Management skills and entrepreneurship

University of Chester

Module Title

: BU7201 - Management Skills
and Entrepreneurship
Student number : 1326927

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Table of Contents

List of Figures

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Part A: Essay
Introduction
In recent years, there have been a surprisingly increasing number of small businesses in over the
world, which also create a numerous young millionaire. This in turn attracts and inspires nearly
one million MBA applicants every year (Statistic Brain, 2013). However, the path to outstanding
success is always arduous and demanding, in fact, a half of star-up businesses fail after year 4
(Statistic Brain, 2014), and only a quarter of employers have sufficient ability to lead their
company in more than 15 years (Nazar, 2013). While there is a mere possibility of failure
involving disasters or fraud, the primary causes emanate from the leaders’ proficiency.
“Sometimes the manager of the small business does not have the capacity to operate it
successfully. The owner lacks the leadership ability and knowledge necessary to make the

business work” (Scarborough & Zimmerer, 2006, p. 27).
It is obvious that the long-term survival of a small company depending crucially on how a
manager or an owner manages and controls it. Yet, a company can reach a well-organized model
like a normal manager’s desire, or a stable income as a primary objective of an owner, or an
impressive growth as entrepreneurs’ intention. Noticeably, if a person was born to be a successful
entrepreneur, he could be good at the other position.
This questions what skills, character traits and managerial expertise are required to form a
successful entrepreneur. In order to seek the answer, the definition of small business, the reasons
for the failure will be discussed. This in turn is to understand the importance of leadership skill
and knowledge to an entrepreneur, and then, the meaning of Scarborough & Zimmerer’s
statement will be clarified. However, it should be noted that in the context of this discussion, the
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owner will be regarded as an owner-manager because of the fact that a majority of owners are
responsible for the day-to-day management of small companies.
Small business model
The reasons why the management ability’s owner-managers take the considerable importance
role in a small company are its size of business model and its own characteristics. There are
many different definitions of small business in term of quantitative measure, applying in
different economies. For example, according to the European commission (Commission
recommendation of 6 May 2003, 2003, pp. 36-41), a small enterprise has from nine to fifty
employees with a financial celling of ten million Euros turnover.
Qualitatively, because of the small scale, it normally operates independently in a niche market,
leading to the difficulty for the owner-manager in risk diversification (Stokes, 2002). This makes
it less attractive to investors. Limited customer base, limited financial and human resources, and
personalized management all contribute the dominant influence of owner-managers of their firm.
Nonetheless, if a business fails, whether or not they should bear full responsibility because the
weakness in their leadership skill and knowledge.

Failure in small business
Failure in business comes from many reasons and from different perspective, failure is viewed in
different ways. However, no matter what failure is, the reasons have not changed. According to
Bridge, O’Neill, & Martin (2009) there are 5 ingredients constitute failure as can be seen in the
Figure 1.
Any

Figure 1: The ingredients of failure
firm

maybe

faced

with

these

challenges, but small enterprises are more
vulnerable than others due to their own

Entrepreneurial character

External environment

characteristics mentioned above (Ibid). As
Luck

the dominance of the entrepreneur in the
small firm, the lack of skills in management

Business decisions

and administration as well as the bad

Company weakness

decisions still can cause a weak, unstable
structure of the company despite of having a Source: Bridge, S., O’Neill, K., & Martn, F.(2009). 
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strong management team. Moreover, the limitation of its resource cause struggle against everchanging marketplace.
Burns (2001) argues that these four factors have a relationship with each other that is illustrated
in the Figure 3. The failure likely originates from the weak entrepreneurship combined to the
disproportionate influence of the entrepreneur.

Figure 2: The integrations between ingredients

Entrepreneurial character

Decline

Bad
decisions

Company weaknesses

Unexpected change in environment

FAILURE

More specifically, Zimmerer, Scarborough, & Wilson (2008) listed ten reasons for business
failure (Figure 3). All of them also are more or less relevant to the entrepreneurs’ ability and trait.
Even in the case that the small enterprise growth fast, it still is a potential risk factor that will
come out when beyond entrepreneurs’ capability. A good example of this is Robert Schell, who
owned Avico, providing e-consulting service. Quickly, his company was one of the most fastestgrowing company and the decline was also at a rapid rate later (Daniel, 2004). Failure was
defined when he could not control the company’s managerial activity. Faster growth a company

Inability to make the “entrepreneurial
transiton”
Management
mistake

gain, greater challenges it faces.

Know your business in depth

Lack of experience

Poor financial control
Improper inventory control

Prepare a business plan

Figure 3: Failure and Suggestion

Incorrect pricing

FAILURE

Suggestions

Failure to develop a strategic plan
Uncontrolled growth

Understand financial statement
Learn to manage people effectvely

Weak marketng efforts
Poor locaton

Manage financial resource

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5

Set your business a part from a compettor
Maintain a positve attitude


Source: based on Zimmerer, Scarborough, & Wilson,D (2008), and Scarborough (2012).

From the causes of failure in business, Scarborough (2012) highlights some solutions that help
entrepreneur survive. The reasons are found down, the proposition is given as well, but long-term
survival realistically still a formidable task for most owner-managers. This raises a question of
whether it is because they knows what to do, but cannot afford to do. As they lack of the skills
and understanding in term of their business.
Leadership

“Leadership is the process of influencing others to understand and agree about what needs to be
done and how it can be done effectively, and the process of facilitating individual and collective
efforts to accomplish the shared objectives (Yukl, 2002, chapter 1, p. 7)”. Obviously, leadership
skill is a fundamental need for leaders generally and managers and owner-managers particularly.
Although there is an argument that sometime management and leadership do not go together, the
term “manager” describes a job position with a number of people, then leading people must be a
principal ingredient of managerial capabilities (Gillen, 2002).
When the enterprise develop to a certain size, the owner–manager cannot manage and control it
single-handedly, hence, an entrepreneurial management team is essential for growth orientation
(Stokes, 2002). This in turn further confirms the role of leadership contributing an ambitious
owner-manager, who not only needs to connect all the staff, but also his team of managers to
create a synergy power.
However, sometimes owner-managers have leadership skill, but in term of transactional style,
then the development of small business cannot go further. Transactional leadership is close to
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management, regarding the smooth day-to-day operations of business. In contrast,
transformational leadership function the owner better because it is “empowering and
inspirational, resulting in changes in people’s abilities, attitude,
value, beliefs and motivation (Gill, 2011, p. 87).” Thus, even
managers and owners do have their own leadership skill, this
should be varied depending on concrete situations. Yet, if they
really do lacks of this skill, what will happen to the business.
As Llopis (2012) shares his experience in his career, because he
did not concern about leadership development, believing in the

Glenn Llopis
Forbes contributor

Source: Forces (2012)

inherited management system. Consequently, he lost a moneymaking business relationship. Luckily, he realized the mistake, building and leading his team.
Eventually, he was successful with the new business relationship.
However, failure does not happen frequently because the weak leadership ability. In practice
many managers or owners, who lack of this skill are managing and operating their company
normally. According to a research of nearly 400 leaders in the United Kingdom in 2011, only 36
percent were rated as having effective leadership in their firms (Cipd, 2011).
Knowledge
Generally, knowledge that a person gain through learning or experience is the key for any kind of
success. Knowledge is the first foundation level of a successful manager. Basic facts and relevant
professional knowledge facilitates leaders and manager to make good judgments (Pedler,
Burgoyne, & Boydell (2006).
For example, managers with marketing myopia can force company fail to satisfy the customers’
demand and adapt to the change of the marketplace. Owner-manager that is in the inadequacy of
finance can perform disappointingly in cash-flow management. This will push the small firm in
danger of a real failure due to the fact that financial control affects directly to the survival of any
company, especially small ones (Cadden & Lueder, 2013).
Knowledge is fundamental for owners to facilitate the business activities. Differing from the
chief executive of a big company, the owner-manager of a small one is both of the planer and
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implementator, for daily tasks as well as long term plans. Hence, they are required to have
general knowledge of many fields such as customer knowledge, and product research and
development.
In the several general methods for entrepreneurs to avoid failure as mentioned in Figure 3,
almost all of them in regard to knowledge to make these suggestions practically. Hernaeus
(2003) emphasize in the trend of globalization with the high-speed development of technology,

knowledge is demanding more than ever. New ideas are not insufficient but too few owner that
are qualified to develop these ideas.
One thing is associated with However, it should be noted that in the reality life, many successful
entrepreneurs start their business with a very basic knowledge as normal people have.
Richard Branson, the CEO group is an example. He clearly did not have sufficient knowledge at
the time he started his business because of the dyslexia and very poor result in school. However,
after the first venture with the Student magazine and then a mail order record company, his
business was expanded. Now, he is one of the richest business man (Sir Richard Charles
Nicholas Branson, (2014).
Repeatedly, Richard Branson is just one of many
successful entrepreneurs without a college degree
(Hudson, 2013). Yet, they have the vision and ideas
and motivation and they learn every day from the firsthand experience.
As the discussion above, knowledge and leadership are

Richard Branson
Founder of Virgin Group
meaningful for the long-term business development,
Educaton: , 
Source: Sir Richard Charles Nicholas Branson. (2014)both are fundamental, affecting the business survival.

However, one important source of the disaster for
business is the negative effects of entrepreneur
character. Thus, in order to reduce the risk in business
and to be successful, an individual need to fulfill his or her entrepreneurship, which required
both of knowledge and leadership.

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The model entrepreneur
The Figure 6 is an overview of skills and characteristics that an entrepreneur need to reach the
success. Stokes (2010) has been questioned about the importance of personal attributes to the
success of entrepreneur. He argued that technical skills and management competencies like a
necessary condition for success while the two others are the sufficient condition. Consequently,
entrepreneurial behaviours and characteristics decides who win the fierce competitive market.
Schaper & Volery (2007) indicated that the basic requirement of an entrepreneur is motivation.
Then, by using his skills and knowledge, new venture opportunities will be identified, and their
potential and their risks will be estimated (Knowledge@wharton, 2009).

Figure 4: The building block of successful
entrepreneurship
Entrepreneurial
management behaviours
* Opportunity identficaton
* Resource leveraging
* Networking
* Effectual decision making
* Creatvity and innovaton
Technical skill
* Product/service knowledge
* Market/ industry understanding

Personal attributes
* Innovatve
* Determined
* External focus
* Team Leader
Management

competencies
* Marketng
* Finance
* Human relaton
Source: Stokes, & Wilson (2010)

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There also are different approaches to entrepreneurship. Burn described a set of the same four
character traits of both owners and manager, and seven additional traits of entrepreneurs. He
concludes that entrepreneur are born with these certain traits, which also are impacted by the
surrounding environment. Nonetheless, as defined by Scarborough (2012), entrepreneurship is
not an inborn attribute and can be learned.
However, what matter the answer is right or wrong, an individual can teach himself from failure,
acquire as much as knowledge, master leadership skill, in order to approach success.
Conclusion
In conclusion, as Scarborough & Zimmerer said in their book, leadership and knowledge are
much important to an owner-manager, helping them avoid management mistake as well as the
decline of the failure. There is not a perfect recipe for success as well as a perfect solution to
avoid failure, but success or failure is the combination of various things. Amongst those, what
distinguish between a winner and a loser in the marketplace is the personal characteristics, which
is relatively natural.
Hence, although leadership ability and knowledge is the answer to the failure immediately
flashed in most people’s mind, it is not always true, it happens sometimes as the opinion of
Scarborough & Zimmerer. Even though, in the way to be a successful entrepreneur, individuals
must not stop practicing, learn and motivate themselves. In fact, the number of people, who are
in managerial and professional incompetence at the beginning, but become successful, just
constitute a mere proportion of the world of business.

Furthermore, failure is not really an enemy, it can be considers a friend entrepreneurs meet on the
path to success. This friend helps them more understand themselves, their strength and weakness,
force them attempt to do better. Because of this, in the perspective of real entrepreneurs, their
knowledge and abilities are used more to obtain successes than to avoid failure.
References
Statistic Brain .(2013). Master of Business Administration Statistics (MBA). Retrieved June 9,
2014, from />Statistic Brain. (2014.).Startup Business Failure Rate By Industry. Retrieved May 22, 2014, from
/>10
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Nazar, J. (2013, September 9). 16 Surprising Statistics About Small Businesses. Forbes.
Retrieved June 9, 2014, from />Zimmerer, T., & Scarborough, N. M. (2005). Essentials of entrepreneurship and small business
management (4th ed.). Upper Saddle River, NJ: Pearson/Prentice Hall.
Zimmerer, T., Scarborough, N. M. & Wilson,D (2008). Essentials of entrepreneurship and small
business management (5th ed.). Upper Saddle River, N.J.: Pearson/Prentice Hall.
Scarborough, N. M. (2012). Effective small business management: an entrepreneurial
approach (10th ed.). Upper Saddle River, N.J. Harlow: Pearson.
Bridge, S., O’Neill, K., & Martin, F.(2009). Understanding enterprise: entrepreneurship and
small business (3rd ed.). Basingstoke England: Palgrave Macmillan.
Stokes, D. (2002). Small business management. (4th ed). London, United Kingdom: Continuum.
Burns, P. (2001). Entrepreneurship and small business. Houndmills, Basingstoke, Hampshire:
Palgrave.
Daniel, M., (2004, October 15). Why Size Matters. Inc.com. Retrieved June 7, 2014, from
/>Yukl, G.A. (2002). Leadership in organizations. Upper Saddle River: Pearson Education
Rae, D. (2007). Entrepreneurship: from opportunity to action. Houndmills: Palgrave Macmillan
Gill, R. (2011). Theory and Practice of Leadership (2nd ed.). London: SAGE Publications.
Llopis, G. (2012, August 20). 5 Things Failure Teaches You About Leadership. Forbes. Retrieved
June 9, 2014, from />Cipd. (2011, August 31). Effective, high quality leadership lacking in UK organisations,
highlights

DDI/CIPD
survey.
Retrieved
June
9,
2014,
from
/>Sir Richard Charles Nicholas Branson. (2014). The Biography.com website. Retrieved 12:21, Jun
08, 2014, from />Commission recommendation of 6 May 2003 concerning the definition of micro, small and
medium-sized enterprises, 2003, Official Journal of the European Union, L124, 36–41.
Gillen, T. (2002). Leadership skills for boosting performance. London: Chartered Institute of
Personnel and Development.
Schaper, M., & Volery, T. (2007). Entrepreneurship and small business (2nd Pacific Rim ed.).
Milton, Qld: John Wiley & Sons Australia.
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Hudson, P. (2013, March 13). 100 Top Entrepreneurs Who Succeeded Without A College
Degree. Elite Daily. Retrieved June 9, 2014, from />Pedler, M., & Burgoyne, J., Boydell, T (2006). A manager's guide to self-development (5th ed.).
Maidenhead:
McGraw-Hill.
Retrieved
June
9,
2014,
from
/>Stokes, D., Wilson. N,. (2010). Small Business Management and Entrepreneurship (6th ed.).
South Western. Retrieved 9 June 2014, from <?ID=328468>
Cadden, D. T., & Lueder, S. L. (2013). Small Business Management in the 21st Century, v.

1.0. Flat
World
Knowledge.
Retrieved
June
9,
2014,
from
/>Hernaeus, T (2013, October 29). Why knowledge in entrepreneurship and innovation is needed.
School of economics and managerment. Retrieved June 20, 2014, from
/>Knowledge@wharton (2009, November 9). How entrepreneurs identify new business
opportunities. Retrieved June 20, 2014, from />
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Part B Business Plan

1.

Executive summary
The Sunshine is a pharmaceutical company that distributes a kind of cancer drug, Vidatox®
30CH, to hospitals, and order customers in Vietnam. The company is located in Hanoi, a capital
of Vietnam, whose cancer drug market is dynamic and developing rapidly.
The Sunshine is ran with a slogan that customers are the core-value of business. Owners’ desire
is to contribute a small role in the fight against cancer in Vietnam.
This business plan is going to be implemented in Vietnam, however, all calculation has been
converted in the Great British Pound, using the average exchange rate GBP/VND in June, 2014,
then 1 GPB = 35,689 VND (Ukforex, 2014).

2. Business description

2.1Goals
The Sunshine pharmaceutical company’s main goal is to provide the lowest prices for hospitals
and clinics on the market and the most reasonable prices for personal customers with the best
consultant service. We expected to reach profitability from the first year with a net profit margin
of 8.5%, and will generate over 1.9 million of sales by the firth year.
The Sunshine will not to open any branch in five year, the company concentrates to specialize in

one product and the best accompanying services. After the year 5, if the company have a
relatively strong reputation, the consultant services will be separated to a main section, providing
knowledge relating to not only the product but also the cancer related information.
Figure 4 Vidatox® 30CH

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2.2 Product and service description

Although many pharmaceutical companies try to offer a wide range of
drugs but the Sunshine only provides one brand named drug. This is
Vidatox® 30CH, a cancer drug produced from venom of the blue
scorpion (Vidatoxonline, 2014).
This product is a positive outcome of a research of 15 years, testing on
more than 10,000 cancer patients (ibid). The test has shown that the
Source: Vidatoxonline (2014)

patients’ quality of life is improved and the tumours grow slower. The
product can be used for many kind of cancer patients to alleviate pain,

and prolong survival (Labiofam, n.d). This is really a valuable aid in cancer therapy. The easy
usage and long expiration are other advantages of Vidatox® 30CH.
Product will be distributed mainly through treatment channel, however, customers also can buy
VIDATOX® 30CH with prescription by ordering on the official website or via company’s
number contact and email. The company guarantees on-time delivery and the best customer care
service.
2.3 Supplier information

Labiofam, a Cuban pharmaceutical laboratory, produces Vidatox® 30CH and market this product
from 2012. However, in order to import the drug and sell it exclusively in Vietnam market, the
Sunshine has to work and negotiate through a Labiofam’s representative in Vietnam, namely
AMV Group (Labiofam, n.d). Vidatox® 30CH has not been granted a number of drug
registration in Vietnam until now; therefore, it is an opportunity for The Sunshine.
The Sunshine will be the exclusive distributer in Vietnam for Vidatox® 30CH by cooperating
with AMV Group. The Sunshine is in charge of support AMV in application for clinical trial,
drug registration and circulation for Vidatox® 30CH. The order quantity has to be confirmed
initially by the representative, and the fee for each importing unit paid AMV Group is in a
certain rates (see Appendix 2).
2.4 Ownership structure

The Sunshine will be founded by two members, co-owning a 50% share, Mai Nguyen and
Phuong Bui. The total initial capital is £231,180. Mai will finish doing Master of Business
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Administration before the company goes into operation, and Phuong has ten-year experiences in
pharmaceutical industry with a bachelor's degree in pharmacy.
The Sunshine is a limited liability companies and will follow the regulation under the Law on

Enterprise 2005. A profit is distributed only if the company makes profits after tax and other
financial obligations.
2.5 Legal considerations

The following agreement and licences will be required:
-

The company is a limited liability company with two members. The capital share can be

-

transferred to the remaining members or the third party.
Mr. Phuong, who is the pharmaceutically professional manager, has been granted pharmacy
practice certificates. Therefore, the company meet the conditions to get certificate of satisfaction

3.

of drug-trading conditions (Law of Pharmacy 2005).
The certificate of satisfaction of drug-trading conditions from Hanoi municipal Health Services.
The business licence from People's Committees
The company name will be registered as a trademark and domain on the web.
Business opportunities
3.1 Potential customer
The target market will be five hospitals, two hospitals in Hanoi and three hospital in Ho Chi
Minh City. Online sale system will offer a reliable address to cancer patients in Hanoi as well.
Generally, Vietnam pharmaceutical market is a potential market for new enterprises. In the latest
decade, the annual growth was from 15% to 20% (Savipharm.com, 2010). Currently, it is
increasing dramatically, reaching nearly 17% in 2013 to over three billion dollar and is predicted
to increase 20% by 2017 (Taylor, 2014). It also growth significantly faster compared with other
Asian countries.

In addition to this, the cancer drug market in Vietnam is not the exception, it also in the upward
trend due to the fact that the number of cancer patient is increasing dramatically. Vietnam is the
third biggest number of new cancer patient in the South Eastern Asia in 2012 (see Appendix 1).
According to a research by International Agency of Research of Cancer (2012), the risk of
getting cancer in Vietnam is 14, 46%. The number of new cancers each year is estimated to be at
approximately 160,000 in 2020, while a number of people died by cancel also are expected to
increase rapidly.
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Figure 5 : Estimated number of new cancer and cancer deaths every year

Source: International Agency of Research of Cancer (2012)
3.2 Geographical area

The company will be located in the suburb of city. Because office for rent in the central is very
expensive while the company provide relative large packages to the hospitals according to
planned schedule and use a delivery service to the retail customer. In addition to rent the official
building, the company needs to rent a warehouse and car park.
Therefore, the Sunshine will be somewhere near the new facility of National Hanoi Cancer
hospital, which is the biggest hospital and attracts biggest potential customer as well. The
Sunshine location is only far from the main campus of National Hanoi Cancer hospital and Bach
Mai hospital 12 and 9 km, respectively.
This location meets two requirements, economical price and convenience.

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Figure 6: The Sunshine location

Natonal Hanoi cancer hospital – Central part

Bach Mai Hospital

Natonal Hanoi cancer hospital - extension part

Sunshine locaton

Source: Google (2014)
3.3 Business competitor

Figure 7 Vidatox® Plus
Because the Sunshine will exclusively distribute Vidatox® Image
30CH to customers, therefore, the company does not have any
competitor in the same brand.
However, there is a company in Vietnam, Hung Thanh Company,
is the exclusive company for Vidatox Plus, which has some
modification but the same effectiveness to Vidatox® 30CH.
Vidatox® Plus has been registered in Vietnam as a functional
food, not a medicine.

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Source: (VidatoxPlus, n.d)


In the cancer drug market, the prices are generally high within an incredibly vast range,

depending on the effectiveness. Each kind of cancer drug also has its own unique characteristics
so it is too difficult to compare and contrast the competitive aspects of other brands in the
market.
The commercial channel of Vietnam is common with a very wide system of drug-retailing,
selling products without prescription. By the end of 2012, there were 54,000 pharmacies and
drug retailers in Vietnam, constituting one third of distribution (VP Bank Securities, 2014). This
is also the reason why Sunshine choose treatment channel, bidding and selling product through
hospitals is the main business.
Therefore, Sunshine just concerned about Hung Thanh Company as a main competitor:
Table 1: Analysis of competitor Strengths and Weakness
Strengths
A wide range of 11 drug sale agents
and drug stores.
Exclusive distributor for Vidatox
Plus
Earlier legally circulated in Vietnam
market.

Weaknesses
Expensive because mainly retailing customer
The company is not allowed to enter treatment
channel because Vidatox Plus is considered as a
functional foods.
Company may be damaged because the fake
products easily appear in Vietnam retailing market.

Although Sunshine will exclusively provide Vidatox product to hospitals and clinics, customers
have right to choose the most reasonable selling channel, an increase in the retailing sales of
Hung Thanh may cause a decrease in sales of Sunshine. However, when a drug is sold though
treatment channel, it is likely in the list of drugs paid with the state budget and medical

insurance. Even if the Vidatox® 30CH is not in the list, customer feel more confident in the
quality of the product when purchasing according to doctor’s advice.
4. Marketing strategy

4.1

Costing

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To set up the budget for start-up expenses, the Sunshine has made market price survey based on
the information available in local websites and newspapers. The reasonable assumption about the
costs of entering drug market also based on the ten years experiences of the company’s
pharmaceutical manager.
The Sunshine need to expend an amount of money initially on material and technical foundation,
and necessary licences. In the first month, the company have to a relatively huge expense for
marketing strategy, which is to launch the new product. Total costs have been estimated as
follows:
Table 2: Startup Expense
Items
Legal
Rent
Refurbishment
Office equipment
Furnishings
Insurance
Marketing material (including website and telecom system)
Others

Total start-up expenses

Cost (£)
1,000
3,400
1,400
2,800
1,400
500
6,000
1,000
17,780

4.2 Pricing

According to the Law on Pharmacy, and the Sunshine must do the price declaration, which
means that the expected import prices, wholesale prices and retail prices need to be reported. The
expected price is decided by Sunshine itself as long as it is not higher than the quoted prices in
countries that have the similar healthcare and economic conditions.
Table 3: The expected price of a package of 12 bottles
The expected
wholesale price

The expected retail
price

The floor wholesale
price

The floor retail

price

£1500/12 items

£130 each

£1300/12 items

£120 each

There will be no charge for delivery retail product in Hanoi. All information about the product
and consulting services are free.
4.3 Sale projection

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The procedure for a new drug registration will last at least 4 month, so the Sunshine will
officially launching Vidatox® 30CH at the beginning of 2015 (Year 1).
Because primary goal of the retailing business is to promote Vidatox to potential customer, it will
made of a relatively small of total revenue. The main sales is generated from providing product
to hospitals and clinics, which is estimated based on the number of people getting cancer.
Because Vidatox® 30CH can be used for many type of cancer, assuming that each new cancer
patient will buy Vidatox® 30CH one time in their life from hospitals. In the first year, year 2015,
it is estimated that the company will provide 8400 items for 6 percent of new cancer patients
though treatment channel. The price will be the expected average price (£1350/12 items).
Table 3 shows the relatively worst scheme of business plan. Because Sunshine is the exclusive
distributor of Vidatox® 30CH in at least 5 years, and the demand for cancer drug increase
enormously every year.

Table 4: Sales projection Year 1-5
Year 1
Number of
product sold
Gross Sales

Year 2

Year 3

Year 4

Year 5

8,400

9,000

12,000

14,000

17,000

945,000

1,012,500

1,350,000

1,575,000

1,912,500

5. Marketing Plan

Sunshine will focus on brand development from the first activities and operations. In every
equipment or item in the office as well as clothes for staff, company’s logo will be design on.
Website and telecom system mainly serve the consulting service and retailing business. This is
not expected to make profit. In other hand, it is to strengthen the reputation and is the foundation
for Sunshine develop to a cancer information system in the future.
Because Vietnam have strict regulation about medicine advertising, the company will limit
advertising on mass media channel. The company focus on a promotional mix strategy (Belch &
Belch, 2004) with some element as follows:

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Figure 8: Promotional mix strategy for The Sunshine

Sale Promotion
Direct marketing
– oriented
promoton
is target
to mail
hospitals,
clinics.will
Sa

Advertsing target to doctor and pharmacist, encourage them useTrade
Vidatox
in their sales
business
operatons,
direct
and phone

Public relation
Personal selling
The cancer conference will be hold ever year with partcipant as doctors
and
pharmacists.
The
company
will
actvely
partcipate
in volunt
Sales representatve conductng hospital visits with
free samples,
p

6. Human resources Strategy

The Sunshine require all staff have good organizational and time management, team-work skills,
customer service skills, strong communication.
The Sunshine will employ require manpower needed as follows:

Table 5 Manpower plan

Position

Number of
personnel
required

Manpower needed
(addition requirements)
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Pharmacist

One

Leadership skill, 5 year experiences, English
speaking.

Pharmaceutical
technician

One at year 1, and Leadership skill, 5 year experiences, English
two from year 2
speaking.

Pharmaceutical
sale
representative

Four at year 1, and Work well independently, at least 2 years
6 at year 2
experiences,
excellent
understanding
of
pharmacology, Motivation for Sales, negotiation,
presentation skills. English speaking.

Accountant

One at year 1, and 5 year experiences, Documentation Skills, Multitwo from year 3
tasking

Computer
technician

One

Phone
representative

One at year 1, and Product knowledge, Customer Service, Problem
two from year 3
Solving, Documentation Skills, Listening, Phone
Skills, Resolving Conflict, Analyzing Information ,
Multi-tasking

Driver

One at year 1, and Driving licence
two from year 3

Creativity, Multi-tasking,

Every 6 months, all staff have to undergo intensive training about product and market knowledge
as well as soft skills.
Part time job can be offered if necessary, however, just for documental and delivery tasks. In
order to run some short-term project such as product launch seminars or conferences, the
Sunshine can hire some external organizations.
Pharmaceutical sale representative can be given reward according the sales that they made.
When the company made profit, 5 % will be allocated to Welfare Fund. The company will
organised annual tours for staff even if not achieving the sale objectives.
7. Business operation
All departments will work from 8am – 5pm, except customer care department, finishing their job
at 9 pm. The timetable can be flexible for Pharmaceutical sale representatives.
Under the Vietnamese business law, the Sunshine will have a Members' Council including two
member. Mai Nguyen will be chairman of the Members' Council and director. Phuong Bui will
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be the deputy Director and pharmaceutical manager, being primarily responsible for training
staff. Basically, the company have three main department. However, each employee may be
given different tasks spontaneously. Sales department will be divided into teams for special tasks.

Figure 9: Organisational Chart
Chairman / Director

Deputy Director

Marketng/ Customer service
Sales Department
Accountng / Finance

8. Financial plan
8.1 Break even analysis
According to calculation in Appendix 5, the break even analysis indicates that the Sunshine need
to achieve at least £446,738 in order to get profit.
Figure 10: Break even Analysis

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8.2 Projected profit and loss
When the business run well, the salary for staff as well as reward will be improved. The
marketing cost in the Year 1 particularly high, but it will decrease gradually when the company
obtain a certain position in the market.
Table 6: Profit and Loss Calculation
Year 1
Number
sold

of

product

8,400

Year 4

Year 5

12,000

13,000

15,000

1,350,000

1,575,000

1,912,500

1,071,480

1,250,060

1,517,930

278,520

324,940

394,570

75,000

78,600

83,400

42,600
20,000

15,000

15,000

15,000

15,000

3,400
3,360
6,000
9,600
2,000

3,400
3,700
6,000
10,400
2,000

3,400
4,000
6,000

12,000
2,000

3,400
4,000
6,000
13,000
2,000

3,400
4,000
6,000
14,000
2,000

86,960

96,660

117,400

122,000

127,800

108,004
27,001

112,230
28,058

84,17
3

161,120
40,280

202,940
50,735

266,770
66,693

120,840

152,205

200,078

945,000

Direct cost of sales

750,036

Gross margin

194,964

Net profit

9,000

Year 3

1,012,50
0
803,610
208,89
0
56,160

Gross Sales

Payroll
Sales and Marketing
and Other Expenses
Depreciation
Utilities
Insurance
Rent
Other
Total Operating
Expenses
Profit before tax
Tax payable (25%)

Year 2

81,003

9. Conclusion
A small business enter the pharmaceutical market will normally face a substantially economic
and regulatory pressures. However, the plan demonstrates that the company will create profit
from the Year 1 and continue in the upward trend. If the company can achieve expected profit
margins in accordance with the plan, further service providing reliable cancer information will be
offer.
10. Reference
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Belch, G. E., & Belch, M. A. (2004). Advertising and promotion: an integrated marketing
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11. Appendices

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