Pharmacy Economics

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Table of Contents 1. Introduction ..................................................................................................................................1 2. Macroeconomics ..........................................................................................................................3 2.1 Review of the Global Economy .............................................................................................3 2.2 Review of Caricom and Local Economy ...............................................................................4 2.3 Key Indicators of the Local Economy ...................................................................................5 2.4 Medium to Long Term Outlook for the Local Economy.......................................................7 2.5 Short Term Projections for the Local Economy ....................................................................8 3. Microeconomics ...........................................................................................................................9 3.1 Overview of Local Industry ...................................................................................................9 3.2 Industry Analysis .................................................................................................................10 3.3 Market Structure ..................................................................................................................11 4. Review of the Pharmacy ............................................................................................................14 5. Industry Outlook ........................................................................................................................15 6. Recommendations ......................................................................................................................16 Reference .......................................................................................................................................17

1. Introduction

Just Personal Pharmacy, was founded as a market expansion project by HiLo supermarkets (HiLo is a member of the retail line of business of Neal and Massy Holdings Limited) as a value added service to its customers shown in Figure 1 below.

Figure 1 – Pharmacy Relationship to Wider Organisation

With over eight years of operations, the pharmacy is in a good position to hold true to its vision: “To be the pharmacy of choice for HiLo shoppers in Trinidad and Tobago via service excellence and innovative approaches in pharmaceutical care”, by adding value to its customers through dedicated customer service, convenient in store location and competitive prices.

In examining the economic environment in which the pharmacy operates several methods of data gathering were used these included, an interview with the Pharmacy Chain Manager, use of various economic reports and expert opinions.

1

Although the economic environment has its own sets of challenges it was noted that the pharmacy experience some level of growth to remain profitable while adding value to its customers.

2

2. Macroeconomics

2.1 Review of the Global Economy In January 2013 the International Monetary Fund (IMF) revised its forecast for world economic growth from 3.6 % to 3.5% for 2013 and from 4.2 % to 4.1% for 2014. This revision was as a direct result of the ongoing sovereign debt crisis in Europe. The Euro Area debt crisis continues to cast a shadow on global short term prospects despite fiscal measures taken in 2012. The other major world economy the United States (US) economy showed a gradual pickup in 2012 but there was marginal contraction in the fourth quarter due to issues surrounding the potential “fiscal cliff”. (Trinidad and Tobago. CBTT 2013)

Although emerging markets outperformed their industrial counterparts they too have not been impervious to issues surrounding the debt crisis. All...
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