A Case Analysis for the

Mercury Drug

Submitted by: (BSAT 4-2)

Dela Cruz, Nicole A.

Domondon, Dorielyn M.

Gallano, Maria Yvonne

I. INTRODUCTION

A. EXECUTIVE SUMMARY

This case study has an aim to provide an overview of background,

purpose, strategy method, the major findings and recommendations about

Mercury Drugstore. 

In the first section, we will identify the most important facts surrounding

the case including the recent development and the overall culture of the

company. Second point will cover the issues in the statement of the problem,

SWOT analysis and also its specific objectives which will help us to measure

the result of the performance and indicate if strategic objectives have been

achieved. Next topic will focus on the alternative courses of action of the

company to know what can be done to resolve problems already defined. And

the final point is our recommendation for the best course of action to suggest

ways forward and how to improve current ways of working, or action that

needs to be taken. 

B. RECENT DEVELOPMENT

The Mercury Drug is now accepting payment of medicines and other

consumer goods via PayMaya QR. This scan-to-pay technology is another

innovation to enhance the experience of their Suki customers for faster and

more convenient transaction. To use it, customers need only to open their

PayMaya application on their phone and scan the QR code displayed in

Mercury Drug store counters and enter the amount they need to pay every

time they need to purchase something.

C. CORPORATE CULTURE OVERALL

Mercury Drug Corporation is the Philippines' dominant pharmacy group. The

Quezon City-based company operates a national chain of more than 450

drugstores, including company-owned and franchised stores. Mercury Drug is

estimated to sell as much as 60 percent of all medicines sold each year in the

Philippines (the country's hospitals sell about 12 percent of medicines).

Mercury Drug's pharmacies follow the American model, combining drug and

medical equipment sales with over-the-counter medicines, personal care

items, basic household needs, cosmetics and other beauty products, and the

like. Most of the company's stores also are equipped to store and sell serums,

blood plasma, albumin, and similar biologically active medical products. In

addition to its drugstores, Mercury operates a chain of Mercury Drug

Superstores. Generally attached to the company's pharmacies, the Mercury

Drug Superstores extend the group's assortment to include convenience store

and fast-food items. Mercury Drug Corporation remains a privately held

company who is founded by Mariano Que. Leadership of the company also

remains in the family: The company president is Mariano Que's daughter,

Vivian Que-Ascona. Mercury Drug is a subsidiary of the Mercury Group of

Companies, which governs other Que family interests, including the 10*Q

convenience store chain and the Tropical Hut fast-food group.

II. IDENTIFY THE ISSUES

A. STATEMENT OF THE PROBLEM

The problems they experienced according to the one of branch manager of

Mercury Drugstore with regards to ethical issues are gift giving, workplace

romance and conflict of interest. They usually receive food as a token of gratitude

in which it cannot be avoided like in gift giving. They only accept food and not

material things, this not really affect their company as he stated. As much as

possible, workplace romance is prohibited he also. If such thing happens in the

workplace, the manager transfers one of the employees to the other branch of the

company to avoid connivance. Another things is the conflict of interest, it happens

because sometimes the schedule of an employee is fitted to have another job or

sidelines which can be a reason for the employee to prioritize the other job than

his job in the Mercury Drugstore.

B. SWOT ANALYSIS

STRENGTHS:

 Strong management

 Customer Loyalty

 Good overall reputation

WEAKNESSES:

 Store layout and design

 Merchandise
 OPPORTUNITIES:

 Advertising and promotion

 Positive approach of doctors

THREATS:

 Constant increasing inflation

 Competitor price discriminating strategy

C. SPECIFIC OBJECTIVES

 Expanding retail presence strategically

Riding on the rapid urban development outside Metro Manila, Mercury

Drug continues expanding strategically into smaller cities and rural

communities nationwide such as Bulacan, Davao City, Cavite and

Laguna. 

 Maintaining brand positioning and product quality

Competition becomes ever more intense with increase strategic

investments by other retail giants Ayala and Robinsons. Nevertheless,

Mercury Drug prides its brand legacy among Filipinos and its wide

product offerings. The company sells almost 60 per cent of all the

medicines in Philippines. The company aims to maintain excellence in

customer services.

 Focusing on loyalty program

Amid growing number of leading chains, Mercury Drug maintained

leading position with largest market shares in drugstores. However, the

gap was narrowed in 2017. To compete, Mercury Drug is focusing to

 increase customer benefits and rewards for Suki Cardholders, a free and

transferable customer loyalty program launched since 2008. Mercury Drug

also partnered with banks and offers co-branded credit cards.

 Increasing its digital presence

Mercury Drug is utilizing its mobile app to keep consumers informed on

the latest store locations, product offerings, sales promotions and member

rewards. The company is also leveraging Facebook on marketing efforts

and consumer education. The online order service, Gamot Padala, also

allows orders to be placed through telephones. As more players penetrate

into e-commerce, Mercury Drug is exploring to expand retail distribution

online.

III. ALTERNATIVE COURSES OF ACTION

1. Supervise the employees regularly

Pros:

 Employees will be discouraged from doing unnecessary acts at work

knowing they are under supervision.

 Employees will be motivated to do their work properly knowing they are

under supervision.

 Company will know who employees to keep.

Cons:

 Employees are under-pressue that can affect their productivity.

 Reduces Trust Level. Employees will think the company do not trust

them.
 2. Set company Rules or policies for the employees and corresponding sanctions

for each violated rules.

Pros:

 Employees will be discouraged to disobey the rules.

 Employees will know what are the things they can do and what are the

things they must avoid to do.

 Company can eliminate certain problems with their employee's behaviors

and performance at work

Cons:

 Employees will think they have less freedom at work.

 Might be a disadvantage in recruiting new employees.

IV. RECOMMENDATION

Gift-giving is ethical as long as it will not lead to bribery. Workplace romance is

also highly not encourage in any work for it will affect the performance of

employees. Also, conflict of interest will affect the productivity of the business if not

prevented. Supervision plays an important role in having a good internal

management in a business. Supervising an employees while having a set of rules and

regulations will help the business to overcome their problems. In gift-giving, the

company must have standards on what is unethical and not or what is acceptable and

not. While in workplace romance, they must not allowed partners to work with the

same branch. Lastly, for the conflict of interest, the company must provide seminars

or trainings for each employees to give them lectures with their roles in their work

and how can they fulfill their responsibilities in an effective and efficient way.