Research on the Performance Evaluation System of Pharmaceutical Chain

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Project Title: Research on the Performance Evaluation System of Pharmaceutical Chain
Author: Miss Li Yanqiu
Advisor: Assoc. Prof. Dr. Qiu Chao
Degree: Master of Business Administration
Major: Education Management
Faculty: Graduate Schools
Academic year: 2022
Conference Proceedings
The 6th STIU International Conference “Innovative Leadership for Sustainable Development” on 10-11 May 2022


Li, Yanqiu. (2022). Research on the performance evaluation system of pharmaceutical chain. (Master’s independent study). Bangkok: Siam University.


With the development and deepening of China’s medical reform, China’s pharmaceutical retail industry has developed rapidly, especially the drug retail chain. Drug retail chain enterprises emerged in China’s southeastern coastal region, and in a decade of development, they have experienced the development process of western countries. Regionally, they have experienced rapid expansion from the southeast to the east, south, southwest, north, northeast and northwest of China. In terms of development stages, it has experienced a period of initial development, a period of rapid development, a period of cross-regional chain development, a period of increasing concentration, and a period of national drug retail chain development. Drug retail enterprises adopt the chain operation method, inheriting all the advantages of chain operation. They can change the inefficient logistics operations of the traditional operation mode, and adopt unified logistics to improve the efficiency and economic benefits of drug retail enterprises. Enterprises can form a complete scientific system in all aspects of operation and management, and directly apply the successful experience in newly opened stores. As a result, drug retail chain enterprises can carry out unified management of all stores, from procurement, distribution to the drug retail chain enterprise stores for unified management, drug pricing, performance assessment, and other aspects of unified management by the headquarters. All these aspects enhanced the competitiveness of drug retail chain companies. The development of drug retail chain enterprises has accelerated gradually, showing strong vitality and development potential. Drug retail chains have become the mainstream form of pharmaceutical retail industry. This paper researched the theories related to chain management and performance evaluation index system, then, introduced the concept of drug retail chain enterprises. The study discussed the development status and development trend of drug retail chain enterprises, represented by the United States, Japan, and China. Based on the above research, the store performance evaluation index system model was constructed by applying three systematic performance index system design methods, goal management, balanced scorecard, and key performance indicators, centered on the business management characteristics of drug retail chain enterprises. The model adopted the goal management method to decompose the strategic goals of drug retail chain enterprises and combined the four dimensions of financial, customer, internal business process, and learning and growth in the balanced scorecard to transform the goals into indicators. The performance evaluation index system of drug retail chain stores were constructed.

Finally, based on the store performance evaluation index system of drug retail chain, a store performance evaluation system was established to analyze store performance through establishing a multi-dimensional performance index analysis model. The study conducted a comprehensive evaluation of store performance by applying hierarchical analysis and Topsis method. The performance of three stores were evaluated by using hierarchical analysis and Topsis method. The on-site management capability of a pharmaceutical retail chain in Jilin Province was also evaluated by combining the statistical data of the three stores.

Keywords: performance evaluation, chain management, company management, pharmaceutical chain.

Research on the Performance Evaluation System of Pharmaceutical Chain

Master of Business Administration (International Program), Siam University, Bangkok, Thailand

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