BUSINESS PLAN

                                                           BUISNESS PLAN

1 .BUISNESS DESCRIPTION

Clanol Pharmacy Ltd is a wholesale/retail pharmacy and store outlet operating seven days a week.

We are fully into drugs (with emphasis on genuine and cost effective products), attending to prescriptions generated from hospitals and also re-filling prescriptions. With a pharmacist always on duty, we provide community pharmacy support by treating those with minor ailments; educating and counselling antenatal patients and patients with chronic diseases on lifestyle and drug use. Health talks are also organized for patients on need basis. We also provide support with relevant agencies in the health care delivery system (participated in the Society for Family Health roll-back malaria programme). In addition, we also deal on medical equipment, consumables and provisions.  

Our wholesale arm ensures that we source most of our drugs from manufacturing companies for redistribution to some upcoming pharmacies, hospitals and clinics. Currently we are distributing for some pharmaceutical companies namely; Fidson Healthcare Plc, Chi Pharmaceuticals Ltd, Lyn Edge Pharmaceuticals, Retlaw International.

At the stores section, we stock cosmetics, provisions, etc.

Our intent is to expand and grow our distributorship base and the stores section by stocking a wider variety of goods to transform the pharmacy to a one stop shop.  

2.AIM

1.       To expand the wholesale department by obtaining the distributorship of some major companies namely:- Norvartis Pharma, Pfizer and Ranbaxy, etc. We have made progress in our discussion with these companies; and have agreed on terms and conditions inclusive of initial bulk purchase requirement.

2.        We plan to expand our distribution network by creating new channel of delivery. There will be a delivery van with a sales representative that would enable us reach out to the hinterland, and thus providing them genuine products at affordable cost. And at the same time meet the targets agreed with the manufacturing companies. Presently the CEO/MD has been using her personal vehicle to conduct our distribution effort.   

3.       Obtain a more spacious business floor area hopefully through the construction of our own outlet. This would enable us expand the store section by transforming it into a mini-mart (thus stock increasing variety of products with emphasis on provision and cosmetics} and give us a more spacious warehouse for our wholesale pharmaceutical trading.

3.MANAGEMENT/ WORK FORCE

4.       Pharm Ifeoma Obute, CEO/MD; - has been involved in community pharmacy practice since 2008. Prior, she gained hospital experience during her internship and youth service. She has always participated in the yearly professional development course in her field to keep abreast of current information and new discoveries pertaining to the discipline. Presently, she is concluding her Master in Public Health. Her experience in the last six years has been crucial to the growth of the business.

5.       Pharm Alfred Igboji; –he supports on part time basis, involved in the pharmaceutical clinical services. A full time pharmacist is expected to join in the course of the year. 

6.       Manager – We propose to engage a graduate for this position and presently have identified a manager with a competition in the town. He is resourceful and can work with little supervision.

7.       Sales Representative – A Pharmacist Technician, knowledgeable in drug storage and handling would be recruited for this position.

8.       Okwudili Nwite (OND) – Store keeper joined the company since inception and has continued to gain mastery of his job function.

9.       Nurses who bring their training in patient care to the work. They have also received drug trainings organized by drug companies over the years.

4. PRODUCTION PROCESS/MARKET ANALYSIS :

   -          Requisitions are sent to supplier for first time purchases (there is a need register) or once a product reorder level is reached.

   -          From company representatives taking into consideration the timing of their visits.

   -          Also a promo by a company or impeding scarcity would compel purchases after analyzing the benefit.

   -    A supply request on Clanol  Pharmacy would necessarily lead to immediate purchase.

Stock Management

   -          Store keeper receives product and enters it into the store receiving voucher. Tally cards are also updated.

   -          Requisition is made to the store once stock goes down on the shelves for display.

Payment for Good Bought:

   -          Payment for few purchases are made on cash and carry basis, whereas most are done through direct payment into the supplier’s account after receipt of supplied products

Sales:

   -          Once a product is sold, a receipt is issued to the customer

   -          For a supply contract, delivery is made to the institution/clinic

Receipt of payment for Goods Sold:

   -          The cashier collects cash based on the issued receipt

   -          On few instances, credit is granted and record in the company’s debtors book

   -          Supply contracts are usually paid direct to the bank account

MANAGEMENT EXPERIENCE

The CEO has worked with the State Teaching Hospital for two years and came to know the major stakeholders in health care.

Had one year experience in another community pharmacy and developed a sense of what the market required

Has been running Clanol Pharmacy for five years and now knows the market

CUSTOMERS BASE.

Our customer base are as follow

Institutions/Hospitals;-   Help us meet target set by our suppliers/manufacturing companies

Clinics/Doctors;- Health profession customers. Give us the referrals both at their private clinics and government hospitals.

Patients/Walk Ins; - The pharmacy’s heartbeat.    Provide instant cash and gives us our stable customer base. 

Bulk Purchasers/Patent Dealers;- Provide a wider network coverage

Federal Teaching Hospital Abakaliki;-  We have been supplying them drugs and sundries for three years now.

National Obstetrics and Fistula Center ; - We have been supplying them drugs and sundries for two years now.

Ndubuisi  Hospital Onueke;- A new relationship, we supply them drugs and sundries.                                                    Dubem Pharmacy Ltd;- A new pharmacy in town, they purchases all the drugs we distribute from us.

Director of State Security (DSS) Clinic;-A very new relationship, we supply their clinics.

OUR SELLING POINT

LOW COST;- In health management, people are interested in genuine and cost effective drugs. This we achieve serving as a bulk breaker to the major manufacturers and selling with fair mark-up. Example is our distributorship with Fidson Healthcare, where we buy Emal Injection at N1,500.00  rather than the N1,550 from representatives and retail price N1,800.00 .  Selling at a price of N1,750.00 will definitely generate a repeat call.

CUSTOMERS SERVICE; -We have a clientele base comprising the elite in the town and also the rural people who comes into town for medical needs. With our culture of a pharmacist at the counter, we do not just sell drugs but lay emphasis on treatment. One of our major “advertiser” is a Judge who was on a medication that aggravates his condition and the pharmacist detected and removed it, instead of making more sales. He has never stopped talking about it.

GENUINE/QUALITY.;-There are lots of substandard products in the market. Sustainable success depends largely on reputation developed regarding the quality of products one stocks. From inception, it has been quality for us. We have had customers waiting on us to re-stock because of assured quality.

Our sales force is principally the following:

Nurses:  Forms the front desk customer relation officer and serves as the face of the pharmacy. They would handle drug dispensing at the counter/dispensary

Sales Person:  These are the floor sales force in the mini-mart section

Sales Representative: This is a technical person who will handle the distribution business

CHALLENGES/RISK

Keyman Risk:  The CEO/MD is involved in everything. Her breaking down would adversely affect the business.

Mitigate - Engaged a pharmacist on a part time basis and later a pharmacist on full time.  

Leakages:- Staff can help themselves  to product/cash.

Mitigate- In addition to existing control, install a software package. Hire an internal control staff.  In future, install CCTV cameras.

Theft and Fire:  A robbery attack during and after work or major theft of products could affect the business. A fire incident could adversely affect the business:

Mitigate- Improved cash handling; usage of our POS. Theft and fire insurance taken

These are other challenges confronting the business:-

   1.  Space constraint as the business has peaked as presently constituted

   2.  Staffing challenges as additional nurses are needed to reduce workload and create room for shift.

   3. The land lord/tenant relationship that is always under constant threat with the attendant annual rent increase geared to match the business performance.

With increase in competition within the town (over 5 pharmacies opened in the past 18 months), the race to become a distributor of the major companies has become intense.

   4.  The people issue remains topical as staff turnover is high. Difficult to attract and keep exceptional hands.

    5. With poor space is the challenge of constant stock review to ensure that stock expiration is eliminated (so much time spent on stock monitoring).

    6.  Regulatory (FIRS) demand requiring proper documentation and book keeping  

CONCLUSION

Ours is an existing business (5 years old) ripe for expansion. The expansion entails increasing our business floor area from the present 36m2  to something bigger to enable us have a more spacious area for the pharmacy and our mini-mart with the attendant warehouses. There is no alternative but to get our own place with a view for the future (a community pharmacy outlet is most often tied to an address). 

ENTREPRENEURSHIP READINESS QUESTIONNAIRE

The text’s emphasis on entrepreneurship is maintained with an Entrepreneurship Readiness Questionnaire and an entire page on entrepreneurship and the challenge of starting a business. No other introduction to business text offers as much coverage of small business and entrepreneurship as does Understanding Business, and since the great majority of students taking this course currently work or will work in small companies, reviewers agree that this emphasis is well placed

             “students to receive the magazine for 15 weeks at a special price”

The BusinessWeek Connection

It’s no secret that reading BusinessWeek articles helps students stay current, but the typical subscription rate makes it difficult for students to afford to read the articles regularly. McGraw-Hill/Irwin, in cooperation, with our sister company BusinessWeek, make it possible for students to receive the magazine for 15 weeks at a special price—substantially less than the lowest subscription rate. Additionally, throughout the text, special boxes feature BusinessWeek articles to help emphasize the importance of reading and staying current.

Getting to Know Business Professionals

Each chapter begins with a profile of a person whose career relates closely to the material covered in the chapter. Not all the personalities are famous since many of them work in small businesses and nonprofit organizations. Getting to know these business professionals provides the perfect transition to the text material.

The Secretary of Labor appointed a commission, the Secretary’s Commission on Achieving Necessary Skills (SCANS), to identify the skills people need to succeed in the workplace. SCANS’s fundamental purpose is to encourage a high-performance economy characterized by high-skill, high-wage employment. To help your students connect what they learn in class to the world outside, it is important that they understand five workplace competencies: Throughout the seventh edition of Understanding Business, several pedagogical devices are used to help students master these skills.

1. Resource skills.

2. Interpersonal skills.

3. Information ability.

4. Systems understanding.

5. Technology ability.

Learning Goals

Tied directly to the summaries at the end of the chapter and to the test questions, the Learning Goals help students preview what they should know after reading the chapter, and then test that knowledge by answering the questions in the summary.

Developing Workplace Skills

The Developing Workplace Skills section has activities designed to increase student involvement in the learning process. Some of these Mini projects require library or

Internet searches, while others can be used as team activities either in or out of the classroom.

Cross-Reference System

This system, unique to this text, refers students back to the primary discussion and examples of key concepts. A specific page reference appears when a key concept occurs in a chapter subsequent to its original discussion, which eliminates the need to continuously revisit and restate key concepts, thus reducing overall text length.

“increase student involvement in the learning process”

Photo and Illustration Essays

More and more students have expressed that they are visually oriented learners; therefore, this increased emphasis on the pedagogical value of the illustrations is essential. Each photo and illustration in the text is accompanied by a short essay that highlights the relevance of the visuals to the material in the text.

LEARNING THE SKILLS NEEDED TO SUCCEED TODAY AND TOMORROW

Your life is full. You’re starting a new semester, probably even beginning your college career, and you’re feeling pulled in many directions. Why take time to read this introductory section? We lightheartedly offer our top 10 reasons to read it on page P-1, but the real importance of this section to your success is no joking matter. The purpose of this introduction and of the entire text is to help you learn principles, strategies, and skills for success that will help you not only in this course but also in your career and entire life. Whether or not you learn these skills is up to you. Learning them won’t guarantee success, but not learning them—well, you get the picture. We hope you invest the time to read the entire Getting Ready for Prime Time section. However, we realize that some parts of the material may be more relevant to your individual needs at a particular time than others. To help you focus on the most important information for your needs, we’ve divided the material into three major categories:

1. Succeeding in This Course. An overview of the skills you’ll need to succeed in this course and throughout college as well as the skills needed to succeed in your career after you earn your diploma. READ THIS SECTION BEFORE YOUR FIRST CLASS and make a great first impression!

2. Surfing the Internet. A quick and easy overview of how to surf the Internet. This section is designed for newbies (new users), so if you are an experienced surfer you may just want to skim the titles in this section to see if there is anything you would like to know more about. However if you are new to the Internet, this is an excellent place to start.

3. Getting the Job You Want. Guidelines to finding and getting the job you want with an emphasis on job search, résumé writing, and interviewing skills. This is an exciting and challenging time. Never before have there been more opportunities to become successful. And never before have there been more challenges. Success in any venture comes from understanding basic principles and having the skills to apply those principles effectively. What you learn now could help you be a success—for the rest of your life. Begin applying these skills now to gain an edge on the competition. Good luck. We wish you the best.

SUCCEEDING IN THIS COURSE

Since you’ve signed up for this course, we’re guessing you already know the value of a college education. But just to give you some numerical backup, you should know that the gap between the earnings of high school graduates and college graduates, which is growing every year, now ranges from 60 to 70 percent. According to the U.S. Census Bureau, the holders of bachelor’s degrees will make an average of $40,478 per year as opposed to just $22,895 for high school graduates.

1 That’s a whopping additional $17,583 a year. Thus, what you invest in a college education is likely to pay you back many times. To get an idea of how much salary difference a college degree makes by the end of a 30-year career. That doesn’t mean there aren’t good careers available to non–college graduates. It just means that those with an education are more likely to have higher earnings over their lifetime. The value of a college education is more than just a larger paycheck. Other benefits include increasing your ability to think critically and communicate your ideas to others, improving your ability to use technology, and preparing yourself to live in a diverse world.2 Knowing you’ve met your goals and earned a college degree also gives you the self-confidence to continue to strive to meet your future goals. Experts say it is likely that today’s college graduates will hold seven or eight different jobs (often in several different careers) in their lifetime. There are many returning students in college today who are changing their careers and their plans for life. In fact, 41 percent of the people enrolled in college today are 25 or older. More than 1.6 million students are over 40.3 Talk to them and learn from their successes and mistakes. You too may want to change careers someday. Often that is the path to long-term happiness and success. That means you will have to be flexible and adjust your strengths and talents to new opportunities. Many of the best jobs of the future don’t even exist today. Learning has become a lifelong job. You will have to constantly update your skills if you want to achieve and remain competitive. If you’re typical of many college students, you may not have any idea what career you’d like to pursue. That isn’t necessarily a big disadvantage in today’s fast-changing job market. There are no perfect or certain ways to prepare for the most interesting and challenging jobs of tomorrow. Rather, you should continue your college education, develop strong computer skills, improve your verbal and written communication skills, and remain flexible while you explore the job market.

USING THIS COURSE TO PREPARE FOR YOUR CAREER

One of the objectives of this class is to help you choose an area in which you might enjoy working and in which you might succeed. This book and this course together may be one of your most important learning experiences ever. They’re meant to help you understand business so that you can use business principles throughout your life. You’ll learn about production, marketing, finance, accounting, management, economics, and more. At the end of the course, you should have a much better idea about what careers would be best for you and what careers you would not enjoy. But you don’t have to be in business to use business principles. You can use marketing principles to get a job and to sell your ideas to others. You can use your knowledge of investments to make money in the stock market. Similarly, you’ll be able to use management skills and general business knowledge wherever you go and in whatever career you pursue— including government agencies, charities, and social `causes.

ASSESSING YOUR SKILLS AND PERSONALITY

The earlier you can do a personal assessment of your interests, skills, and values,

the better it will be for you in finding some career direction. In recognition of this need, many colleges offer self-assessment programs. Hundreds of schools use a software exercise called the System for Interactive Guidance and Information (SIGI). A different version, called DISCOVER, is used at hundreds of other schools. Both SIGI and DISCOVER feature self-assessment exercises, create personalized lists of occupations based on your interests and skills, and provide information about different careers and the preparation each requires. Visit your college’s placement center, career lab, or library and learn what programs are available for you. It would be helpful to use one or more self-assessment programs early in this course so you can determine, while you’re learning about the different business fields, which ones most closely fit your interests and skills. Self assessment will help you determine the kind of work environment you’d prefer (e.g., technical, social service, or business); what values you seek to fulfill in a career (e.g., security, variety, or independence); what abilities you have (e.g., creative/artistic, numerical, or sales); and what important job characteristics you stress most (e.g., income, travel, or amount of job pressure). Even if you’re one of the college students over 30 years old, an assessment of your skills will help you choose the right courses and career path to follow next. Many returning students have taken such tests because they are not satisfied with what they’re doing and are seeking a more rewarding occupation. Armed with the results of your self-assessment, you are more likely to make a career choice that will be personally fulfilling.

LEARNING PROFESSIONAL BUSINESS STRATEGIES

Business professionals have learned the importance of networking and of keeping files on subjects that are important to them. These are two secrets to success that students should begin practicing now: retention of knowledge and Graduation from college brings smiles all around and for a good reason; today’s businesses seek knowledgeable workers to fill jobs in a changing workplace. For students willing to assume the challenge, the rewards are worth the effort. College graduates earn 60 percent to 70 percent more than high school graduates. What additional benefits do you see from earning a college degree?

Getting Ready for Prime Time • PROLOGUE P-5

Keeping contacts. One thing that links students in all colleges is the need to retain what they learn. You need a strategy to help you meet this need. It’s also extremely important to keep the names of contact people at various organizations. In addition, you may want to keep facts and figures of all kinds about the economy and business-related subjects. These are all reasons why you should develop resource files. An effective way to become an expert on almost any business subject is to set up your own information system. Eventually you may want to store data on computer disks for retrieval on your personal computer and to access professional databases as businesspeople do. Meanwhile, it’s effective to establish a comprehensive filing system on paper. If you start now, you’ll soon have at your fingertips information that will prove invaluable for use in term papers and throughout your career. Few college students do this filing; those who don’t lose much of the information they read in college or thereafter. Developing this habit is one of the most effective ways of educating yourself and having the information available when you need it. The only space you’ll need to start is a 12-inch-square corner of your room to hold a portable file box. The box should hold hanging folders in which you can place a number of tabbed file folders. To start filling these files, you might put your course notes in them with the names of your professors and the books you used. You may need this information later for employment references. Also, be sure to keep all the notes you make when talking with people about careers, including salary information, courses needed, and contacts. Each time you read a story about a firm that interests you, either cut it out of the publication or photocopy it and then place it in an appropriate file. You might begin with files labeled Careers, Small Business, Economics, Management, and Resource People. You might summarize the article on a Post-it note and stick this summary on the front for later reference. Today, it is possible to find the latest data on almost any subject on the Internet. Good students know, or quickly learn, how to find such information efficiently. The best students know the importance of keeping such information in files so that it is readily accessible. Those files may be in their computers or on their desktops, ready for easy access. You definitely want to have a personal data file titled Credentials for My Résumé or something similar. In that file, you’ll place all reference letters and other information about jobs you may have held. Soon you’ll have a tremendous amount of information available to you. You can add to these initial files until you have your own comprehensive information system. Businesspeople are constantly seeking ways to increase their knowledge of the business world and to increase their investment returns. One way they do so is by watching television shows such as Wall $treet Week and Nightly Business Report. Watching such programs is like getting a free graduate education in business. Try viewing some of these shows or listening to similar shows on the radio, and see which ones you like best. Take notes and put them in your files. Another way, one of the best, to increase your business knowledge is to read your local newspaper. Keep up with the business news in your local area so you know what jobs are available and where. You may also want to join local business groups to begin networking with Ever looked for something you know you read, but cannot find it when you need it? A simple file system can ensure that articles, class assignments, important contacts, and so on are at your fingertips. Technology today simplifies the process even further by making such information instantly accessible. What other information would you keep in your file system?

P-6 PROLOGUE • Getting Ready for Prime Time people and learning the secrets of the local business scene. Many business groups and professional societies accept student members.

LEARNING TO BEHAVE LIKE A PROFESSIONAL

Good manners are back, and for a good reason. As the world becomes increasingly competitive, the gold goes to the individuals and the teams that have an extra bit of polish. The person who makes a good impression will be the one who gets the job, wins the promotion, or clinches the deal. Manners and professionalism must become second nature to anyone who wants to achieve and maintain a competitive edge.  

Often, students focus on becoming experts in their particular field and neglect other concerns, including proper attire and etiquette. Their résumés look great, and they may get through the interview process, but then they get in the workplace and may not succeed. Their behavior, including their verbal behavior, is so unacceptable that they are rejected by their peers.

The lesson is this: You can have good credentials, but a good presentation is everything. You can’t neglect etiquette, or somewhere in your career you will be at a competitive disadvantage because of your inability to use good manners or to maintain your composure in tense situations. You must constantly practice the basics until they become second nature to you. Such basics include saying “Please” and “Thank you” when you ask for something. They also include opening doors for others, standing when an older person enters the room, and using a polite tone of voice. You may want to take a class in etiquette to learn the proper way to eat in a nice restaurant and handle the various utensils, the proper way to act at a formal party, and so on. Of course, it is critical that you are honest, reliable, dependable, and ethical at all times. You can probably think of sports stars who have earned a bad reputation by not acting professionally (e.g., spitting, swearing, and criticizing teammates in front of others). People in professional sports are fined if they are late to meetings or refuse to follow the rules established by the team and coach. Business professionals also must follow set rules. Many of these rules are not formally written anywhere, but every successful businessperson learns them through experience. You can begin the habits now while you are in college so that you will have the skills needed for success when you start your career. Those habits include the following:

1.     Making a good first impression. An old saying goes, “You never get a second chance to make a good first impression.” You have just a few seconds to make an impression. Therefore, how you dress and look is important. Take a clue as to what is appropriate at any specific company by studying the people there who are most successful. What do they wear? How do they act?

2.     Focusing on good grooming. Be aware of your appearance and its impact on

Those around you. Consistency is essential—you can’t project a good image by dressing up a few times a week and then showing up looking like you’re getting ready to mow a lawn. Wear appropriate, clean clothing and acces- Good grooming in business does not always mean wearing a suit. Growing numbers of businesses have adopted business casual as the proper attire. The key to remember is casual does not mean sloppy. It’s also important to recognize how your appearance impacts both you and the company. What do you think proper business casual means?

Getting Ready for Prime Time • PROLOGUE P-7

Series. For example, revealing shirts, nose rings, and such may not be appropriate in a work setting. It is not appropriate for men to wear hats inside buildings. It is also not appropriate, usually, to wear wrinkled clothing or to have shirttails hanging out of your pants. Many businesses are adopting “business casual” policies, but others still require traditional attire, so it may be helpful to ask what the organization’s policies are and choose your wardrobe accordingly. What is business casual to some may not be acceptable to others, but there are a few guidelines most organizations accept. First, casual doesn’t mean sloppy or shabby. For women, business casual attire includes simple skirts and slacks (no jeans), cotton shirts, sweaters (not too tight), blazers, low-heeled shoes or boots (always with socks or stockings). For men, acceptable business casual attire includes khaki trousers, sport shirts with collars, sweaters or sport jackets, casual loafers or lace-up shoes (no athletic shoes).

3. Being on time. When you don’t come to class or to work on time, you’re sending a message to your teacher or boss. You’re saying, “My time is more important than your time. I have more important things to do than be here.” In addition to the lack of respect tardiness shows to your teacher or boss, it rudely disrupts the work of your colleagues. Promptness may not be a priority in some circles, but in the workplace

Promptness is essential. But being punctual doesn’t always mean just being on time. You have to pay attention to the corporate culture. Sometimes you have to come earlier than others and leave later to get that promotion you desire. To develop good work habits and get good grades, it is important to get to class on time and not leave early.

4. Practicing considerate behavior. Considerate behavior includes listening when others are talking—for example, not reading the newspaper or eating in class. Don’t interrupt others when they are speaking. Wait for your turn to present your views in classroom or workplace discussions. Of course, eliminate all words of profanity from your vocabulary. Use appropriate body language by sitting up attentively and not slouching. Sitting up has the added bonus of helping you stay awake!

Professors and managers get a favorable impression from those who look and act alert. That may help your grades in school and your advancement at work.

5. Practicing good “netiquette.” Computer technology, particularly email, can be a great productivity tool. The basic courtesy rules of faceto- face communication also apply to e-mail exchanges. As in writing a letter, you should introduce yourself at the beginning of your first email message. Next, you should let your recipients know how you got their names and e-mail addresses. Then you can proceed with your clear but succinct message, and finally close the e-mail with a signature. Do not send an attachment (files of text or graphics attached to an e-mail message) with your e-mail unless your correspondent has indicated that he or she will accept it. Ask first! You can find much more information about proper Internet etiquette (netiquette) on the Internet. For example, Onlinenetiquette.com offers netiquette advice.

6. Practicing good cell phone manners. Cellular phones are a vital part of today’s world, but it is important to be polite when using the phone. Turn off the phone when you are in class or a business meeting unless you are expecting a critical call. Your Introduction to Business class is not the place to be arranging a date for tonight. If you are expecting a critical call, turn off the audible phone ring and use the vibrating ring if your phone has that feature. If you do have to have your

P-8 PROLOGUE • Getting Ready for Prime Time cellular phone turned on, sit by the aisle and near the door to leave if the phone rings. Leave the room before answering the call. Apologize to the professor after class and explain the nature of the emergency. Most professors will be sympathetic when you explain why you left the room abruptly.

7. Being prepared. A businessperson would never show up for a meeting without reading the materials assigned for that meeting and being prepared to discuss the topics of the day. To become a professional, you must practice acting like a professional. For students, that means reading assigned materials before class, asking questions and responding to questions in class, and discussing the material with fellow students. From the minute you enter your first job interview until the day you retire, people will notice whether you follow the proper business etiquette. Just as traffic laws enable people to drive more safely, business etiquette allows people to conduct business with the appropriate amount of dignity. How you talk, how you eat, and how you dress all create an impression on others. We encourage you to add a course or seminar on etiquette to your college curriculum. Many businesses today require their employees to complete such a course. Taking the initiative to do so on your own will help sharpen your competitive edge.

Business etiquette may encompass different rules in different countries. It is important, therefore, to learn the proper business etiquette for each country you visit. Areas that require proper etiquette include greeting people (shaking hands is not always appropriate); eating (Europeans, for example, often hold their knives and forks the whole time they are eating); giving gifts; presenting and receiving business cards; and conducting business in general. Honesty, high ethical standards, and good character (e.g., reliability and trustworthiness) are important ingredients to success in any country. Having a reputation for integrity will enable you to be proud of who you are and will contribute a great deal to your business success. Unethical behavior can ruin your reputation, so think carefully before you act. When in doubt, don’t! Ethics is so important to success that we include ethics discussions throughout the text.

It is crucial that people learn business etiquette appropriate for the countries in which they do business. Behavior taken for granted in the United States can be insulting in other cultures. Here an American businesswoman greets a Chinese counterpart. What are some of the cultural differences that might affect her business behavior in China?