Jamieson Drugs Inc.

Case Analysis
Business 1 (12:30-2:30 MTWTHF)
I. Overview (Jamieson Drugs’ Profile)

Jamieson Drugs Inc. was founded in 1980 as a division of the Jankinson Drugs Phils. And
since then, it has achieved a compounded annual growth rate is 35%. It is now one of the
top 10 companies in its market, so customers have higher expectations with the products
services they offer. That’s why, by 1990, it has developed from selling prescription-only
drugs to Over-the-counter drugs that brought in more sales growth.

Jamieson’s Manpower consists of 60% sales representatives and 40% other key
positions. The higher percentage of sales representatives in its employees just shows how
important their role have become in the competitive market of pharmaceutical industry.
They will be the one to introduce the company’s products to the doctors that in return
would prescribe it to their patients. The efficient product detailing of the sales
representatives to its clients is the reason for the company’s growing sales. That’s why,
because of the burden of having the best sales representatives, hiring them have never
been an easy job to the HR Department. Sales supervisors always take time out to interview
shortlisted candidates. They also make sure that sales representatives undergo very rigid
testing and interviewing to ensure that they are the right fit.

II. Time Context

It has been more than 25 years since Jamieson Drugs started.

III. Viewpoint
Jamieson Drug’s HR Head Joseph Nierras is used as viewpoint as he is the one assigned to
give his decision within three days regarding the problem of whether to outsource or not
and the company’s top management as the overall.

IV. Problem
1. Recent month’s sales report showed a 2% decline not because of decrease in customer
patronage but with the increase in sales representative turnover which caused the sales
operations to be paralyzed.
2. Based on the latest data of HR on the reasons of their resignations, majority can be
assumed that are looking for higher-paying jobs. This shows that there is a problem in
the company’s pay structure and benefits. This represents the real and long-term
problem of the company.

V. Objectives
1. On the short-term, it is to recruit for more sales representatives that are qualified and
capable for the job as soon as possible. Incumbent sales representatives are
complaining of heavy workload and may be using this excuse to resign too, that in
return would be more detrimental to the company.
2. On the long-term, it is to make an efficient and effective pay structure and benefit
program that would ensure employees’ loyalty to the company.
VI. Areas of Consideration (this is in consideration on whether to outsource or not)
A. Strength
Jamieson Drugs’ competitive position in the industry makes job-seekers go to them first
because they knew they’ll be secured with their jobs.
B. Weakness
As a company who has been in the industry for some time which practices traditional
ways in running the business, adapting to new and modern ways has been a struggle.
The HR head is hesitant to outsource the recruitment function because aside from the
fact that it would the first time, the said function is what the HR mostly does. This
hesitance becomes a weakness of the company since time is essential in addressing the
company’s problem.
C. Opportunity
Jamieson Drugs has received an outsourcing proposal from a well-known firm,
Manpower Magnate (MM) to do some HR functions like recruitment, training, and
payroll.
D. Threat
The HR head’s hesitance may also be reasonable on the side of the HR head since the
manpower agency who offered the outsourcing proposal is relatively new to the
industry, barely four years and doing recruitments just started in the early part of 2007
to a multinational company. Jamieson has yet to get the feedback, so the risk is really
high on its part. This threat and the question of the manpower agency’s ability to do the
recruitment shouldn’t be taken for granted. As the HR is known for being meticulous in
hiring salespeople to ensure that they are the right fit, the fear of having sales
representatives recruited by a third party that don’t meet with their standards that may
bring the company’s image down is being considered in making their decision.

VII. Alternative Courses of Action

1. Accept the outsourcing proposal and let the Manpower Magnate do the recruitment but
with a supervision of Jamieson’s own sales supervisor giving specific instructions on the
qualifications to be met.
2. Look for another manpower agency that have better qualifications compared to
Manpower Magnate on doing the recruitment.
3. Reject the outsourcing proposal and let the company’s HR do the recruitment
themselves but decreasing the time and lessen the meticulosity of the process.
4. Increase the incentives for the incumbent sales representatives that matches with their
heavy workload. This doesn’t just avoid more resignations but may also attract other job-
seekers as they would see that the company offers better compared to others.
5. As it has been said, the company should review their pay structure and benefit program
to retain the current and newly-hired employees.
VIII. Recommendations and Final Decision

Based on the data above, we recommend that the company should accept the
outsourcing proposal of Manpower Magnate. Looking for another manpower agency or let
the HR do the recruitment will be time-consuming. With the first problem being addressed
now, the HR can now focus to formulate a new way of training the newly-hired employees
while at the same time being sent already to the field. This training should be efficient to
ensure that even a third party hired them, they’d develop to be the sales representative
that really fits the company’s standard.
On the other hand, the company, having been known the reasons for resignations,
should also consider the said reasons. The HR should review the pay structures and benefits
if it needs revisions and changes that would cater to the needs of the employees. The
additional cost is not much if the company can be ensured of the employees’ loyalty to
them. No matter how many new employees are hired, if they wouldn’t address the real
reason why the present sales representatives resign in the first place, the turnover would
always be a problem. So for now, as a short-term solution to the decreasing number of sales
representatives, outsourcing the recruitment is a must and a need as the company’s HR
should now focus on the long-term solution and the factors just mentioned.