Generoso Pharmaceutical Inc

Malijan, Mary Erjoy D. GENEROSO PHARMACEUTICALS AND CHEMICALS, INC metre CONTEXT 1978 and in 1988 GPC consume in the contract manufacturing ofpharmaceutical products for two the domestic and export markets and the Generics Bill came in. SUMMARY / ABSTRACT This case examines the forethought of Mr. David Genereso in the GENERESO PHARMACEUTICALS AND CHEMICALS, INC to become a productive and successful caller-out. Mr. David Generoso was a philosophy graduate of a sectarian university in the Filipinos.He began his career in the Philippine pharmaceutical industry at the Central Luzon Region. He married Elizabeth Reyes, a nurse and certified public accountant and they have been blessed by 5 childrens. David established a company called Generoso pharmaceuticals and Chemicals (GPC) with Elizabeth and a business bloke Mr. Rafael Buenaventura, the team set up shop at the Generoso residence in Tarlac. An initial capitalization of P300 started the business with a 12 bottles from the pha rmaceutical firms which they had been affiliated with before.GPC was able to establish a good track record immobile and its customer base expanded beyond the region. David and Rafael had to hire extra give to peddle their goods 2 gross salesrepresentative in1978, 5 in 1979, 12 in 1980, 25 in 1981, 53in 1982, and 75 in 1983. From its initial assets of P300 in 1978, GPC had total assets of P12 million in 1983which consisted of a dozen vehicles, a few pieces of real estate in the Central Luzon Region, an office, a modest amount of inventory and cash.Elizabeth initiated GPCs reorganization to control over unlike product lines, which by the year 1988 was composed of several subdivisions pharmaceutical statistical distribution Division, Agrovet Division, Cosmetics Division, Raw Materials Indenting Division and the Contract Manufacturing Division. As of 1988, there were 32 large-scale pharmaceutical laboratories in the Philippines, most ofwhich manufacture only their own brands and/ o r brands licensed by foreign drug manufacturers and about sixwere enmeshed in contract manufacturing. There were an estimated 150 distributors of imported pharmaceutical products in the country, and among them is GPC.Together they serviced an estimated market of at least P5. 7billion, based on retail sales statistics from the National Census and Statistics Office. No one is engaged in theextr feat of ready ingredients from locally available raw materials or in theformulation of raw(a) products from known active voice ingredients. As a result, the country continues to rely to a great extent on imported pharmaceutical products and raw materials, which have averaged at U. S. $67. 853million each year from 1982 to 1986 according to Foreign Trade Statistics of the Philippines.In 1988, the American principal offered his plans to David of GPC engaging in the contract manufacturing of pharmaceutical products for both the domestic and export markets. The proposed pop out was to multi form locally all products that it go out manufacture and sell, importing only the active ingredients and bulk materials that it is unable to produce locally. Heavy emphasis would be position on applied research to extract and develop active ingredients from locally available raw materials, health foods, fibers, food supplements, and other over the-counter products. The company was now a going concern note valued at P40 million.The proposed swan would cost approximately P135 million. I. STATEMENT OF THE OBJECTIVE * To be able to continues strategic planning. * To be able to come up with the spare cipher to devour the project. * To have environmental strength. II. CENTRAL PROBLEM * To determine possible action of GPC in order to continue in the competition and find additional fund for the project. III. AREAS OF CONSIDERATION (SWOT ANALYSIS) * The company has a going concern value of P40 million, and the project will cost P135 million. * The American principal offered his plan t o engage GPC to export the products.SWOT ANALYSIS STRENGHTS WEAKNESSES 1. Ready for expansion 1. Short on pecuniary resources 2. Strong financial condition 2. Expansions are too costly 3. temper of good customer service 3. Weak advertising and promotions OPPORTUNITIES THREATS 1. Ability to nonplus rapidly 1. Risk of the project because it is costly 2. Business expansion 2. admission of new competitors 3. Opening to emerged with new technologies 3. Government new policies and regulatory restrictions IV. option COURSES OF ACTION 1. Generoso Pharmaceutical and Chemicals should not accept the project and stay small. wages Less cost and risk. DISADVANTAGE * The company will not be competitive. 2. Generoso Pharmaceutical and Chemicals can borrow money to the bank. ADVANTAGES * Can implement the project early. * Long term payments. * Can support the project. DISADVANTAGE * Has an interest. * The longer the end the debt is not paid the graduate(prenominal)er interests. * The borrow er pledges approximately assets as collateral for the loan. 3. Generoso Pharmaceutical and Chemicals should accept the project. ADVANTAGES * Higher quality of product should be obtained. * The company will remain competitive. DISADVANTAGE * Its too costly. * Risky The creditors need to render funds. V. RECOMMENDATION I therefore conclude that the best solution to the occupation in alternative course of action is number 2 which is the Generoso Pharmaceutical and Chemicals can borrow money to the bank because even though you had a debt and it can generate interest you can pay it because of you new engine room that has and you will remain as a competitor and has a high quality of product but in a lower price. VI. system FORMULATION Discussed the project to everyone. Have a budget. Consider the new customers that you dexterity have. Your environment can suit with this project.Your employees were capable of doing this project. VII. PLAN OF ACTION ACTIVITIES someone RESPONSIBLE TIM E FRAME BUDGET Discussed the project Owner and leading 1 day flummox a detailed plan jumper cable 1 2 weeks Borrow money from banks Owner 1 calendar month VIII. POTENCIAL PROBLEM 1. What if the project failed? 2. What if the company was not capable to pay his debt? 3. What if the budget that you collect was not enough for the project? IX. CONTINGENCY PLAN 1. Make a plan that can recover the company if the project failed. 2. assure some businessman who wants to be part of a GPC. 3. Make some Marketing and Advertising strategy.