Management and business in pharmacy

1. Management and business in pharmacy

3. Enterprise, Entrepreneur, Entrepreneurship Hereafter, "enterprise" is a referent to the businesses individuals set up and run; "entrepreneur" is a referent to the individuals who set up these businesses; and "entrepreneurship" is a referent to the activity or practice of sustaining and growing the business.

4. "Entrepreneur" was first considered in economic theory by the French economist Cantillon in the early 1700s. "Entrepreneur" had up until then meant someone who was active and had initiative and who as a hero or warrior ran risk. By the eighteenth century it was used to describe a large scale businessman who contracted to supply, and who, at his own expense and risk, combined the factors of production.

5. Entrepreneurship shall be defined as direct independent, systematic activity, exercised at one's own risk, directed at production of goods, performance of works or providing services with the purpose of generating profit, which is fulfilled by natural persons and legal entities, registered as subjects of entrepreneurial activity in accordance with the procedure, established by the legislation.

6. Enterprise - is an independent entity established by the competent public authority or local government to meet social and personal needs through systematic implementation of industrial, research, trade, other economic activities.

7. The main features of the enterprise are: • Existence of the approved charter, which defines objectives, organizational structure, rights and responsibilities of management, the order of liquidation and the basic relationship between the founders and owners; • Property right to bear responsibility to contractors within the ambit of economic legislation, and of whether the ownership of the company's property; • Free choice of activities; • Independent of program activity, supplier selection, • Commercial calculation and its own commercial risk; • Free hiring of workers • Dispose of profit after making payments according to the legislation • Independent of foreign trade and use of foreign exchange earnings • Right to protect its property interests in court, arbitration and other bodies of state power and control; • existence of the registration certificate, and in some cases specifically licensed to engage in certain activities, particularly in manufacturing and retail and wholesale medicines.

8. The following enterprises may be created in Ukraine: • private enterprises (established on the basis of assets owned by a natural person); • collective enterprises (established on the basis of assets owned by labor collectives of an enterprise); • business associations (includes joint stock companies, limited liability companies, additional liability companies (partnerships), unlimited partnerships, limited partnerships); • enterprises established on the basis of assets owned by an association of citizens (associations of citizens are organized according to the Law “On Associations of Citizens”); • communally owned enterprises (established on the basis of property owned by relevant territorial communities); • state-owned enterprises (established on the basis of property owned by the state), including special government enterprises. A special government enterprise is an enterprise, which is not subject to privatization and is transformed into a special government enterprise according to the decision of the Cabinet of Ministers of Ukraine.

9. Enterprises are permitted to integrate and form the following entities: • associations • corporations • consortiums • concerns • cartel • syndicate • trust • holding company • conglomerate

10. Associations (operate on the basis of a charter with the purpose of permanently coordinating economic activity. Associations do not intervene into productive or commercial activities of its participants).

11. Corporations (operate on the basis of a charter by combining productive, scientific and commercial interests. Each participant delegates some authority to the corporation for centralized regulation of its activity).

12. Consortiums (operate on the basis of statutes by combining industrial and banking capital. A consortium is usually established for a temporary period since the purpose of its participants is to achieve some common objectives);

13. Concerns (operate on the basis of statutes by combining industrial enterprises, scientific organizations, transport facilities, banks, trading enterprises, etc. Members of concerns are fully financially dependent on one entrepreneur or a group of entrepreneurs).

14. Cartel is a formal (explicit) agreement among competing firms. It is a formal organization of producers and manufacturers that agree to fix prices, marketing, and production

15. Syndicate is a self-organising group of individuals, companies or criminals formed to transact some specific business, or to promote a common interest or in the case of criminals, to engage in organized crime.

16. Trust is a relationship whereby property (including real, tangible and intangible) is managed by one person (or persons, or organizations) for the benefit of another. A trust is created by a settlor, who entrusts some or all of their property to people of their choice

17. Holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its only purpose is owning shares of other companies.

18. Conglomerate is a combination of two or more corporations engaged in entirely different businesses together into one corporate structure, usually involving a parent company and several (or many) subsidiaries. Often, a conglomerate is a multi-industry company. Conglomerates are often large and multinational.

19. By ownership: • - A private company that operates on the basis of private property of individuals or entity (legal person); • - Collective ownership - the company that operates on the basis of collective ownership; • - Public enterprise that operates on the basis of communal property of territorial communities; • - State-owned enterprise that operates on the basis of state property; • - Mixed ownership, which was founded on the basis of combining different forms of property ownership.

21. Depending on the type of founding and a statutory fund in Ukraine are unitary enterprise and corporate. Unitary enterprise created by one founder who allocates necessary for this resources under, creates statutory fund, approves the charter, solve the issues of reorganization and liquidation. • Unitary enterprise is a government, utilities, enterprise, based on the property of public associations, religious organizations or private founder. Corporate venture is formed usually by two or more founders for their joint decision (agreement). Corporates are cooperative enterprises, enterprises established in the form of economic society, as well as other enterprises, including based on private ownership of two or more persons.

23. With the number of employees and gross revenues from sales enterprises can be attributed to small, medium or large. Under the Commercial Code of Ukraine, the company (regardless of their form of ownership), with an average number of employees does not exceed fifty persons, and gross income from sales during this period does not exceed the equivalent of five hundred thousands of euros. In this context, all retail pharmacy businesses (pharmacies) will belong to small businesses.

25. The market market distribution distinguish drug-producing organization, wholesale and retail trade organizations (pharmacies). The base-producing enterprises in Ukraine are such companies as Darnitsa, Farmak, Arterium, " Indar "," Kyiv Vitamin Plant "and" stimulators ". License for wholesale medicines is about 1500 intermediary organizations with different forms of ownership and value of capital. The subjects of the retail sale of medicines is a pharmacy, their separated units (pharmacies and pharmacy items.) Ukraine pharmacy network includes more than 8500 pharmacies in different ownership and nearly 10 thousand of their structural subdivisions.

27. By the degree of market reach pharmaceutical companies are divided into local, regional, interregional, national and transnational.

28. Joint stock corporation • An AG is a joint stock corporation governed by a special and very strict law, the Joint Stock Corporation Act. Only the shares of an AG may (but need not) be quoted on stock exchanges. The minimum share capital of an AG is € 50,000, which must be divided into shares with a minimum nominal value of € 1.00. • An AG must have a managing board, empowered to decide all matters relating to the operation of business and appointed by and answerable to the supervisory board. The shareholders of an AG exercise their power to control its policies at regularly scheduled general meetings. • An AG must prepare an annual profit and loss statement , balance sheet and notes and submit them together with detailed information in an annual report to the Commercial Register. Large corporations must publish their annual accounts and reports.

30. Limited liability company (LTD) • A LTD must be set up with a minimum capital of € 25,000 in cash or non-cash contributions or both. Each member must subscribe a minimum of € 100. The company may also be established by one person, who, as in the case of the AG, may be another company. • Shares in a LTD are not embodied in certificates and cannot be quoted on stock exchanges but may nevertheless be transferred by way of properly notarized documents. • Shareholders' decisions can only be reached at a meeting of the shareholders. Through the adoption of resolutions, instructions of any kind may be issued to the managing directors, but without restricting their power to represent the company externally. The meeting of the members thus has a stronger status in comparison with the general meeting of an AG. The articles of organization may provide that a GmbH have a supervisory board.

32. General partnership • A GP is a general partnership, the liability of whose partners is unlimited. Every partner in the company is legally obliged to participate actively in operating the business unless the partnership agreement specifically assigns this task to one or several partners.

33. Limited partnership • It is basically a partnership in legal respects but also provides for a limitation of liability by having two types of partners. • 1. The general partner, whose liability is unlimited and extends to their personal assets. • 2. The limited partner, whose liability is limited to their nominal holdings in the firm. • There is no limit to the number of partners of either type that a LP may have. The sole right and obligation to manage the firm rests with the general partners. The limited partners are explicitly excluded from operating the business but may object to actions taken by general partners that go beyond the firm's purpose and normal business activities. Further rights may be granted to the limited partners in the partnership agreement.

35. statute A statute is a formal written enactment of a legislative authority that governs a state, city, or county. Typically, statutes command or prohibit something, or declare policy. The word is often used to distinguish law made by legislative bodies from case law, decided by courts, and regulations issued by government agencies.

36. The statute defines: • Property owner • Name of the enterprise • Location of enterprise • Object and purpose of activity • Governing bodies and their order of it forming • The competence and powers of the staff and the electoral bodies • The order of creation of the enterprise • Terms of registration and termination of businesses

37. A business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals.

38. Typical structure for a business plan for a start up venture • cover page and table of contents • executive summary • business description • business environment analysis • industry background • competitor analysis • market analysis • marketing plan • operations plan • management summary • financial plan • attachments and milestones

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