Hematal

1728 Words4 Pages

Problem: Dr. Rini's main and immediate problem is whether to decide on further giving credit to the boy's family or not. It is influenced by the following critical factors:

1. Hematal's cash flow problem limits Hematal's decision on giving further credit to the boy's family or not. It has been proved in the case that the family is very poor and won't be able to pay right away and most probably won't be able to pay anymore considering also the increasing hospitalization bills. This fact is important because Hematal will already have to consider writing off of the family's debt, which further affects the company's cash position in the future when she gives additional credit. The boy needs at least 20 more vials yet, Hematal has less than 20 vials left on stock. With this fact, I have assumed that Dr. Rini's decision should be an "all or nothing" kind of decision because anything less will not make any difference in the boy's condition considering also the fact that he needed more than 40 vials during his initial surgery, thus I conclude that the boy will die if less than 20 vials were provided. Therefore, Hematal will have to order more vials from Gamma Corp. to fill the 20 vial requirement.

2. Media exposure and NGO support/protest can both be helpful and detrimental to Hemetal's reputation as a pharmaceutical company. Pharmaceutical companies need to gain the trust of the public for the end consumers to patronize its products. Getting bad publicity, especially being "young" in the industry, will greatly affect the company's sales and its life.

3. Hematal will need to maintain a certain stocking level for the regular paying customers brought in by their Hemophiliac Society as they may need their supply of Factor-A Concentrate. This fact will mean that Hematal will have to order more than the required number of vials for stocking. If Hematal does not order to keep stocking levels and decides to deplete its stocks for the boy, regular paying customers may create an issue with the Hemophiliac Society and not get their support anymore. Hemophiliac Society may also cause bad publicity to Hematal by voicing out their concerns and protests. Moreover, the Society can influence Gamma into changing its exclusive distributor in the country.

4. Dr. Rini's conscience and peace of mind will be greatly affected with her commitment as a doctor based on the Hippocratic Oath if she decides not to help.

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