Business Plan | Rahul Vij

BADM101

Submitted by:

RAHUL

JASLEEN KAUR

KAMAL

HARDEEP & HARPREET

TABLE OF CONTENT

COMPANY DESCRIPTION AND OWNERSHIP
ADVANTAGES
OUR MISSION AND GOALS
SWOT ANALYSIS
MANAGEMENT
CULTURE OF LONDON DRUGS & SOME CHANGES
COMPENSATION & TYPES OF INCENTIVES
ETHICS & SOCIAL RESPONSIBILITY
CONCLUSION

“Purpose of our presentation is let you people know how you can achieve your organizational goals efficiently and effectively”.

1: THE BUSINESS (STATUS QUO)

Business Name

London Drugs

Description of Business

London drugs is a store which was founded in 1945 as a small drugstore in Vancouver, BC by Sam Bass. Its first location was at 800 main street in Vancouver. At present, it deals in selling health and beauty products, electronic items, grocery, furniture, toys, housewares, photofinishing and insurance services. Moreover, it also deals in pharmaceuticals and any individual can get their medicines from there.

Form of Business Ownership

London drug is a private company and it is entirely Canadian owned company. This type of company is owned by non-governmental organizations or relatively small number of shareholders.

Our Advantages

There are many advantages of London drugs such as consumers can easily find their required product because everything is set under one roof. It provides exceptional services to their customers and help their customers with their small and long scale requirements. Moreover. it offers sale to their customers to get their products at low prices.

PART 2: THE BUSINESS OF MANAGING – YOUR ORIGINAL IDEAS

Mission Statement

London drugs mission statement is to provide a full-benefit PC division. beauty care products extend from lip shines to top of the line confront creams, furniture, cameras, astounding photofinishing, cordless telephones and plasma TVs to their customers. Customers should buy things from London drugs because they provide guarantee of exchange the things within 15 days also customers who want amazing shopping experiences London drugs contain experts in every department, so they can help the consumers to choose best things.

Business Goals

Every business has their first goal which is to maximize the profit, so like London drugs goal is also to get more and more profit. Another goal is to start small dream big, so London drugs start with very small retail shop but now it turns into company. As a consultant the new business goal which I choose for London drugs is that London drugs aim should be sold around 50000 units at the end of first year.

SWOT analysis

STRENGTHS

It can be described as what an organization is good at and separates it from the competition.

The pharmacy profession

London drugs focus on Health products and medicines to capture the market by providing almost every type of goods demanded by the customer and serve them with latest medicine.
Secondly, they decided to break the tradition and offer discounts on dispensing fees which results in an affordable alternative to the consumers.

WEAKNESS

It can be referred as an area where the business needs to improve to remain competitive in the market.

There are less number of stores as compared to their competitors
Difficulty in parking for people who come by car to the Kingsway store in Burnaby beside Metro town.
Customer services in Brentwood mall and Byrne and Marine stores should be improved and staff should be trained well.
Kingsway location need of an upgrade in their infrastructure and utilities as stated by customer reviews.

OPPORTUNITIES

It refers to an external factor that an organization can use to give it a competitive advantage over their competitors.

London drugs look for an opportunity when they observe that people are buying meat at the butcher, cameras at the electronic stores, newspapers at a newspaper stand and thought of putting all these things under one roof by taking a risk.

Secondly, they look for an opportunity on quality photographic equipment at great prices and observe that people were taking pictures differently and print their pictures differently too. Hence, they worked with equipment manufacturers and invested in upgrades that have proven essential in the digital photo revolution.

THREATS

It refers to factors or areas that have the potential to harm the firm.

London Drugs are facing various threats in the market which are as follows:

Cut throat competition

Companies like Walmart and Shopper drug mart is giving a tough competition to London drugs due to their wide coverage of 5,358 and 1,253 stores respectively.

There is a price changing strategy in these stores by providing customers the same product in lesser price.

Sales promotion – These companies also do sales promotion like Discounts, coupons, rebate etc. to increase their sales.

MANAGEMENT

For managing a company, various managers are appointed at different levels to increase efficiency of work.

In London drugs, three levels of management are needed which are top, middle and first line.

Top managers (president, chief executive officer)
These managers are responsible for an overall performance and developing long-range plans for the company.
They have lots of authority and should use their authority in an effective manner and they do require high conceptual skills.
In London drugs, the top managers should focus on increasing their store availability, excellent sale promotions and bring out facilities like door to door service.
Middle managers (human resource managers, operations managers)
These managers are responsible for implementing the decision made by top managers and have less authority as compared to top managers.
In London drugs, the human resource managers should hire an energetic and hardworking employee to give an excellent customer service.
As looking at the weakness of London drugs, operation manager should focus on providing parking area at Kingsway store in Burnaby beside Metro town.
First-line managers (supervisor, office manager)
These managers are responsible for supervising the work of employees.
Technical skills associated with performing task is considered an important skill for a first-line manager.
In London drugs, first line managers like supervisor are needed at different department whether it is pharmacy or photo lab to avoid any problems. s

Corporate Culture-London Drugs

Ideal corporate culture is the better management, employees and their productive working that characterize the company (Ebert R.W. et al., 2017). If the employees are hard -working and enjoying their work while it may be difficult, culture should not add to stress to their work. London drugs is one of the retail store in Canada which mainly focus on local customers satisfaction and sells pharmaceuticals, electronics, cosmetics, household things and grocery items (Corporate Information, n.d.) As this store is doing good nowadays and attracting so many customers. So, the management wants a professional staff to achieve their goals but somewhere they forget to look after their employees needs because workplace culture is one of customer service. In some branches of London Drugs, employees reviewed that they have health benefits but not basic one. They said they have no permanent shifts excluding the management team which is affecting their personal life as well as their sleeping cycle. These all things have a negative effect on the business.

In order to make their business more productive, Companies need to focus on encourage sharing which means employees become more familiar, connected and supportive to each other. Moreover, giving some decision-making empowerments to employees build trust among them, make their bonds stronger and as a result they respect each other (Council, Y. E., 2017).

Then, a firm needs the best staff to handle the customers and also enjoy the challenges in their jobs. So, London drugs management should do some changes in their corporate culture like they should hire the staff which will fit into their culture and knows the goals of the company. As the company is growing bigger, the management reduces the freedom of the employees which is not good for the business (The 4 Elements That Make Great Company Culture. (n.d.). To make their culture more productive and cohesive London drugs team should hire the exact number of CEOs, managers and employees they need that will decrease the stress on workers also and they will get proper breaks during their shifts which will motivate them to work properly to achieve the success and give their company the best.

Training employees

I will recommend on-the-job-training that employees can gain new skills while performing them at work so that they can improve the quality of their works and customer services as well in London Drugs. Moreover, in this type of training, an employee acquires more capabilities as he or she is moved from one job to another in the store (Ebert R.W. et al., 2017). This training also be a kind of formal training because, a new hired worker can learn from the other old workers or supervisor that he/she does not know before. The training should be done just once to the new employee but it should be provided properly by describing the objectives and goals of business. In other words the employees should be trained in such a way that if their manager is not at work, they can handle his/her post. They should not only have trained for work internally but also have the guidance to represent their organization outside the store because a single worker having lack of training can affect the whole sector as well as customers. Thus, on the job training helps the employees to gain new skills to perform at work

COMPENSATION

Compensation refers to what a firm offers its workers as a byproduct of their work. As we all know that London drug is biggest competitor in terms of pharmacy. Along with it, they have some other sections like furniture, dinnerware, computers, cosmetic products, nuts, insurance, spa and IT services. And all employees at vary sections have different compensation that they get. According to pay scale Canada, the average wage rate of each employee is 14$ an hour. And pharmacist get wage rate between 36$ to 57$ per an hour which is highest earning for an employee at London Drugs. Average wage rate of Sales associate and cashiers is 11.35$ but now it changes to 12.65 that is minimum wage rate in British Columbia. Also, there is not too much difference in the average wages of Beauty Advisor and pharmacy Assistant both positions are getting fair remuneration which is between 10 Canadian $ to 18 $. To commensurate with surveys, it can be said that it is fair for full time employees. But Part time employees compensates with minimum wage rate even they do not get proper working hours. As well as there are short and unpaid breaks this unsatisfied the employees too much. Overall, the wage rate is adequate for every worker at London drugs but minor problems are faced by employees while working. And the difference between wage rates depends on their prior experience, specific knowledge, Qualifications and abilities to concern with difficulties at work place.

INCENTIVES

Incentives mean how organizations motivate own employees for high performance. These programs can be applied to individuals or teams. London Drugs use both monetary and non-monetary incentives to motivate their employees.

INDIVIDUAL INCENTIVES

Singular impetus designs compensate singular execution on an ongoing premise. Instead of expanding a man’s base pay toward the finish of the year, a business gives an individual a pay increment or some other budgetary prizes for their exceptional execution. It is same as monetary incentives. London drugs offer monetary incentives in terms of paid vacations, company store discounts, registered retirement Savings plan (RRSP) to their workers. They also use Piece rate incentive plan in which worker get a specific measure of cash for each unit they create. Moreover, pay for knowledge, it urges representatives to learn new abilities and to end up capable at various occupations. These specialists get extra pay for each new ability or employment they ace.

TEAM AND GROUP INCENTIVES

Some incentives programs are for all workers of an organization. There are two plans include in its which are profit sharing and gain sharing plans. In first one, employees get bonus out of the company’s total profit. And in another, the employees receive bonus if they reduce the cost of goods through their greater efficiency and hard work.

Along with it, non-money related motivators are additionally essential as fiscal impetuses to rouse their representatives. As per online overviews, most of the representatives consider that Job security is basic while performing particular assignments for an association. In like manner, London drugs give it to their present representatives. Moreover, Delegation of specialists makes great relations among predominant and subordinates. Furthermore, it is said by past or current representatives that there is designation of specialists at work put in London drugs. Furthermore, it is said by past or current representatives that there is a designation of specialists at work put in London drugs. They sort out representative acknowledgment program and reward services for hopefuls in which the staff welcomes the groups of laborers as well.

Ethics:

Ethics are standards or moral values regarding what is right and wrong or good and bad. Every business organization must follow these ethics in order to be successful. Following are the three ethics which should be followed by London Drugs: –

Behavior towards employees – In this code of ethics, London drugs will provide safe working environment to their employees in order to assure their safety. London drugs will also give proper wage according to the performance of the employees. Secondly, managers and supervisors will not be abusing their co-workers according to their sexuality and their appearance. A proper respect will be given by London drugs towards their employees.
Behavior toward the organization – In this code of ethics, it states that how an employee should act and behave with their respective managers and employer. An employee should show respect towards his employees and they should also work together with their co-workers. An employee should not perform any activity which may affect the reputation of London drugs.
Value based code of ethics – A value-based code of ethics addresses a company’s core value system. It may outline standards of responsible conducts as they relate to the larger public good and the environment. Value based ethical codes may require a greater degree of self-regulation than compliance-based codes.

Social responsibility: –

It is an idea that a business should balance its commitments to individuals and groups that are directly affected by the organizations activities.

1) Responsibility towards customers – this responsibility states that London drugs will provide proper information to their customers about their products and services. Moreover, sea transportation will be provided by them. They will charge genuine prices which are set by the government and will not provide any fake information about their product in the advertisements.

2) Responsibility towards employees- this responsibility states that a safe work environment will be provided by the business organization to their workers. They will hire workers without thinking about their sex, color, caste and from which part of the society they belong. They will not abuse their workers and will not bully them. They will provide a good wage to their employees.

3) Reasonability towards environment- this responsibility London drugs will not harm the environment through their activities. They will take care of the environment by not polluting the water. Secondly by not polluting the air through emissions of harmful gases into the air. They will make sure not to bury the toxic waste into the environment as they contain harmful substances.

REFERENCES:

London drugs compensation and incentives retrieved from

https://www.payscale.com/research/CA/Employer=London_Drugs/Hourly_Rate

Swot analyses

https://www.londondrugs.com/about-london-drugs/about-us.html

https://www.yelp.ca/biz/london-drugs-burnaby-2

Mission statement and goal

https://en.wikipedia.org/wiki/London_Drugs

https://www.londondrugs.com/

Ebert, R.J., Griffin, R.W., Starke, F. A., & Draco Poulos, G. (2017). Business Essentials. Toronto: Pearson

2. Corporate Information. (n.d.). Retrieved June 21, 2018, from

https://www.londondrugs.com/corporate-information/corporate-info.html