This paper analyzes the climacteric principles and theories of microeconomics (micro) from numerous journals ensuring a proper understanding of each factor, and the vital influence they sustain in the comme il faut of independent pharmacies and their success. Unfortunately, there are supplemental constituents with the potential to hinder or eliminate the ability for an individual to successfully develop a pharmacy for profit in todays economy. Harberger (2008) suggests that in the world of micro, strength is derived from its platonic relationship with the real world combined with “the simplicity of its underlying structure” Harberger (2008). The focal point of this paper dissects Harberger (2008) to determine which micro elements are the most beneficial for independent pharmacies to take into consideration, albeit several journals with correlative research strictly from a pharmacy perspective, provide the substance needed for a concise understanding of the factors that are not covered in micro which are immensely real in todays pharmaceutical world.
Keywords: microeconomics
An Examination of Basic Microeconomics: Fundamental prerequisites and integral properties essential to the development and success of independent pharmacies.
Seldom do individuals realize the significance of acquiring a proper understanding of economics as a whole, let alone any subfields that branch off of it. Every aspect of economics is relative to another within itself, much like the roots of a tree are relative to the leaves or fruit that it bears. Attempting to distinguish between micro and macroeconomics in terms of significance to the real world is unavailing. Having a formal comprehension of this science begins with the principles and theor...
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...eir welfare as efficiently as they possibly can. According to Harberger (2008), “This process helps them to decide what they will supply and what they will demand,” essentially the ideology that birthed this statement translates into opportunity cost. Forgone opportunity, “or the best alternative sacrificed for a chosen alternative,” Tucker (2013), from the consumer or firms perspective, revolves solely around what they must sacrifice varying from factors of production to the establishment of mutually beneficial alliances with other consumers or firms, etc. Nevertheless, in conjunction with supply and demand, these two primordial concepts form a platonic relationship that generates countless influential possibilities with respect to the decisions made by consumers and or firms in order to truly generate what they perceive as the most efficient use of their resources.
Mr. Walgreen knew if he was going to be successful in the pharmacy business, he had to learn as much as he could from other pharmacists. Mr. Walgreen worked a series of jobs with the top leading pharmacists named Samuel Rosenfeld, Max Grieben, William G. Valentine, and Isaac W. Blood. However, Mr. Walgreen found that these pharmacists were teaching him old fashioned complacent methods of running a drugstore. He asked himself, “where was the selection of goods that customers really wanted and what about the customer service?” Mr. Walgreen c...
This consolidation, along with others in the health services industry, factors a drive to cut costs and thus, increase revenues. By combining purchasing power and control over a large percentage of the drug industry, PBM’s can negotiate reductions in drug costs for themselves and their consumers. They can procure less expensive generic drugs from generic manufacturers, negotiate rebates and disc...
The drug manufacturing industry is concerned with the development, production and marketing of drugs which are to be used as medication. This is one of the oldest industries in the world. The first drug stores date back to the middle Ages. Some of today’s pharmaceutical companies have been founded in the beginning of the previous century. Important discoveries have been made in the early 20th century such as insulin and penicillin who became mass produced. More drugs were developed during the 1950s-1960s such as contraceptives and heart drugs. During that time numerous organizations and declarations were established in order to regulate the industry. Until the 1970s the drug manufacturing industry remained relatively small, and then it began expanding quickly. With the development of technologies and the internet research, manufacturing, marketing and sales of drugs became a lot easier.
There are 940 stores just in British Columbia or 10.6% of the Canadian market. The most competitive are Shoppers Drug Market and London Drugs. Shoppers Drug Market makes up 31.8% of the whole Canadian market, so we figured we should look into a smaller city in order to eliminate a high number of competition. We selected Fort St. John, BC because according to the city website, it is the biggest and secondest fastest growing city in the province. It does have drugstore pharmacies in the area, but we could not find any that offer 24 hour service, which would make us stand out. As of now, it has over 21,000 people that make an average annual income of $69,001.10. Young couples with children make up most of the population. In comparison, the target market for Walgreens in the US is women 25 to 54 years old with two children and an average annual income of $48,000. We believe Walgreens has potential in Fort St. John because this “energetic city” is flourishing at such a high
Brue, S. L., Flynn, S. M., & McConnell, C. R. (2011).Economics principles, problems and policies. (19 ed.). New
Although monopolies appear damaging at times, there are arguments that they are an advantage to society. Monopolies in the pharmaceutical industry drive companies to pursue research and development (R&D) efforts to gain new patents. According to a 1992 study, among the 24 US. Industry groups, pharmaceuticals dedicated 16.6% of their amounts to basic research, while all other industries averaged at 5.3% (Sherer 1307). This fact validates the incentive pharmaceutical companies have to get a patent and acquire more power. Pfizer encourages R&D because of the incentives and a want to obtain patents to receive more profit. Pfizer has to promote itself to be successful, creating a good brand image that consumers will trust. If the company can advertise successfully, more consumers will purc...
Pharmacies in France are specialized facilities which work closely with clients, ensuring safe products and providing professional advice. Pharmaceutic...
10. Collis, David, and Troy Smith. "Strategy in the Twenty-First Century Pharmaceutical Industry:Merck&Co. and Pfizer Inc." Harvard Business School, 2007: 8-12.
Lorna Smith is the Pharmacy Manager at the Walmart Pharmacy in Kenora, Ontario. Lorna’s challenges as a manager include the current expansion in the pharmacist’s scope of practice, the change in government reimbursement for pharmacy services, the demand by consumers for better professional services and product selection, and the need for this location to be profitable. Lorna must move her team through a rapidly changing environment in order to be successful in the local competitive retail pharmacy market.
The crucial importance and relevance of economics related disciplines to the modern world have led me to want to pursue the study of these social sciences at a higher level. My study of Economics has shown me the fundamental part it plays in our lives and I would like to approach it with an open mind - interested but not yet fully informed.
Sullivan, A., & Steven M., (2003). Economics: Principles in action. Upper Saddle River, New Jersey : Pearson Prentice Hal
Tragakes, E. (2012). Economics for the IB diploma (2nd ed.). Cambridge, UK: Cambridge University Press.
Microeconomics is the study of an individual economy, or of the different segments within the larger economy, while macroeconomics is the study of aggregate economic behavior, or the economy as a whole (Madura 103). The main goal of macroeconomics is to determine the impact of consumer spending on total output, employment, and prices. To fully understand economics as a whole, we must understand that there are limitations set by the available resources that are used to produce goods and services. These resources that are used in the manufacture of goods and services are called factors of production. Land, labor, capital, and entrepreneurship.
The definition of microeconomics was presented a high level, and I was still left drawing a blank trying to discover how this method of social science correlated to my everyday life. Starting from week one Professor Julie Pelia assigned us topics that engaged our minds, and I quickly began to see how the various components of Microeconomics fit into my life. This summary of Microeconomics will cover some of
The professional responsibilities of pharmacists in independent pharmacy are huge. To the patient, pharmacists are