The first thing you learn at business school is to analyse your business. This is to have a thorough understanding of the strengths, weaknesses, opportunities, as well as, threats that may impact on your business: politically, sociologically, economically and technologically. The commonly used analytical tools for determining these factors are the SWOT analysis and the PEST analysis €“ the elements of which is described on the following page. PEST is a tool that helps identify the external factors that will influence a business.

These analytical tools not only help you to think laterally, but help to identify areas of focus and any forthcoming threats that may impact on the business. This enables you to develop an action plan. This should focus on the areas of strength such as personalised services, local presence and trust of the customers.

Some weaknesses, such as buying power and so on, can be fixed by joining consortia or buying groups and negotiating with the wholesalers.

Since the majority of pharmacy income comes from the NHS, any political impact on the business can be immense, particularly when massive amounts of money, such as that withdrawn through Category M or other changes in policy, take effect. Could a Pharmaceutical Needs Assessment bring about granting of a contract on your own doorstep, especially if you are not offering some of the services that were being commissioned? Just imagine if that was to happen because you had been too busy dispensing prescriptions and not making time to offer professional services.