strong reputation
• Advertising Techniques
• Outdoor Billboard
• Ad (Tuesday/ Citizens Voice)
• Internet

12
Capabilities Cont.

• Labor
• Highly trained
• Professional
• 6 registered pharmacists
• 1 home infusion specialist
• 5 pharmacy technicians
• 1 dietician
• Interns

13
Core Competencies

• Intangible/ Tangible resources
• Delivery cars
• Staff
• Compounding abilities
• Compounding lab
• Touch Screen Computer
• Offers access to health information

14
Strategic Intent

• Product/Service
• Bathroom safety
• Orthopedics
• Skin care
• Vitamins
• Greeting cards
• Snacks/candy
• Over the counter meds/ under the counter meds
• Responsive service 24 hrs/day 365 days/week
• Accredited Home Infusion Therapy
• Compounding services

15
Key Result Areas

• Compounding Lab
• More convenient for the pharmacists and the
  patients
• Delivery Service/ Pillbox Refills
• Other pharmacies also do this but do not deliver
  to their patients
• Prescription Consulting
• Larger pharmacies, such as CVS and Eckerd do not
  consult with their patients.

16
Harrolds Pharmacy Goals

• Expanding the Compounding Lab
• More space for pharmacists
• Less wait time for patients
• Elimination of Unneeded Products
• Snacks and Gift cards not needed
• Market Expansion
• Expand into other areas outside the Wilkes-Barre
  and Scranton areas.

17
Goals cont.

• Increase the Marketing/Advertising
• Currently Billboard, brochure
• Need Flyers, coupons
• Restructure the Internal Layout of the Store
• Make more room for customer consultations, for
  machines, storage room, compounding lab
• Increase the number of Employees/Interns
• Adding employees/interns allows for more
  customers at one time.

18
Strategies and Tactics

• We are looking for ways to better serve Harolds
  existing customers while simultaneously
  attracting new customers.
• We will look at area that are currently
  beneficial to Harolds and with some
  modifications see how it can help them improve
  their business success.

19
Business Strategies

• Harrolds has a differentiation approach that
  sets them apart from their competition.
• Free delivery
• Pillbox program
• Prescription or medicine questions
• 24-hour paging service
• Medication changes

20
Competitive Strategies

• 800 number
• Discontinue greeting cards, candy, and other slow
  moving merchandise.
• Expand and update their compounding business.
• Update website
• Improve marketing
• Expand delivery area

21
Corporate Strategies

• Harrolds has a low level of diversification.
• All of Harrolds business comes from this single
  business.
• Harrolds is a dominant business they have the
  greatest opportunity for growth.
• Undergoing a strategic action takes a significant
  commitment and may be difficult to implement and
  reverse.
• Consider looking into diversification as a long
  range goal.

22
Cooperative Strategies

• Hospice on call with their 24-hour paging
  service with local hospitals
• Wilkes University interns at Harrolds

23
Functional Planning

• Marketing Plan
• 4 Ps
• Operational Plan
• Human Resource Plan

24
Marketing Plan

• Price
• Product
• Competitive Advantages
• Place
• Location
• Distribution
• Promotion

25
Promotion

• Recently outsourced marketing
• Advertising on vehicles
• Advertise competitive advantages
• Yellow Pages
• Newspaper
• TV
• Flyers

26
Operational Plan

• In Store
• Eliminate unneeded products
• Expand Compounding station
• Other Operations
• Vehicles

27
Human Resource Plan

• Continue with current plan
• Continue working with Wilkes University
• Look to use more interns
• Maintain family-like atmosphere
• Close knit family of employees
• Good customer relations

28
Action Plan

• Focus on their skill set, industry success
  factors, competitive advantages and increased
  technological competition
• utilize these services while maintaining a
  competitive advantage
• expansion of the compounding facility, Harrolds
  must focus on employee capital in order to
  continue the existing services.

29
Action Plan cont.

• formulate an aggressive marketing plan in order
  to expand their customer base
• Fliers/brochures
• Website
• Television, bus, and billboard advertisements

30
Action Plan cont.

• human capital
• Outsourcing pharmacists from Wilkes University is
  a major asset for development and low cost
  operations

31
Tactical Goal Resources

• The resources would include the following
  allocations
• Marketing Outsourcing
  5,000
• Construction Design Renovation
  16,239
• Strategic Placement of Touch Screen
  0.00
• Interior Decorator
  1,700
• Interns for Compounding Developing
  0.00
• 1-800 Phone Number for Gaining Market Share
  4.95/mo, plus .05 a minute
• Total Goal Cost
  22,943.95

32
Benefits of Goals

• in-house accountants
• control
• Urgency-July 1, 2004

33
Intermediate Goals

• the upcoming weeks,
• the marketing strategy,
• the 1-800 number,
• increased alliance with Wilkes University for
  Interns,
• and an interior design consulting

34
Organizational Structure/Control

• Relaxed worked environment is ideal for
  intermediate goals
• Long-range prognosis may include further
  organizational development

35
Current Organizational Structure--all employees
are equal in their specified departments
36
Projected Organizational Structure-The need for
supervisors and managers become necessary
37
Entrepreneurship

• Pharmacy and the development of drugs are not
  dependent on the economic stability of any market
  
• opportunity to take the next step in the
  betterment of the store

38
Conclusion

• Through the recommendations made, Harrolds can
  achieve their goals and utilize being the first
  mover in this market today.