Generoso Pharmaceutical and Chemicals Case Analysis (Partial)

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Statement of the Problems:
How to produce such amount of products needed in the local and international market at the minimum of cost.

Statement of the Objectives:
To create new products that would replace inferior products in terms of quality and cost To be able to supply pharmaceutical products sufficient enough to cover the demands in the market as well as exporting them to other countries in Asia or even around the world. Areas of Consideration:

SWOT ANALYSIS
Company’s Objective: to expand from small to larger company and produce quality products Strengths* Liquidity of the Company* A wide supply for raw materials* Conservative cash management policies * Tend to adapt more on the situation of implementing Generic Bill | Weaknesses* Less quality of their products* Expansions are too costly* Lack of additional capital* Poor management | Opportunities* A good project* Contacts in the US who provides supply* A large area for expansion | Threats* Stability of the economy* Risky project because its too costly* Potential entrants of groups in the industry |

Alternative Courses of Action:

1. GPC should accept the project and hire Qualified German Expatriate

Advantages:
It will make the company stay in competition
Higher quality of products can be attained and offered in lower prices Creditors(investors) will provide the needed budget
Disadvantages:
It is too costly and risky
2. Accept the project and borrow money from financial institutions.

Advantages:
Early implementation of the project
Long term payments
Can gain additional support for the project.
Disadvantages:
Generates interest
The longer the period the debt is not paid, the higher interests generates The borrower pledges some assets as collateral for the loan. 

3. Do Nothing
Advantages:
a. It will cost less and less risky for the companyDisadvantages: a. It will not make the company competitive

Conclusion...
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