Scribd
Upload
154 views

Community Pharmacy - Definition & Background: Chapter # 1

This document defines community pharmacy and discusses its establishment. A community pharmacy is a privately owned establishment that supplies drugs and pharmaceutical services to meet community needs. There are two types: independent pharmacies owned by a single person and chain pharmacies with branched stores under common ownership. Establishing a community pharmacy requires considering its organization, site selection, and capital requirements. Effective management of a community pharmacy involves managing money, inventory, facilities, and personnel.

Uploaded by

daud faisal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
154 views

Community Pharmacy - Definition & Background: Chapter # 1

This document defines community pharmacy and discusses its establishment. A community pharmacy is a privately owned establishment that supplies drugs and pharmaceutical services to meet community needs. There are two types: independent pharmacies owned by a single person and chain pharmacies with branched stores under common ownership. Establishing a community pharmacy requires considering its organization, site selection, and capital requirements. Effective management of a community pharmacy involves managing money, inventory, facilities, and personnel.

Uploaded by

daud faisal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 26

COMMUNITY PHARMACY -

DEFINITION & BACKGROUND


Chapter # 1
DEFINITION
 An establishment that is privately owned & whose
function is to serve the society needs both for drug
products and pharmaceutical services.

 Community pharmacy;
 Supplies pharmacist with a diversified source of income.
 Most attractive & profitable establishment meeting the needs
of community.
CONT...
 Community pharmacist;

 Hybrid of professional & business man.


 Best educated person in community which is available for
general public to guide them about their health.
TYPES OF COMMUNITY PHARMACY
Two types:
 Independent pharmacy
 Pharmaceutical centre owned by a single independent person.
 Functions: it provides;
 Prescription service
 Health related services
ADVANTAGES OF INDEPENDENT
PHARMACY

 Requires less investment


 No profit sharing

 Freedom in control & from restrictions


 Chain pharmacy
 Branched stores existing at various locations but operating under a
common ownership
 Chain pharmacy concept was initiated in Pakistan a decade ago by
Farmacia, a subsidiary of Ferozsons, Nowshehra.

 Increasingtrend of chain pharmacy in big cities like Karachi, Lahore,


Islamabad & Rawalpindi.

 Examples
 W. Wilson
 Shazoo zaka pharmacy

 Clinix plus

 Pharmax etc.
ADVANTAGES OF CHAIN PHARMACY

 Wide geographical coverage


 Economical buying due to bulk purchase

 Attracts qualified persons

 Better service

 Use of employees

 Promotional activities can be initiated


DIFFERENCE BETWEEN CHAIN & INDEPENDENT
PHARMACY
 Chain pharmacy differs from independent pharmacy in
following respects;

 Varietyof goods – available


 Kinds of goods – unlimited
 Complex organization – in comparison to independent
pharmacy
ESTABLISHMENT OF COMMUNITY
PHARMACY
 Following factors are important for establishment of
community pharmacy

I. Organization
II. Site selection
III. Capital
I. ORGANIZATION
Definition;
 Mechanism for assigning duties to the people so that
they can work together effectively.

Three types;

1. Sole proprietorship
 Simplest form of organization and is owned & operated by
one person.
 Geographically local & there is no legal formality except
licences.
CONT...
 Pharmacist is free to conduct the enterprise in any manner.
 Owner receives all the profit.

2. Partnership
 Intended association of two or more individuals;
 to carry on a retail business together.
 to share its profit & losses.

 Applicable when;
 Resources of one individual – insufficient.
 One does not wish to take the entire risk.
CONT...
 Partnership – considers following matters between
individuals;
 Investment
 Division of profits & losses
 Duties
 Responsibilities

3. Corporation
 Separate entity created by authority of state.
 Composed of various stock holders.
 Capital is provided by several individuals.
CONT...
 Provides an opportunity to individuals without
endangering their personal assets.
II. SITE SELECTION
 Location – critical factor for survival of CP.

 Traditional location – in close proximity to physicians.


 Like large medical complexes, clinics etc.

 Socioeconomic qualities of population – in immediate


area of proposed location must be determined.

 If economy of community is viable & supply of health


professional is adequate;
 Then socioeconomic variables will determine the economic
future of pharmacy.
CONT...
 Traffic flow, parking facilities & access to means of
transportation are also the factors which must be
considered.
III. CAPITAL
 Amount of capital required for successful operation of
CP depends upon;

 Salesvolume
 Inventory requirements
 Estimated operating expenses

 While estimating the capital needed, projected sale


volumes should be considered as minimum & operating
expenses at maximum level.
CONT...
 Types of capital

1. Cash
 Required in sufficient amount for;
 Pre-operating expenses, such as;
 Licence fee

 Legal fees

 Operating expenses;
 First 2 to 3 months operating expenses, b/c operations are

extremely slow.
CONT...
2. Fixtures & equipments
 Depend upon volume of pharmacy.
 Larger the pharmacy, more fixtures & equipments should be
required & vice versa.

 Source of capital
 Equity capital: comes from owner own sources.
 Borrowed capital: comes from bank or loan association etc.
 Credit.
MANAGEMENT OF COMMUNITY
PHARMACY
Word management may be defined as;
 Set of activities directed at the effective utilization
of resources in search of one or more goals.
 OR

 Art and science of planning, organization, directing and


controlling human effort within the organizational
framework & economic resources of the firm to achieve
its objectives.
CONT...
 For effective running of community pharmacy;
 There must be proper co-ordination among money, materials,
equipments and people.

 Management of community pharmacy concerns


following aspects.

1. Management of money
2. Management of inventory
3. Management of facilities
4. Management of personnel
CONT...
1. Management of money
 Includes the ability to obtain money from variety of sources
in sufficient quantity to support the necessary operation.

 Management responsibility - Proper way of money


management, so as to get maximum return over minimum
investment.

 Only those owners can succeed who can manage money


effectively.
CONT...
2. Management of inventory
 Inventory is an itemized list of goods, with their estimated worth.

 Major portion of the inventory consists of prescribed drugs.

 Management of inventory includes;


 Items to be included in inventory.
 Quantity of each item required.
 Source of supply

 A good inventory management should have an


implementation of well organized stock control systems
CONT...
3. Management of facilities
 Includesthe capital required for the fixture & equipments.
 Represents sufficient portion of the capital.

 Management role – to make an economical use of the


facilities.
CONT...
4. Management of personnel
It includes;
 Proper selection
 Proper training
 Maintenance of employee

 Properly selected & well trained employee can assume


many duties which otherwise may be responsibility of
the manager.

 Employee should be compatible with job;


 Must meet minimum qualification standard.
CONT...
 Some tests must be developed for selection process &
over hiring should be avoided.

 After selection, the employee is put to work under


observation to pick up knowledge about the job.

 Compensation is an important factor responsible for


retaining good employee.
CONT...
 Compensation - The direct return or reward in cashable
forms given to an individual per month for time worked.

 However, personnel in strong capabilities are in a


position to demand their own compensation.

 It is necessary to encourage the employee to achieve


goals and objectives of pharmacy.

You might also like