business plan proposal

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mvybyn

Business Finance

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i should start a pharmaceutical company in Russia. so I need business proposal plan. I've started writing it, I've attached my work, you can use it

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Value Proposition for Including in Your Business Plan Proposal When you think about the business you are proposing to open in another country, use these concepts to help you and the reader understand why people will buy your products. In other words, what unique value are you offering them? 7-1 SWOT 7-2 Shifo is a pharmaceutical company that will develop, distribute and manufacture generic and brand named drugs in Russia and will be located in the Kaluga region. The goals of the company: to improve existing drugs for a large number of diseases; to discover new drugs. Traditionally, the business model of the pharmaceutical companies is supposed to bring high sales revenues. The Russian pharmaceutical industry is one of the fastest-growing in the world, with annual growth over 10% percent. In 2013, the market turnover was more than RUB 1 trillion. In March 2009, Russia’s president approved the development strategy for the pharma industry until 2020. According to the program with USD 5.9bn budget, by 2020 the share of drugs made in Russia should reach 50% of the overall consumption in terms of value. Today this indicator amounts to roughly 20-25%. Thus, first and foremost, the state will finance purchase of drugs produced in Russia. Our company also will be beneficiary of the government’s support measures. The most attractive regions for investments in the pharmaceutical sectors are the Kaluga and Yaroslavl regions. So, I chose the Kaluga region, it is not by chance. The companies registered in region have a wide range of regional tax benefits-from lower income tax rates to complete duties for a specified period of time. Factors preventing investment inflow in Russia Factors preventing investment inflow in Russia: ambiguity, inaccuracy and variability of legislation, as well as lack of guarantees in case of adverse changes are the most essential factors that prevent the inflow of investment in Russia. In addition, the lack of GMP standards and administrative barriers as considerable obstacles for foreign investments. Issues, Risks, Contingency Plans and Metrics There are three main problems that lie ahead for companies in the Russian pharmaceutical sectors: • The imperfection legislation regulating the sector. The legislation changes often. Since its adoption in 2010, the federal Law “On the circulation of medicines” has undergone more than 90 amendments. • Corruption and the lack of financing of healthcare programs and support for local manufacturers • The growth in competition in the market, current economic climate and the lack of spending capacity among the population SWOT Analysis Strengths • Comparatively low labor costs • Rapid economic development provides a strong basis for development of the industry • Heightened political interest (and will) to support the local production of medicine • Existence of scientific and technical institutions with the relevant skills • Strong marketing strategy that will prove to be effective, helping to raise profiles and profits • High quality products and services that help to ensure customers return Weaknesses • The need for increased selling costs to support sales growth in the context of rising competition • Dependence on imported raw materials makes COGS sensitive to exchange rate fluctuations Opportunities • Significant growth potential of Russia’s pharmaceutical market • Drug portfolio expansion due to R&D • Growth of export to the CIS (commonwealth of independent states) states • Acquisition of exciting drugs showing prospects in the domestic market • Expanding to other markets External threats • Intensified state control over drug pricing • Tougher competition among Russian manufacturers • Risk of new drugs launch High level skills to manage product development, implement rigorous testing procedures, meet international regulatory requirementsh and protect IPR Value Proposition › Always keep an excellent reputation for product development and innovation › Experience in applying technical engineering skills to product enhancement › Experience in customizing products to meet needs of different markets › Ability to formulate existing products to prolong life cycles › Combined technical, logistical, customer support and communications strengths to enable rapid response to market changes Value creation. What is value? Value is the difference between the benefits enjoyed by a company’s customers and its cost of production. Branding is of major importance. Studies show that customers, in our case both patients and physicians, will choose a brand they recognize rather than go with a brand they don’t know. They tend to choose it not because it is better but because brand recognition makes them feel more comfortable. In essence, they feel they are getting a better product although there is no factual evidence supporting it. Target. What/who is your aim? Are you looking to target a large group of physicians that you are willing to sell to at a cheaper rate in order to get more customers or are you looking to target a small group of physicians and sell your product at a higher more competitive price. NEWTech Advant will be targeting the lather. 3. Each student will formulate a business plan proposal for starting a business in another country. Your plan should be logically derived from the country analysis and it should be organized per the format below: • • • • • • Executive Summary including the purpose of the report, the opportunity you are proposing (where the opportunity is defined as starting a business in a country outside of the United States) and recommendations. See the attachment for more guidance. Business Model Proposal (derived logically from the country analysis) with details of the proposal (business model, how you are going to make money, value proposition of your product offering, quantitative and qualitative benefits of the project, entry mode, trade barriers, financing decisions, etc.). SWOT Analysis based on your country analysis and the business you are planning to start. Strategic Plan with a 3-5 year sequential implementation plan. Projected 10-Year Cash Flow Analysis including investment and Return on Investment (ROI) target with cash flows brought back to present dollars. Use a discount rate of 10%. Also pick at least 1 parameter (e.g., volume, price, etc.) and show a sensitivity analysis. Issues, Risks, Contingency Plans and Metrics Identify and describe what issues and associated business risks may arise from starting this business in your chosen country. Briefly describe contingency plans to address these. Also include what metrics should be assessed to understand whether the business is achieving plan and how often they should be assessed. This plan will be in a Word document and submitted by Sunday of the 7th week of class by 11:59 PM that evening. The document should be no more than 10 pages. The paper does not have to be in APA format. But it must follow APA guidelines for spacing, font, font size and reference formatting and citations. The title page, reference pages and charts/graphs/tables pages are not included (counted) in the 10-page count. Be sure to use the concepts and learnings from this course as you develop your proposal and write your report. Also, please prepare this report as if it will be given to your CEO or a Venture Capitalist for consideration. Good grammar, no misspellings, and logical flow are all very important!
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Explanation & Answer

Attached.

Running Head: BUSINESS PLAN PROPOSAL

Business Plan Proposal
Institution Affiliation
Date:

1

BUSINESS PLAN PROPOSAL

2

Executive Summary
Shifo is a pharmaceutical firm that will manufacture, distribute and manufacture generic
and brand named drugs in Russia and will be located in the Kaluga region. The goals of the
company: to improve existing drugs for a large number of diseases; to discover new drugs.
Traditionally, the business model of the pharmaceutical companies is supposed to bring high
sales revenues.
The Russian pharmaceutical industry is one of the fastest-growing in the world, with
annual growth over 10% percent. In 2013, the market turnover was more than RUB 1 trillion. In
March 2009, Russia’s president approved the development strategy for the pharma industry until
2020. According to the program with USD 5.9bn budget, by 2020 the share of drugs made in
Russia should reach 50% of the overall consumption regarding value. Today this indicator
amounts to roughly 20-25%. Thus, first and foremost, the state will finance the purchase of drugs
produced in Russia. Our company also will be the beneficiary of the government’s support
measures.
The most attractive regions for investments in the pharmaceutical sectors are the Kaluga
and Yaroslavl regions. So, I chose the Kaluga region; it is not by chance. The companies
registered in the region have a wide range of regional tax benefits from lower income tax rates to
complete duties for a specified period.
Business Model Proposal
Shifo plans to provide Russian citizens with safe and quality pharmaceuticals. One of the
essential sectors of the public is health care and as such Shifo wants to maintain the importance

BUSINESS PLAN PROPOSAL

3

of care in the Russian nation. Therefore, by starting a pharmacy business in the nation, Shifo will
follow its vision, mission and core values, value proposition to meet its objectives.
The vision of the company is to be the best supplier of drugs of a wide range of diseases
in the nation and also discover new drugs that can help cure various diseases in the nation. The
mission of Shifo is to provide safe and quality drugs to the public to promote good health to all
persons in Russia. Also, the core value of Shifo is to ensure that the business meets all the legal
requirements in the nation before commencing its operations. The value proposition for the
pharmaceutical includes:
› Keep an excellent reputation for product development and innovation
› Involvement in put on technical engineering skills to invention heightening
› Experience in customizing merchandises to meet wishes of diverse markets
› Ability to formulate existing products to prolong life cycles
› Combined technical, logistical, customer support and communications strengths to enable rapid
response to market changes
The first essential step to starting the pharmaceutical in Russia is ...


Anonymous
Really helpful material, saved me a great deal of time.

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