Strategic Risk Management for Llyods Pharmacy

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Strategic Risk Management
for Llyodspharmacy
Submitted To Mr. TK Submitted By Student no. 1004288

Table of Contents
Executive Summary3
1. Introduction4
1.1 CURRENT PROBLEMS4
2. RISKS IDENTIFIED5
2.1 Political Environment5
2.2 Changes in regulation5
2.3 Changes in consumer behavior5
2.4 Competition6
2.5 Unprofessional Services6
2.6 Occupational Health and safety risks6
2.7 Product risk7
2.8 Critical systems failure – Loss of Data7
2.9 Currency exchange7
3. MITIGATION9
3.1 Political Environment9
3.2 Impact of regulation9
3.3 Changes in consumer behavior9
3.4 Competition9
3.5 Unprofessional Services10
3.6 Occupational Health and safety risks10
3.7 Product risk10
3.8 Critical systems failure – Loss of Data10
3.9 Currency exchange11
RISK METHODOLOGY11
References13

Executive Summary
Lloydspharmacy claim to be “a leading community pharmacy and healthcare provider with over 1,650 pharmacies across the UK, mainly in community and health Centre locations, employing around 17,000 staff and dispensing over 150 million prescription items every year”. The risks identified in the report for Llyodspharmacy are reputational, operational, financial and environmental all that which will affect the strategic objective of the business. Some of them are occupational health and safety, product risk, consumer behavior changes, competition etc. The risk register has been made for all these risk with the assumed likelihood and impact to the organisation, which is then explained below. The mitigation for each of these risks are then elaborated.

1. Introduction
Lloydspharmacy claim to be “a leading community pharmacy and healthcare provider with over 1,650 pharmacies across the UK, mainly in community and health Centre locations, employing around 17,000 staff and dispensing over 150 million prescription items every year” (Lloydspharmacy, 2011). Lloydspharmacy remains second to Alliance Boots in the pharmacy retail market. It is active in 27 countries worldwide and employs approximately 47,000 people in its three divisions Patient and Consumer Solutions, Pharmacy Solutions and Manufacturer Solutions. 1.1 CURRENT PROBLEMS

Pre-tax losses at Immedia Group rose to £191,182 in the six months to the end of June - up from £29,374 last time. The group - which provides bespoke radio stations and a range of in-store media solutions for retailers - described the results as disappointing. Chief executive Bruno Brookes said: "The loss of the Lloyds Pharmacy contract in January, together with the administration of a long standing client with bad debt, have driven a disappointing outcome to the first half results (Stock Market Wire, 2012). Lloydspharmancy’s pre-tax profits plummeted by 45% from £104.7m to £57.2m in 2012 as sales remained flat at £1.76bn (Retail Week, 2012). The group revealed it is to make 120 redundancies at its head office last month as part of the integration.The changes have led to the departure of a number of senior management including former managing director Tony Page, who left in January after just a year in the role, chief commercial officer Steve Gray (now health care director Superdrug) and supply chain and business efficiency director Philip Streatfield. The restructuring went further, with 120 redundancies in the IT, finance and human resources departments made at the Coventry head office. About half of those were voluntary redundancies.Originally, 1,100 jobs had been in consultation as part of the restructuring. Lloyds has also been reducing the size of its large store portfolio. The retailer, through acquisitions including that of Cohens and Scholes stores in 2006, had been increasing its store base every year until 2008, when it peaked at 1,700. However, store numbers have now declined to below 1,600 (Retail Week, 2012). 2. RISKS IDENTIFIED

2.1 Political...
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