Veteran Pharmaceutical is a dispensing chemist that deals in distributing human drugs in both retail and wholesale to the surrounding community. Its main clients consist of the local residents and the small chemists around it. Located at the heart of Chicago, the veteran has been having good returns in the past few years. The managing director who is also the owner is an ambitious young man who feels that given a chance he can excel. He feels that if they were to relocate to some other area they would be able to make more profits.
Due to the economic crunch being experienced all over America and the whole world at large, there has been a decline in profits for Veteran in the last few months. This has called for this company to weigh its options if it wants to stay afloat in business. This has also fuelled the director’s desire to relocate since he feels that he can do better in another state. There have been some other factors that the managing director feels are contributing to the company’s ills.
In June last year, a rival company was selling out its business after feeling that he couldn’t take the heat anymore. The director of Veteran saw this as a good opportunity to fulfill his ambition by combining the businesses. In July he completed the deal that saw him as the proud owner of Veteran Inc. Company. This saw him closing the old company and concentrating on the new one. Other than his desire to excel there were also other external causes that contributed to the move.
The first was security. Chicago is known to be one of the most crime-prone areas of America. This was the main reason why Veteran Pharmaceutical had to move location to another part of the state. This arose after a number of the big clients complained about the security situation in the area. This occasioned the need to move to a safer region in order to protect their customers. Its distribution vans had also been attacked on four different occasions leading to the loss of money and drugs.
The second major reason why they had to move was due to numerous power shortages in that part of Chicago. Most of their drugs needed to be refrigerated and hence the numerous power blackouts used to take a heavy toll on their profits due to drugs going to waste. The roads were also in a poor state and hence people used to face problems getting to the premises especially during the rainy season.
Over the period that Veteran had been in business in this part of Chicago, most other small chemists had cropped up leading to undue competition for them. Whereas before they had a monopoly in the market, they now found themselves faced by a new breed of business persons who had brought competition to their doorstep. Most of their old customers had been lost to these new outfits and hence the need for a new client base.
The last major cause that occasioned the move was the state of the building they were working in. Most of the houses in this part of Chicago were in a bad state. The constant high prices of renovation coupled with a desire to present its clients with a clean environment made the move necessary. The management knew that people appreciate the beauty and that’s why they transferred the business to another place. The selling out by its major competitor also came at the right time. Now the business is controlling the market again and the majority of its small competitors are offering to sell out to them.