Republic of the Philippines

University of Southeastern Philippines

Sto. Tomas External Studies Proram
Sto. Tomas, Davao del Norte
Bachelor of Science in Business Administration
Major in Business Economics

GENEROSO PHARMACEUTICAL & CHEMICALS, INC.

CASE STUDY

SUBMITTED BY:

JOAN GUEVARRA

JOVELYN MANIGOS

WENDIE MAE MANIGOS

RONIEL RICHIE SIGUA

CEDRICK LUPIAN

SUBMITTED TO:

SIR. GERARDO DAGONDON

GENEROSO PHARMACEUTICAL & CHEMICALS, INC.

 SUMMARY:
In 1978, David Generoso established Generoso Pharmaceutical & Chemical,
Inc. (GPC) together with his wife Elizabeth Reyes and his business partner
Mr. Rafael Buenaventura. They both started as a salesman in the Philippine
Pharmaceutical and later they decided to build their own Pharmaceutical
business.
The business is located in Tarlac with an initial capital of P300. Afterwards
because of good track their business goes well and they were able to
expand so fast and the number of their sales representative increased from
time to time. Because of increasing volume of operations GPC moved to
Quezon City. From its initial capital of Php 300.00 in 1978, GPC had total
assets of Php. 12 million in 1983.

David began purchasing some Laboratory Equipment and he stored it his

house at Tarlac as he dreamed to put up his own Laboratory for GPC’s
research and development. In 1983, David traveled to United States and
some European countries to build several contacts and connections who
could able to supply raw materials for him to sell to the other
pharmaceutical firms in the Philippines.

After five years GPC begins its journey on the raw materials indenting, the
American principal proposed to GPC to start manufacturing pharmaceutical
product for both domestics and international markets. The project will be
capable of meeting orders within a month, as compared to other contract
manufacturers requires up to about 6 months processing an order using
outdated equipment. The only thing is that they need to hire a German
Expatriate to oversee the problem but the GPC has only Php. 40 million
 funds and project would cause Php. 135 million and that is the reason why
David need to assess carefully whether to accept or reject the proposal.

 STATEMENT OF THE PROBLEM:

Generoso Pharmaceutical and Chemicals, Inc. had a tough and hard time
whether to accept the proposed project of American Principals if that
happen where they going to find additional funds because of a large
amount of capital needed and also they need to hire German Expatriate.

 ALTERNATIVE COURSES OF ACTION:

Alternative Courses of Action Advantages Disadvantages

1. GPC can borrow money  The project can be  Risky it can
from banks for an financed and can generate a
additional funds/capital gain an additional higher interest.
funds for the
project
2. Accept the project and hire  It will cost less and  The quality is at
a Filipino Chemist support our Filipino risk
chemist.
3. Accept the project and hire  Higher quality of a  Costly and risky
a German Expatriate product and the
company will
remain competitive
4. Reject the proposed  No cost  GPC will going
project (do nothing)  No risk to out of
competition
 RECOMMEDATION:

1. GPC can borrow money from banks for an additional funds/capital.

2. Accept the project and hire a German Expatriate

As a Recommendation, Generoso Pharmaceutical and Chemicals, Inc for the

support and funds problem they should borrow money from any financial
institutions with a low interest rate and accept the project in order for
them to stay in the fast growing competitive market in Pharmaceutical
Industry. It will help them to expand their operation and gives more
opportunities for growth and development. As to the research and
development, they should hire a German Expatriate for higher quality of
the product and for more affordable price of the medicines. It will help
them to earn customers and recognition within the Pharmaceutical
Industry.

 CONCLUSION:

This case tells and reveals that in reaching the highest point or peak of our
life or career we need to asses carefully on choosing whether to embrace
the fast growing society or competitive market for any industry for your
own good and to your surroundings. Even if it is too risky and costly you still
need to