An Analysis on the impact of cost control on profitability of a pharmaceutical firm, case of Centurion pharmacy · Electronic Theses and Dissertations

Author

Madzise, Malven

Title

An Analysis on the impact of cost control on profitability of a pharmaceutical firm, case of Centurion pharmacy

Abstract

This study examines how cost management affects a pharmaceutical company's profitability using Centurion Pharmacy as a case study. Verifying the effect of cost control measures on market share, investigating the effect of cost control measures on risk diversification, ascertaining the connection between cost and income reduction measures, and assessing the influence of supply were the goals of the study. holistic method of profitability. For this investigation, a descriptive design was adopted. Stratification was utilized to sample the data, and convenience sampling was employed for interviews. Random sampling was then performed within each stratum. For this study, a sample of 54 respondents was selected from a target population of 63. The data was analysed and presented using Microsoft Excel and SPSS version 21 in table, pie chart, and bar graph formats. The main conclusion was that cost containment has an effect on Zimbabwean pharmaceutical businesses' operations. To survive, several have had to completely redesign their businesses. Based on empirical data, business earnings are declining at an accelerated rate due to growing costs. The findings demonstrate that cost-control initiatives have a major impact on the financial success of pharmaceutical businesses doing business in Zimbabwe. The study came to the conclusion that labour outsourcing is a valuable cost-control strategy since it guarantees that health services are rendered by licensed and certified specialists at a much lower cost. The study suggested that in order to remind customers that they are accountable for fulfilling specific obligations and boost profit margins, pharmaceutical companies should use e-invoicing and stay up to date with technology advancements like global sourcing. In the end, these important stakeholders will flee pharmacies that do not treat their clients like royalty and do not maintain positive connections with their suppliers, which will result in losses.

Date

October 2024

Publisher

BUSE

Keywords

Profitability

Pharmaceutical firm

Centurion pharmacy

Supervisor

Mr Z Onias