CHAPTER I

INTRODUCTION

Background of the Business

During the last century, the principal function performed by community

pharmacists changed from highly-valued extemporaneous compounding of medicines

using profession-specific knowledge and techniques to the dispensing of mass

produced standardized medicines in which the application of pharmacists' expertise is

less apparent to patients or other health professionals.

The majority of dispensed medicines are now included on the Pharmaceutical

Benefits Scheme [PBS] and a pharmacy business model heavily dependent on the PBS

has emerged. Recent changes in dispensing remuneration have led to concern

regarding the viability of a business’s model so heavily dependent on the supply

function.

While there are issue of perception and of the viability of the existing model, the

health system is changing in ways which create opportunities for pharmacists,

particularly those in primary care. There is a growing and ageing population with a

greater number of chronic medical conditions. People are being treated with an

increasing range of new, more complex and expensive medicines. These changes

create significant opportunities for pharmacists as patient-focused providers of

medication-related healthcare.
 In 2002 Hepler and strand introduced the philosophy of pharmaceutical care in

which pharmacists focus on achieving definite health outcomes for their patients arising

from the services they provide, rather than focus on the products that they dispense.

This patient and outcome-focused approach aligns with developments in other health

professions and has been incorporated in the vision statement endorsed by

Pharmaceutical Association to professional pharmacy organizations which is highly

adapted by the Philippine pharmaceutical businesses.

Pharmacies. We’ve all been to one, for better or worse. They’re like miniature

grocery stores that also allow you to purchase your prescribed drugs. I work at a

pharmacy, and therefore have a very good understanding of the process and industry.

That is precisely why I wanted to provide a brief background on something that most

people do not know: the history of pharmacies. Where did they originate? How long have

they been around? What were the first kinds of pharmacies prescribing? Some of the

questions needed to be answer by historical background.

BUSINESS SEAL/ BUSINESS LOGO

Figure 1. Company Logo

PHARMACY LOGO HISTORY- This symbol is part of the Star of Life, which is

found on ambulances and represents emergency medical services in the US and many

other countries. In Greece the snake was associated with wisdom, healing and

resurrection due to its ability to shed its old skin after growing into a new one. Harmless

snakes were even kept in temples dedicated to the God of Healing, where the sick

would come and hope to be cured.

It is from these ancient times that the Rod of Asclepius developed into the symbol of

doctors in the West.

LOCAL BUSINESS LOGO HISTORY- As discuss in the history why there is a

snake in the logo of pharmacies nationwide and all over the world, LAFORTEZA
Pharmacy wants to recognize the History and its origin. “LAFORTEZA” derived from the

family name of the owner.

MISSION, VISION & CORE VALUES

Mission: To provide safe, high quality patient care in an atmosphere of professionalism,

respect, and effective communication.

Vision:  Laforteza Pharmacy group of Company is committed to:

Patient Care: Being an integral member of the healthcare team responsible for

the outcomes associated with the medication use process.

 Recognizing that the pharmacy staff is our most important resource.

 Contributing to and accepting responsibility for optimal therapeutic outcomes

including promoting wellness.

 Fostering an environment that promotes the safe, efficacious, and cost-effective

use of medications.

 Improving the medication use process to enhance continuity of care.

 Recruiting and retaining highly qualified pharmacists and supportive personnel.

Education: 

 Mentoring and training staff members to enhance their professional development.

 Educating patients and healthcare professionals on the safe use of medications.

 Ensuring high quality care through the education of students, residents, fellows,

and staff.

Core Values:
Excellence and Patient Centered Care, Honesty and Integrity Diversity and Inclusion

Respect and Teamwork

BUSINESS HISTORY

LAFORTEZA PHARMACY owned by a Filipina business women named

MARITES LAFORTEZA MONES. The first branch of Laforteza established was in

Tantangan municipality, Province of South Cotabato. Laforteza Pharmacy affiliates also

with 4M Pharmacy located in Tacurong also and Christian Pharmacy was located in

Koronadal City near in the City Public Market.

Time passed by, the said pharmacy was rapidly opening its branch all over here

in Koronadal City, Tacurong City, Isulan municipality, T’boli Municipality, Davao City,

Tantangan municipality, Esperanza and General Santos City. The Here in Marbel they

have already five branches located in the following: front of KCC Mall beside MLhuiller,

NDMU complex-Alunan Avenue, 2 branches in Roxas Street Brgy. GPS, and the fifth

one is located in Ramon Magsaysay Building in front of 7/11 in Alunan Avenue.

In Davao City they have (4) branches located in different areas. In Isulan they

have 2 branches and in Esperanza they have also (2) branches and in General Santos

city they have already (4) branches. The rapidly growth of expansion of Laforteza wan

an indication of good rules and regulation adapted and formulated by the business

owner and its stakeholders.

ORGANIZATIONAL CHART
 Figure 2: Organizational Chart of the Laforteza Pharmacy

CHAPTER II

This chapter will briefly discuss the following: Entrepreneur’s Profile, Business

Type whether (Sole Proprietorship, Partnership, Corporation, Manufacturing or Hybrid),

Business Locale, Products and Services and Porter’s Model.

Entrepreneur’ Profile:

Name : MARITES LAFORTEZA MONES

Age : 54 years old.

Date of Birth : March 14, 1967

Place of Birth : Tantangan, South Cotabato

Siblings : Ronie Laforteza

Jay-ar Laforteza

Spouse : Melchor Mones

Children : Christian Laforteza Mones (+)

Angel Laforteza Mones

 Note: Entrepreneurs Image wasn’t allowed to post due to privacy concern.

BUSINESS TYPE

The business type of Laforteza pharmacy was CORPORATION. The registered

name in DTI of the said pharmacy was LAFORTEZA GROUP OF COMPANIES. The

major shareholder is Madam Marites Laforteza Mones.

To understand the nature of business, let’s define corporation. Corporation is a

legal entity that is separate and distinct from its owners. Under law, corporation possess

many of the same rights and responsibilities as individuals. They can either contract

loans, borrow money, sue and can be sued.

An important element of corporation is limited liability, which means that its

shareholders are not personally responsible for the company’s debt. A corporation may

be created by an individual or group of people with a shared goal. That does not always

involve making a profit.

The precise legal definition of a corporation differs from jurisdiction to jurisdiction,

but the corporation’s most important character is always limited liability. The vast

majority of corporation have a goal of returning a profit for their shareholders.

BUSINESS LOCALE

Figure 3. the location of the business establishment.

 The following branches of Laforteza pharmacy was Located in different location

within the center of city of Koronadal. The above image showing the Gensan Drive

branch in front of KCC Mall of Marbel, beside MLhuiller. This is the branch where we

gathered our information with regard to the business background, entrepreneur’s profile

and other related data or information needed and considered useful for this business

portfolio.

PRODUCTS AND SERVICES

Laforteza pharmacy containing and providing a quality yet has a cheap price.

They are retailer and wholesaler of any kinds of medicine. Also, they provide a medical

equipment and apparatus for medical laboratories such as syringe, test tubes and vials.

They all have available generics and branded medicine. To further understand the

product, we list some of the branded and generic medicine.

Table 1: List of Medicine classify into generics and branded name.

GENERIC NAME BRANDED

PARACETAMOL BIOGESIC, PANADOL
LOPERAMIDE IMMODIUM
ANTIHISTAMINE ALNIX
DICYCLOVERINE BENTYL
AMOXICILLIN AMOXIL
IBUPROFEN MEDICOL 200MG, 40MG
DOMPERIDOME BUSCOPAN
COTRIMOXAZOLE KATHREX, CIPROBAY, BACTRIM

FORTE
LOSARTAN LIFEZAR 5MG, 10MG
CHLORPHENAMINE TABLET CLARITIN
PHENYLPROPANOLAMINE NEOZEP
AMBROXOL EXPEL
 NAPROXEN SODIUM FLANAX. SKELAN
General Medical Equipment and Supplies

 Syringes, cannulas, and needles – all sizes and types; including kits

 Catheters – all sizes and types; including kits

 Coils, guidewire

 Guidewires, all

 Medical tubing or hoses less than 2” diameter; including associated adaptors,

connectors, caps, clamps, retainers, brackets, valves, washers, vents, stopcocks, or

flow sensors; and peristaltic pumps with flowrates of less than 600 liters/hr for such

tubing (note: does not include tubing made of butyl rubber or greater than 35%

fluoropolymers)  Endoscopic devices including laryngoscopes, laparoscopes.

 Blood pressure monitors, gauges, cuffs, aneroids, or infusors

 Monitor for glucose management

 Medical defibrillators

 Medical lavage systems

 IV sets, bags, and arm boards

 Medical penlights

 Stethoscopes

 Speculums
 Medical scissors

 Forceps

 Single-use medical procedure trays and kits

 Medical diagnostic kits, point-of-care; including EAR99 reagents

 Reflex hammers

 Blood lancets

 Ear plugs and muffs

 Otology sponges

 Ear syringes

 Ear wax removers

 Canes, crutches, walkers, rollators.

 Patient wheelchairs, chairs, gurneys, stretchers, mats, and cots

 Patient transfer chairs, lifts, benches, boards, slides, discs, slings, and sheets

 Safety poles, rails, handles, benches, grab bars, commode aids, and shower aids
PORTER’S MODEL

Threat of New
Entrants

COMPETITIVE Bargaining
Bargaining RIVALRY Power of
Power of
Buyer
Supplier

Threats of
substitutes
product or
service

Figure 4. The Porter’s Model of the Business

This is the porters model of the pharmacy. To deeply understand let us

defined first the following meaning of all the words embedded in the figure.

Porter’s Model – is a model that identifies and analyze five competitive forces that

shapes every industry and helps determine an industry’s weakness and strengths. Five
forces analysis is frequently used to identify an industry structure to determine corporate

strategy.

Rival Industry- This is signifying that you are not the only one business existing in the

industry. There is a lot of business exist like the business that you have. It may be offers

products and services better than yours. This could be a low switching cost from a rival

competitor and a business model fosters loyalty and dependence.

Bargaining Power of Supplier- This is a diversity in supply chain. In either a local or

national producers or suppliers and Simple-Able to change Neutral Supplier power.

Anytime, your business can find another supplier that offers a lesser price but more

quality than before.

Bargaining Power of Buyer- This could be a large volume of customers. They have

the options or power to switvh where they want to buy a medicine or any medical

means. So, if you are willing to remain your customer’s loyalty to your business then let

them feel that they are important by giving them a discounts or any appreciative offer.

Threats of Substitution- this is an alarming problem because customers often find

another solution to their health condition. For example, they used to take a synthetic

medicine but due to higher price and limited stocks they are tend to switch to an

alternative herbal medicine.

Threats of New Entrants- This is a medium high cost to entry. Business model or

strategy is risky to follow startups. Requires significant economy scale.

 CHAPTER III

SWOT Analysis - is a framework used to evaluate a company's competitive

position by identifying its strengths, weaknesses, opportunities and threats. Specifically,

SWOT analysis is a foundational assessment model that measures what an

organization can and cannot do, and its potential opportunities and threats.

1. Strength- Strengths describe what an organization excels at and what separates

it from the competition: a strong brand, loyal customer base, a strong balance

sheet, unique technology, and so on. For example, a hedge fund may have

developed a proprietary trading strategy that returns market-beating results. It

must then decide how to use those results to attract new investors.

To further understand the strength here is the following example with

corresponding explanation:

 Some competitive advantage compare to other pharmacy is that our

business is located at an accessible area.

 The company has already serving the community for more than 2

decades. It is an indication of continuous progress for the business.

 With accordance to the past reports, the entity has a stabilized financial

statements for the past years of operation up until now. This is a

manifestation of good strategy in financial aspects.

 The business has its own supplier of medicine either brander or generics.

Laforteza is a wholesaler and retailer- this means that the pricing scheme

of the business has a lesser and much affordable prices.

  The staff qualification is standard. The business is particular with the

educational background of the employees. The qualification must be

undergoing a thorough interview.

2. Weakness-Weaknesses stop an organization from performing at its optimum

level. They are areas where the business needs to improve to remain

competitive: a weak brand, higher-than-average turnover, high levels of debt, an

inadequate supply chain, or lack of capital.

 The lack of visibility and brand equity of a business. Some problems of the

pharmacy nationwide are that the promotion of their business. Ads and

promotion through online platform can be costly.

 Although the business runs for more than a two decade but still there is a

lack of true experience running a mail order outfit.

 Government intervention/regulation into medicine is possible. There is a

law governing the allow medicine in every branches of pharmacy. We

have this so called dangerous drugs that requires three copies of

prescription from the physician.

 The underemployment of staff in every branch is one of the problem.

Manpower is important in every business.

 There is still a management strategic actions must be applied such as

First in, First out basis of the product for the avoidance of financial losses.

3. Opportunities- Opportunities refer to favorable external factors that could give

an organization a competitive advantage. For example, if a country cuts tariffs, a

 car manufacturer can export its cars into a new market, increasing sales and

market share.

 Outside pressure on consumers to purchase medicine because of their

health status.

 The constant growth of the number of people taking medication. There is a

rampant existing of medicine such as supplement to our body needs.

 Newly formed alliances of insurance companies and mail order

pharmacies. This is an opportunity for both of the business and the

customer.

 There must be an expansion of branches in remote area. Before opening

an another branch, there must be a feasible study with regards to the

selected location if there is a good possibility of income.

 The business can link to the government agency to be one of their partner

to support the medical assistance for individual who are in needs.

4. Threats - refer to factors that have the potential to harm an organization. For

example, a drought is a threat to a wheat-producing company, as it may destroy

or reduce the crop yield. Other common threats include things like rising costs for

materials, increasing competition, tight labor supply. and so on.

 The entry into the mail order market by an established company such as

Mercury, Rojon Pharmacy and other established company.

 Regulatory legislation that curtails the mail order medicine industry that

sometimes causes a financial losses and intervention to the business

operation.
 Some event that cripples’ interstate commerce in regards to shipping.

Delays in shipment is delay to the sales or the profit of the business.

 One of the threats also is the sudden existing of another wholesale and

retail pharmacies that copies the pricing scheme of the existing business.

 Consider as severe threats in the business is that the customers are

switching into another business establishment. Maintaining customer’s

loyalty is important.
 Chapter IV

Business Proposal

Proposed Business Name: MLP Drug Store

People need to be able to buy prescriptions at reduced prices. We make that

possible by carefully maintaining efficiencies in our operations. So we can target a

specific segment of the market – those customers who pay for their prescription

medications themselves. They are poor, they are sick, they deserve the same care as

those who can afford healthcare and full price prescriptions. 

Probable Solution

The MLP Drug Store mission is to provide our customers with the best prices for

their prescription medications. Our convenience and services will exceed the

expectations of our customers.

Target Market

The MLP Drug Store target market consists of two different groups, local

customers or walk-ins, and mail order customers.

Competition

Competition takes many different forms in the pharmacy industry. They are:

chain pharmacies, local pharmacies, mail in pharmacies, well-known pharmacies such

as Mercury Drug Store, Rojon Pharmacies and Rose Pharmacy.

Rationale for business proposal

The MLP drug store we have superior pricing. To do that we must maintain our

position as the low cost provider by painstakingly ensuring that costs are kept low

through operating efficiencies.

Strength of MLP Drug Store

 A unique, current business-environment-appropriate business model.

 Excellent staff who are highly trained and very customer attentive.

 Great prices.

 The ability to scale rapidly for the mail order side of the business.

Threats in an acceptable Level:

 The entry into the mail order market by an established company.

 Regulatory legislation that curtails the mail order medicine industry.

 Some event that cripple’s interstate commerce in regards to shipping.

Product Offering

The MLP Drug Store offers a wide range of prescription drugs to patients based

in Philippines and nationally. Both generics and name brands are offered. The customer

needs to either mail in the prescription, fax it, or email it. Once it is received and

payment arrangements are complete, the meds will be sent out to the customer J&T,

LBC etc...
 Local customers may stop by the store front to pick up the medications

contemporaneously. The MLP Drug Store will only service customers who self-pay. The

self-pay customers will be attracted to MLP Drug Store because of their superior prices.

With each order a printout will accompany the medications that will provide

directions on how to take the medications, other drug that should be avoided

concurrently, and other useful information. Often times this information is communicated

personally by the pharmaceutical technician. The MLP Drug will be using computer

printouts from industry software to reduce the cost of providing this information.

Keys to Success

The keys to success are:

 Repeat customers.

 Low overhead and operating costs.

 Superior prices and service.

 CHAPTER V

Conclusions and Recommendations.

Conclusions

Based on the findings of the business portfolio, the following conclusions are

enumerated:

1. While making the portfolio I conclude that there is a big threat to the company if

they were not focus enough to give attentions to what they lack. Even though the

business runs for a long time but still there are some occurrence of possible

threats like switching customers’ loyalty to other pharmacy.

2. There is still lack in the technology they used. Behind those good financial

statement, there is still a big amount missing because they cannot trace the

exact sales.

3. As to the sudden occurrence of wholesaler and retailer pharmacy which we

conclude that there is a copying of strategical actions as to the pricing and the

resources of the business.

4. Expansion of the business is good and I conclude that there is a thorough

feasible studies before putting a branch expansion.

Recommendations

Based on the findings and conclusions presented, the following

recommendations are suggested:

1. The entity must give focus always to all the possible threat that may occur during

the everyday operations of the business.

2. There must be a continuous checking of price control and packaging to the

medicines you are dispensing.

3. I recommend that there must be a quarter training and seminar to all employees

with accordance to their job description. By doing so, the capacity and growth of

personal development that lead to the expertise of the employee will become a

biggest asset of the company.

4. Upgrading the technology use inside and outside the company is also a great

action that contribute a better flow of the business operation. It has a good effect

to the operational and financial status of the business.

 5. With accordance to the government intervention, the business entity should be

liable enough with their responsibilities of highly implementing of strictly

dispensing a dangerous drug that lead to subject for investigation.

Personal details

Nationality : Filipino

Date of Birth : January 3, 1985

Place of Birth : Brgy. Magsaysay, Koronadal City, South Cotabato

Address : Lower Lopez Jeana, St. Zone 4, Koronadal City,

Age :36 yrs. old

Height :5'2ft

Weight :54kg

Religion : Roman Catholic

Educational Background:

2021- Ramon Magsaysay Memorial College-MI

Bachelor of Science in Accountancy

Arellano St. Purok Waling-Waling,Zone 2,Koronadal City

2019- Korbel Foundation College,Inc

Brgy.Morales, Koronadal City

2002 Notre Dame of San Jose

San Jose, Koronadal City

1998 Marbel 5 Central Elementary School

San Jose, Koronadal City

Professional Experience:

 PLANTAS VERDES INC

Accounting Staff-May 16, 2016-May 28,2017

Parañaque City, Metro Manila

 FOUR ELEMENTS SPA AND SKIN APPEAL CLINIC

Supervisor -January 21, 2016-April 27,2016

Parañaque Metro Manila

 CARIÑO BUSINESS CONSULTANT AND ACCOUNTING FIRM

Accounting Staff October 23, 2014-June17, 2015

A.S Antonio Center 8, Prime St., Madrigal Business Park 2, Alabang,

Muntinlupa City,

 MM OFW 2013-2014 Qatar OFW 2006-2009 Kuwait