Preview

Biomed Case Study

Good Essays
Open Document
Open Document
546 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Biomed Case Study
Biomed is a family business which belonged to Thailand drugs Co., Ltd. It could be viewed as a sales agent of Thai Drugs and it sold over 100 kinds of drugs. 35 per cent of Thailand drug market was occupied by local manufacturers in which five giants accounted for over fifty per cent. The market for the rest local manufacturers was little and price competition was pretty harsh. There were majorly three channels to sell drugs: hospital, drug store and clinics. In hospital channel, although a new government regulation favored generic brands from small local manufacturers, only manufacturer offers the lowest price won for a large district order. The previous strategy of Biomed priced at medium-high to high backed with excellent services because Biomed couldn’t operate in low-cost system. Therefore the company decided to abandon this market. Drugstores and clinics which in all accounted for thirty percent of the market wanted also generic brands. The reason why company focused on this market was that, in Biomed’s opinion, this market didn’t look solely at price, compared with hospital market. Since price was still an issue, Biomed went to a new strategy that priced at low-medium to medium with a focus of ten to fifteen drugs. Under such system, the sales target could be only met by selling in a large volume. However, a lot of preparation needed to be done for the new strategy.
The first issue was the redesign of compensation plan. The previous compensation plan was targeted at sales volume. Apart from the base salary, salespeople received annual commission and quarterly bonus. The new sales strategy forced salespeople to consider the economies of scale which combined variable costs and volume with a limited range of drugs. In my opinion, quarterly bonus was the short-term incentive and annual commission aimed at long-term performance. In short term, quarterly bonus could be replaced by others such as sales contest. Sales contest promotes short-term performance and

You May Also Find These Documents Helpful

  • Powerful Essays

    Student

    • 1579 Words
    • 7 Pages

    We also must assume that the market of BioMed can be modeled as being perfectly competitive in equilibrium, allowing the use of the model’s profit maximizing criteria. The plant producing DermaPlusTM has been in operation for three years with no change in manufacturing equipment. The age of the equipment has not proven to have an impact on current or future production of DermaPlusTM based on the information provided. DermaPlusTM will be under a new reference-based pricing scheme which will allow the government to set the price of BioMed’s topical cream along with competing creams. The government will review the pricing every two years, leaving only the production and selling volume to be determined by the manufacturer.…

    • 1579 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    There was an increase in the wholesale prices of drug products in the year 2008. Government also provided benefits to customers related to drugs, which increased prices of healthcare products and services at an unusual rate. With the increase in the number of aging population, and awareness about health consciousness among people, there is an increase in the number of opportunities available in the markets, which facilitate the growth of the industry (Redman, 2011). There is also an increase in the number of customers in the drug retail industry due to offering of drug insurance, which has increased the revenue and contributed to the GDP of the…

    • 1293 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Case Study Bio

    • 918 Words
    • 3 Pages

    e. Snails will eat plain leaves that have no stripes. However they will not eat clovers with stripes on them. They…

    • 918 Words
    • 3 Pages
    Powerful Essays
  • Powerful Essays

    Cassie Thorne of Mackinaw Administrators Insurance Company referred this file for medical case management. Instructions were given to meet with Timothy Blackmore and assist with coordination of appropriate and related medical care, and identify needs to facilitate recovery.…

    • 666 Words
    • 3 Pages
    Powerful Essays
  • Powerful Essays

    Dermaplus Analysis

    • 1521 Words
    • 7 Pages

    Biomed operates in a perfectly competitive market and has no degree of price setting power. In this case of DermaPlusTM, the government sets the price of the product. In order to determine the profit maximizing output in the short-run for this market, each price level provided by the consultant must be equal to the short-run marginal cost.…

    • 1521 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    cardinal health inc

    • 1287 Words
    • 4 Pages

    The case introduces us to the Cardinal Inc which for now is the leading manufacturer in the products of medical it has its own pharmaceuticals. Company is one of the fortune 500 companies the head office is in Dublin, Ohio. So, talking about pharmaceuticals and medical products its wide services offers to more than one hundred thousand locations. it does has its own products of medical and surgical it almost includes all the types of the surgical apparel and other equipment. so, what we can conclude is it is the largest medical company it has a wide coverage of almost 75% of hospitals in U.S.it has not only given services alone it has also some of the tie ups with other companies, so they are proven to be the best ,biggest and cheapest medical suppliers in U.S. So, beginning of their starting was a long back nearly 45 years long history is what they carried with them with the name of their own in the pharmaceuticals company. it actually serves as the middle person as it connects the providers and manufactures, we can view them as a broker too. The employees are more than 30000 all around the world but during their starting they have developed themselves as the cardinal Foods inc which they later diversified in to the medical products. The long term vision of Cardinal is to be the top leader in the name of medical and Pharmaceuticals Company through continuous development, innovation, research and development, scanning environment whereas the mission of them are to retain, collect and to identify the biggest opportunities in the market place. They want to be best by serving through the best to the customers they will to win the heart of the customers through their excellent service.…

    • 1287 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    Case Study Pharmacology

    • 1591 Words
    • 7 Pages

    The steps that I will be including in an assessment category is: a) Study the symptoms explained by Darren Ardolino. Indigestion is caused by both excessive drinking and smoking. But he does not drink so we can make an assumption that the main cause of his indigestion is his excessive smoking habit. b) Take a several blood test to identify the major cause of the indigestion, to detect the level of acidity in blood. c) Take an X-ray of his stomach and small intestines to see if any cancerous cells are forming in his stomach.…

    • 1591 Words
    • 7 Pages
    Good Essays
  • Satisfactory Essays

    The Prescription drugs industry is one of my national economy important and special industry. It is closely related to people's health and life security, to protect and improve people's health has played a big role. Also, Industry's profit margin is very considerable. On the other hand, Prescription drug is a special kind of products, has a certain sensitivity, for the quality of the products and technology have very strict requirements. Because it is a direct effects on the human body, is closely related to people's health. The particularity of the industry is that ordinary consumers for the quality of the product and generally difficult to recognize and grasp the nature, generally trusted certification authority. Thus, From my perspective,…

    • 126 Words
    • 1 Page
    Satisfactory Essays
  • Powerful Essays

    Healthcare Case Study

    • 2840 Words
    • 12 Pages

    1. Prepare a brief situational analysis of LMF for Dr. Townsend, identifying at least 3 internal issues and 3 external issue/competitive issues that are affecting LMF.…

    • 2840 Words
    • 12 Pages
    Powerful Essays
  • Good Essays

    Patient Case Study

    • 1326 Words
    • 6 Pages

    The case study (HCCC v Jarrett, NSWNMPSC, 2013) explains the enquiry made into the role and activities of registered nurse [RN] Janelle Jarrett in respect to the care of a patient during a night shift from 30th September 2011 to 1st October 2011. RN Jarrett was rostered as the Hospital in Charge [HIC] and Nurse in Charge [NIC] of a general ward. The patient first presented to Ballina District Hospital emergency department [ED] at 1428 hours on 30th September 2011 with increasing shortness of breath [SOB], muscular aches and pains and a history of chronic obstructive pulmonary disease [COPD]. The patient was triaged as category three and investigations into medical records detailed documentation that described the patient’s SOB as being secondary…

    • 1326 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Yes, I do agree with the court that such a law and the actions taken fall within the realm of a special needs search. I argue that looking at a patient prescription could be very useful to law enforcement. Especially, since prescription drugs are so popular in today’s society. If law enforcement is noticing that an enormous amount of deaths are occurring in the community due to an over dosage of pills then it’s important to look at the prescription being subscribed. Mostly likely there is a doctor that is prescribing these medications and if law enforcement can review patient’s prescription they can possible find a pattern. For example, if there is a doctor that is providing all of his patients with a 120 oxycodone pills per month then that could be a problem. There is no way possible that every patient should get the same amount of pills each month. In the past there were doctors caught being paid a certain amount of money to prescribe whatever the patient wants. I know for a fact there are plenty of…

    • 637 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    biomed

    • 1491 Words
    • 6 Pages

    UCF Degree Programs Biomedical Sciences - Preprofessional Concentration (B.S.) 3. Core Requirements: Basic Level Life Sciences: Basic SLS 2311C Overview of Select Medical Careers College of Medicine Burnett School of Biomedical Sciences Department of Molecular and Microbiology, Health and Public Affairs II, Room: 335 http://www.biomed.ucf.edu Email: bcbsinfo@ucf.edu Dr. P.E. Kolattukudy, Chair Phone: 407-823-5932 Students seeking admission to professional schools (medical, dental, optometry, veterinary, podiatry, and pharmacy) will meet all the admission requirements for those programs while obtaining a Molecular Biology and Microbiology degree. Admission Requirements None Degree Requirements Students who change degree programs and select this major must adopt the most current catalog. Students should complete the General Education Program before transferring within the Florida Public University/Community College System. Grades below “C-” in Common Program Prerequisites, Core Requirements and Restricted Electives will not be accepted.…

    • 1491 Words
    • 6 Pages
    Satisfactory Essays
  • Good Essays

    Health Care Reform

    • 1041 Words
    • 5 Pages

    The popular brand name versus the generic battle is a concern in the prescription medicine industry. The uses of brand name drugs have decreased to 20% of total distribution. The expiration of patents of drugs, led to the decrease in brand name distribution. This affects the health care industry in an intense way. This multi-billion dollar industry is affected and patients and physicians must choose whether the generic brand will suffice. Choices by consumer are affected because the cost…

    • 1041 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Biopharma Case Study

    • 1265 Words
    • 6 Pages

    Optimization was performed using Excel to determine what production/distribution allocation would minimize the overall cost while accounting for fixed and variable cost of production, as well as transportation and import costs. My particular optimization determined that Japan should be idled on production of both chemicals while Germany (Europe) should be idled on production of Relax. The following shows the amount of each chemical that each region should make as well as plant capacity in millions of kg.…

    • 1265 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Maf 640

    • 382 Words
    • 2 Pages

    If we were Datin Timah given the option whether to take up the Guardian’s offer or just sell off the business to the Watson, we will take up the Guardian’s offer rather than sell off to the Watson. This is due to the profit betterment. If we take up Watson’s offer, we can only get the short term profit and we cannot longer be in the industry. However, if we take up the Guardian’s offer, we can have the long term profit and we can sustain in the industry since the Guardian will help us in supplying our product to end customer. Furthermore, Guardian will not interfere in the management of Orang Kampung since their focused only to the product. Beside, they are willing to assist Orang Kampung in Research & Development and also production because they have the expertise. We can say that was the golden opportunity for the Orang Kampung to expand their market and target market. To sustain in the market, one product need to move together with the time, therefore, if before this Orang Kampung not concerned about how they package their product, now, they need to concerned since attractive packaging one of the important marketing strategy that able to catch up the customer and able to compete with other competitor’s product. Datin Timah is very conservative and holds to traditional way in making the product, so, she does not believe in revamping traditional medicine into modern pills and capsules, because according to her the purity of the traditional medicine will be contaminated with the toxic-chemicals. From our point of view, we believe that research and development team have a way how to maintain the traditional taste and benefit of the traditional medicine but still can modernized it so that it can compete with other modern medicine. However, if Datin…

    • 382 Words
    • 2 Pages
    Good Essays

Related Topics