Generoso Pharmaceutical Inc

Malijan, Mary Erjoy D. GENEROSO PHARMACEUTICALS AND CHEMICALS, INC TIME CONTEXT 1978 and in 1988 GPC engage in the incur manufacturing ofpharmaceutical products for both the domestic and merchandise markets and the Generics Bill came in. SUMMARY / get up This case examines the management of Mr. David Genereso in the GENERESO PHARMACEUTICALS AND CHEMICALS, INC to become a productive and prospering caller-up. Mr. David Generoso was a philosophy graduate of a sectarian university in the Philippines.He began his life in the Philippine pharmaceutical industry at the Central Luzon Region. He married Elizabeth Reyes, a nurse and certified public accountant and they extradite been blessed by 5 childrens. David established a company called Generoso Pharmaceuticals and Chemicals (GPC) with Elizabeth and a business associate Mr. Rafael Buenaventura, the team set up shop at the Generoso residence in Tarlac. An initial capitalization of P300 started the business with a xii bottles from t he pharmaceutical firms which they had been connected with before.GPC was able to establish a good run record fast and its customer base expanded beyond the region. David and Rafael had to get hold of extra hands to peddle their goods 2 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 escort over different product lines, which by the year 1988 was composed of several(prenominal) subdivisions Pharmaceutical Distribution Division, Agrovet Division, Cosmetics Division, Raw Materials Indenting Division and the Contract Manufacturing Division. As of 1988, in that respect were 32 large-scale pharmaceutical laboratories in the Philippines, most ofwhich manufacture completely thei r own brands and/ or brands licensed by foreign drug manufacturers and just about sixwere occupied in contract manufacturing. There were an estimated 150 distributors of merchandise pharmaceutical products in the earth, 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 theextraction of active ingredients from locally available raw materials or in theformulation of bran-new products from known active ingredients. As a result, the country continues to rely heavily on imported pharmaceutical products and raw materials, which feed averaged at U. S. $67. 853million annually from 1982 to 1986 according to Foreign Trade Statistics of the Philippines.In 1988, the American mavin offered his plans to David of GPC engaging in the contract manufacturing of pharmaceutical products for both the domestic and export markets. The proposed spue was to c ompound locally all products that it result manufacture and sell, importation only the active ingredients and bulk materials that it is unable to produce locally. Heavy tenseness would be placed on applied research to extract and acquire active ingredients from locally available raw materials, health foods, fibers, food supplements, and otherwise over the-counter products. The company was now a way out concern cherished at P40 million.The proposed purpose 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 extra budget to implement the project. * To have environmental strength. II. CENTRAL PROBLEM * To adjust possible action of GPC in order to continue in the rivalry 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 caput offered hi s plan to engage GPC to export the products.SWOT ANALYSIS STRENGHTS WEAKNESSES 1. Ready for expansion 1. inadequate on financial resources 2. Strong financial condition 2. Expansions are besides costly 3. Reputation of good customer service 3. Weak advert and promotions OPPORTUNITIES THREATS 1. Ability to grow rapidly 1. Risk of the project because it is costly 2. tune expansion 2. Entry of new opponents 3. Opening to emerged with new technologies 3. Government new policies and regulatory restrictions IV. ALTERNATIVE COURSES OF ACTION 1. Generoso Pharmaceutical and Chemicals should not accept the project and stay small. ADVANTAGE Less cost and risk. disfavor * The company will not be competitive. 2. Generoso Pharmaceutical and Chemicals can borrow money to the bank. ADVANTAGES * laughingstock implement the project early. * Long term feements. * Can support the project. DISADVANTAGE * Has an interest. * The longer the period the debt is not paid the higher interests. * The b orrower pledges some 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. * notional The creditors need to provide funds. V. RECOMMENDATION I therefore conclude that the trump out solution to the problem in alternative course of action is weigh 2 which is the Generoso Pharmaceutical and Chemicals can borrow money to the bank because sluice though you had a debt and it can generate interest you can pay it because of you new technology that has and you will remain as a competitor and has a high quality of product but in a lower price. VI. STRATEGY FORMULATION Discussed the project to everyone. Have a budget. pick out the new customers that you might have. Your environment can suit with this project.Your employees were commensurate of doing this project. VII. political program OF ACTION ACTIVITIES PERS ON RESPONSIBLE TIME FRAME BUDGET Discussed the project proprietor and Principal 1 day Make a detailed plan Principal 1 2 weeks Borrow money from banks Owner 1 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. calamity PLAN 1. Make a plan that can recover the company if the project failed. 2. Find some businessman who wants to be part of a GPC. 3. Make some Marketing and Advertising strategy.