CHAPTER 1
INTRODUCTION
COMPANY PROFILE
PROFILE
o
History Development of PLAZA PHARMACEUTICAL GROUP OF COMPANIES
o Mission statement
o Vision statement
o Objective
o Value statements
o Operation analysis
o Customer base
o
Finance department organizational structure
Historical development
1.1 Background
Plaza Group is a pharmaceutical distribution company that was incorporated in October 1997
in Zimbabwe trading as Plaza Pharmacies. The company specializes in the breaking of bulk
drugs and allied health products for onward transmission to other distributors, hospitals,
clinics and also to the final consumer of the medicinal goods. Plaza Group started off solely
as a retail pharmacy business with one retail pharmacy in Harare and now operates three
retail pharmacies and a wholesale distribution unit for pharmaceuticals and allied health
products.
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The firm grew at one time to have five retail pharmacy units trading in the Central Business
District of Harare and surrounding environs and two pharmaceutical distribution warehouses
which traded throughout Zimbabwe. The Plaza Group currently employs 51 people (permanent
staff, locums and attaches’). It has since begun the process of expanding its largest retail
pharmacy into a mega shop where drugs and dry foods will be sold. The company’s strategy is
built upon the following vision, mission and values;
1.2 Vision
▪
To be the leading brand in the distribution of Health and allied products in
Zimbabwe.
Mission
▪
To be the best provider of affordable quality health and allied products through
excellent customer service and sound business values.
PLAZA
GROUP
VALUES
▪
We believe in professionalism
▪
We are passionate about great health
▪
We live by integrity and honesty
▪
We believe in rewarding achievement and effort
▪
We strive for and encourage responsibility and accountability.
The pharmaceutical wholesale business was started with the aim of increasing revenue and
outperforming the existing players in the pharmaceutical wholesale business. The wholesale unit
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was to ensure an uninterrupted supply to the group’s pharmacies while also wrestling market
share for the private sector pharmaceutical business from the existing wholesalers with the aim
of becoming the number one wholesaler in terms of turnover and profitability. The first three
years saw rapid growth in the business as the wholesale gained popularity among retailers
coupled with an increase in the number of retail pharmacies in the country as a whole, such that
the growth was not quite significant in terms of increased market share. At its peak the wholesale
unit acquired two warehouses so as to be able to accommodate the amount of stock that it was
turning over. The wholesale unit was also distributing to nearly all the retail pharmacies in
Zimbabwe and had also started distributing to public sector institutions and corporate entities
that included clinics, hospitals, the army and prisons among the other donor funded public health
initiatives. Plaza Distribution, as the wholesale business is known, was importing medication
into Zimbabwe from major generic manufacturers in India and South Africa and was the
principal agent for firms that included Ranbaxy, IPCA, Fresenius Kabi, Alcon and Abbot in the
Zimbabwe market.
1.5 Corporate Culture
Culture can be defined as a set of values followed within a community. Plaza Group culture can
be reflected by the set of values and the way its members understand what the organization
stands for, what it considers important and the strategy of doing things. P.G’s culture is reflected
by certain habits and working procedures. Its culture aims at training, developing and
strengthening manpower through the following policies:

All employees are on Cimas medical aid scheme, receive advance salary loans, have
access to transport and meal allowances when working late, especially to those working

in the pharmacy till 10:30 at night
Meetings are held regularly and employees are given the platform to air out their views.
Goals and deadlines are set and any deviations from the goals are addressed. The
management makes sure that the goals are specific, measurable, achievable, realistic and

time bound (SMART).
There is also a clear chain of command and this ensures supervision of employees.
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
Departmentalization is on the basis of specialization for example the pharmacy securities

receipts incomes and accounts payables’ section makes all payments.
Like any other organization, there is intra-culture diversity. There are different employees
from different cultures therefore conflict is inevitable. Client charter and mission
statement is used to reduce conflict
1.4 SWOT ANALYSIS
The student used the SWOT Analysis matrix as well as PEST factors to evaluate the strengths,
weaknesses, opportunities and threats affecting Plaza Group.
A SWOT analysis identifies and assesses the strengths, weaknesses, opportunities and threats an
organization faces. A SWOT analysis of the pharmaceutical company illustrates to upper
management what the industry is excelling in, what improvements need to be made, where
growth is possible and what preemptive measures need to be taken to protect the company’s
values
1.41 Strengths
The strengths of the pharmaceutical industry’s SWOT analysis document the internal
industry components that are providing value e.g. quality goods and services and overall
excellence which may include physical resources, human capital or features the industry
can control.
•
Low operating overheads – the head office and warehouse are situated outside the city
center where rents are slightly cheaper thus saving on costs.
•
low staff turnover – there is relatively few employees in the group thus making it possible
for management to give reasonable attention to each employee’s need and thus making
the employees loyal to the company.
•
Good supply chain method that reduces unnecessary costs of ordering as some goods are
supplied by Plaza distribution to Plaza pharmacies under favorable terms.
•
Tariffs of 5-15% on materials apply to local companies, but finished drugs supplied by
foreign producers are exempted from this levy.
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•
In Zimbabwe there is an existence of a well-trained, English speaking labor force.
1.62 Weaknesses
The weaknesses of the pharmaceutical industry’s SWOT analysis document the internal industry
components that are not providing significant added value or are in need of improvement. This
can include internal components such as physical resources, human capital or features the
industry can control.

Job descriptions for employees are not very clear.

Poor communication when it comes to notifying employees of events to be
held. Memos should be written in advance so that employees prepare.

The accounting system is centralized; there should be an accounts clerk at
each branch of the company to reduce errors and to increase processing speed
at the head office.

Underutilization of storage space- the warehouse is not operating at full
capacity thus representing idle resources and yet Plaza distribution might e
buying goods at higher costs due to delayed ordering.

Poor utilization of funds- it is not financially sound to tie large sums of capital
(as much as us$10000) in pregnancy tests or condoms which may have a low
turnover.

There is an insufficient number of medical personnel exacerbated by
emigration of workers.

Also pharmaceuticals lack adequate financial resources to satisfy markets and
introduce new products.
1.63 Opportunities
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The opportunities of the pharmaceutical industry’s SWOT analysis document the external
industry components that provide a chance for the industry (or factions of the industry) to grow
in some capacity or gain a competitive edge.
•
Consumers have increased their health awareness.
•
Pharmaceutical products are at an increased demand as institutions recover from the
economic depression.
•
Decreases in employee health care costs as part of the costs are now covered by their
companies or medical aid corporates.
•
Recent dollarization to ease foreign transactions.
•
Export activity eventually to be supported by rising regional demand and boosted by
rising funding for ARVs and other treatments of diseases.
1.64 Threats
The threats of the pharmaceutical industry’s SWOT analysis document the external industry
components that could create an opportunity for the industry (or factions of the industry) to
decline, atrophy or lose some competitive edge.
•
Government regulations are increasing.
•
An unstable economy.
•
Increasing research and development (R&D) costs as companies continue to come up
with new innovative ideas.
•
Political instability which may lead to employees not reporting for work hence reducing
monthly turnovers.
•
Exports to South Africa threatened by limitations of rail and road transport, requiring
more costly airlifting of medicines
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1.5 PESTLE FACTORS
A PESTLE analysis is an analysis of the external macro- environment that affects the
organization. PESTLE is an acronym for political, economic, social, technological, legal and
environmental factors of the macro environment which are usually beyond the firm’s control and
sometimes present themselves as threats. It evaluates the impact (both actual and likely) that
each factor may have on business and planning those actions that the business may wish to take
to minimize or maximize any opportunity.
Plaza Group Environmental Scan
1.51 Political Factors
Indigenisation Act
-Plaza Pharmacies is owned by black Zimbabweans only thus the indigenisation act is not
directly affecting its shareholding structure.This is a great strength for Plaza, however foreign
investors are scared to invest their money in this business making it a possible threat.
Donor funding to medical and pharmaceautical industry
- The prevailing political situation has attracted some donors to fund the purchase of HIV and
other cronic diseases’ drugs . Although some donors bring in cash to pay for ARV drugs in our
pharmacies, the majority brings in their own ARVs henceforth competing with Plaza Pharmacies
.
Government look East Policy
- Plaza has positively utilised the look East policy by engaging Chinese and Indians as suppliers.
Cheap surgical supplies are now being sourced from China and India. This has beneffited the
company as there is a continous supply of differnt drugs.
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1.52 Economic Factors
Increase in the disposable Income
- The use of multi currency in Zimbabwe has made some people afford to spend money on
cosmetic products such as Black Opal.At least 30% of Plaza Pharmacies’ sales is generated from
this line. However due to the lucrative business from cosmetics , competition seems so stiff .
Stabilisation of Inflation rate
– The increase of prices has stabilised after the country has moved from the hyper inflation rate .
That being the case the Plaza is now able to plan strategically for any future transactions.
Interest rates and Cashflow shortages
- Zimbabwe is using United states dollars as its legal tender . This has resulted in cashflow
shortages to the economy . That being the case its so difficult to get a loan from the bank . In the
event that one manages to get the loan the interest rates and bank charges are so high – currently
most banks are charging 17% interest per annum which is three times above the normal world
market interest rate which is at most 5% per annum. This has seen finance charges and interest
expenses for most companies constituting a greater percentage of company expenses . Other
order finance houses and illegal Loan Sharks are charging 10% per month . This is a major threat
to the survival of Zimbabwean industries .
1.53 Social factors
Religious beliefs and practices
– In Zimbabwe there is multi cultural and religious beliefs . Some religions do not believe in
using medical drugs to get healed for example Johanne Marange church followers forbids the use
of drugs and children immunisation . If this population would be persuaded into using medical
supplies then Plaza Pharmacies or any other pharmaceautical industry would have a significant
increase of drugs sales . On the other hand Zimbabwean culture permits polygamous marriages
and this has not helped much in reducing the HIV infection rates. The increase in HIV infection
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rates , increases the demand of ARV drugs giving Plaza an opportunity to boost its ARV
supplies .
Usage of traditional herbs
– Zimbweans , mostlty those in rural areas still use traditional medicines to cure some ailments.
This has a negative impact on sales and the recent introduction of unlicenced Chinese medicines
and alovera products , acts as a major threat to the Pharmaceautical industry .
Education Levels
– Most Zimbabweans have reached a high literacy level, approximately 90% and people
especially in urban areas are now aware of the HIV and AIDS pandemic hence they practice safe
sex..Plaza Distribution took advantage of this awareness and introduced Vibe condoms
(manufactured in Mauritius) as one of its core products. Meanwhile the copmany is distributing
them to pharmacies and other retail shops all over Zimbabwe. This is all out of an effort to
reduce the impact of HIV infection rates and unwanted pregnancies, at the same time improving
its sales levels .
Diet and Nutrition
– Zimbabweans are now conscious of the importance of mantaining a proper diet. Thus Plaza
Pharmacies supplies diet suplimentary products like Turbo Vitamin , Nutri sups , Nun etc . Free
BP and sugar tests are being conducted in all of Plaza Pharmacies . This has attracted many
customers hence boosting sales.
Population Growth patterns
– Zimbabweans now resort to use of all forms of family planning . This gives Plaza Pharmacy an
oportunity to expand its business on this product line.
1.54 Technological Advancement
Connectivity to Medical aid
- Powertel fibre network connections has been a major technoligical advancement in the
pharmaceutical industry .Currently Plaza Pharmacy is capturing medical aid claims using the
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latest version of pastel in their accounting system before sending to respective medical aid
societies . This has speed up the the time of processing the claims as well as of repayment on
claims hence posing a positive effect on the pharmacy cashflows .
1.55 Legal and Law factors
MCAZ (Medical Contro Authority of Zimbabwe)
- This is a regulatory body that governs the operations of Pharmacauetical and medical industry .
The regulation stipulates that pharmacists should own at least fifty one percent shares in a
pharmacesutical company . The major shareholder who owns seventy percent Mr. MT Shenje is
a pharmacist with vast pharmaceautical experience. Although this regulation provides sanity and
quality of medical provision , this stiffles the strategic thrust to have investors who are not
pharmacists. This has shown slow growth trends of Plaza Pharmacies due to capital shortges .
- Morerover the minister recently announced that all Medical aid corporates should repay all
their debts that are in 30 days and above to their respective pharmcies. This has shown a positive
effect on the groups cashflows since most of its debts were in 30 going as far as 90 days.
Advertising and Publicising policy
- A Medical practitionor or Pharmaceautical practitionor is not allowed to solicity or advertise for
customers .Therefore the potential market share that could be reached throuhg advertising is lost.
-Moreover, the way in which plaza distribution tries to get its produtcts known to customers is
quite expennsive since it has to send the sales team as far as beitbridge and kariba to get some of
its products known. This has a negative impact on the firms cashflows.
Income taxes laws
– The current income tax law which stipulates that all companies should pay 25% as taxes on
profits is still high . This negatively put pressure on the company’s liquidity resources . The bible
says “pay Ceasar what belongs to Ceasar “ , hence Plaza has been concistantly complying to the
rules and regulations of the land.
Law against monopoly in medical and pharmaceautical industry _
- Although in other industry , the governemnt do have a direct law which discourages unfair
competition and monopolistic tendances by other companies . However in medical field , this
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law is not clearly spelt out in medical and pharmaceuatical industry . This has seen other drug
suppliers e.g PCD and Greenwood ,having sole distributorship of other drug theirby giving an
unfair competition to Plaza Pharmacies .
Environment regulation
(EMA- Enviromental Management Authority )
– Zimbabwe has this regulating body which discourages the use of plastic paperbags as
packaging materials due to its enviromental unfreindliness. Expired drugs are to be disposed
after obtaining a drug distruction certificate and should be done by a reistered practitioner.
1.6 Internal industrial stakeholders
The power of customers
– fifty percent of Plaza Pharmacies customers are medical aid societies members . However
some medical aid societies are now opening their own retail pharmacies to distribute drugs to its
own members for example PSMAS and CIMAS medical aid societies has opened retail
pharmacies and clinics .
Power of supplies
- The majority of drugs sold in Zimbabwe are imports . There are few drugs manufacturing
industries in our country . Some local wholesalers have sole distributorship for some products
from foreigns suppliers.
As explained by the P.D director that the lead time between between ordering and shipment is
very large since it takes about three months after paying for a drug order and to receive it here in
Zimbabwe. Therefore much time is spent with money tied up in transit stock .
Employees
These are after the improvemnt of their working enviroonment as well a increase in salaries and
wages.
Competitors
Competitors suuch as Pulse, Sky,Greenwood wholesalers are a major threat to P.G as these
directly compete with
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CHAPTER 2
ORGANISATIONAL DEPARTMENTS
2.1 ORGANIZATIONAL STRUCTURE
P.G is a group of three companies Plaza pharmacies, Plaza Distribution and Plaza Properties, The
HR and Finance departments link to all the companies.
At the helm of the organizational structure is the managing C.E.O, Mr. M.T. Shenje. He oversees
the operations of the group. Immediately below him is the line of directors comprising of the
Finance Director Mr. B.A.Shenje who deals with the financial statements of the whole group, Mr
F.G.Shenje the Human Resources Director who deals with the staffing needs of the group and
related issues such as remuneration,, The Director of pharmacies Mr. Mwendera who deals with
all the pharmacy matters, and lastly again Mr. M.T Shenje who also runs the activities of Plaza
Properties. There was another Director Mr.J.Kunaka who oversaw the operations of Plaza
Distribution but he resigned at the beginning of February 2014.
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2.1 Duties and Responsibilities of the board of directors:
The role of the board of directors is to lead the organization toward the desired performance and
ensure that performance occurs by doing the following:

Set the mission, values, strategies, and major goals/outcomes, and hold the executive


director accountable for developing a staff strategic plan based on these policies.
Determine the parameters within which they are expected to achieve the goals/outcomes.
Monitor the performance of the organization relative to the achievement of the



goals/outcomes within the executive parameters.
Maintain and constantly improve all ongoing policies of the board.
Ensure financial solvency and integrity through policies and behavior.
Require periodic financial and other external financial reports to ensure compliance with

the law and with good practices.
Evaluate and constantly improve the board’s performance as the governing board, and set
expectations for board members’ involvement as volunteers
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2.2 PLAZA DISTRIBUTION-DIRECTOR MOSES TONDERAYI SHENJE
Year of commencement of business
Plaza Distribution (Pvt) ltd was registered in September 2004 and started operating in November
the same year.
Specialization and line of business
P.D started as a company specializing in the distribution of imported and locally manufactured
pharmaceutical and medical products to institutions legally registered to buy medicines
according to Medicines and Allied substances Act(MAA) [chapter 15:03].However, as time went
by P.D started venturing into fast moving consumer goods which are associated with health such
as dental floss, travel tissues, pocket paper tissue, adult diapers and various galenical products
for everyday use such as methylated spirits, hydrogen peroxide and many more.
Key Experience
P.D has been distributing imported and locally manufactured Products to institutions registered
under the MAA since November 2004,when the company got a license from Medicine Control
Authority of Zimbabwe (MCAZ). It has sister companies P.P and P.Prop. It has supplies drugs to
the Zimbabwean National Army, Oxfarm GB, The Centre, UNDP and other NGOs. It also
supplies private pharmacies, municipal clinics, Private Hospitals and Clinics, Mine Hospitals and
Industrial Clinics.
In the FMCG sector it supplies goods to a selected Spar Stores (Spar Breaside, Spar Montague,
Spar Kamfinsa, Spar Sakubva, Spar Balantyne), Bhadhella wholesalers and selected FCG Group
stores. It also supplies other pharmaceutical wholesalers such as Greenwood and sky
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pharmaceuticals, Pharmaceuticals and Chemical Distributors (PCD) and Pulse Pharmaceuticals
among others.
P.D has a manufacturing plant in NORA where it manufactures nurture products. Mr. Kunaka
was responsible for all the costing of the products manufactured at NORA before his resignation.
The following are P.D’s detailed evaluated functions
2.21 Marketing
This department is mainly concerned with market related issues that impinge on the operations of
the company. Below are areas of responsibility that characterize this department.
Promotions
P.Ds’ marketing department is responsible for creating new ideas that assert and preserve part of
the market it serves, attract attention in new markets and; ensure that ideas created are in line
with the overall goals of the company. These ideas for example, take account of; campaigns,
keep in touch programs, and promotions. When these ideas are created, the marketing
department is in charge of finding and directing outside resources to facilitate execution and
implementation in the case where there are no internal resources with the required skills to carry
out the task. Outside resources that it hires comprise; copyrights, graphic designers, web
designers, and data base specialists among others. It is also the responsibility of this department
to blend these ideas in to relevant marketing mixes to facilitate marketing activities like
advertising, sales promotion, and direct marketing. P.D takes its marketing department as a
leader, a trendsetter; hence this department is dependent to lead all other departments to the
desired goal.
Farseeing
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Since marketing activities are an investment in time, money and effort; P.D considers its
marketing department accountable for the return on investment expected from investing in
marketing activities. For this reason, the marketing department is liable to set out specific goals
and objectives to be achieved by each marketing activity, conscientiously manage these activities
and so measure the results of each activity against the set targets. The management practice
entails predicting hindrances that may affect targeted outcome whilst there is sufficient time to
put in place a counter tactic. It is also the duty of the marketing department to anticipate the costs
of marketing activities. This process of farseeing includes cost projections on which budget for a
market activity to be carried out is proposed to ensure viability and control. Furthermore, it is the
duty of this marketing department to predict market changes that have an effect to the
organization.
Research
This marketing department is also responsible for carrying out market research through which it
ascertains the effect of the organization as a whole, its activities, performance, goods and
services in the market. Market research activities involved include; surveys, analyses,
investigations, explorations and assessments depending on the purpose of the study. Market
research results obtained form the basis to base activities in areas discussed above. For example,
for a budget projection to be meaningful, it is backed by a relevant market research, and for the
effectiveness of a promotion, it is supported by a thorough research of the market it is intended.
Consequently, it is this marketing department’s task to perform necessary research to facilitate
the accuracy of actions within the whole organization.
Notwithstanding how clear and accurate the roles of the marketing department are to
organizational objectives, they are challenges that this marketing departments encounters.
Limited Financial Resources
Another predicament that P.D marketing department faces is lack of finance. Without enough
finance, it becomes difficult to efficiently perform marketing activities like; researches,
communication tasks, making budget projections among others. The organization fails to
financially support some marketing activities and at the same time puts pressure in expectation of
good results and achievement of set targets thereby straining the marketing department.
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Limited Financial Resources is mainly due to long debtor’s collection periods of say up to 150
days, and also the lead time between ordering and shipment of imported drugs which leaves
lump sums of money tied up in unproductive things.
Limited Skills
By lake of skills the student submits to lack of human resources. As explained by the P.D M.D
Marketing requires personnel with different skills to tackle the ever changing market situations.
In circumstances where the required skilled personnel are not available from within the
organization, the department sources the skills at a fee increasing the budget-which is a challenge
(this happened once whilst the student was still attached). On the other end, the personnel that
are hired may not be familiar with organizational background, culture and objectives so they are
expected to adapt in a very short period of time. The adaptation is not only difficult but poses a
serious effect on the final result obtained. The marketing department faces two challenges
resulting from limited skills as discussed above-it is expensive to hire outside assistance and
even if it manages to, it reduces the chance of success compared to when the task is completed
by internal personnel.
2.22 Sales
P.D’ sales department’s role is centered on four main areas. These are; ordering, costing,
communication and purchasing.
Ordering
The sales department is responsible for facilitating the generation of orders. The process of
generating orders involves ascertaining the actual type, size, quantity of products the client
wants. This is done over the phone, via email or in person. The process of ordering is an
important activity and so the sales department has a role to ensure accuracy when generating
orders. It is also the duty of this sales department to enter the orders made in to the system and
receipt them accordingly. In circumstances where too many orders are generated, it is the task of
the sales department to perform order selection and prioritization. The process of ordering in
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addition involves communicating with suppliers and making sure that goods are in place when
they are needed.
Costing
It is the function of this sales department to execute cost estimation and pricing. This involves
drafting a rough total cost of goods to the time they are delivered to the customer and attaching a
value to them-pricing. Since it is through sales that some of the organization’s revenue comes
from, this sales department has a role to generate more and more sales to sustain the operations
of the company. For clients with accounts with P.D, it is the job of the sales department to bill
their accounts whenever they receive goods. It is also the responsibility of the sales department
to prepare a sales budget for their department.
Communication
The sales department has this other crucial role to play-that of communicating. It has to maintain
a link with all the organization’s departments as well as with its customers and suppliers. To the
marketing department it communicates customer reactions to products offered, the effect of
marketing activities and also suggests ways to improve operations. To the P.P department it keeps
an update of goods available and so meet supply of goods on demand. To the finance department
it posts accounting information, which includes creditors and debtors related information;
invoices and receipts. The task of communicating furthermore includes informing and collecting
relevant information from customers and interacting in a way that retain these customers by
applying good customer relations techniques.
Purchases
The sales department is the one in charge of purchases to be sold to customers. It is responsible
for compiling purchases lists of goods meant for resale such as eucalyptus oil and other
pharmaceuticals. When purchases are made, it is the duty of this sales department to manage
stock. It has to keep track of goods available and make sure goods are always there when
demand arises. Since it is the sales personnel that have a close contact with suppliers, they have a
task to manage supplier relations and negotiate favorable trading terms.
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The sales department moreover has its own challenges. Some of the challenges I took note of are
discussed below.
Poor Communication
Given that the sales department does all the purchases of the organization, they have to be proper
communication between this department and other departments. The sales department is faced
with a challenge when no proper contact between departments is done which often result in
wrong products being bought. Poor communication also causes delays in delivery for the reason
that some goods have to be imported. When they are delays, no matter the origin, the fault is
always redirected back to the sales demand. This arouses an unnecessary sense of urgency, which
strains the sales department.
2.3 PLAZA PHARMACIES –DIRECTOR PORTIFA MWENDERA
Year of commencement of business
Mujongondi enterprises trading as Plaza Pharmacy was registered in May 1997 and started
operating in Tafara the same year.
Specialization and line of business
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This is the other part of the group which specializes in the retail sale of imported and locally
manufactured pharmaceutical and medical products as well and cosmetics. The company deals
directly with the public as well as corporate clients including non-governmental organizations.
Key Experience
P.P has more than 12 years of experience in the pharmaceutical industry and has excelled in
provision of treatment for chronic illnesses. The company has extensive experience in dealing
with medical aid societies and has pioneered in the use of technologies aimed at increasing the
experience of administration of medical aid schemes. Besides the public and corporate
customers, P.P has provided continual service to some large corporates under contract.
Below is a list of some corporate clients:

CIMAS Medical Aid Society

PSMAS Medical Aid Society

TN Medical Aid Society

FIRST MUTUAL LIFE Medical Savings Fund

CELL-MED Medical Aid Society

UZ-UCSF

BRITISH AGENCIES (Incorporating British Council, Embassy, DFID)

GMC (UN)

VAN BREDA International.

LIBERTY HEALTH Blue Medical Aid Society

GENERATION Medical Aid Society
Below is a detailed analysis of the department
2.31 Pharmacies Department
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The Pharmacies department is the backbone of P.G. It generates more than sixty percent of the
company’s income. It consists of the pharmacists who are operations managers, sales
representatives, securities for depositing and withdrawal of funds on a daily basis, locum
pharmacists who work on the odd hours, dispensary assistants, as well as student assistant
attaches. The main responsibility of these departments is to ensure excellence in selling
medicines, cosmetics as well as offering delivery to customers in Harare’s local residential area
such as Budiriro, Tafara and Mufakose. Fine points about areas characterizing this department
are discussed below.
Diagnosis
Customer enters the pharmacies some on medical aid covers and some would want cash products
and are at glance served by the sales representatives, whilst those on medical aid covers produces
their membership cards showing name and surname, sex date of birth and the medical scheme . It
is the responsibility of the sales representatives through the assistant of the pharmacists to
complete an absolute diagnosis and identify the illness that needs to be medication. The process
of diagnosing is very important as it determines the amount and accurate medication that needs
to be dispensed. In simple terms, by diagnosis, the pharmacy department is expected to examine
the current state of a patient and note problems affecting his/her health. After diagnosis, the
patient’s name and member number is checked for authorization from the medical schemes to see
whether the patient is allowed to get such medication.
Appendix A
NB: see attached excel spreadsheet for credit sale operation procedure.
Costing
Following the completion of the diagnosis process, a claim form is printed in duplicate with the
medication, name address, phone number, signature of the patient, and the amount of the
medication and passes through the sales representative to the patient with the medicine. One
claim form is attached to an invoice and then sent to the accounts department and the accounts
ascertain whether the patient paid a co-payment or not, the accounts validate the claim whether
it’s authorized, charged to the corrected medical account and then process it.
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Communication
Just like all other departments, the pharmacy department has the responsibility to maintain a link
with the rest of the organization and to some extent with the market. To the P.D sales department,
the pharmacy department maintains communication is done to avoid unnecessary delays in the
supply of orders. The link to the accounts department is to ensure the completion of transactions,
i.e. credit sales, stationery requests queried claims and other, amounts to be banked and to be
withdrawn as well as other un reported sales representatives’ sales variances. The pharmacy
department is liable to send all transactions to the accounts department as soon as they are
completed. The duty of communication also includes speaking on behalf of the organization
when interacting with clients in the pharmacy.
The pharmacy department, though, faces various challenges. These are as discussed below.
Labor Turnover
Since the pharmacy requires personnel who are qualified and experienced like; pharmacists. The
department faces a challenge of labor leaving the organization for greener pastures-brain drain.
Large organizations also draw these skilled personnel with attractive remuneration packages
hence weakening the department of its prospect to render excellent service.
Demand
Over the past months, there has been a substantial decrease in the sales at Karigamombe branch
(the main branch) mainly because they stopped accepting the PSMAS medical aid patients.
Locum and pharmacy dispensing errors
Locums are hired for odd hour services as well as other weekend services; therefore some of
these locums dispense medicine without authorizing claims which will pose much difficulty
since unauthorized claims are not full sales. This is because one might have bought medication
yet he would have exhausted all his funds in his medical account, this has very high chances of
the sale becoming bad, therefore the claim is processed in the accounts office and sent back to
the pharmacies for correction.
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2.4 PLAZA PROPERTIES DIRECTOR-MOSES T.SHENJE
The student could not acquire information concerning the Plaza Properties (P.Prop) but however
only knows that it deals with the purchase and sale of houses and stands under the control of Mr.
M.T Shenje.
2.5 HUMAN RESOURCES MANAGEMENT-DIRECTOR FARAI SHENJE
This Department, though it’s still a standalone department, looks into the labor needs of the
organization which include:

health and safety at the workplace
This is when the HR Department looks at how conducive the working environment is; it looks
into the provision of safety clothing for the employees e.g. helmets for those who drive motor
cycles, fire extinguishers at work.

Recruitment and retention
The HR Department is the one that looks into labor staffing of the company, it tries to see to it
that all the Departments of the group are neither over staffed nor understaffed.

Training of workers
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This involves the equipping of employees with the required set of skills for a particular job,
employees are send to attend training workshops so that the workers can be competitive enough
in the vast changing environment, for example when the group wanted more knowledge on the
use of P.O.S system, the management team and the Accounts Department were sent on a training
exercise so that they could be equipped with the knowledge on how the system ran.

Payrolls and salaries
The HR Department is the one that looks into the payment of employees and it is the one that
puts salary grades amongst workers depending on the employee’s academic qualifications. On
this the department works hand in hand with the accounts department for instance on deducting
staff purchases from the staff salaries.

Disciplinary Board of the organization
This is when the HR Department resolves internal conflicts within the organization. Since the
HR Department tries to establish and maintain good relations between the organizations internal
and external publics, this means that the two Departments work hand in hand so as to establish
mutual understanding between employer and employee.
2.6 FINANCE DEPARTMENT-DIRECTOR BRIAN SHENJE
The responsibility for the finance department is to oversee all financial issues that affect the
operations of all the sections of the authority. The department handles all financial resources and
capital assets with responsibility for preparation of budgets and monitoring expenditure. It also
manages the current and recurrent capital budgets. This department also works with the Human
Resources Department in the transferring of salaries so as to ensure that workers are paid on time
and actual staff deductions are subtracted from those who would have bought on staff account
credit sales.
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2.61 Finance department organogram
At the top of the plaza group accounts department is the Finance Director who carries out some
of the following listed roles

Financial management

Overall responsibility of Accounts/Finance function

Preparation and Presentation of Accounts and Reporting

Internal Control management

Audit preparation

Custodian of assets

Budgets and Forecasts

Controls / SOP management

Pay Roll (now the HRs function)
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
HR Administration(now the HRs function)

Participating in Interviews & Disciplinary committees (now the HRs function)

Performance reviews

Custodian of Company documentation

Analysis and projection of performance and trends

Loan Application processing

Stock takes

Asset register maintenance
Down the line there is the Accountant with the following functions

Accounts team supervising

GL maintenance and recons

Payroll processing, journal and control recons

Assisting in preparation of accounts, budgets, and analysis

Liquidity and cash flow management and reporting

Sales and Purchases analysis and reporting

Statutory accounts preparation, remittance and reconciliation

Stock takes (monthly, bi-annual, annual)

Checking and updating of input and recons

Ad -hoc assistance to FD

Related Parties input and reconciliation

Audit file maintenance

Cost of sales input & recon

Daily cash sales reconciliations & input

Cash book entry

Reclasses & Journal processing

Cost of sales recon and input
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
Bank reconciliation - All cash books (excluding cabs, stanch art)

Bank correspondence and filing

Global report

Next to the Accountant are line Accounts Clerks
Accounts Receivables / Credit controller - kudzanai
The post is for someone with the following qualities:

Minimum of 3 years in similar position

Good communication / persuasion skills

Strong Excel skills, and proven attention to detail

Minimum part B CIS
Responsibilities:

Claims input

Pharmacy credit sales recon (to POS)

Med aid recons (to payment)

Overall responsibility of Med aid collections

Unallocated deposit follow up

Dishonored cheques / payments follow-up

Preparation of debtors contracts

Monthly journal reconciliation (branch)

Ad-hoc assistance to Accountant / FM

Receipts allocation and processing

Daily & Ad hoc reports

ME Runs (pharmacy)
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
Stock take participation
Administrator – students
The accounts receivable manager is assisted by 2 students who carry out the following tasks:

Claims input

Med aid recons (to payment)

Med aid collections

Filing

Stock take participation

Ad-hoc assistance to the Accounts receivable manager, Accountant / FM
Administrator 2 – student
The accountant is assisted by one student at his desk carrying out the tasks listed below:

Data input

Stock take participation

Daily Sales recon input

Bank reconciliations

Filing

Processing damaged and expired stock

Supplier Invoice input

Stock transfers processing, reconciliation
Accounts Receivables / Credit controller - Mufaro
The post is for someone with the following qualities:

Good communication / persuasion skills
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
Working towards accounting qualification

Minimum part B CIS
Responsibilities:

PD credit sales collections

PP / PD input

Ad-hoc data input

Obtaining of data (customer statements)

Customer enquiries

Stock take participation

Documentation checks and verification

Blocking / freezing accounts (notification to accountant)

Approving credit & accounts

Receipts allocation and processing

Filing

PD sales receipting

Stationary management

Supplier recons / sending of statements monthly

Ad-hoc assistance to Accountant / FM

Monthly Sales reconciliations
Accounts Payable - Takudzwa
The post is for someone with the following qualities:

Min 3 years in similar position

Working towards accounting qualification

Minimum part B CIS
Responsibilities:

PV logistical follow up and recon
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
Stock transfers processing, reconciliation

Bank correspondence and filing

Payments preparation and management

Cimas Recons (employer)

Nyaradzo recon (employer)

Administrative & Ad hoc tasks as required

PD Customer recon / sending statements

Petty cash management

Fuel allocation and processing, usage recons

Supplier Invoice input

Journal processing

Ad-hoc assistance to Accountant / FM

Stock take participation

Lotto reconciliation

PD Credit Note reconciliation & process

COD reconciliations (daily by 11am)

GRN accrual account reconciliation (daily by 11am)
Messenger – Anthony

Delivery of claims

Collection of cash

Collection of cash from bank

Receipting of payments made

Purchase of COD / Delivery of goods

Bank deposits

Ad hoc delivery / courier tasks

Admin and cleaning tasks as required

Stock take participation
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2.62 ACCOUNTS DEPARTMENT OVERVIEW
A Special in-depth study of an elected aspect of the organization.
The student upon writing of this report was still attached to the Accounting Department as an
accounts clerk. The Accounts Department falls under the group financial management services.
This department oversees the operation of P.G thus the student was exposed to all activities of
the company. The Accounts Department really provided a fertile ground for the student to bridge
the gap between theory and practical.
The Accounting Department.
2.63 Duties carried out by the student
To date the student has completed a number of accounting programs and has formulated opinion
on whether accounting objectives have been met. The student got exposed to different
accounting duties, most of which helped to heed light on the practical side of accounting. The
student’s participation and experience in these areas are thus outlined and discussed in this
section.
Bank reconciliations
Reconciliation is basically looking at two accounts which are related and checking whether in
one account has a corresponding credit entry in the other account and vice-versa. This procedure
is done in order to comply with a rule used in financial accounting known as the double entry
rule which states that for every debit entry there is a corresponding credit entry.
Procedure
The host company ran two bank accounts, one for its main operations run with STANBIC bank,
(CBZ) and CABS for other facilitation of foreign currency transactions. The student was
privileged enough to be afforded the opportunity to reconcile both accounts for some time. The
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real bank reconciliation started when statements were received by the F.D from the banks and
save them on the plaza server network to be accessed by everyone from the accounts office.
The student commenced the bank reconciliation by first inputting cash sales for the previous day
which will have been banked. Then using a highlighter, the student ticked all items on the
statement appearing in the bank statement but not in cash books the student isolated bank charges
on the statement with the intention of updating the cashbook. That done, the student made a
journal which debited the bank charges account and credited the cashbook. The student
proceeded to isolate transfers on the statement and subsequently updated the cashbook
accordingly. Since it is normal procedure that contra entries in the cashbook are cleared, the
student cancelled them out in the early stages of the reconciliation. Once the student had set the
groundwork, it was now easier for him to pick out the reconciling items. Unpresented cheques,
receipts in the cash book but not cleared by the company’s bank at period cut-off date, returned
cheques on the statement but not yet entered into the company’s cashbook, credits and debits on
the statement not yet captured into the company’s system, and anomalies on the statement were
all reconciling items.
Appendix B
NB: see attached cash sales and bank reconciliation flow chart
Debtors Management.
This process is achieved by viewing the Debtors Age Analysis to identify individual customers
with outstanding debt obligations. One then views the detailed customer ledger to identify the
individual invoice components of the full debt obligation. The pastel accounting package used
automatically produce analysis of debtors. The Debtor Age Analysis allows the student to select
the options to analyze transactions with each of debtors according to specified accounting
periods. This is the useful tool to manage outstanding debts and to see which debtors are not
performing according to credit agreements. This report display a breakdown of debtors account
balances for each of the specified periods for a selected debtor account or a range of selected
debtor accounts. Debtors were ranged according to the number of days they have been debtors.
Follow up calls are then made with regard as to when the payment will be done. If the customer
confirms that the payment is ready then a messenger is sent to collect the cash.
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Debtors Reconciliation.
This is the reconciliation of the statement balance of the debtor to the ledger balance in the
system. Some invoices would have been paid but not processed whilst the cash relating to them
was processed. Also, some invoices would have been processed whilst the payment is not yet
done and the statement balance may state some invoices which were paid long back. The
reconciliation is done to make sure that the statement balance is the reflection of the total amount
the debtor owes us. What basically happens is that when a client‘s goods are cleared from the
warehouse to P.D customers, a copy of the invoice issued is sent to the accounts department,
he/she is given a tax invoice which shows them the amount due (the company is credited). When
this payment is made it will cancel out the debit by crediting the company with the amount
received. Thus a balance is made between the invoice issued and the receipts received. When
there is no balance, the anomalies are looked into and errors corrected. This is known as debtor
reconciliation.
However in the accounts receivable office, debtor reconciliation is done when claims are posted
and sent to the corporates. The ledger is spooled from the pastel and updated to the lastly updated
ledger. Dates of delivery are inputted on the latest ledger, we chase up for payment and when
payment is made we tick off medical corporates’ members who would have been paid for and
chase for those who wouldn’t have been paid for, (these are known as queried claims and
sometimes they may require copy claims to be submitted and sometimes may require visits to the
corporates) Again this is known as debtor reconciliation.
Also the following duties were performed by the student when he was in the receivable’s office:

Inputting debtor’s invoices and cash co-payment receipts. Invoices received monthly
were processed together with the cash receipts and this reduced debtors’ balance in the
system.

Sales volume reconciliation per invoices processed. Total volume of goods dispatched in
the warehouse would be reconciled against receipts received from sales.

Ordering and supply of stationery to the whole P.G
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Petty Cash Management.
Petty cash is money set aside for minor expenses which occur daily e.g. fuel expenses; overtime
meals are also paid using petty cash. Cash requisition form is signed then authorized by the
signatories i.e. the accountant before any cash can be issued out. When a member of staff wanted
to use the privilege of petty cash it was normal procedure that s/he requested a petty cash
voucher from the accountant. This voucher having been filled in, the prospective beneficiary had
to be given the money after an evaluation from the accountant. The accountant always kept a
copy of the petty cash voucher for accounting purposes and future reference. If the staff used less
money than they were advanced then they had to proffer the change to the accountant while staff
who augmented the amount they were advanced with their own cash resources got a refund upon
tendering proof to that effect. The student wishes to point out to the reader that he enjoyed all
these intrigues of petty cash control at the host company.
Creditors’ management.
The accounting department is responsible for the management of debtors. The basic procedure is
to collect wholly processed invoices from the P.P and P.D departments and raises the payment
and presents the payments to F.D’s office who then would fund the payments, this is done before
calling the creditors to come and collect their payments at the pharmacy and also to notify them
of the payment made and send the bank proof of payment. A payment plan is made for each day
in accordance to the amount of money that is receipted for the day. Also it is the duty of the
accounting department to attend to all phone calls, queries and complaint from creditors.
Creditors’ reconciliation.
Just like the bank reconciliation statement, creditor’s reconciliation statements are important
because they seek to bring balances in the company’s books into agreement with the creditor’s
books. Wrong creditors reconciliation often result in prolonged battles between the company and
its creditors, most of them detrimental to the company as creditors may suspend P.G accounts
due to lack of account servicing. When a company buy stationery e.g. bond and files, a tax
invoice is issued, this invoice is then posted into the system thus creating a credit entry to the
company. When the company makes a payment this will then debit the company so as to clear
the previously created credit thus reconciling the opening creditors balance with the closing
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creditors balance. Any anomalies will then be detected i.e. if the opening and closing balance
differ. This process is called creditors reconciliation
Journal Entries
The author’s role in the accounting department started with the preparation of journal entries and
assisting in the input of accounting entries into pastel. When journalizing accounts entries one
has to make sure they process them into the correct account. The accounting expenses and every
entry has an account code number which represents it for instance karigamombe credit sales
account is 1000.102.KG. All journal entries done before posting them one has to make a copy of
the entries which are filled for reference by the accountant and for the auditing process.
Posting transactions into the accounting system PASTEL
At the student’s host company, the accounting package they used was called Pastel evolution.
This accounting software package requires so much user intervention and manual input that
doubles effort is required of users. The student thus was no exception since he had to input all the
manual ‘claim’ transactions that had gone through the pharmacies for the period he was attached
there. The student also helped the accounts receivable as well as the P.D credit controller to enter
receipts realized from credit customers for the period into the accounting system using bank
deposit slips as source documents. In addition to inputting claims and receipts, the student also
received fuel invoices from stores for the staff debtors (directors) who benefited from the fuel
facility, which he then proceeded to enter into the system. This done, the student went on to
assist the accounts payables manager with processing of general payments into the system with
the use of order notes and supplier invoices as source documents. Used petty cash vouchers also
came in during processing as input documents for petty cash disbursed during the period.
After the student had seen how cash transactions ended up in the accounting system, he
proceeded on to filing all documents that he, together with the assistants had processed. The
main order used by the student in filing was the date entry number for claim batches, for
payments and to suppliers used supplier names (alphabetically sorting).
Preparation of Financial Accounts
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In finance and accounting, the most important role is the preparation of financial statements and
being able to interpret and analyze the performance of the business thereafter. Financial
statements are statements which convey the dealings of a business over a certain period of time
e.g. monthly, quarterly, semi-annually and annually. The following statements were prepared by
the intern while on industrial attachment:

Income statement

Balance sheet

Budget
Preparation of Vat report
VAT (Value Added Tax) - this is a tax on the value added in products and services. Companies
fall into two groups as far as VAT is concerned:

Those which are Vat registered

And those which aren’t.
Companies register for VAT if their annual turnover exceeds or is likely to exceed a set threshold
of us$60 000.00. Every registered operator will be issued with a certificate of registration.
Registered companies charge VAT on the products they sell and then pass the VAT onto customs
and duty (ZIMRA). Therefore a Vat report is merely a report which shows how much money is
due to the Authorities. VAT is payable To the Zimbabwe Revenue Authority (ZIMRA) and is
currently pegged at 15 % here in Zimbabwe.
Asset Register
The accounting department compiles a list of the company’s assets. This is known as the asset
register. All new assets and their values are also added to the list of the assets. The department
before auditing has to check if all assets on the register are there in the organization; sold assets
are removed from the asset register and those on repairs have to be stated that they are out on
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repairs. Revaluation of assets after this have to be done and this is the responsibility of the
accountant.
Cash forecast
Week cash flow forecast is somewhat simpler, planning what cash will come into business from
medical corporates in order to ensure that outgoing can be managed so as to avoid exceeding
cash flow coming in. The simplest method used by the student was to have a spreadheet that
shows when normally the corporates do their cash runs and keeping an updated medical
corporate ledger to see how much is now in 30 and more than 30 days and also how much will be
in such days in the coming weeks. This requires that the quantity and timings of receipts of cash
from sales are reasonably accurate, which in turn requires judgment honed by experience of the
industry hence the student was assisted by the Accounts receivable manager-Kudzanai to
estimate possible receivables of the week.
CHAPTER 3
THEORY AND PRACTICE
Preface
In this chapter the student is going to assess the significance of theory learnt in the first two years
of the degree program to what is being practiced in the real business world. Significance is
defined as the importance, impact, substance, consequence, weight and magnitude of theory to
business practice. Because of the all-inclusive and broad nature of the degree the student’s
analysis will be focused on the practical realities she encountered in the attachment period as
well as the realities she did not get hands on experience but observed being practiced at higher
levels. In order for a critical analysis to be efficiently and effectively done the student is going to
assess the significance of some of the courses that she learnt in the first two years to the practical
realities of what is being done in that respect.
Cost Accounting &Control
Knowledge acquired in this course comprised product costing, overheads allocation and
apportionment, variance analysis and break even analysis. This course is more relevant and is
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widely applied in manufacturing companies and therefore limited practical experience was
gained in this area was limited. However the observed the application of Cost Accounting theory
in the application of all overheads (absorption costing) incurred in production of ‘potassium
permanganate` one of the products being manufactured by P.D. Thus the theoretical principles
gained in Cost Accounting at level two were quite essential in this respect.
Academic Communication Skills
This module covered a lot of things among them conflict resolution techniques, Interviews,
Interpersonal communication, research methods and report writing techniques. This report was
made possible through the report writing techniques acquired in this course. Theories of effective
communication that the student learnt in this course also helped the student significantly in
carrying out her assigned duties as communication especially in every day's work as there is
constant interaction with clients and staff. Also negotiation skills came into play where the
student had to negotiate deadlines with clients, as well as being firm in chasing up for payments
from medical corporates. However the course need to include confidence building topics and
more in class presentations ,group discussions and assignments as this will not only help enhance
confidence but also goes a long way in improving the command of good and fluent English in
students.
Management
This is a broad module but the major aspects covered in the module encompasses Planning,
Organizing, Leading, Controlling, Human Resource Management, Organizational Culture, Social
Responsibility, communication, Strategic Management and lastly Groups and Teams activities. .
When we joined P.G we were subject to the P.G Recruitment process in which we applied and
called on for interviews and lastly we were offered with contracts of employment and induction
on the day of starting work, this conformed to the recruitment and selection principles we leant
in Human Resource Management. The concept of bureaucracy in management, P.G’s operations
took so much time since there is need for many approvals from the top management. The
leadership style, Autocratic, where authority flows from top to bottom those at the bottom are
only to follow what has been formulated by others at the top is one of the things mostly
experienced. Furthermore, their training, development and remuneration of employees is well
commendable. However according Henri Fayol, s fourteen principles there should be unity of
command; the student noticed that as a junior you take orders from every senior at the firm
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which violates the principles full principles.
Accounting Information systems
The student got the privilege of enhancing her computer literacy skills by attending the course.
The skills learnt in these courses proved valuable when the student had to perform certain duties
on the computer. What the student learnt proved to be very helpful; in that most work which was
performed involves extensive use of Programs like MS Excel and MS Word. The student used
the theory learnt in the Accounting Information Systems (AIS) course to understand the different
accounting packages, for example the student used Pastel evolution partner and Rxwin as well as
POS for recording of daily sales transactions. The impetus of Accounting Information Systems
was mainly appreciated because we were allocated laptops and/ computer machines during our
stay and we used these machines in all engagements fully utilizing the knowledge we gathered in
AIS. The use of passwords also, every individual has a password to access any data pertaining to
the organization which is used in capturing data and any other information, this tend to provide
security avoiding malicious or espionage. Hence has proved relevancy of theory to practice from
what has been learnt in information systems.
Auditing principles and practice
The module has the concept of internal controls, which states that the ultimate responsibility for
a company's system of internal controls lies with the board of directors. It should set procedures
of internal control and regularly monitor that the system operates as it should. This was observed
when the F.D requested that all computers be administratively password protected so as to
disallow installation of unwanted programs which can damage computers. The student had the
chance to participate at a stock take where there were external auditors from Baker Tilly.
Standard operating procedures had to be followed during the stock take for instance when going
out to the bathroom one had to be searched to ensure that nothing was taken.
Financial accounting
The group’s financial year runs from January to December. Every month end, the Income
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Statement is prepared to show the surplus or deficit for the month. This helps to take corrective
action in the event of a deficit and also improve its strategies in the case that there are big
deviations between actual budget income and expenditure. Trial Balance account is prepared to
check arithmetic accuracy and also to check double entry of the transactions the statement of
financial position that shows the fund’s position with respect to its assets and liabilities. Budgets
are prepared for each department or section this is done to cater for any deviations of
overspending. The Bank Reconciliation Statement is also done on a daily basis in this way over
postings and under postings is detected and corrected in the General Ledger of P.G. Mistakes
made by the bank are advised so as to reach an agreement. All un presented cheques, bank
deposits (this include deposits from .P.D’s cash and credit customers, P.P’s deposits from cash
sales and credit sales as well as P.Prop’s sale of properties), bank charges will be reflected on the
bank statements from the bank and the company will adjust accordingly. This exercise is much
more similar to the theoretical aspects learned by the student hence showing the relevance of
theory to practice.
3.1 PERSONAL EVALUATION
The industrial attachment period exposed the student to the reality of work environment which
allowed the author to develop academically, practically and gain a lot of skills. It afforded the
student an opportunity to develop hands on experience in the world of business.
Challenges encountered
1. There poor induction and proper training in some of the tasks such that it would take
long to grasp some of the concepts as well as apply them. The author would spend most
of the attachment time performing menial tasks at the expense of relevant practical
exposure and experience sought. There was also lack of a proper job rotation scheme to
enable the author to be exposed to different functional areas of host company.
Consultation with managers enabled the author to get assistance on some confusing
issues. Pro-activeness of the author enabled and enhanced quick acclimatization with the
new environment, and problems of settling down soon subsided.
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It was only through social, quality dialogue with the Industrial supervisor that many of
the above noted challenges were decisively dealt with.
The student recommends that there should be proper training on all newly undergraduate
trainees to avoid a waste of time as well as errors
2. The student wasn’t very much familiar with the pharmacy accounting system and so
spent quite some time trying to figure out how the system really works from claim
dispensing until delivered to its respective corporate and why we do certain procedures.
Therefore I recommend that before commencement, the attaché is supposed to be
exposed to induction orientation where he must be introduced to the workflow process in
the finance department. This is an important and crucial exercise as it offers the student
the right platform to commence activities with little challenges on the direction to be
taken. In the dealing room the student must further be given the job description of what is
supposed to be done and how to do it. The organogram must also be made clear to the
student since this gives an insight in terms of reporting. Due to a clear departmental
organogram life is easier in terms of communication and the reporting of any problems
faced during the execution of day to day task
3. During the first three months of the attachment there were some difficulties in working
since there was no extra computer machine with P.O.S software to work on. It was very
difficult because one would have to wait till lunchtime when all others are out for lunch
then would use their machine with the software for preparing credit and cash sales daily

backups.
The pastel accounting package system at P.G can only be accessed using a given profile
and passwords. The student had found out that it takes time for an employee to gain these
and one would need an old member to log in. My suggestion is that a new member should
be quickly trained and given relevant profiles and passwords to also feel part of the elite
team.
1. Standards operating procedures - the company has set operating procedures manuals for
every department. This makes it easier for instance where one is moved to another center
they will have any problems in following up however the procedures are not being
followed and this leads to wrong execution of duties and at times one will have to redo,
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reversals, journals hence consuming time. The reporter suggests the company puts
stringent rules to ensure the procedures are being followed.
Benefits of the industrial attachment to the student
Industrial attachment provided the student with the best opportunity to bridge the gap between
the theoretical and the practical aspect of work itself. Theory alone is not enough ammunition to
go and excel in the market and as such attachment provides the right platform to grasp the
principles of Accounting.
Most important of all, the industrial attachment helped the student in career decision making.
The student managed to test his career expectations against realities of the workplace. The
experience seen so far has helped the student appreciate the fact that for one to end up being top
academics should be strongly supported by application to practice.
1. The attachment helped the student to gain confidence to attend to clients and address their
queries as well as the opportunity to interact with influential people in the market and
sharing ideas with them.
2. Communication skills were also enhanced through interaction with workmates and clients
conversations with medical corporates on chasing up for payment. The student’s
analytical and forecasting skills were also developed since forecasts are crucial in order
to plan for day to day changes which happen in the money market.
5 Communication / interpersonal skills - due to interaction with a wide range of
customers on a daily basis and several meetings that are conducted, i have managed to
greatly improve my communication skills and at the same time develop good
interpersonal skills. I can communicate effectively at all levels.
Team work - team work was the most crucial element which made this attachment period a great
success. The accounting team was helpful in assisting the author whenever direction was needed.
We worked as a team and we were never treated as students but as valuable team members.
There is a culture of team work at P.G which the author feels has been a cornerstone of success
for the entire group. The presence of a team work approach in the administration made the
working environment pleasant and a place to be. Whenever guidance and advice was needed it
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was readily available from the senior administrators especially my supervisor—Kudzanai, who
was always eager to assist. As a result of engaging in teamwork, the author was able to enhance
his interpersonal relationships.
5 Time management - time management is critical in accounting due to the existence of
cut-off times and stipulated times by the company administrators. The author managed to
improve on punctuality, speed and accuracy in duty execution. Most tasks have to be
done in specific periods and targets have to be met in the stipulated time.
6 Technical skills - the period molded the author from just a theoretical person to the
technical experience thus bridging the gap between theory and practice. It was more
crucial to the author felt that application was an easy task but technical skills have to be
gained first which the author managed to do.
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CHAPTER 4
RECOMMENDATIONS AND CONCLUSION
To the University
➢ The business environment and workplace is ever changing in terms of technology,
competitiveness and customer requirements. As such it is critical that the university
continuously upgrade the courses they offer in Accounts so that graduates who are
produced will suite the market. The courses on their own are relevant to the accounting
field but it is the depth and content which constantly needs review. Also an Accounting
Information Systems course at part four catering only to changes in technology for
students.
➢ The university must prioritize the need for students to know how to use different
computer packages so that when we get into the industry we improve on the abilities that
we already have, hence fighting for experience rather than battling to acquire the skills. I
therefore recommend that providing more computers, if possible for each program, will
assist students since some only begin to have access to computers in their first year at the
college.
➢ The student recommends the University to continue with their routine of visiting students
on attachment as this gave the students the limelight as some universities did not visit
their students.
To the Plaza Group
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It is virtually impossible for any business to be 100% efficient in a market with multifaceted
economic ills. During my stay at P.G, I have managed to come up with some
recommendations that can be of great value to the organisation
1. There is need to stop intercompany support in terms of funding and in appreciating
decisions made by management of other companies. Most of the pharmacy cash flows
intended for pharmacy growth were continuously being diverted towards P.D which is
continually making losses.
2. There is need for Directors to continually monitor their controls, for there are cases when
goods or stationery maybe continually ordered from the expensive supplier yet we want
to minimize costs, though quotations should always be in triplicate sometimes will no
longer be in triplicate.
3. A highly motivated team always performs better even if they are not technically skilled,
as such P.G should look at ways to intrinsically motivate its workforce.
➢ The student recommends that the group should also make sure that academic skills and
position of employees is matched so as to encourage a culture of improving academic
qualifications not just to wait for years to get experience and get credit from there.
➢ Also the student recommends the company to find ways of motivating its employees.
Work must be made more exciting. Jobs must not be routine as this will end up boring
.There must also be platforms for advancement, recognition in the group as well as
matching rewards to effort. There must be platforms for employees to add value to the
group.
4. The student also urge the group to purchase more accounting packaging licenses for
everyone in the finance and P.D sales and marketing department especially at the Head
Office. As the licenses were limited it was sometimes very hard to meet the reporting
deadlines. Moreover the package was becoming very slow due overloaded especially on
spooling ledgers for instance trying to spool out PSMAS/CIMAS ledger from pastel to
excel it would take more than the one day to get the ledgers to excel therefore delaying
the overall meeting of targets and deadlines.’’’
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CONCLUSION
Industrial attachment has been a major success in the studies of the student, as it gave a full
insight of the operations of financial sectors and developments in the dollarization era. Industrial
attachment is vital in the development of undergraduates as it gives students maximum exposure
and opportunity in their areas of study .It is the student’s wish that both the university and the
company will consider the conclusions and recommendation for the future graduates.
The attachment program gave the student to exposure to real world accounting function and a
platform to exercise theory into practice though a gap that exists between the two. This has
enabled her to fully comprehend the working environment aspect so much that she has been
equipped with the expertise of handling corporate activities and prioritizing duties. The training
was so rigorous and hands-on oriented thereby enabling her to be productive and think on a
wider dimension.
The student also wishes to express deep gratitude to both P.G and U.Z, for the exposure and
precious opportunity she had during her industrial attachment. The industrial attachment enabled
the student to develop personally, professionally and socially and also helped in shaping her
career path and hence will always cherish the time spent at P.G and hopes to join the company
after completing the program.
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4.3 BIBLIOGRAPHY

Internal Accounting Standards

Generally Accepted Accounting Principles

www.zimtrade.co.zw
accessed 12 May 2014 13:05

www.mcaz.co.zw
accessed 20 April 2014 13:34

http://www.plazadistribution.co.zw
accessed 15 December 2013 08:15
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4.4 APPENDICES
1. Appendix A -Accounts Receivables credit claim sales flow chart
2. Appendix B -Cash sale and bank reconciliation flow chart
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APPROVED BY
Group Human Resource Director
Signature
………………….
Mr. F.G. SHENJE
Group Finance Director
Signature
Mr. B.A.SHENJE
…………………..
Group Financial Accountant
Signature
Mr. C MURUMBI
…………………..
Supervisor
Signature
Mr. K.TAVENGWA
………………
Institution Stamp
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