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Drugs store and business management PDF Notes

Business:-

Business is the activity where extant of goods or services are involved with the objective or earning.

The term “business” also refers to the organized efforts and activities of individuals to produce and sell goods and services for profit.

A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities.

Business activity are mainly divided into two types.

A) Industry

B) Commerce

A) Industry:-

Industry is concept which the people and activities involved in producing something, providing a service, etc.

1. Consumer goods

2. Capital goods

3. Intermediate goods

1. Consumer goods:-

A consumer goods is a commodity that is used by the consumer to satisfy current wants or needs, unlike intermediate goods which is utilized to produce another goods.

Ex- Car, Bike, Microwave ovens.

2. Capital goods:-

Capital goods also known as row material. It uses in the production of other goods are called Capital goods. Ex- Surgical instruments, Ship, motor, engine.

3. Intermediate goods:-

End product of one industry which are used as intermediate in the other industry so as to produce others product are called as intermediate

Intermediate goods, producer goods or semi-finished products are goods, such as partly finished goods, used as inputs in the production of other goods including final goods. A firm may make and then use intermediate
goods, or make and then sell, or buy then use them.

Ex: – Wire and cables, remotes, etc.

Commerce:-

They link between the producer and the costomers.

Commerce is that aspect of business activity which is cansult by the distribution of goods and services produced by the industry the production of goods and services for the satisfaction of human wands the main
objective of an industry.

Function and Subdivision of commerce

1. Trade

2. Aids to trade / Branches of commerce.

A. Transport

B. Banking

C. Insurance

D. Warehousing

E. Packing

F. Advertising & Publicity

1. Trade

Trade is known as buying, salling and exchange of goods trade can be considered the nucleus of all commercial activities.

Classification of Trade:-

1. Internal trade

2. International trade.

1. Internal trade:-

a. Local

b. State trade

c. Interstate trade

2. International trade (Foreign)

a. Import trade

b. Export trade

c. Enter port trade

Aids to trade / Branches of commerce:-

A) Transport: – Transport is the pay factor in making goods available to consumer at any place.

i. Drugs and formulation stability is extremely important while taking drugs from one place to another place.

B) Banking: – A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans.

C) Insurance:- Business is a risk & insurance take’s care of the risk involved there are many different type of insurance.

a) Life Insurance

b) Fire Insurance

c) Marine Insurance

d) General Insurance

D) Warehousing (Storage) :- It is a place where store goods that will be sold or distributed later.

E) Packaging: – Packaging is the science, art and technology of enclosing or protecting products for distribution, storage, sale, and use.

Packaging also refers to the process of designing, evaluating, and producing packages.

F) Advertising and publicity: – Advertising and publicity gives information to the costumes regarding to the product through telivision, Newspaper, magazine, and posters on the walls.

Now day available different digital platform to publish your ads. Like YouTube, Facebook, and other social media platforms.

Introduction to elements for economics and management.

Economics: – It is a social science which deals with the economic problems which to give individual and ultimately the country.

It’s proper used and allocation for satisfied various human bonds so as to maintain growth and stability.

Three main branch of economics

a) Descriptive economics.

b) Economics theory

c) Applied economics

a) Descriptive economics:- The term explain the fact about the economics such as India agriculture industry foreign trade.

b) Economics theory:- This deals with the functioning of an economic system.

Ex:- How to collect production cost, marketing cost and how much to change for services.

c) Applied economics:- In this branch an economics analysis is made to study and understand the signification of economic events.

The elements of economics following two system.

i. Economic Activities

ii. Economic system

Business is an activity by which one can earn money and acquire wealth through production and exchange of goods.

A business organization is a company or enterprises which buys and sells goods and is managed by one person of group of persons.

Type of business organization

A. Individual concerns

a. Sole proprietorship Sole Trade

b. Partnership

c. Joint Hindu family business

d. Joint venture

e. Joint stock company

f. Co-operative society

B. Government Concerns

a) Departmental Undertaking

b) Public Corporation

c) Government Company

d) Board Organization

Objectives of business organization

The following are important objectives of business organization.

a) Profit motive: – The main objective of business organization is to earn profit to run the business effectively and to expand the development of the business.

b) Service motive: – Service to the public is another objective of the business organization.

c) To get economic production: – To produce maximum possible goods (both quantity and quality) at minimum possible cost is another objective.

d) Economy in time and efforts: – A businessman tries to share time and efforts to develop his business through business organization

e) Developing sprit of co-operation among the employees and providing satisfaction to the employees.

The route by which good move from the place of production to the place of consumption is termed as channel of distribution.

Classification of channels of distribution: –

There are two types of channels of distributions namely

a) Distribution of consumer goods.

b) Distribution of industrial goods.

Distribution of consumer goods: It is broadly classified into two types, namely

a) Direct Selling

b) Indirect Selling

a) Direct Selling: – Producer ————-à Consumer

The producer sells his goods directly to the consumers. This is the shortest and simplest channel of distribution of consumer products without involving a middleman in between.

b) Indirect Selling: – In this case, there are one or two or more middle man in between the producer & consumer. For example

i) Producer ————-à Retailer ————-à Consumer

Many large retailers buy directly from manufactures and sell to consumers

Some manufactures have established their own retail stores. Ex: Bata shoe company.

ii) Producer ————-à Whole sale ————-à Retailer ————-à Consumer

This is traditional channels for consumer’s goods. This channel is the only economically feasible choice for the manufactures to sell their goods. The wholesalers buy the goods form the manufactures in large
quantities, stores the goods and then sells them in small quantities to a large number of retailers.

iii) Producer ————-à Agent ————-à Retailer ————-àConsumer

Instead of using wholesalers, many producers prefer to use
the manufacturer’s agent or brokers to sell their goods to the retailer.

iv) Producer————-à Agent ————-àWhole sealer ————-à Retailer ————-àConsumer

The producers very often use agents or middle men who inturn go to wholesalers who sell to retailers or to small stores.

Distribution of industrials goods: – These channels are widely used in distribution of industrials goods, they are

a) Producer ————-à Industrial user

The manufacturers sell the large installations such as locomotives, generators etc to the industrial users.

b) Producer ————-à Industrial distributors ————-à User

Producers of small ancillary equipments (Eg – building equipment) sell their goods through the industrial distributors.

c) Producer ————-àAgent ————-à User

A company which wants to introduce a new product to the market may prefer agents rather than distributors.

Drugs store and business management PDF Notes FAQs

What qualifications do I need to open a drug store? You will typically need a pharmacy degree or be a licensed pharmacist to open and operate a drug store.
How can I ensure the safety of medications in my store? Implement strict inventory control and ensure proper storage conditions. Regularly check for product recalls and updates.
What are some key legal requirements for operating a drug store? Legal requirements may vary by location, but they often include obtaining the necessary licenses, permits, and complying with pharmaceutical regulations.
How do I market my drug store effectively? Invest in a strong online presence, engage in local marketing, and consider loyalty programs to attract and retain customers.
What is the future of drug stores in the digital age? The digital age offers opportunities for online sales and telehealth services, making it important for drug stores to adapt to changing consumer preferences.