A strategic management paper on Philippine Hospital Supplies, Inc. (PHSI)

• Main Author: Elciario, Heidilita B.
• Format: text
• Language: English
• Published: Animo Repository 1999
• Subjects: Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/2142
• Institution: De La Salle University

The Philippine Hospital Supplies Incorporated belongs to the pharmaceutical industry where products are regulated by a government body, the bureau of Food and Drugs. As an industry player, the company should conform to standards, encourage low cost manufacturing, quick in deliveries and strengthen its presence in the buyers hangouts, like hospitals and medical conventions. This proposal aims to attain 34% annual growth rate in terms of sales revenue and achieve a 40% Sales Returns on Sales in the year 2003. The generic strategy which is most appropriate for PHSI is to be the OVERALL COST LEADER. The company should be flexible to respond rapidly to competition and market changes. It needs to benchmark continuously to achieve best practices. A great deal of managerial attention is necessary to achieve this aim. Cost is generated by performing activities, and cost leadership is aimed to perform particular activities more efficiently than competitors. The company has several sources of competitive advantage: high product quality standards, better qualified personnel, and technology and training support from mother company. These factors made the customer perceive the products as having the excellent quality and supported by service-oriented employees. However, it is noted that the short shelf life is a source of eroding advantage. This can be addressed by continuous research and development, continuous training of key staff, and continuous process environments.