New Enterprise Start-up Plan: On-Demand Courier Service to Deliver Medicine Essay

Introduction

This enterprise project plan is for setting up an on-demand delivery business for medicine. The business idea was conceived from the backdrop of the failure of existing healthcare plans to effectively meet the needs of underserved populations. Key considerations discussed in the document include the legal ramifications of setting up the enterprise, its value proposition, and design features. Empirical data was obtained from business operators serving low-income neighborhoods in the UK and secondary data retrieved from published sources. The views of the respondents were collected using the questionnaire survey method and examined using the Statistical Packages for the Social Sciences (SPSS). An online business platform is proposed as the differentiating factor for the new business plan.

The findings of this investigation address convenience, safety, and affordability as the main considerations for the proposed business plan. The main value proposition posed by startup is the reduction of inequality in the sale and distribution of medicine. It is projected that the business will thrive by automating processes associated with medicine delivery. The business plan will be implemented on a virtual model where customers can simply order for drugs via their mobile phones and have them delivered expeditiously. Therefore, it is expected that the on-demand pharmacy will increase access to quality medicine among underserved populations.

Problem Framing

Traditionally, most people have obtained their goods and services from brick-and-mortar stores. However, in the last decade, the global business environment has experienced significant changes caused by political, social, and economic fluctuations in society (Lee, 2020). Some key drivers for this change are the spread of internet services, increased geopolitical instability across nations, and COVID-19 (Mehta, Saxena and Purohit, 2020). Particularly, the COVID-19 pandemic has been the biggest driver of change in the global business environment. These change agents have highlighted the need for businesses to innovate to remain relevant (Lee, 2020). Similarly, they have pushed businesses to automate their processes to adapt to the pressures that arise from exposure to market uncertainties.

Multinational organizations have led their peers in adopting automation by augmenting some of their core activities with digital platforms. Some entrepreneurs have seen the opportunity created by this change and chosen to start new enterprises within the e-commerce space (Kampf, 2018; Mehta, Saxena and Purohit, 2020). This trend thrives within a broader desire for innovators to optimize market opportunities, while avoiding uncertainties of the global environment.

Organizations that have successfully transitioned from the brick-and-mortar business model to a virtual one have benefitted from increased resiliency in the wake of widespread market uncertainties. Most of them have reported increased efficiency of automating their processes because machines are more reliable to complete operational tasks compared to human beings (Ditrich and Sassenberg, 2017). Some entrepreneurs argue that automation has helped them to reduce their overall costs by eliminating the need to rely on people to complete tasks (Shin, Park and Kim, 2021). Furthermore, unlike human beings, machines can work for a long time without getting tired or needing replacement.

Despite the promise of an improved business environment from automation, socioeconomic inequalities have persisted. These inequalities exist due to various reasons, some of which are policy-related and others products of the lack of innovation or creativity (Polhemus et al., 2019). For example, the recent COVID-19 pandemic proved that systemic inequality exists among societies and affect people’s quality of life in various ways (Kamiike, 2020). For example, residents of low-income neighborhoods have not benefitted from automated healthcare service delivery because of existing socioeconomic inequalities at various levels of care (Okoro et al., 2020). Thus, they have been excluded from accessing quality healthcare services.

In the UK, the percentage of people who are unable to access quality healthcare services is relatively lower than most countries. However, supplementary healthcare services are not available to all people that need them (Alonzo, Popescu and Zubaroglu, 2022). Likewise, they largely depend on one’s ability to marshal resources that would enable them to get the best services (Lazic and Williams, 2020). Due to these disparities, some people have not benefitted from automated health care systems (Jose, 2020). Some of them are uninsured, while others do not have their details captured in existing databases (Bhaduri, 2018). This problem partly arises from the failure of entrepreneurs to understand how to use the benefits of technological advancements to improve people’s welfare. Consequently, few people have exploited existing opportunities to use automation to solve current problems affecting society.

The online delivery of goods and services is an emerging area of new business development. It can be used to address glaring inequalities in access to goods and services across different demographic groups in the community (Varma and Dutta, 2022). Particularly, it creates an opportunity to address gaps in the delivery of medicine to underserved populations (UK Office for National Statistics, 2021). This potential exists because gaps in the delivery of medical services have magnified existing inequalities that have traditionally affected how people relate with one another (Sarkees, Fitzgerald and Lamberton, 2021). These problems are detrimental to the sustainability of civilized societies (du Plessis, 2022). Thus, there is an opportunity for entrepreneurs to mitigate societal problems by developing new business ideas.

Subject to unique demographic and market-related factors affecting new enterprise development, there is scanty information regarding the best business strategies to use to exploit virtual market opportunities. Particularly, there is a gap in the literature, which fails to capture information that business owners can use to develop strategies for the pharmaceutical industry. The current study recognizes the opportunity that automation of healthcare services offers to the low-end segment of the drug market. This business segment is associated with low capital requirements of setting up a business, geographical delimitation of outreach programs, and the ability to manage large volumes of data (Doherty, 2019; Eze, Chinedu-Eze and Awa, 2021). The findings of the present investigation will aid in the development of an enterprise management project aimed at setting up an on-demand business that delivers medicine to low-income dwellers in the UK.

Market Analysis

This section of the enterprise plan evaluates the current state of the literature that are relevant to the proposed business idea. Key sections of the investigation explore trends in the pharmaceutical market that anchor the enterprise plan, gaps in the market to be filled, and a market analysis of the business environment. The aim is to highlight the role that the new firm will play in improving access to pharmaceutical products in the low-end segment of the healthcare industry. These details are included in the current review because of their potential to influence the operations of the proposed business idea.

Macro-environmental Factors

New business start-ups are subject to changing market dynamics that directly or indirectly affect market operations. In this section of the review, the external market environment of the proposed business plan will be examined using PESTLE and Porter’s Five-Force frameworks.

PESTLE Analysis

The PESTLE model includes five areas of analysis to analyze a business’s external environment – political, economic, social, technological, legal, and environmental (Dhanora, Sharma and Park, 2021). Details relating to each tenet of the external market analysis plan are discussed below.

Political: Poor access to goods and services in low-income communities has been a problem for local governments and policymakers alike. For a long time, this issue has not been addressed because of the failure to prioritize the needs of low-income populations at policy and operational levels (Assefa, 2021). Thus, the entrepreneurial spirit among underserved people has remained unlocked. This situation has made it difficult to initiate change and eliminate inequalities in the healthcare sector (Ertel, 2021). To this end, current initiatives aimed at minimizing socioeconomic inequalities among different income groups have been ineffectively implemented (UK Office for National Statistics, 2021). These imbalances have morphed into unequal allocation of resources in affluent and low-income neighborhoods.

Economic: A business’s economic environment affects consumer purchasing power and the sustainability of new product development processes. Rising healthcare costs and global uncertainties have created unfavorable economic conditions that undermine the ability of healthcare service providers to offer affordable services (Pashley, Ozieranski and Mulinari, 2022; García-Canal et al., 2018). These influences affect the quality of healthcare services in low-income neighborhoods when underserved populations buy low quality pharmaceutical products because they cannot afford the desired medicine.

Despite the dampening economic outlook in many countries, the sales numbers of pharmaceutical products have increased over the years. In the UK, this trend is affirmed with Figure 2.1 below showing that the sharpest hike in pharmaceutical expenditure occurred in 2020 at the height of the COVID-19 pandemic (Statista, 2022).

It is estimated that UK consumers spend about £12 billion annually on pharmaceutical expenses (Statista, 2022). Broadly, since 2012, the trend has demonstrated a year-on-year increase in the amount of money consumers spend on pharmaceutical products (Dhanora, Sharma and Park, 2021). These findings suggest that pharmaceutical sales are resilient in an uncertain economy. The increase in demand for pharmaceutical products during the COVID-19 lockdown period also demonstrates the buoyancy of the industry during adversity (Varma and Dutta, 2022). Despite the risk that sales numbers could decline in a post-COVID period, healthcare services remain important to the sustenance of life.

Social: Countries are moving to adopt universal health coverage as a social welfare doctrine. This push has the potential to transform the healthcare sector by eliminating out-of-pocket expenses and replacing them with insured payment plans (Pashley, Ozieranski and Mulinari, 2022). The widespread adoption of the universal health doctrine has the potential to make healthcare services more accessible and affordable to all (Kamiike, 2020). Challenges brought by the COVID-19 pandemic have accelerated the need for countries to adopt a universal healthcare policy (Barshikar, 2020). Indeed, the COVID-19 pandemic has demonstrated that brick-and-mortar stores can be closed at any time. Therefore, the desire to become financially free from health expenses inspires some of the changes aimed at adopting a universal health coverage policy.

Dwindling prospects of achieving universal health coverage heightens concerns about the welfare of low-income populations. Most of them lack adequate food and supplies of essential products, such as medicine (Newman, Obschonka and Block, 2022). At the same time, their dwellings lack proper infrastructure, skills, and income to gain access to quality goods and services (Gates et al., 2019). Indeed, as affluent and middle-income dwellers simply order their goods online, low-income residents cannot access similar services because of poor access to reliable digital infrastructure to address their unique needs (Okoro, Hillman and Cernasev, 2020). Subject to these disparities, the proposed business idea strives to minimize these market gaps by offering alternative services in the area of pharmaceutical products delivery. Residents of low-income neighborhood are likely to benefit from this plan because they have poor access to essential commodities.

Technological: Like many economic sectors, the healthcare industry has been traditionally dependent on the brick-and-mortar business model to reach its target market (Xie, 2021). This model requires patients to present themselves physically to a hospital setting to receive healthcare services and buy medicine (Sarkees, Fitzgerald and Lamberton, 2021). However, technology has changed how these agents access healthcare services with some of the biggest changes reported in the delivery of medicine services through telemedicine and mobile communication technologies (Williamson, 2018). In this context of service delivery, the adoption of advanced technological tools in healthcare service delivery highlights the complexity of the pharmaceutical environment today.

The integration of new technological tools in the healthcare service sector has created significant changes in consumer behavior. However, the original intention was to converge healthcare delivery services and activities to the virtual space. Telemedicine and automation are some byproducts of these developments (Barshikar, 2020). Coupled with the effects of the COVID-19 pandemic on the pharmaceutical industry, the adoption of new technologies in the sector has increased interest in online medical sales (Li et al., 2021). In 2020 alone, it was estimated that up to 10% of all total healthcare sales were completed online (Proprietary Association of Great Britain, 2022). Brick-and-mortar businesses have reported dramatic differences in their online sales records because positive changes of up to a 73% increase in revenue have been reported (Proprietary Association of Great Britain, 2022). The trend is expected to continue with more investments in the sector anticipated after the COVID-19 pandemic ends.

The adoption of technology in the healthcare industry has created changes in consumer purchasing intentions. This development has influenced the quantity of products customers are willing to buy (Banal-Estañol, Newham and Seldeslachts, 2021). For example, the transition of healthcare sales to the online space has promoted the idea of an “all-in-one” sales platform where customers buy goods in bulk to avoid going out of the house frequently (Proprietary Association of Great Britain, 2022). Observers consider these developments to be detrimental to the survival of conventional brick-and-mortar business models (Proprietary Association of Great Britain, 2022). Indeed, today, customers may require a clear and valid reason to make a physical visit to the pharmacy.

Legal: The healthcare sector is among the most regulated industries in the world. Restrictions imposed on the industry are due to its sensitivity to the sustenance of human life (Sparkmon, 2020). Therefore, most restrictions are geared towards promoting patient safety (Banal-Estañol, Newham and Seldeslachts, 2021). To this end, authorities have outlined policies that regulate drug distribution and supply (Proprietary Association of Great Britain, 2022). Of major concern to the current probe is a stipulation in the UK law that over-the-counter medicines should be sold only when a patient presents a prescription from a doctor (Proprietary Association of Great Britain, 2022). The proposed idea for the new business provides an opportunity for patients to bypass this policy by avoiding physical verification before purchasing drugs. To ensure that the new business complies with existing drug laws, customers will be required to present a digital copy of the prescription before the completion of a sale.

Environmental: Excessive consumption produces massive amounts of waste to the environment. Research studies suggest that more than 100,000 tons of pharmaceutical products are consumed daily around the world (European Environmental Bureau, 2018). This vast quantity of waste has heightened concerns about the impact of the pharmaceutical industry on the environment (European Environmental Bureau, 2018). For example, the release of hazardous waste products into the environment via rivers and streams has been a top concern for environmentalists (Banal-Estañol, Newham and Seldeslachts, 2021). They are concerned that improper waste disposal of drugs and medical products could be injurious to people and the environment (Banal-Estañol, Newham and Seldeslachts, 2021). At the same time, attention has been drawn to the disposal of antibiotic waste into the environment (European Environmental Bureau, 2018). Broadly, these issues suggest that the environmental impact of the pharmaceutical industry is a key tenet of its overall performance. Table 3.1 below summarizes the findings of the PESTLE analysis above.

Table 3.1: PESTLE analysis

Porter’s Five Force Analysis

Researchers have used Porter’s Five Force model to analyze elements in a company’s external environment that are likely to influence its business success. This practice justifies the use of the analytical tool to examine environmental factors that are likely to affect the performance of new business start-ups (Banal-Estañol, Newham and Seldeslachts, 2021). Consistent with the nature of Porter’s key tenets of the five-force model, the subsequent analysis will evaluate UK’s pharmaceutical market based on five key areas of review – threat of substitute products, consumer purchasing power, supplier bargaining power, influence of rivals, and ease of market entry.

Threat of New Entrants (Low): The pharmaceutical industry is dominated by major drug producers, such as GlaxoSmithKline (GSK), Pfizer, and Merck (Proprietary Association of Great Britain, 2022). The sensitivity of medical products to human health and the vigor of tests associated with product development decrease the probability that new entrants would have a significant impact on the market. This is why name brands perform better than new ones in this industry (Proprietary Association of Great Britain, 2022). Analysts attribute the difference in performance to varied levels of trust that people have towards traditional and private-label brands (Sparkmon, 2020). Overall, these variances have lowered the threat of new entrants in the sector.

Rivalry among Existing Competitors (High): The lucrative nature of the pharmaceutical industry has created fierce rivalry among manufacturers. These players compete on several fronts, including new product development, price cuts, corporate influence, and advertising space, just to mention a few (Xie, 2021). Research studies suggest that markets with intense competitive rivalries are often associated with a low potential for growth (Xie, 2021). Comparatively, those with high growth rates are likely to diffuse the tension among rivals. Subject to this environment, since 2010, the UK pharmaceutical market has reported an increase in the number of players. As of 2022, more than 500 pharmaceutical companies were operating in the UK (Pashley, Ozieranski and Mulinari, 2022). Figure 2.2 below shows that the number of pharmaceutical companies in the UK has steadily increased over the years.

Based on the sheer number of pharmaceutical industries in the UK, it can be assumed that there is intense rivalry in the market. This environment leaves little room for entrepreneurs to replicate existing business models. Furthermore, some scholars believe that there is a low growth potential of the pharmaceutical industry in the UK (Gatersleben et al., 2019). Therefore, it is believed that the increased numbers of competitors operating in the market are competing for a small share of the industry. Thus, it could be deduced that there is intense rivalry among competitors in the pharmaceutical industry.

Threat of Substitute Products (High): There is a high threat of substitute products in the pharmaceutical industry due to the availability of generic drugs in multiple product categories. Generic drugs work in the same manner as original drugs do, except that they are cheaper and more affordable (Bhaduri, 2018). Therefore, most pharmaceutical companies with mainstream brands encounter competition from generic brand manufacturers. The only exception to this rule is the purchase of novel products, which do not have a generic version yet (Bhaduri, 2018). In such cases, customers are forced to buy original products. Nonetheless, novel products accounts for a small share of the market, meaning that they cannot negate the threat of substitute products in the pharmaceutical industry.

Customer Bargaining Power (Medium): Customer bargaining power refers to the influence that consumers have in influencing the decision of pharmaceutical companies when developing or marketing their products. This force has a moderate impact on the pharmaceutical industry. On one hand, the modern consumer has access to adequate information about his/her health, which enables them to demand for better quality products and services (Martin et al., 2017). Indeed, customers today are more aware of the impact of medicine on their health more than older generations (Proprietary Association of Great Britain, 2022). This increased level of self-awareness could be attributed to the proliferation of new technologies through smartphones and computers (Lee et al., 2019). They have made it possible for people to access health data easily. On the other hand, customers equally have little or no influence on the kind of decision made by pharmaceutical industries. Thus, it could be assumed that customer bargaining power in the pharmaceutical sector is moderate.

Supplier Bargaining Power (Low): The supplier bargaining power in the pharmaceutical industry is low due to the overreliance on several organic chemicals for production. Indeed, the manufacturing chain is broad to the extent that it can undermine the power that any one significant supplier would have in the market (Sarkees, Fitzgerald and Lamberton, 2021). This low supplier bargaining power explains why most players have been unable to influence the price of medicine through negotiation (Alzougool, 2018). At the same time, the low supplier power has made it possible for companies to embrace forward integration as part of their growth strategies (Sarkees, Fitzgerald and Lamberton, 2021). This plan involves the acquisition of suppliers into a business’ ownership structure and a company’s production processes. The increased entrenchment of this practice in the healthcare sector explains why the supplier bargaining power remains low. Table 3.2 below summarizes findings of the Porters’ five-force analysis.

Table 3.2: Porter’s five-force analysis

Industry Trends and Disruptions

The delivery of medicine to people’s homes, as a business idea, has captured the attention of investors around the world. Many of them are supporting the idea with the hope that they may exploit lucrative opportunities that exist therein (Alonzo, Popescu and Zubaroglu, 2022). Relative to this observation, there is a general trend towards the integration of technology in various aspects of healthcare practice. In lieu of this development, the support for e-commerce adoption has permeated different facets of the pharmaceutical industry, including drug administration and treatment.

Telemedicine and the automation of patients’ records are some of the ways through which service providers have integrated new technology in their organizational plans. The pharmaceutical industry, which is a subgroup of the larger healthcare industry, has also taken the cue and adopted automation as a core part of their core business processes and activities (Li, Dostie and Simard-Duplain, 2022). Concisely, some healthcare institutions have developed a catalogue of prescription medicine for groups of patients (Cheng et al., 2020). For example, diabetes management is mostly carried out by healthcare service providers using automated systems (Harris et al., 2021). Drug management services are equally experiencing a similar level of transformation because healthcare service providers are increasingly acknowledging the benefits of automation (Sexton, Nguyen and Roberts, 2021). Thus, increased efficiency at various levels of operation has been reported.

Sector Regulation and Legislation

The rules and regulations governing business operations are often influenced by the laws and policies of a country. The UK has strict laws governing the sale and distribution of medicine (Morelato et al., 2020). Particularly, there are stringent regulations governing the sale and distribution of “prescription medicine.” Consequently, it is imperative that the proposed business is compliant with existing legal provisions surrounding the sale of drugs (Cheng et al., 2020). Subsequent sections of this study will discuss how the expectation of compliance will be achieved.

Insights and Key Findings from Business Owners

In this section of the paper, the findings obtained from the secondary and primary data analysis processes are assessed and reviewed. To recap, primary data was obtained from business persons operating pharmacies in low income communities in the UK. Alternatively, secondary data was gathered from books, journals, and credible websites. The importance of using the two sets of data in the probe was to create a basis for comparing and contrasting qualitative and quantitative findings for better comprehension and analysis of the market. This process led the researcher to identify areas of convergence and disparity regarding the proposed business plan. The findings of the primary data section are highlighted below.

Insights

The researcher completed an ethical approval form stipulating the terms of engagement with the respondents. The format for this review is based on the research onion framework, as explained by Seuring et al. (2022). It suggests that five frameworks of analysis should be discussed when exploring techniques adopted by researchers in collecting data from respondents (Wagner, Kawulich and Garner, 2019). The six levels include research philosophy, approach to theory development, design, method, time analysis, and techniques, which include data collection and analysis procedures.

Based on the desire to collect relevant market data, the pragmatism approach was adopted as the suitable research philosophy for the current probe. Alternatively, given the dual response to theory development linked with this investigation, the deductive techniques was selected as the preferred research approach (Lê and Schmid, 2022). In terms of research methodology, a combination of both qualitative and quantitative techniques was adopted in the study to provide holistic data (Bailey et al., 2019). The justification for using both techniques is rooted in the exploratory nature of the proposed business idea. The time framework for analyzing market data was based on the cross-sectional time series approach, which captures views of the target audience at once (da Silva Frost and Ledgerwood, 2020). In terms of strategy development, the researcher employed the survey technique as the preferred model for obtaining market data.

Surveys were administered online to business owners in three low-income neighborhoods in the UK. The researcher accessed them using the snowball sampling technique. It works when one person who has agreed to participate in a study introduces a researcher to a new one (Köhler, Smith and Bhakoo, 2019). In the current probe, the researcher used an initial contact to gain access to several business owners who knew one another and operated in the same market. The informants completed a survey questionnaire that took about 30 minutes to review.

The surveys were categorized into two sections. The first part of the questionnaire captured the respondents’ demographic and business characteristics. This part of the analysis included a review of the respondents’ marital status and age. These variables were included in the analysis because scholars argue that people’s age and marital status affects business decisions and market opinions (Abreu-Afonso et al., 2022). Thus, it was critical to include these variables in the review to investigate whether they impacted the respondents’ views on the research topic. Information about the businesses plan was similarly included in the survey because business profiles and experiences have an impact on the success of a new enterprise (De Mooij, 2019). Three variables relating to the business plan that were sampled in the study included the number of years business owners managed their enterprises and the number of branches they operated. It was assumed that businesses which have more outlets and have been in operation for a long period would provide more reliable data about the proposed enterprise management project.

The second part of the survey questionnaire was the factor analysis section. It sampled the views of the informants regarding the best financing, pricing, advertisement, and prescription validation models to use in the startup. Each of the independent areas of probe mentioned in the questionnaire was assigned four statements to make a list of 20 questions that were posed to the informants. It is assumed that the list of questions was comprehensive enough to cover the scope of research topic. Alternatively, the researcher obtained supplementary information from secondary data sources, including books and journals, published within the last five years. The goal was to use secondary data to contextualize primary information obtained from the informants. Both sets of primary and secondary data sources provided adequate details about the external market dynamics and internal business competencies of the proposed business plan that could be used to increase its odds of success.

For the data analysis part, the researcher used the Statistical Packages for the Social Sciences (SPSS) software to review the respondents’ views. The descriptive and inferential analysis techniques, which are associated with the SPSS software, were primarily used for data analysis. The research questions were answered after obtaining information about the suitability of adopting a digital marketing strategy and the delivery of miscellaneous goods as key tenets of the proposed business plan.

As highlighted above, all the pieces of information gathered in the probe helped to identify the best marketing and product development strategies to use in the proposed business plan. Comparatively, the difficulty in scheduling a standardized time for conducting the surveys emerged as a challenge to the data collection process. This problem occurred because of the wide geographical dispersion of the respondents and their different daily schedules. Therefore, there was a need to transfer the data collection process online to accommodate these variations. This strategy enabled the researcher to develop a snapshot view of the business environment. It helped the researcher to get a representative sample of the views of business owners about how to improve the proposed market entry strategies. The data was later used to create homogenous strategies for enterprise management.

Key Findings

Demographic Findings

This research study sampled the views of 62 respondents, who worked in the UK pharmaceutical industry. The descriptive analysis part of the data analysis process involved capturing their demographic characteristics – age, marital status, type of business ownership, number of business outlets, and years in business operation. The respondents’ marital statuses were included in the review because of the impact that one’s family setting has on their decision-making process. For example, according to Abreu-Afonso et al. (2022), married people tend to be “less aggressive” in business compared to single people. Similarly, widowed informants are likely to receive less support in business financing compared to married partners (Xian, Jiang and McAdam, 2021). The same logic is true in predicting the financial assistance they receive to start a business or run it. Based on these findings, the informants were requested to state their marital statuses. The findings show that most of the respondents were either single or married. Those who were divorced or widowed formed the smallest sample of the population.

Age

The second demographic variable in the study was age and according to findings, most of the respondents (37.1%) were young people between 18 and 25 years. The high number of younger business owners in the study was surprising because the researcher assumed that the entrepreneurs would be older.

Type of Business Ownership

The concept of business ownership was included in the present study to know more about the nature of the respondents’ firms. The findings demonstrate that most of the firms sampled were partnerships and sole proprietorships. These structures could explain the type of ownership models adopted in low-income neighborhoods in the UK.

Number of Business Outlets

The justification for analyzing the number of business outlets managed by the respondents was to assess the respondents’ knowledge of the market. The findings reveal that most of the informants operated pharmacies that had less than three outlets. This finding means that their knowledge of the business could be limited to their areas of operation.

Years in Business Operation

The last demographic variable sampled in the investigation related to the number of years in operation. According to findings, most of the businesses visited were operational for less than a year. Those that existed for more than ten years formed the smallest sample of enterprises. Similarly, the findings reveal that most of the respondents (51.6%) had less than two years work experience – signifying a limited understanding of the market.

Analysis of Variables

Inferential Analysis

The second part of the questionnaire sampled the informants’ views about five areas of business operation, including value addition services, financing model, product promotion, pricing, and prescription verification modalities. These areas of business development were included in the study after analyzing data about small business development in the pharmaceutical industry (Cotter et al., 2021). Prescription medication was included in the review, as a research variable, because of the need to verify a doctor’s prescription before dispatching medicine to customers. The same argument was used to determine the best financing, pricing, promotion, and value addition plans for the new enterprise project.

Impact of Marital Status on Findings

As highlighted in this study, a person’s marital status has an impact on their decision-making processes. This effect is notably true in entrepreneurship where it is believed that variations in marital status affect the zeal in which people implement their business strategies (Xian, Jiang and McAdam, 2021). To this end, it was important to undertake a comparative analysis of the findings to establish whether the marital status of the informants influenced their responses. The impact of the respondents’ marital status on their views was investigated using the one-way ANOVA method.

According to findings, one statement out of the 20 posed to the respondents met the significance threshold of p>0.05. This finding suggests that the marital status of the respondents did not affect the quality of their responses. This finding contradicts those of other researchers who have argued that one’s family structure impacts their decision-making processes (Miller, Wiklund and Yu, 2020). Nonetheless, the low impact of the informant’s marital status on the findings means that their views were independent of their family settings or social structures. This finding promotes objectivity in the interpretation of the results.

Impact of Age on Findings

It was important to understand the impact of the respondents’ age on the findings to establish whether their views were biased towards people of a specific demographic group. This analysis was critical to the probe because age is a moderating variable in business relationships and strategy development (Xian, Jiang and McAdam, 2021). The findings that were obtained from this assessment reflect those of the impact of marital status on the respondents’ views because the statements posed to the respondents did not meet the significance threshold of p>0.05. This finding means that the respondent’s ages did not influence their views on the findings. Again, this outcome promotes the idea that the views presented by the business owners reflected an objective assessment of strategies that would be relevant to the establishment of a new enterprise plan. Thus, the insights provided by the informants about the research topic were devoid of age-related influences.

Impact of Number of Branches on Findings

The third variable investigated in the present study related to the number of outlets that the business owners operated in their respective markets and its influence on the views expressed by the respondents. This review was important to the study because it was assumed that business owners operating multiple enterprises would be more knowledgeable about strategies that are likely to work in the market compared to those who operated fewer stores. The probe meant to investigate if the number of outlets run by the informants affected their views on the research topic.

The number of outlets operated by the respondents did not affect their views on the research topic. This is because none of the statements posed by them met the significance threshold of p>0.05, which would have implied that the number of outlets operated affected the quality of responses. This finding is inconsistent with research studies, which suggest that the business experiences of entrepreneurs who are running multiple firms enriches their experiences and outlook of the market (Morelato et al., 2020). Thus, it could be deduced that the quality of responses given by the informants was devoid of this influence.

Impact of Ownership Structure on Findings

The impact of ownership structure on the findings presented in this study formed the basis for the current probe. It was intended to establish whether differences in the ownership structures of the informants affected their opinions. This analysis was critical to the present probe because researchers opine that the ownership structure of a business influences the kind of strategies they adopt or implement in the market (Morris, 2022). The findings reveal that business ownership structures did not affect the quality of responses given by the researcher. This statement stems from the insignificant number of statements that met the threshold of p>0.05. Thus, it could be assumed that the informants’ views were independent of the kind of firms they managed. This finding is inconsistent with those of other researchers who opined that business ownership structures affected the strategic approaches employed in the market.

Impact of Years of Operation on Findings

The last part of the inferential analysis related to an investigation of the impact of years of operation on the findings presented by the respondents. This aspect of the review was important to the probe because it is assumed that business owners with more experience in the market are likely to have a better understanding of the current market dynamics compared to those who have been in the market for fewer years (Hansford, Thomas and Wyatt, 2022). Consequently, it was important for the researcher to investigate if the years of business operations had an impact on the findings given by the informants.

The findings of this part are similar to those generated by other demographic variables examined in this study. Notably, none of the statements posed to the informants met the significance threshold of p>0.05. This finding means that the business experiences of the informants did not influence their views on the research topic. This finding contradicts those of other researchers who argue that business experience has an impact on the quality of strategy development employed by business owners (Banal-Estañol, Newham and Seldeslachts, 2021). Consequently, it can be deduced that experience did not play a significant role in influencing the views of the respondents regarding the questions posed to them.

During the process of validating the findings, 43 of the business owners sampled in this study indicated that they would implement the proposed business idea as an appendage to their existing business models. Five of them admitted that the proposed business idea was superior to their current enterprise models, while the rest showed no interest in the proposed business idea. The reasons for this disparity in responses provide grounds for future research.

Competition Analysis

In this section of the probe, a competitive analysis of the UK pharmaceutical industry was undertaken to understand players that operate in the market and their possible impact on the proposed business idea. To this end, three areas of competitive analysis are discussed and they include defining the existing solutions to the problem, benchmarking of competitive products, and documenting the lessons learned from competitors. Collectively, these three areas of review will help to understand the competitive landscape of the market and explain how the proposed business could be designed to navigate the obstacles and optimize existing opportunities.

Existing Solutions to the Problem

As highlighted in this study, low-income consumers in the UK pharmaceutical market are underserved. This situation is caused by several factors, among them being low levels of insurance and number of healthcare facilities in low-income neighborhoods (Zu and Krever, 2020). Currently, pharmacies have a home delivery service where customers can request for products or services to be delivered at their doorstep. This approach to service delivery has worked for a long time and recently been buoyed by COVID-19 lockdowns (Sarkees, Fitzgerald and Lamberton, 2021). However, this solution is limited to the extent of the kind of products that can be delivered to customers.

The only products available for home delivery are those that do not need a prescription. This limitation excludes most pharmaceutical products that customers need, thereby forcing them to make physical visits to pharmacies to obtain these drugs (Pringsheim et al., 2017). The proposed business strives to address this problem by expanding the range of products that can be ordered and delivered to customers. In other words, the business delivery strategy is not designed to be limited by prescription barriers because there is an integrated verification model that addresses this problem.

Competitive Product Benchmarking

Product benchmarking is important in business management to familiarize entrepreneurs with trends in the marketplace that may impact sales and service delivery. The delivery of pharmaceutical products at home is a relatively new type of business with few players in the market. Some of the most dominant actors in the UK pharmaceutical industry include Netmed and NowRx, which operate as smartphone applications that allow people to order for medicine online and have them delivered at their doorstep (Netmed Inc., 2022; NowRx Inc., 2022). However, unlike the current proposal to set up a similar business in the UK, Netmed does not exclusively focus on the low-end market (Netmed Inc., 2022). However, the unique feature about this business is its interactive nature.

Netmed operates in a similar fashion as Amazon does, where medicine can be picked from online shelves, put on a cart and payments made before delivery. The digital interface of the business is highly interactive, thereby creating room for customers to engage with the company (Netmed Inc., 2022). Therefore, it offers valuable lessons that could be assimilated into the current business plan. The same logic applies to NowRx, which operates in the UK industry through proprietary application software (NowRx Inc., 2022). NowRx is unique from other players in the market because it offers free delivery services. Stated differently, it charges customers for the products purchased but not for their delivery.

The delivery of medicine for free is a unique feature of NowRx because other players in the market charge for this service. Thus, it would be useful to understand how the company manages to do so and remain competitive in the marketplace. A brief investgation into the operations of this business reveals that the firm works with other pharmacies to include its proprietary software in their businesses (NowRx Inc., 2022). Therefore, its operations are augmented with the traditional brick-and-mortar business model. This plan significantly reduces it cost of operation and efficiency of services. A similar strategy could be adopted in the proposed business plan. Partnerships could be created with existing business owners to offer home-delivery services as an additional feature of the current model of operation.

Besides the two pharmaceutical companies highlighted above, product benchmarking for the proposed business plan will be based on the activities of companies that engage in the delivery of grocery products in the UK. For example, in terms of time, groceries are often ordered by customers and delivered within two hours. This schedule is relevant to the proposed business plan because it indicates the average time that customers can be promised to have their goods delivered. Similarly, as evidenced in the grocery delivery business operated by Co-op Delivery (2022), customers will be required to state their postal codes to facilitate the delivery of products to their homes. These pieces of information will be required during the order delivery phase.

The main point of difference between the proposed product benchmarking plan and the proposed enterprise idea is the kind of products sold and the regulations surrounding them. Given that medicine is the preferred product to be sold in the proposed business plan, customers will be required to upload scanned copies of their prescriptions to an online portal for verification before product delivery commences, as recommended by Chopra, Avhad and Jaju (2021). Therefore, the product benchmarking criteria for the proposed business will include a post-code requirement and a fixed estimate of delivery time. An additional feature will be the scanned prescription requirement which will form part of the order placement process.

Lessons Learned from Competition

An analysis of the competitive landscape of the proposed business plan offers invaluable lessons that can be adopted in the startup. The main issue learned from this analysis is the kind of products to stock. The competitive analysis has shown that competitors often partner with brick-and-mortar businesses to implement their strategies. Therefore, this integrative format will be largely adopted in the proposed business idea to support its operations.

Value Proposition

The proposed business idea seeks to add value to the lives of consumers living in underserved areas of the UK. To this end, it is important to underscore the main value proposition that will be offered in the market. Particularly, attention is paid to the personalities of the target market, pain points, and value preposition formulas that can be adopted. They are discussed below.

Personas

Table 6.1 below summarizes the characteristics of the target market, using a patient named James Brown as an example.

Name: James Brown

Demographic Characteristics	Goals	Motivation	Biography
Age: 34 Work: Salonist Gender : Male Location: Manchester, UK Home Country: China	Take care of ailing mother Save more money Find quality and affordable medicine	Fear (20%) Greed (35%) Social Support (45%)	James is a 34-year old driver who is taking care of his ailing mother. He is looking for a second job to increase his earnings and pay for the mother’s hospital bills
Personality	Frustrations	Brands	Preferred Sales Channels
Openness – 40% Conscientiousness – 30% Agreeableness – 30%	Cash Strained family relationships		Brick-and-mortar – 20% preferenceAutomated systems – 80% preference

As highlighted in this business plan, the target market is low-income customers. In this section of the review, the consumer profile of this demographic group is assessed to understand how it aligns with the proposed business plan. To create a consistency of purpose, Maslow’s hierarchy of needs theory will be used to evaluate the needs and requirements of the target market. By employing its principles, it is possible to know how to address varying customer needs using proven marketing strategies. Consistent with this plan of action, the theory emerges as a useful framework for reviewing consumer purchasing intentions.

As its name suggests, the Maslow hierarchy of needs theory stemmed from its author, Abraham Maslow. He demonstrated that consumer purchasing behaviors are motivated by different layers of needs that primarily drive human reasoning and actions (Shoib et al., 2022). According to the theory, these layers of needs are categorized into five sections, which include physiological, safety, love/belonging, self-esteem, and self-actualization needs (Yu, 2022). The proposed business plan taps into safety needs. Thus, it could be assumed that the value proposition of providing on-demand medicine meets a basic human need – healthcare. This level of need is commensurate with other similar desires that people have, including security and freedom from fear.

Consumer needs and market requirements often vary with the level of want associated with human desire. Low-income populations often experience challenges relating to their quest to fulfill the first and second order needs of Maslow’s hierarchy described above (Yu, 2022). This struggle creates an underclass of people who are unable to meet their basic healthcare and safety needs. Given that the proposed business plan seeks to bridge this gap, underserved populations in low-income neighborhoods will benefit from the services offered by the proposed business (Wang et al., 2020). This target market comprises of immigrants, minorities, the uneducated, and people who earn low wages (PWC, 2022). The benefits to be accrued from the proposed business startup will be represented through improved access to quality and affordable goods and services (Harel, 2021). Therefore, customers would be able to buy products and services that were previously out-of-reach.

Pain Points

This section of the analysis highlights challenges that are likely to be encountered when implementing the proposed business plan. Culture is likely to be one of those pain points because the success of an on-demand product delivery business requires behavioral changes among customers to create a critical mass of customers (Prasad, Kiran and Sharma, 2021). Culture is mentioned as a pain point because the target market is familiar with the practice of buying medicine over the counter and not using smartphones. Therefore, for the proposed business to work as intended, prospective customers need to undergo behavioral change modifications to internalize the new system of product delivery.

At the same time, customers will be expected to be familiar with the practice of scanning their prescriptions and uploading them on the company’s portal before ordering a product. This action is different from conventional practices of ordering medicine because most customers visit physical shops with their prescriptions to purchase medicine over the counter (Davies et al., 2018). Given that the proposed business will require them to complete the same process online, behavior change modifications are necessary to complete the transition. Overall, these insights demonstrate that overcoming consumer cultural practices will be a pain-point for the proposed business idea.

Value Proposition Formulation

The success of a business plan depends on the value it creates and offers to its customers. In this section of the report, the value proposition plan is based on the value proposition canvas described in Table 6.2 below.

Table 6.2: Value Proposition Canvas

Details relating to the business and customer segments highlighted above are discussed in subsequent sections.

Customer Jobs

Customer jobs to be addressed in the business service plan relate to problems that customers are trying to solve. In the context of the present business plan, the value proposition for the proposed firm is convenience and affordability. These factors are included in the current review because it will provide virtual services conveniently and affordably (Davidow, 2021). Convenience will be realized when customers receive their goods without leaving their homes or offices. In this regard, they can focus on completing other tasks because they will be saving the time it would take to visit a physical pharmacy shop.

Gains

The proposed business enterprise is expected to register gains in growth when economies of scale are harnessed and exploited. However, this is a long-term value proposition plan and is likely to be realized when the proposed business has been operational for more than two years. This duration represents the standard turn-around time that small businesses are likely to register profitability (Ding and Lu, 2017). Comparatively, customers are likely to benefit from the speedy and convenient delivery of medicine.

Products and Services

The products and services highlighted in this paper refer to factors, which underpin the creation of value for the customers. Relative to this statement, the service application software and its online ordering functionality would create a technological product that suits the needs of customers. From a business perspective, local agents will be recruited to transport medicine in low-income neighborhoods. Broadly, there will be consistency in service and value development across business and functional fronts.

Solution Design

This section of the document defines the design for implementing the proposed business idea. Key issues that will be discussed in this segment of the analysis involve understanding the contribution to be made by the users and product service features that will be associated with the main brand offering. At the end of this analysis, additional insights about challenges and opportunities presented by the business design and mechanisms for including feedback will be included in the analysis. However, before undertaking this probe, it is important to understand key insights that led to the formulation of the solution design in the first place.

Key Insights Leading to the Solution Design

The solution design plan of the proposed business idea will center on understanding the role and experiences of customers when buying medicine as the main basis of strategy development. The convenience customers will enjoy from doing so, and the legal regime governing the sale and delivery of such products are also important considerations.

User’s Contribution to the Design

A business design is expected to take into consideration several factors that would affect demand and supply sides of the business plan. For purposes of this analysis, the focus of the study is on the demand side of the business plan, which is moderated by user contributions. In this review, plans for integrating the contribution of users to the overall business design will be discussed. The priority areas will be patients’ safety and the convenience of service delivery that they will enjoy by using the company’s service. In terms of safety, attention is paid to the legal regime governing the sale of medicine and changes that pharmacies have to make to accommodate proposed changes (Sehgal et al., 2021). Notably, of importance to this analysis is the requirement in law that medicine should be sold after a patient presents a prescription (Baracaldo-Santamaría, Pabón-Londoño and Rojas-Rodriguez, 2022). This legal provision will influence the design of the service plan because customers will be required to upload scanned copies of their prescriptions on an online portal before order confirmation. Again, the aim of doing so is to comply with the existing legal structure governing the sale of medicine in the UK (Pitts and Le Louet, 2018). However, by extension, the safety of medicine sold to customers will be safeguarded through this design feature. Its inclusion in the service design means that the new business will be compliant to existing laws and policies governing the sale of medicine.

The second feature to be integrated in the service design will seek to optimize the potential for offering convenient services to customers. This design feature was integrated in the service design because customers indicated that convenience was the main differentiation feature between the new business and existing ones. This view was extrapolated from the researcher’s interaction with business owners. Furthermore, as highlighted in this business plan, convenience differentiated brick-and-mortar business models from online ones (Al-Kwifi, Farha, and Zaraket, 2020). Therefore, customers will be assured that if they place an order at any given point in time, they should expect the medicine to be delivered expeditiously. Consistent with this approach, a 2-hour time allocation will be included in the service design to represent the average time that customers should wait to have products delivered to their homes. Figure 7.1 below summarizes key features of the service design

Product Service Features

As highlighted in this study, the new business idea will be based on the on-demand medicine delivery model. Unlike other companies that sell only over the counter drugs, the proposed business will be sell different types of medicine, including those that need a prescription. The justification for including these kinds of products in the service plan is rooted in the quest to provide underserved populations with various types of drugs. Figure 7.2 below shows the procedures for offsetting the product and service features of the pharmaceutical products to be sold.

Given the sensitivity of medicine as a human health product, no modifications will be made to the pharmaceutical products. Indeed, the business value proposition is on delivery and not product development. However, a robust on-demand delivery system would ensure that medicine is sorted and dispatched in a timely manner.

Design Challenges and Limitations

It is important to recognize challenges and limitations of new businesses because they define boundaries that have to be overcome when in operation. The major challenge associated with the proposed business plan is its limited software outreach. The initial software application will be available for Android smartphone users. The product will be available to other users within months. Therefore, non-android phone users are likely to be excluded from the business plan for the first few months of business operation until new modifications to the service plan are implemented and other users included.

Prototype or Minimum Viable Product

Prototypes are important in defining the expectations of business owners regarding the success or failure of a business idea. To this end, a product prototype for the on-demand business plan will be developed in the first six months of operation and a test-run conducted to see if the application functions correctly. The analysis will be undertaken in a focus group setting where users will share their experiences using the company’s services. Emphasis will be made to evaluate a mobile payment option that will be used to facilitate payments and the rate of market success within specific neighborhoods. The focus review will similarly include the views of transport agents who will share the experiences of 20 riders who are expected to serve a 15- mile radius of market outreach. This feedback will be integrated back into the original plan. Figure 7.3 below shows a prototype of the product packaging design for dispatch.

User Feedback and Iteration

As highlighted above, consumer feedback will be invaluable in shaping the proposed business plan. Therefore, user feedback and iteration will be key parts of the proposed enterprise project. Furthermore, this feedback will be used to improve the value proposition of the firm because continuous improvement will be a key part of the overall business strategy. Therefore, consumer feedback will play a critical role in designing the service plan for the business.

Business Model

Business Model Canvas

The operational model for the proposed business will be designed using the business model canvas framework. It highlights the fundamental building blocks of the new enterprise start-up. As highlighted in Table 8.1 below, the main considerations of the business are centered on understanding the role of key partners, their activities in new business development, resources required to secure their support, and their general profiles in enterprise planning.

Table 8.1: Business model canvas

The model presented above takes into consideration the role of the new business in improving the healthcare standards of the target population. Likewise, it includes the opportunities for leveraging economies of scale through the integration of customer feedback in strategy development. Collaborating with key partners emerges as an important function of the business plan because it will help in expanding the market (customers), supplementing the business budget (banks), and gaining market information (pharmacies). The level of engagement with these business partners will depend on the availability of resources needed for implementation.

Summary Discussion

As highlighted above, the proposed business plan will canvas the benefits of adopting a hybrid sales and planning model that involves the inputs of multiple players. The main tenets of the business model are fixated on implementing some of the advantages of brick and mortar as well as online business models. The model takes into account the business path for generating market interest during the start-up phase, as well as for partners whose involvement in the business is to complement the primary function of providing underserved populations with quality and affordable pharmaceutical products.

Business Strategy

Project’s Vision and Mission

An organization’s vision and mission are important drivers of corporate performance. They define the boundaries of a business’s operations and the goal it intends to achieve. In line with this vision, the Porter’s five force analysis model will be used to analyze the market environment. The vision of the proposed business plan will be to promote equality in the delivery of healthcare services. The mission is to make sure that every household has access to affordable and high quality medicine. It is supported by the desire to provide essential services to underserved people who have been neglected due to their socioeconomic circumstances. This mission provides grounds for spurring investments in local enterprise development and fulfilling a greater vision of improving the lives and welfare of underprivileged people. The on-demand virtual business model provides the differentiation strategy for actualizing the vision and mission of the new start-up plan.

Strategic Priorities

Based on the primary and secondary findings gathered in this study, it is important for the proposed business to identify strategic priorities in new business development that will enhance the company’s success. This exercise is important in establishing areas to direct resources to meet key objectives (Rimmler et al., 2022). In lieu of this goal, two strategic priorities emerged from this investigation – convenience and cost. Convenience is included in this review as a strategic priority because it complements the value proposition of the business, which is to avail pharmaceutical products to low-income households, without experiencing the trouble of going to a physical shop. Therefore, convenience is a strategic priority for the proposed business plan because it differentiates the service idea from those of competitors who operate brick-and-mortar stores.

Comparatively, cost is another strategic priority for the proposed business idea because it serves low-income consumers. This group of buyers is often price-conscious and sensitive to slight changes in the cost of buying products and services (Yunus et al., 2021). Additionally, it is important to recognize the challenges that most low-income dwellers experience when trying to meet basic needs. Therefore, while healthcare services are important for the sustenance of life, it is likely that some customers would opt to redirect their resources towards meeting basic needs. Consequently, price could be a catalyst for this change or a deterrent of the same. Thus, it is included in the current probe as an area of strategic focus because low-income consumers are price-sensitive.

Market Entry Strategy

In line with the 4Ps of marketing, the market entry strategy for the proposed business will include four elements of strategic planning – product, place, price, and promotion strategies. These elements of strategic intent have been used in several marketing literatures to highlight key areas that business owners have to consider when developing their strategic plans (Kotler, 2020). The details relating to each aspect of the plan are highlighted below.

Product Strategy: The product strategy for the proposed business idea stems from the findings of the literature review section outlined in section 2 of this document. Pain relief and allergy products will be the main items sold in the new business because they account for a majority of pharmaceutical sales today (Proprietary Association of Great Britain, 2022). Indeed, statistics suggest that there has been a 2.7% increase in the sales of pain relief medicine since the year 2020 (Proprietary Association of Great Britain, 2022). Comparatively, there has been a 5.8% increase in the sales of allergic products within the same year (Proprietary Association of Great Britain, 2022). The Porter’s five-force analysis indicated that there is a low threat to substitute products in the market. Therefore, the main product value created for customers will be in on-demand service delivery.

Promotion Strategy: The business promotion strategy to be included in the new enterprise plan will encompass a combination of online and offline techniques. Both techniques are included in the plan because the Porter’s five force analysis indicated a high level of competitive rivalry in the market. Online techniques will involve promoting the business through social media and websites (Ali Abbasi et al., 2022). Comparatively, the offline marketing plan will include word-of-mouth communication and physical visits to stores. The latter part of the promotion campaign will be achieved when the business owner partners with established brick-and-mortar firms.

Place Strategy: The place strategy of a product refers to the platform where goods are sold or availed to customers. As highlighted in this study, the proposed business idea involves the development of an on-demand virtual platform where consumers can order for goods online. Thus, the place strategy is based on this virtual outreach plan because customers will be expected to download an application on their smartphones and register for services, based on their geographical location. This place strategy is consistent with the low supplier bargaining power highlighted in Porter’s five-force analysis. Indeed, as indicated by some of the business owners sampled in this study, the on-demand business model contains superior features of service delivery that the brick-and-mortar model lacks.

Price Strategy: The risk assessment framework for the proposed enterprise plan will be used to determine the appropriate pricing model for the business. Nonetheless, according to the feedback received from the respondents, a low-cost business strategy is suitable for the selected market. This plan is consistent with the findings of the Porter’s five–force analysis, which indicated a high competitive rivalry in the market and a moderate consumer bargaining power. Therefore, the low-cost pricing plan aligns with the income potential of the target market because it strives to provide medicine affordably. Thus, it can be assumed that the medicine sold on the platform will be affordable.

Potential Growth Strategy

The growth strategy for the proposed business plan was developed using the Ansoff matrix. It helps businesses to determine their growth strategies after assessing the levels of risk involved (Peterdy, 2022). Figure 9.1 below highlights different strategic options that business managers follow when venturing into new markets.

As demonstrated above, the process of strategy determination is accomplished by evaluating a product’s profile with market uncertainties. According to the above-mentioned classification style, business owners can adopt four strategies of strategy development – market penetration, product development, diversification, and market development (Peterdy, 2022). Given that the proposed business plan aims to serve members of low-income communities, a diversification strategy cannot work because low-income residents are part of the existing pharmaceutical market.

A market penetration strategy is inappropriate for use in the current study because the goal of the business is not to increase sales – the strategy intends to achieve this aim. Likewise, a product development plan cannot be implemented because the business focus will be on delivery of medicine and not on its development. Therefore, a market development strategy will be implemented in the propose business because it focuses on selling existing products to new markets (Peterdy, 2022). The existing products to be sold in the current business plan are pharmaceutical products, while the new market is low-income residents.

Project Viability

Resource Requirements

Resources are necessary in implementing effective business plans. Indeed, firms that lack sufficient means of production are unlikely to meet their objectives because they will be vulnerable to adverse market elements. Relative to this assertion, the resources affiliated with the proposed business strategy are highlighted below.

Labor: The proposed business will include the services of 20 riders and five people doing office work. It is projected that these five employees will be recruited during the initial phase of the business to address customer service needs, manage the business, and process orders. It is anticipated that the first year of operation will have a low number of sales. Therefore, the proposed number of employees is not expected to increase until the completion of the first year of business.

Capital: Capital resources refers to financial support availed to businesses to start operations. The initial phase of the business development plan will require intensive capital injection in the development of a smartphone application. Later, the business’s financial resources will be used to rent office space and pay employees.

Equipment: A share of the company’s financial resources will be used to buy equipment that will be used to run the proposed business. Particularly, the initial capital injection to the business will be used to buy motorcycles that will be used to deliver medicine to customers. Additionally, some resources will be used to buy uniform for the riders and other company employees. Each employee will also be equipped with a mobile phone that will be used for internal company communication.

Sharing Economy Canvas

An important observation made from the operations of other on-demand pharmacies is the importance of partnering with local businesses to provide services. To this end, the proposed business will be implemented by partnering with local pharmacies to market the company’s services. It is expected that word-of-mouth communication will be used to create the initial critical mass of respondents that will buy the company’s products. Therefore, the sharing economy canvas of the business plan will be limited to promoting the marketing activities of the firm.

Potential Source of Finances

The new enterprise start-up will be financed using a combination of several methods. They include crowd funding, venture capital, personal savings, and business loan. Each source of finance is expected to contribute 25% of the cost of doing business. A shared contribution models is adopted to supplement the financial shortfall that emerges from the use of personal financing. The model will equally be used to cover unforeseen costs in the business implementation plan. Therefore, each source of finance will have different objectives to accomplish. The personal finance option will be used to pay for office space and workers’ salaries for the first six months. Comparatively, the loan from the financial institution will be employed to pay for software development. Other sources of finance will be used for equipment and administrative purposes.

Financial Statements

In this section of the analysis, a proposed balance sheet, profit and loss statements, and income statement for the proposed business are provided. They highlight estimated financial projections for the new enterprise plan.

Profit and Loss Statement

Income Statement

Balance Sheet

The above-mentioned calculations are based on the assumption that $500,000 will be used to start the proposed enterprise. The figures mentioned above are designed to fit this budget and recoup the capital in a short time. The revenue projections are based on the average estimated revenue from pharmaceutical companies operating in the target market. This information was obtained from interacting with business owners in the low-income settlements of the UK

Strategic Risk Management

A strategic risk assessment is an important tool for protecting a new business from adverse market events. To this end, an insurance policy against medical negligence will be taken to protect the business from lawsuits. This type of protection will be renewed at different stages of the business life cycle to reflect varied risk profiles of the business. Therefore, it is expected that premiums will vary depending on the circumstances or risk profile in question. The strategic risk assessment framework highlighted in Figure 11.1 below will be relevant in managing risks through an iterative process where risk centrally links capital and return.

Table 11.1: Risk Assessment Framework

Operational and strategic risks will be mitigated through improved efficiency as the business develops. At the same time, compliance standards are set to increase in this manner. The use of online techniques for business management is also expected to minimize operational risks. Overall, risk will be minimized by maintaining the financial soundness of the business.

Conclusion

This study has discussed the prospects of setting up a new enterprise aimed at selling and distributing medicine to residents of low-income communities in the UK. The business idea was conceived from the backdrop of the failure of existing healthcare plans to effectively meet the needs of underserved populations. Therefore, the main value proposition posed by the new business is the reduction of inequality in the sale and distribution of medicine. The business idea was developed with the aim of exploiting an existing market opportunity of automation, which is increasingly defining business operations in the pharmaceutical industry.

The business plan will be implemented using a virtual business model, which accommodates all business activities in a smartphone or computer. Therefore, customers can simply order for medicine using their mobile phones or computers and have the drugs delivered to them. The service design of the new business plan takes into account some of the challenges of implementing such a business plan. One of the main issues is the lack of cultural familiarity with the practice of ordering medicine online. This concern stems from the socialization of members of low-income communities to purchase their drugs over the counter. The new business model exploits a new trend of automation in the healthcare industry, which seeks to facilitate online pharmaceutical sales.

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