Strategic Risk Management for Llyods Pharmacy
3026 words 13 pagesStrategic Risk Management for Llyodspharmacy
Submitted To Mr. TK Submitted By Student no. 1004288
Table of Contents Executive Summary 3 1. Introduction 4 1.1 CURRENT PROBLEMS 4 2. RISKS IDENTIFIED 5 2.1 Political Environment 5 2.2 Changes in regulation 5 2.3 Changes in consumer behavior 5 2.4 Competition 6 2.5 Unprofessional Services 6 2.6 Occupational Health and safety risks 6 2.7 Product risk 7 2.8 Critical systems failure – Loss of Data 7 2.9 Currency exchange 7 3. MITIGATION 9 3.1 Political Environment 9 3.2 Impact of regulation 9 3.3 Changes in consumer behavior 9 3.4 Competition 9 3.5 Unprofessional Services 10 …show more content…
Consumer behavior with pharmaceutical products change at a very slow pace. After many years of operations, finally consumers are slowly moving towards purchasing online and it will be a good many years before they find another way to purchase. Since Lloyds is already adapting to the new behavior, the impact is very less.
“Being No.2 in the market is very risky”, Dr.Kevan Williams pointed out in one of his lecturers and a pharmacist agrees with the statement. Mr. Manandhar says that private pharmacies are giving Lloydspharmacy a run for their money these days since they are willing to put the extra hard work on their own pharmacy compared to the hired employees at Lloyds. It is still difficult for them to compete with market leader Boots, since Boots enjoy special privileges like having certain products that are made unavailable to competitors, but Lloyds is being challenged.
They also face competition from importers and manufacturers who supply directly to other pharmacies. Any change in normal competitive environment could lose them more profits considering this blow has already hit them when their profits decreased by 45% in 2012 (Retail Week, 2012).
2.5 Unprofessional Services
The fact that “1.3 million Americans are injured because of medication errors” (Kennedy Hodges L.L.P, 2012) every year and a study conducted by school of Pharmacy, University of London in 2010 showed 13.2% prescriptions written for children had errors in