A Case Study of Generoso Pharmaceutical and Chemical Incorporation
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University of Southeastern Philippines
Sto. Tomas External Studies Program
Sto. Tomas, Davao del Norte
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Submitted to:
GERARDO M. DAGONDON, MBA
Instructor
Submitted by:
Arvin Jake S. Cardines
Daypril C. Sigua
Lady Dianne K. Casulla
Sheila Rose G. Agulan
Wilson Castanarez
Jhanuel Juan
October 2019
I. Summary
The President of Generoso Pharmaceuticals and Chemicals Inc is Mr. David
Generoso. He has been blessed with five children with her wife Elizabeth Reyes, a
nurse and a certified public accountant.
In 1978, after 5 years of combing the Central Luzon region, David established
a company called Generoso Pharmaceuticals and Chemicals (GPC) together with
his wife Elizabeth and Mr. Rafael Buenaventura, his business associate. The team
do up shop at the Generoso residence in Tarlac. An initial capitalization of P300
started the business with a dozen bottles from the pharmaceutical firms which they
had been machine-accessible with before. In 1983, David’s initial success in his
attempt on manufacturing with chemicals on veterinary medicine as he is the lover of
dogs encouraged him to start his own specify of pharmaceuticals. In 1982, the GPC
was incorporated as the increased volumes of operations needed a broader-based
management.
Because of the fast turnover of participants in the industry, the business found
it hard to expand. Small companies always constantly struggling the stigma of being
a local company with inferior quality. Small manufacturers tend to cost cut in
production costs in the absence of economies of scale. GPC suffers in their costly
promotion expense with buyers including doctors, pharmacists and hospitals.
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 project was to compound locally all products that it will
manufacture and sell, importing only the active ingredients and bulk materials that it
was unable to produce [Link] American principal dropped his plans to David
which came in time with the Generics bill. David needed to hire a German expatriate
to oversee the problem and the additional budget for the project. No Filipino chemist
who specialize the technology of the project could qualify for GPC to remain
competitive. The lack of qualified chemists is an industry problem for which GPC has
not been [Link] company was now a going concern valued at P40 million. The
proposed project would cost approximately P135 million.
II. Statement of the Problem
The problem on Generoso Pharmaceuticals & Chemicals, Inc.(GPC) is the
mismanagement and being inconsistent to their decisions.
III. Alternative Courses of Action
The company should have established the visible VMG(Vision, Mission,
Goals) for them to be guided.
Advantage: They will have the same principles to have the clearer objective.
The company should have improved their marketing strategies.
Advantage: They will get more clients and standout among competitors.
Disadvantage: It would add to their expenses.
The employees(Department head, the managers of diff divisions) should have
undergone proper trainings and seminars to have the initiative of doing their
assigned task.
Advantage: The employees will learn and get the idea of how to manage the
task that the company had given to them.
Disadvantage: They might use the ideas learned to put up their own business.
SWOT Analysis
Strength
Liquidity of the Company
A wide supply for raw materials
Ready for expansion
Optimal and better product quality
A good leader
A conservative cash management
Reputation of good customer service
A good relationship of partnerships with suppliers and marketing allies.
Weakness
Expansions are too expensive
Lack of additional capital and financial stability
Poor management
Capital constraints to finance future projects
Opportunities
American principal proposed project to GPC
Generic Bill Act advantage to the firm
Business expansion
Ability to grow rapidly in the business industry
Opening to exploit emerging new technologies
Threats
Risky project because it’s too costly
Fast turnover of participants and competitors in the industry
Entry and increasing rivalry of new competitors
Costly regulatory requirements
Stability of the economy
IV. Recommendation
We, therefore recommend that the best solution of this case study is to focus
more on marketing strategies. For them to stay in competition because the company
had all the potential, reputation of good customer service and a good relationship of
partnerships with suppliers and marketing allies. Furthermore, they should have a
clear and précised Vision, Mission, and Goals to make an effective and efficient
management decisions.
V. Conclusion
We conclude that Generoso Pharmaceutical and Chemicals Inc, can stay in
the competition with its reputation. The GPC can run the business in line with Mr.
Generoso’s principle – “Medicine is the repeat business; it’s not like selling
encyclopedias. You always have to do a little bit more than the others.”
