Management
and business
in pharmacy
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Enterprise, Entrepreneur, Entrepreneurship
Hereafter, "enterprise" is a referent to
the businesses individuals set up and
run; "entrepreneur" is a referent to
the individuals who set up these
businesses; and "entrepreneurship" is
a referent to the activity or practice of
sustaining and growing the business.
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"Entrepreneur"
was
first
considered in economic theory by
the French economist Cantillon in
the early 1700s. "Entrepreneur"
had up until then meant someone
who was active and had initiative
and who as a hero or warrior ran
risk. By the eighteenth century it
was used to describe a large
scale
businessman
who
contracted to supply, and who, at
his own expense and risk,
combined
the
factors
of
production.
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Entrepreneurship shall be defined as direct independent,
systematic activity, exercised at one's own risk, directed
at production of goods, performance of works or providing
services with the purpose of generating profit, which is
fulfilled by natural persons and legal entities, registered as
subjects of entrepreneurial activity in accordance with the
procedure, established by the legislation.
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Enterprise - is an independent entity
established by the competent public
authority or local government to meet
social and personal needs through
systematic implementation of industrial,
research,
trade,
other
economic
activities.
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The main features of the enterprise are:
Existence of the approved charter, which defines objectives,
organizational structure, rights and responsibilities of management, the
order of liquidation and the basic relationship between the founders and
owners;
Property right to bear responsibility to contractors within the ambit of
economic legislation, and of whether the ownership of the company's
property;
Free choice of activities;
Independent of program activity, supplier selection,
Commercial calculation and its own commercial risk;
Free hiring of workers
Dispose of profit after making payments according to the legislation
Independent of foreign trade and use of foreign exchange earnings
Right to protect its property interests in court, arbitration and other
bodies of state power and control;
existence of the registration certificate, and in some cases specifically
licensed to engage in certain activities, particularly in manufacturing and
retail and wholesale medicines.
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The following enterprises may be created in Ukraine:
 private enterprises (established on the basis of assets owned by a
natural person);
 collective enterprises (established on the basis of assets owned by
labor collectives of an enterprise);
 business associations (includes joint stock companies, limited liability
companies, additional liability companies (partnerships), unlimited
partnerships, limited partnerships);
 enterprises established on the basis of assets owned by an association
of citizens (associations of citizens are organized according to the Law
“On Associations of Citizens”);
 communally owned enterprises (established on the basis of property
owned by relevant territorial communities);
 state-owned enterprises (established on the basis of property owned
by the state), including special government enterprises. A special
government enterprise is an enterprise, which is not subject to
privatization and is transformed into a special government enterprise
according to the decision of the Cabinet of Ministers of Ukraine.
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Enterprises are permitted to integrate and
form the following entities:
 associations
 corporations
 consortiums
 concerns
 cartel
 syndicate
 trust
 holding company
 conglomerate
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Associations (operate on the basis of a
charter with the purpose of
permanently coordinating economic
activity. Associations do not intervene
into productive or commercial
activities of its participants).
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Corporations (operate on the basis of a
charter by combining productive,
scientific and commercial interests.
Each participant delegates some
authority to the corporation for
centralized regulation of its activity).
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Consortiums (operate on the basis of
statutes by combining industrial and
banking capital. A consortium is
usually established for a temporary
period since the purpose of its
participants is to achieve some
common objectives);
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Concerns (operate on the basis of
statutes by combining
industrial
enterprises, scientific organizations,
transport facilities, banks, trading
enterprises, etc. Members of concerns
are fully financially dependent on one
entrepreneur
or
a
group
of
entrepreneurs).
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Cartel is a formal (explicit) agreement
among competing firms. It is a formal
organization of producers and
manufacturers that agree to fix
prices, marketing, and production
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Syndicate is a self-organising group of
individuals, companies or criminals
formed to transact some specific
business, or to promote a common
interest or in the case of criminals, to
engage in organized crime.
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Trust is a relationship whereby
property (including real, tangible and
intangible) is managed by one person
(or persons, or organizations) for the
benefit of another. A trust is created
by a settlor, who entrusts some or all
of their property to people of their
choice
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Holding company is a company or firm
that owns other companies'
outstanding stock. It usually refers to
a company which does not produce
goods or services itself; rather, its
only purpose is owning shares of
other companies.
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Conglomerate is a combination of two
or more corporations engaged in
entirely different businesses together
into one corporate structure, usually
involving a parent company and
several (or many) subsidiaries. Often,
a conglomerate is a multi-industry
company. Conglomerates are often
large and multinational.
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By ownership:
- A private company that operates on the basis of
private property of individuals or entity (legal
person);
- Collective ownership - the company that operates
on the basis of collective ownership;
- Public enterprise that operates on the basis of
communal property of territorial communities;
- State-owned enterprise that operates on the basis
of state property;
- Mixed ownership, which was founded on the basis
of combining different forms of property ownership.
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 Depending on the type of founding and a statutory
fund in Ukraine are unitary enterprise and corporate.
Unitary enterprise created by one founder who
allocates necessary for this resources under, creates
statutory fund, approves the charter, solve the issues
of reorganization and liquidation.
 Unitary enterprise is a government, utilities,
enterprise, based on the property of public
associations, religious organizations or private
founder. Corporate venture is formed usually by two
or
more
founders
for
their
joint
decision
(agreement). Corporates are cooperative enterprises,
enterprises established in the form of economic
society, as well as other enterprises, including based
on private ownership of two or more persons.
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 With the number of employees and gross
revenues from sales enterprises can be
attributed to small, medium or large. Under
the Commercial Code of Ukraine, the
company (regardless of their form of
ownership), with an average number of
employees does not exceed fifty persons,
and gross income from sales during this
period does not exceed the equivalent of
five hundred thousands of euros. In this
context, all retail pharmacy businesses
(pharmacies)
will
belong
to
small
businesses.
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 The market market distribution distinguish drugproducing organization, wholesale and retail trade
organizations (pharmacies). The base-producing
enterprises in Ukraine are such companies as
Darnitsa, Farmak, Arterium, " Indar "," Kyiv Vitamin
Plant "and" stimulators ". License for wholesale
medicines is about 1500 intermediary organizations
with different forms of ownership and value of
capital. The subjects of the retail sale of medicines is
a pharmacy, their separated units (pharmacies and
pharmacy
items.)
Ukraine
pharmacy
network
includes more than 8500 pharmacies in different
ownership and nearly 10 thousand of their structural
subdivisions.
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By the degree of market reach
pharmaceutical companies are
divided into local, regional,
interregional, national and
transnational.
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 Joint stock corporation
 An AG is a joint stock corporation governed by a special and
very strict law, the Joint Stock Corporation Act. Only the
shares of an AG may (but need not) be quoted on stock
exchanges. The minimum share capital of an AG is € 50,000,
which must be divided into shares with a minimum nominal
value of € 1.00.
 An AG must have a managing board, empowered to decide all
matters relating to the operation of business and appointed by
and answerable to the supervisory board. The shareholders of
an AG exercise their power to control its policies at regularly
scheduled general meetings.
 An AG must prepare an annual profit and loss statement ,
balance sheet and notes and submit them together with
detailed information in an annual report to the Commercial
Register. Large corporations must publish their annual
accounts and reports.
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Limited liability company (LTD)
 A LTD must be set up with a minimum capital of € 25,000 in
cash or non-cash contributions or both. Each member must
subscribe a minimum of € 100. The company may also be
established by one person, who, as in the case of the AG,
may be another company.
 Shares in a LTD are not embodied in certificates and cannot
be quoted on stock exchanges but may nevertheless be
transferred by way of properly notarized documents.
 Shareholders' decisions can only be reached at a meeting
of the shareholders. Through the adoption of resolutions,
instructions of any kind may be issued to the managing
directors, but without restricting their power to represent
the company externally. The meeting of the members thus
has a stronger status in comparison with the general
meeting of an AG. The articles of organization may provide
that a GmbH have a supervisory board.
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General partnership
 A GP is a general partnership, the liability of
whose partners is unlimited. Every partner
in the company is legally obliged to
participate actively in operating the
business unless the partnership agreement
specifically assigns this task to one or
several partners.
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Limited partnership
 It is basically a partnership in legal respects but also
provides for a limitation of liability by having two types of
partners.
 1. The general partner, whose liability is unlimited and
extends to their personal assets.
 2. The limited partner, whose liability is limited to their
nominal holdings in the firm.
 There is no limit to the number of partners of either type
that a LP may have. The sole right and obligation to
manage the firm rests with the general partners. The
limited partners are explicitly excluded from operating the
business but may object to actions taken by general
partners that go beyond the firm's purpose and normal
business activities. Further rights may be granted to the
limited partners in the partnership agreement.
statute
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A statute is a formal written enactment of a legislative authority
that governs a state, city, or county. Typically, statutes
command or prohibit something, or declare policy. The word is
often used to distinguish law made by legislative bodies from
case law, decided by courts, and regulations issued by
government agencies.
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The statute defines:
 Property owner
 Name of the enterprise
 Location of enterprise
 Object and purpose of activity
 Governing bodies and their order of it
forming
 The competence and powers of the staff and
the electoral bodies
 The order of creation of the enterprise
 Terms of registration and termination of
businesses
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A business plan is a formal statement
of a set of business goals, the reasons
why they are believed attainable, and
the plan for reaching those goals. It
may also contain background
information about the organization or
team attempting to reach those goals.
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Typical structure for a business plan for a start up
venture
cover page and table of contents
executive summary
business description
business environment analysis
industry background
competitor analysis
market analysis
marketing plan
operations plan
management summary
financial plan
attachments and milestones
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THANK YOU FOR ATTENTION!