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Hospital Supply, Inc.

Case No. 16 - 1

Presented by: Group No. 7


Roberto Briones
Cristelle Dela Pena
Alma Aximoso
Marlon D. Jaranilla
Hospital Supply, Inc.
GAINING FAMILIARITY / CASE BACKGROUND:
v Company is the manufacturer of “Hydraulic Hoist” that are
used by hospitals to move bedridden patients.
v
v The Company sells the finished product in any normal
condition on the average number of 3,000 units per month.

IDENTIFICATION OF THE PROBLEM:


vThe problem of the case are in the questions listed below
which we will disect and provide the answer / solution during
presentation of the case.

Briones, Dela Pena, Aximoso& Jaranilla


Hospital Supply, Inc.
IDENTIFICATION OF THE PROBLEM

v Will it be beneficial for the company if ever they accept


federal gov’t. offer to supply 500 units of hydraulic hoists?
v If ever company decide to enter on the foreign market, will
the company benefitted for it?
v Is it acceptable and beneficial if company disposed their
unsold inventory at a lower price?
v Will they accept contractor’s offer to produce their product at
reduce manufacturing cost without considering the impact on
its own plant output?

Briones, Dela Pena, Aximoso& Jaranilla


Hospital Supply, Inc.
CORE OBJECTIVES

v The primary objective of this case are to determined if the


following company’s actions are acceptable and can
positively contribute to company’s growth:

Ø Increase Sales
Ø Increase Revenue Income
Ø Maximized production
Ø Reduce overhead cost without sacrificing quality
Ø Employ into contractual obligation
Ø
Ø
Ø Briones, Dela Pena, Aximoso& Jaranilla
v
Hospital Supply, Inc.
ALTERNATIVE

vMaintained company’s output


vEnter into contractual obligation
v Maximize net income revenue by employing in-direct labor
intensive employee

Briones, Dela Pena, Aximoso& Jaranilla


Hospital Supply, Inc.
DECISION CRITERION / CRITERIA

v To evaluate the pros & cons of the various offer


v If the offer is acceptable, will it be advantageous for the
company?
ØFinancially
ØFor how long

ANALYSIS OF THE CASE


üStrength
• Produce product is much suited in the market


Briones, Dela Pena, Aximoso& Jaranilla
Hospital Supply, Inc.
ANALYSIS OF THE CASE

ü Weaknesses
• Manufacturing output is almost reach its ceiling
(maximum), unexpected orders will place the
company put in disadvantageous position.
ü Opportunities
• Market Demand for the product both Domestic &
Foreign continue in the upward swing.
ü Threats
• Product development and competition with her
competitor is the primary concern that Hospital Inc.
should take into consideration if ever they want to stay
in the
Briones, Dela Pena, Aximoso& Jaranilla
Hospital Supply, Inc.
ANALYSIS OF THE CASE (continuation)

business field of medical equipment.


• Domestic competitor and would be external product
manufacturer might soon get interest in the field of
medical equipment that they should also take into
consideration when entering into manufacturing
contract agreement.
RECOMMENDATION

We recommended that the company proceed with


acceptance of various offers including foreign market expansion
provided that they put in place safeguard on whatever contract
agreement they made to enter.

Briones, Dela Pena, Aximoso& Jaranilla


Hospital Supply, Inc.
IMPLEMENTATION / PLAN

v Proceed with the acceptance of offers


v Embark on the foreign expansion by using the external
manufacturer provider
v Reduction of manufacturing cost thru the contractualization
of hospital equipment sold both domestically and in foreign
market.

Briones, Dela Pena, Aximoso& Jaranilla


Hospital Supply, Inc.

Question and Answer


(Open Forum)

Briones, Dela Pena, Aximoso& Jaranilla


END OF
PRESENTATION

Briones, Dela Pena, Aximoso& Jaranilla

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