..Information to Pharmacists
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    Your Monthly E-Magazine
    FEBRUARY, 2003

    Published by Computachem Services

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    JAMES ELLERSON

    A Marketing Consultant Perspective

    Globalisation-Has it Caught up with You?

    Each year I stand back and have a look at the effects of globalisation on Australia, and marvel at the rapidity of change and the pace at which it is occurring.
    Government is driving a lot of the change by facilitating the ability of business to deal with them via the Internet. This extends both reach and opportunity, but also drives activity that is not always favourable to individual Australians.
    My concern for pharmacy is that it is not adapting fast enough to cope with the effects of globalisation. The end result of this lack of adaptation may be that government will lose patience and deregulate community pharmacy in a manner which is not acceptable to the majority of pharmacists. This could happen within five years.
    I believe, with some reluctance, that the only way to avoid this scenario, is to embrace globalisation in such a manner that Australian pharmacy can lead the world.
    I also believe that 2003 is the decision point.

    Globalisation is increasing in its intensity, but most of us are unaware of its impact until it is too late to realise that we have lost something that may have been of intrinsic value to us.
    I know a student at a rural University studying for an MBA in tourism management, who commented recently that she was the only Australian student in the current class.
    This, the student said, was not a real problem, but initially required an adjustment, as it was not anticipated.
    The other students came from China, Indonesia, Scandinavia, UK, USA, and appeared to be studying for one semester in one country, and continuing their course in another country.
    This is probably of great benefit in a course based on tourism, but there are other factors at work here, including the export dollars earned by our universities, to help fund the operating costs of such institutions.

    The number of places available for Australian students is also declining, for you see, the overseas students pay up front, at a 50 percent higher fee structure.

    On the surface, it appears we get better courses and better universities, but less opportunities for Australian students, as the amount of government funding for Australian students declines proportionately.
    This rural University is also relocating its Business and Tourism faculty (considered one of the best in Australia) to Sydney, to further accommodate overseas students.

    And this is the nub of globalisation.

    The local economy of the town in which the university is located, is partially disconnected because this major relocation is going to the City of Sydney, a place which hardly needs further development.
    Jobs and opportunities are lost to the rural town, which was the opposite expectation when the university was first established.
    And when it happens, it happens quickly, without thought to the local social and economic consequences.

    Perhaps the next step (if it hasn't already happened) is the establishment of campuses overseas, as some Australian universities have already attempted to do (with a reasonable degree of success).
    A system of globalised campuses will obviously generate financial benefits and academic strengths to those universities first in the field, and to maintain a steady stream of investment to fund this expansion, a range of unusual, but friendly, alliance partners will be needed.
    The downside comes when overseas universities begin to compete with Australian universities, as they establish their own specialist campuses within Australia, and globally.
    Or perhaps this may prove to be of balancing benefit for Australian students in both cost and opportunity.

    The big question for the moment is, will there be sufficiently trained tourism managers within Australia to meet the needs of this important and expanding industry?
    On the surface, the answer is no, but as the tourist industry management job market is becoming more globalised, perhaps the needs will be met by importing managers.
    The question probably should be, will Australians develop a fair market share of the tourism management global job market?
    Pessimistically, I think the answer is no!
    So this puts pressure on the domestic job market, leaving only a range of lower skilled jobs available.

    As events ebb and flow in the global arena, new opportunities open up as older constructs disappear.
    It helps, if as an individual, you are able to suppress your patriotic/nationalistic feelings in favour of cold/hard economic opportunities.
    This is difficult, because the process involves emotional adjustment, which in turn means that you have to let go of what might have been to that point, a lifelong tradition.

    I cannot help but feel that while globalisation may mean wealth for those countries actively embracing it, dislocation and alienation will be the result for those countries and individuals that do not embrace it.
    The concentration of global wealth into fewer and fewer corporate giants means to me, more control over individuals, and in some cases, individual countries.

    One illustration of this point is the US insistence that our Pharmaceutical Benefits Scheme (PBS) be revised as part of an overall trade agreement between Australia and the US.
    This obviously comes from lobbying pressure generated by global drug companies, to increase their prices in Australia.
    The end result of such a decision (if the Australian government caves in) will be to disadvantage the health of the entire Australian population, by making the PBS less accessible.
    Sure, the Australian and US economies may prosper with a revamped PBS within a new trade agreement, but the wealth generated is concentrated within a small group of corporations and individuals.
    There does not appear to be a universal benefit for the "little people".

    The point of this article is to induce a reality check within Australian pharmacy.

    What is happening in the tourist industry can be paralleled in the pharmaceutical industry, and if it does, will it benefit Australian pharmacists?
    With harmonisation through accreditation processes, would Australia end up with a net gain or loss of pharmacists, would those pharmacists ever own their own practice and under what conditions would they be work as employed pharmacists.
    Australia has a history of allowing its best "brains" to be exported to countries that appreciate their talents.
    Will globalisation speed this process up?
    What sort of pharmacy system will prevail if our best are not here to take charge.
    Equitable and competitive remuneration systems will need to prevai,l to halt any export of pharmacists, and to realise a net gain in human resource.

    Have you stopped to consider what elements of globalisation have already taken hold of your business environment, and by extension, your private life?
    Not only the direct effects, but also the indirect effects.
    If you have not looked out on to the landscape, it may be because you are simply too busy in your dispensary, or are bound up with various accreditations or continuing education.
    Have you considered that all this activity is in itself a direct result of globalisation?

    Globalisation will not go away, nor as individuals are you able to prevent it.
    It is also hard to predict the direction and form it will take, and it is constantly changing at a faster pace.

    What you can do is try to insulate yourself from some of the effects by making emotional, business and professional adjustments in advance of the eventual sudden changes that will occur.
    Try and work with global changes by first anticipating them and then turning them to your benefit.
    This requires some thinking "out of the square", but it also requires pharmacists to think about new forms of business and political organisation, to seek strong and friendly alliances, and to ensure that a balance is maintained between business/professional activity and private lifestyles.

    Politically, this could mean that the Pharmaceutical Society of Australia will become the more active and dominant player, as it is representative of more pharmacists than is the Pharmacy Guild of Australia.
    Businesswise, this may mean a corporate, pharmacy-controlled structure, allowing more diversity in management and control.
    This would also mean fewer, but much larger pharmacies underpinned with a strong Information Technology base.
    Professionally, the development of cognitive services is more likely to flourish under a strong corporate (pharmacist controlled) umbrella, capable of generating financially stable contracts to self-employed consultant pharmacists.

    The proviso is that control must stay in the hands of pharmacists, because open ownership only promises a basic level of professional development, as shareholder returns have to be maximised.
    Also, there is a history of pharmacists having to work under onerous management directives (with open ownership pharmacies), compromising professional integrity.

    In developing a defensive strategy, initial alliances may need to be formed with the "enemy".
    There is no reason why we cannot learn from stronger overseas players, with the view to establishing our own Australian global entities.
    The recent Priceline alliance with Australian pharmacists represents one pathway.
    Learn from them, adapt the offering and promote to diverse markets.
    The strategy should be to retain as much Australian control as possible.

    Our pharmacy business and political thinking needs to be adjusted to a global level.
    Are there any pharmacists thinking about developing an Australian pharmacy franchise that could be grown in other countries?

    Some Internet pharmacists have made a global adjustment, but this development is still in its infancy.

    Are there any plans for our political bodies to form working alliances with similar pharmacy political groups in other countries?
    This would be one way of helping to forecast change, and to cope with adverse effects of global incursions, by sharing information, strategies and tactics.
    The UK official pharmacy organisations would probably benefit right now with a bit of Aussie assistance, as they are facing open ownership dominance, if current recommendations are taken up by the UK government.

    To build a pharmacy structure capable of taking its place in the scheme of globalisation needs a lot of planning, government assistance, and an information sharing arrangement with other businesses who have made the transition.
    This means a common vision and purpose, strong leadership and an action plan for the short term, as well as for the long haul.
    Good communications and information, as usual will underpin a successful process.

    Are there any pharmacists out there ready to debate this urgent and important issue?
    Or are you feeling too frustrated and overwhelmed by what is going on all around you to even begin to think your way through?

    Editor's Note:
    The following comments were sent to me by an Australian pharmacist who requested his name and address be kept anonymous. I was wondering in what context I would run these comments, so I have tagged them to James Ellerson's article. They do have relevence to his comment on debating issues of globalisation, and the following is published therefore, in the spirit of a challenge. Let us hear your opinion as well.

    "Q Should doctors dispense.

    A. So long as it is within the law.

    Then why the fuss?


    Well it is called competition.

    That is something retail pharmacy is not used to and does not want.
    This is to be expected because competition might take away some of the icing on the cake.

    The final determinant of the success of competition will be the consumer who will go to the pharmacy outlet that best suits their needs. As for "the law" - what is to stop a doctor being in cohorts with a pharmacist to conduct a PBS dispensing service?
    It is no different than a pharmacist being in cohorts with Priceline in a discount supermarket operation. Maybe service stations will be next.

    Open your eyes - look around - things are getting different and pharmacy will have to move with the times and not expect all consumers to want the same stereotypical pharmacy that predominates the Australian retail scene."


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