Republic of the Philippines

BATANGAS STATE UNIVERSITY

CABEIHM – Accountancy and Management Accounting
Pablo Borbon Main I

MGT 108 – BUSINESS POLICY AND STRATEGY

A Case Study
2nd Semester (AY 2018-2019)

Instructor: Ms. Twinkle M. Calinao

SR Code: 14-53603
Student Name: Maybelyn M. Balitostos
Due Date: May 6, 2019

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I. Case Background
Jamieson Drugs, Inc. has been in the industry for more than 25 years. To maintain
its position as one of the top pharmaceutical companies in the country, the company is
pressed in cope with the demands and expectations of its customers. Since there is a
massive turnover of employees, sales operations become paralyzed. There is inefficiency
in product detailing among hospital administrators, clinicians, and doctors because
recruitment has become very inefficient.
The massive turnover of employees is due to poor compensation and time
consuming recruitment process. HR has depleted its talent pool. Adding to it is the cost
of using printed media, Internet posting, and job fairs to get qualified applicants. Sales
have gone down to 2% of target this month due to this sales personnel turnover.
Manpower Magnate, a well-known firm, has a proposal to Jamieson to outsource its
HR department to have a betterment of its recruitment and employees. Mr. Joseph
Nierras, the HR Head and the other departments are not agree with the proposal due to
lack of trust to the agency.

II. Point of View

It will be Mr. Joseph Nierras as he was the Jamieson Drugs HR Head or Human
Resource Manager.

III. Statement of the Problem

The main problem is the inefficiency of product detailing among hospital
administrators, clinicians and doctors since Jamieson Drugs, Inc. has been in industry for
more than 25 years. Next is the inefficiency in the recruitment of applicants.

IV. Objectives
To maintain its position as one of the top pharmaceutical companies in the country
starting in becoming efficient in product detailing and by hiring applicants which are
suited in the field required with lesser cost.

V. Areas of Consideration
In order to thoroughly investigate on the issue, the following should be considered:
1. Jameison Drugs is a division of the Jankinson Drugs Phils. and has achieved a
compounded annual growth rate of 35%.

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 2. It is now one of the top 10 companies which competes in the antidiarrheal,
antihismatic, anti-acne, and analgesic markets.
3. Jameison was able to developed from a purely Ethical drugs to Over-the-Counter
drugs that has brought in more sales growth.
4. Sales personnel form the major portion of the company making up 60% of the key
positions and identified to be the income generators.
5. With significant turnover, the sales of the company are affected to which it decreased
by two percent.
6. Workload of incumbent sales personnel became heavy.
7. Employment of 150 individuals in just a year to settle vacancy.
8. There is an inefficient product detailing among hospital administrators, clinicians and
doctors.
9. Manpower Magnate is relatively new in the outsourcing industry and Jamieson Drugs
has not yet received any feedback regarding the performance of the outsourcing
company.

VI. Assumptions
1. Since Jameison Drugs is a division of Jankinson Drugs Phils., it was able to have a
compounded annual growth rate of 35% because it need not to introduce itself more
as its parent is already well-known.
2. Being able to developed into Over-the-Counter drugs, it became more accessible to
customers leading it to be recognized as one of the top 10 companies in
pharmaceutical drugs.
3. Sales Department has been identified as the income generators because the sales
personnel before was able to do their job
4. Workload of incumbent sales personnel became heavy because they have to fill in
those who have resigned, resulting into depletion of employee’s performance.
5. Employment of 150 individual further leads to further depletion of employee’s
performance because inefficiency in hiring is probably because people are hired for
the sake of filling the job vacancy.
6. An inefficient product detailing among hospital administrators, clinicians and doctors
is because the employees hired are not selected and qualified to meet the company’s
standards. Inadequacy of knowledge and training resulted to inefficient product
detailing.

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VII. Alternative Courses of Action
1. The company must invite the right people in the first place.
Pro: Getting to know if the person is a good fit to the company’s workplace culture
should be concentrated taking into consideration the work experience, educational
background and skills. A thorough background check shall be performed before a
financial decision is made. This is for the company to be able to find the qualified
employees that would help in alleviating the company’s situation.
Con: In continuous seeking of employees, company would incur more loss as the
expenses will continually increase.
2. Accept the proposal of Manpower Magnate and implement an effective change
management strategy as soon as the outsourcing contract has been signed.
Pro: If the proposal of Manpower Magnate would be accepted, it would be better if
there is a way to properly address the problem. There should be a developed
comprehensive communication program disseminated to all stakeholders who will be
affected by the outsourcing. The rules and regulations between the two would be
binding to help the company’s success and not to make a party in control of the
other.
Con: Implementing strategy upon signing would make the other party felt as if the
Jameison Drugs does not trust them enough to continue their relation. They may felt
as if Jameison Drugs want to control them amidst the fact that they are both doing
their duties and roles in favor of each other.
3. A low cost solution to a high cost turnover is retention.
Pro: HR professionals estimate that it costs nearly 1.5 times the employee’s yearly
salary to lose them. Seeking retention among employees would help the company
avoid the risk of higher cost of filling job vacancy.
Con: The company itself may felt inferior to its employees as it abides with the needs
and wants of its employees. The employees might use this opportunity to take
advantage of the company since the company would follow any of their demands in
exchange of their stay in the company.

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VIII. Recommendation
Through a comprehensive analysis, it is most appropriate for Jameison Drugs to
pursue with the first alternative which is to invite the right people in the first place. This
actually means that the company is not yet in the critical point of business to need the
help of other party. The HR Head believes that incorporating an outside party would not
be okay since the integrity and credibility of the other party has not yet been proved. It
would be okay to incur more loss in finding and selecting the right people for the job
than by spending money for some proposals that would not ensure the company’s
stability. Implementing a hiring process that would result in getting the most qualified for
the job is important especially if the position is relatively in connection with the income
generating unit of a company. The company can select the best of the bests that they
need with good hiring process in place.

IX. Detailed Plan of Action

1. Jameison Drugs should first evaluate all of its employees.
2. Upon pre-evaluation, a meeting of all the employees must be held to discuss the
evaluations of the company.
3. Since it would be unfair to remove newly hired employees, a chance must be given by
providing them intensive training to further enhance their knowledge and skills.
4. A post-evaluation after a certain period must be done.
5. The result of the post-evaluation will determine the employees who will stay and who
will have to leave.
6. To fill up the vacancy of those employees who need to leave, a stricter selection of
new employees must be done.

X. Fallback Position
If Option 1 did not work, Jameison Drugs may consider Option 2 which is to
accept the proposal of Manpower Magnate and implement an effective management
strategy as soon as the outsourcing has been signed to address the problem since the
company is in critical need of help from the outside party and has failed to solve its
issues internally.

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