Cheap Pharma Case Summary

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1. Immediate Issue(s) or Problem(s):
Immediate problem
-Cheap Pharma Inc., a pharmaceutical company specializing in generic drugs, had been suffering low sales in the past months because of fierce competition from other generic drug brands.
Decision
-Of course to be able to get back high sales in the medicines that the company is offering, we must formulate or innovate new products or buy a shares to the competitors to use.
Time frame
-As soon as possible.
2. Basic Issue(s) or Associated Issue(s):
-The shareholders of the Cheap Pharma sued Mr. De Guzman and the other two directors demanding that they render an accounting and return whatever profits they made from the Green Med transaction to Cheap Pharma.
3. Issue(s) Analysis or Information
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-Mr. De Guzman and the two other directors who processed the transactions convinced Dr. Gonzales to sell the shares to them instead.
-The shareholders of the Cheap Pharma sued Mr. De Guzman and the other two directors demanding that they render an accounting and return whatever profits they made from the Green Med transaction to Cheap Pharma.
Long term issue
-Cheap Pharma Inc., a pharmaceutical company specializing in generic drugs, had been suffering low sales in the past months because of fierce competition from other generic drug brands.
4. Alternative Solutions or Options:
A. Formulate their own Lagundi medicine.
-Innovation is one of the best solution for you to be able to stay in the market. To try a new product or to innovate an existing product is a chance. However, trying to innovate is a trial and error process. For you to formulate a medicine is to invest labor and equipment. But at the end of the day, if you successfully discovered or invented a new medicine, and if the market see that your product is a need, for sure your business will stay on the right

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