I.

THEORETICAL FRAMEWORK

As of what I have understood on this case about David Generoso, he is a kind of man who
is versatile and wants to achieve everything. He also wants everything to run smoothly and never
do bad business. In year 1978 he established a business called Generoso Pharmaceuticals and
Chemicals, Inc. (GPC) with his wife Elizabeth Reyes and Rafael Buenaventura who was also a
salesman like David Generoso. GPC started the business with a capital of Php300 with a dozen
bottles from the pharmaceutical firms which they had been connected with before, and in 1983
his total assets grow to Php12 million. The companys product line started with medicines and
drugs. He went to United States and some European countries to learn more about
Pharmaceuticals, David Generoso also established several contacts who could supply raw
materials for him to sell to the leading pharmaceutical firms in the Philippines. He, likewise,
invented a raw material which he sold to the leading manufacturers in the Philippines. And an
American principal came to GPC in 1984 as a supplier of raw materials, and decide to make
business with GPC. GPC has become very competitive in the market.
While David was establishing GPCs source network for raw materials, he has to leave the
management of the company to Rafael which did not go very well. David felt he had to come
back at his company again. GPC was able to recover quickly from the reversal trend of its
financial performance and manage to stay in the Pharmaceutical industry. As of year 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 is unable to produce locally. It focus on products that make
use of locally available raw materials, both as active ingredients and as excipients. As a matter of
strategy, the project will at the outset focus on those foreign Pharmaceutical firms whose
products are imported and distributed in the country by GPC. For the export market, the firm will
capitalized on its location as a potential manufacturer of Pharmaceuticals for the Asian markets
of multinational firms. The American principal dropped his plans to David, and everything fall
into places for GPC. The only thing that made David sad is that they need 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. Not
even David was qualified. That is why they need to hire German expatriate to oversee the
project. The lack qualified chemists is an industry problem of which GPC has not been spared.
David gathered GPCs Executive Committee to explore and evaluate the opportunities provided
by the latest development. The company was now a going concern valued at P40 million. The
proposed project would cost approximately P135 million.
II. STATEMENT OF THE PROBLEM

How Generoso Pharmaceuticals and Chemicals will act to survive in the Pharmaceutical
industry, with a lot of competitors. And how will they support the proposed project that is too
risky and would cost approximately Php135 million, what will be their strategic planning to
generate additional capital so that they can afford the cost to hire a German expatriate to oversee
the project. And what will be the benefit if they continue the project.
III. STATEMENT OF THE OBJECTIVE

To survive in the industry of Pharmaceutical, they need to hire a German expatriate to

oversee the project to have a higher quality of products that can be attained. And if GPC will
accept this project, the company will stay in the competition. They also need to have a strategic
plan, so that they will not lose to other competitors of the industry and also to have additional
capital to support their financial resources.
IV. AREAS OF CONSIDERATION

Generoso Pharmaceuticals and Chemicals, Inc. need 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, even David Generoso,
with his 15 years of experience. It will be too risky if they will continue the project because they
dont have fund for it, but it will help GPC to survive in the Pharmaceutical Industry.
V. ALTERNATIVE COURSES OF ACTION

1. They should continue the project because it will benefit the company in order for them to stay
in the industry and to keep up with their competitors.
2. Maybe they can borrow money from the bank or from creditors, so that they can afford to hire
German expatriate to oversee the project. So they can implement the project as soon as possible.
3. They must focus on their business performance and to their products even though BFAD
stopped accepting product registrations until after 5 years, they must focus first on what is
available so that their business will continue to run smoothly while competing other firms.
VI. CONCLUSION AND RECOMMENDATION
My conclusion in this case is that they need to continue their project; because it is how
they can stay with the Pharmaceutical Industry and also that the company will still remain
competitive. They must focus on their strength and their weaknesses, so that they will know what
to do even when calamities strikes.

POSITIVE NEGATIVE
It will benefit the company. It was too risky to continue the project.
GPC is ready for business expansions. But business expansion was too pricey.
More innovation of their own products. BFAD has only accepted 60 of their products.