Us Pharmaceuticals of Korea

In: Other Topics

Submitted By pieces
Words 718
Pages 3
‘‘U.S. Pharmaceutical of Korea”

Case Study 3

Abstract:
This case is about US Pharmaceuticals of Korea (USPK). US Pharmaceuticals of Korea sells throughout Korea because there are no selling restrictions, only that the sellers they use have a business license and a tax ID.
A wholesaler has created a drug that helps to control sever cases of a debilitating disease. They were reluctant to market it, but because the drug could help those afflicted with it, they decided to market it anyway. Due to this, the marketing department is looking for a distributing strategy.
Tom Sloane is the marketing manager for USPK and he would like to improve the percentage of the company sales by majority being company direct sales to retailers with the remaining small percentage to high volume users. One of his dilemmas are to make this happen with the large volume of small retailers involved, also, the competition that USPK has also effects its receivables. Another problem is that many wholesalers are understaffed and have to rely on “drug peddlers” for sales; this affects their bottom line selling price.
These issues lead to wholesaler/retailer price lists. Sloan believes that the industry can help in solving the price competition.
1. What should Tom Sloane and U.S. Pharmaceutical of Korea do to improve collections from wholesalers?
I think the best thing that Tom and U.S. Pharmaceutical of Korea could do, would be to have sales agreement and policies that are laid out and agreed upon before business transactions take place in reference to collections. This agreement should lay out the specific payment terms. Most payments are due in 30 days and they should be sure to explain that payments not paid on time will result with a late fee and this fee will continue to go up the later it is. For example, the payment isn’t received in 30 day then a 15% fee will be added…...

Similar Documents

Pharmaceutical

...Instructor’s Manual CASE TEACHING NOTES The Global Pharmaceutical Industry Sarah Holland (Manchester Business School) and Bernardo Bátiz-Lazo (London South Bank University) 1. Introduction The case describes how the prescription pharmaceutical industry has changed since its modern beginnings in the early 1950s. The various forces affecting the competitive environment of the industry are discussed in terms of origins, immediate past and immediate future (2004 onwards). As a result, the note provides insights into the evolution of barriers to enter and exit the industry for prescription pharmaceuticals, while aiming to help students to recognise how to set boundaries for an industry. This is a detailed industry note on the “ethical” pharmaceutical industry which provides an opportunity to analyse key success factors of major players. The note centres on a descriptive overview of the predominant issues in the three major Triad market areas: the US, Europe and Japan (although major issues in emerging markets are also mentioned). The note covers the overall industry environment with in-depth discussion of the driving forces in the industry such as globalisation (in particular global regulatory issues, changing world demographics and worldwide pricing disparities); development of new technology; the importance of time to market; and amalgamations. The case also examines issues around corporate social responsibility. 2. Position of the Case The pharmaceutical...

Words: 8602 - Pages: 35

Us Pharmaceuticals of Korea

...‘‘U.S. Pharmaceutical of Korea” Case Study 3 Abstract: This case is about US Pharmaceuticals of Korea (USPK). US Pharmaceuticals of Korea sells throughout Korea because there are no selling restrictions, only that the sellers they use have a business license and a tax ID. A wholesaler has created a drug that helps to control sever cases of a debilitating disease. They were reluctant to market it, but because the drug could help those afflicted with it, they decided to market it anyway. Due to this, the marketing department is looking for a distributing strategy. Tom Sloane is the marketing manager for USPK and he would like to improve the percentage of the company sales by majority being company direct sales to retailers with the remaining small percentage to high volume users. One of his dilemmas are to make this happen with the large volume of small retailers involved, also, the competition that USPK has also effects its receivables. Another problem is that many wholesalers are understaffed and have to rely on “drug peddlers” for sales; this affects their bottom line selling price. These issues lead to wholesaler/retailer price lists. Sloan believes that the industry can help in solving the price competition. 1. What should Tom Sloane and U.S. Pharmaceutical of Korea do to improve collections from wholesalers? I think the best thing that Tom and U.S. Pharmaceutical of Korea could do, would be to have sales agreement and policies that are laid out and...

Words: 718 - Pages: 3

Us Pharmaceutical in Korea

... competition affects another aspect of USPK’s operations—collecting receivables. USPK has found that many wholesalers collect quickly from retailers but delay paying USPK. Instead, they invest in ventures that offer high shortterm returns. For example, lending to individuals can bring them interest rates of up to 3 percent a month. The company’s receivables, meanwhile, range from 75 to 130 days. Wholesalers are also the cause of another problem. Many are understaffed and have to rely on “drug peddlers” for sales. The drug peddlers (there are perhaps 4,000 just in Seoul) make most of their money either by cutting the wholesalers’ margins (selling at lower than recommended prices) or by bartering USPK’s products for other pharmaceuticals. They do this by finding retail outlets where products are sold for less than the printed price. They exchange USPK’s products at a discount for other drugs, which they sell to other retail outlets at a profit. As a result, USPK’s products end up on retailers’ shelves at prices lower than those that the company and its reputable wholesalers are selling them for. The pharmaceutical industry has made some progress in persuading wholesalers and retailers to adhere to company price lists, but nonadherence is still a serious problem. One issue that manufacturers have not been able to resolve yet is the manner in which demands from hospitals and physicians for gifts should be handled. Sloane believes the industry can do much to solve these problems,......

Words: 798 - Pages: 4

Us Pharmaceutical of Korea

...Profit Profit - the difference between the purchase price and the costs of bringing to market. - Is any amount of money that is left over from a company after all financial expenses have been paid. It is the money they are able to save once the business purchases have been made. - Is the money a business makes after accounting for all the expenses. - The positive gain from an investment or business operation after subtracting for all expenses. Opposite of loss. Different profit concepts 1. Normal profit is the minimum level of profit needed for a company to remain competitive in the market. - Occurs at the point at which the resources available to the firm are being efficiently used and could not be put to better use elsewhere. It is important to note that zero economic profit does not mean that the company is not earning any money (accounting profit). It is simply a measure of how well resources are being used relative to all possible options. 2. Sub-normal profit – is any profit less than normal profit (where price is less than average total cost). 3. Abnormal Profit – is any profit achieved in excess of normal profit – also known as supernormal profit. When firms are making abnormal profits, there is an incentive for other producers to enter the market to try to acquire some of this profit. Abnormal profit persists in the long run in imperfectly competitive markets such as oligopoly and monopoly where...

Words: 708 - Pages: 3

Pharmaceutical

...The pharmaceutical industry has had to adjust their marketing strategy due to the 1984 Food and Drug Administration (FDA) legislation regarding drug patent protection. Traditional market strategy has also been affected by the changing face of the consumer. Drug companies have begun advertising to consumers. In the past, marketing strategy centered on marketing to doctors. The doctors were provided samples which they made available to patients. The nonmarket environment has affected the efficiency of the pharmaceutical industry. Consumers are more knowledgeable and they have more access to means of communication than they have in the past. Pharmaceutical companies are marketing their products to a consumer group that is more aware of ailments and the benefits of pharmaceutical treatment. Pharmaceutical industries traditional marketing plan includes providing samples of medicines to doctors. The industry also provides auxiliary office items (such as pen and personalized stationary) to medical professionals. The successful national and international sale of these samples funds the development of new pharmaceutical products. It is a cycle that must be completed due to the nature of selling doctor prescribed pharmaceutical products. Because of stringent oversight of the Food and Drug Administration, the pharmaceutical industry spends millions of dollars on research. Tang (2013) notes, on average developing a new drug has become increasingly expensive, time consuming and risky...

Words: 391 - Pages: 2

Us-Korea Relationship

... are not only creating jobs but are promoting a strong workplace safety culture and diversity in the workforce by hiring huge numbers of well-qualified Korean women.  Our businesses also bring a culture of innovation and state-of-the-art American technology. KORUS Implementation KORUS has the potential to be a benchmark for high-standard, comprehensive trade agreements.  Over the next several years, tariffs on a variety of goods and services are scheduled to decrease.  I know that Korean regulatory agencies are working hard to adjust to Korea’s obligations under the agreement.  Along the way, we will continue to work closely with our counterparts in the Korean government to facilitate full implementation of the KORUS commitments, and to ensure that new laws or regulations under consideration are promulgated in a fair, transparent, and predictable manner.  For example, U.S. exports of services to Korea increased 9 percent, totaling 18 billion dollars in 2012.  The upcoming phase-in of financial services commitments in the Korea-EU and KORUS FTAs has the potential to further strengthen Korea’s service sector and promote economic growth in Korea.  These are exciting opportunities for all of us.  I think it is also exciting that given Korea’s web of free trade agreements, Korea is poised to become a regional and global trading hub in the 21st century.  Conclusion When you consider what we have accomplished together in these four important areas, it is easy to see why......

Words: 1487 - Pages: 6

Korea Pharmaceutical Directory

... have become the nation’s best selling products while the company secured itself as a trustworthy company by many customers. Now, Korea is standing at the crossroads of placing itself as an advanced country in the aspect of the economy. However, as the country is advancing, we are too, faced with problems such as the falling birthrate, the aging of society, and chronic adult diseases. Especially with the development in health care and personal hygiene, there are increased interests for healthy living in the people of this aging society. Keeping pace with the current changes, Boryung plans to continuously develop superior pharmaceuticals through intensive research for new medicines and advanced market strategies to improve the quality of life. We are continuously going through intensive innovations to achieve our goal. Upon our proclamation of ‘inno-BR’ in January of 2005, Boryung has been establishing and carrying out a strategy required for manpower, process and product innovation. Boryung believes that without innovation, we will not be able to cope with the fast-changing world. Boryung is a company ready for any challenges and innovations, in preparation of the upcoming future. We give you our promise to ‘Render a great contribution to human health’ because this is, our ultimate and priority goal as a pharmaceutical company. Please continue to give us your support and interest in us. Thank you The Central laboratory in expanding its area of research for new drug...

Words: 30709 - Pages: 123

Korea

...South Koreans use the term ‘the Miracle at the Han River’ to describe their economic growth since the Korean War. In the 1960s, South Korea’s Gross Domestic Product (GDP) per capita equalled that of poorer countries in Africa and Asia. Today, it’s GDP at official exchange rate (OER) is US $1.151 trillion, ranking it as the world’s 12th largest economy; its unemployment sits at 3.2%; and, its Human Development (HDI)[1] ranks 12th in the world (US 2013). Indeed, why wouldn’t such a growth trajectory take on a supernatural descriptor? What’s more, in the 1960s few could have predicted such an ascent given that the Republic of Korea (ROK) lacked an abundance of natural resources, land mass or population size – frequently used indicators to forecast power potential (Organski 1968, 340). This has led researchers to question why South Korea was able to grow at such a remarkable pace, while other potential risers were not. For instance, Egypt, with a larger abundance of profitable natural resources, a larger land mass and nearly twice the population size, has had sluggish growth during that same time. Egypt’s GDP (OER) is US $255 billion; its unemployment is 12.5% or 130th in the world; and, its HDI ranking is 112th. Immanuel Wallerstein’s World System Analysis[2] provides a theoretical framework to consider such growth and development inequalities. He argues an essential organizing characteristic of the modern capitalist world economy is the division of labour. Wallerstein argues...

Words: 1095 - Pages: 5

Pharmaceutical

... lack of new consumer products threatened the strength of the company, in turn encouraging the merger with their competitor Sharp and Dohme, Inc. In 1965, control of the company shifted for the first time to a non-Merck family member when Henry Gadsen became CEO. Under Gadsen, many smaller pharmaceutical companies were brought into the Merck family, including Calgon, Kelco, and Aircoil. By the 1980s, Merck was the largest producer of drugs for the major markets of the United States, Europe, and Japan. Merck Today: Today Merck employs over 55,000 and produces some of the most well-known pharmaceutical products on the market, including Singulair and Gardasil. The company's interests range from pharmaceuticals, vaccines and veterinary health to consumer education. Merck reported 2008 earnings as almost $24 billion, with the predominant profits made in the United States. References * Marshall, J., & Olphert, A. (2008, December). Understanding the effects on staff and patients in the NHS: A case study of local Primary Care Trust Mergers. Management Services, 52(4), 20-24, 26-28; * Weiner, S., & Hill, R. (2008). SEVEN STEPS TO MERGER EXCELLENCE. Ivey Business Journal Online, 72(5), 2-4. R; * Arnum, Patrica Van. (Aug. 2009). Big Pharma Tightens Its Belt in Global Manufacturing. Pharmaceutical Technology. 33(8). Page 34-37; * Fagerberg, Paula. (2002, October). Merck: with affinity groups and programs for innovative leadership, this pharmaceuticals......

Words: 4970 - Pages: 20

Security Competition Between the Us and North Korea

... to resume talks to with Pyongyang over its missile program, and instead ordered a review of US policy toward North Korea. Yet, it should be noted that this statement was made in the aftermath of significant North Korean concessions to US security concerns the previous year. As Leon Sigal noted, during Albright’s talks with Kim Jong Il the previous October, the North Korean leader ‘offered not only to halt all missile exports, but also to freeze all testing, production, and deployment of his No-Dong and Taepo-Dong missiles and eventually eliminate them.’ The Bush Administration’s rhetoric of suspicion and hostility led to an antagonistic response from Pyongyang. On 15 March 2001, Pyongyang accused the Bush administration of ‘escalating its provocative and reckless diatribe.’ These patterns of antagonism were further illustrated the following year during Bush’s State of the Union Address, when he declared that Washington’s goal is to prevent regimes that sponsor terror from threatening America or our friends and allies with weapons of mass destruction. Some of these regimes have been pretty quiet since September the 11th. But we know their true nature. North Korea is a regime arming with missiles and weapons of mass destruction, while starving its citizens … States like these, and their terrorist allies, constitute an axis of evil, arming to threaten the peace of the world. By seeking weapons of mass destruction, these regimes pose a grave and growing danger. ......

Words: 9664 - Pages: 39

Why Did the Us Become Militarily Involved in Korea?

...Why did the US become militarily involved in Korea? In June 1950, 90,000 soldiers from the communist Korean People’s Army crossed the 38th Parallel into South Korea. The most important reason for a military response from the US was the document NSC 68, which stated that they must meet communism wherever it arises. Due to this document, it was the US assumption that the invasion on South Korea was not a Civil War due to the events in Korea, and the permanent divide in 1948. However, there was also US domestic policies, and Truman’s fear of being accused of being ‘soft on communism,’ as well as the US based organisation, the UN, which was a new institution, which Truman had to support. Furthermore, containment in Europe and Asia and the threat to the balance of power in these continents prompted US retaliation, as did the threat to Japan and the US defence perimeter. NSC 68 highlights the importance of the defeat of Communism due to the threat of the ‘destruction of civilisation itself,’ and that the ‘peace of the free world’ is in peril. Due to the US assumptions that communism is evil, which is demonstrated in countries such as Czechoslovakia, where political parties and freedom of speech were banned, Hungary, where political opposition meant imprisonment, and Bulgaria, when any opposition was executed, Truman understood the importance of this document. It recommended rearmament and increase of defence, as well as ‘keeping the US public fully informed and cognizant...

Words: 1727 - Pages: 7

Korea

...Korea, called Hanguk (Korean: 한국; Hanja: 韓國) in South Korea and Joseon (Korean: 조선; Hanja: 朝鮮) in North Korea, is an East Asian territory that is divided into two distinct sovereign states, North Korea (aka, DPRK or Democratic People's Republic of Korea) and South Korea (aka, ROK or Republic of Korea). Located on the Korean Peninsula, Korea is bordered by China to the northwest and Russia to the northeast. It is separated from Japan to the east by the Korea Strait and the Sea of Japan (East Sea). The adoption of the Chinese writing system ("Hanja" in Korean) in the 2nd century BC and the introduction of Buddhism in the 4th century AD had profound effects on the Three Kingdoms of Korea, which was first united during the Silla (57 BC – AD 935) under the King Munmu. The united Silla fell to Goryeo in 935 at the end of the Later Three Kingdoms. Goryeo was a highly cultured state and created the Jikji in the 14th century. The invasions by the Mongolians in the 13th century, however, greatly weakened the nation, which was forced to become a tributary state. After the Mongol Empire's collapse, severe political strife followed. The Ming-allied Choseon emerged supreme in 1388. The first 200 years of Choseon were marked by relative peace and saw the creation of the Korean Hangul alphabet by King Sejong the Great in the 14th century and the increasing influence of Confucianism. During the later part of the dynasty, however, Korea's isolationist policy earned it the Western nickname...

Words: 398 - Pages: 2

Korea

...Market Insight Seoul | February 2014 Hotels & Hospitality Group Spotlight on Seoul Spotlight on Seoul 3 Market Summary As South Korea's political, economic and financial hub, Seoul is a bustling metropolitan city in Asia. With its rich heritage and traditions, scenic landscapes and modern infrastructure, Seoul is a major corporate and leisure destination in Asia, offering tourists a diverse mix of cultural, entertainment, dining and shopping experiences. International visitor arrivals have been on the rise since 2003. The Korean wave and the government’s initiatives to boost tourism as well as the depreciation of the Won have encouraged visitation to Seoul. In 2012, international visitor arrivals to South Korea was recorded at 11.1 million, above the target of 10 million tourists. In 2013, visitor arrivals edged up to 12.2 million tourists, a 9.3% year-on-year increase, supported by the increasing number of tourists from Mainland China. Japanese visitors decreased dramatically by 21.9% compared to 2012 due to the weakening of the Yen and a strained political relationship. However, Japan and Mainland China still remained as the top two source markets to South Korea in 2013. There has been a significant increase in hotel development in the capital city of Seoul against a backdrop of demand growth and limited room supply in recent years. According to Korea Ministry of Culture, Sports and Tourism (KMCST), approximately 50 new hotel projects have been submitted which...

Words: 6524 - Pages: 27

Us and South Korea Sign Free Trade Agreement

...Roledany David International Marketing Case 3-2 US and South Korea Sign Free Trade Agreement Many may ask why nations trade with each other. The answer to that question is that it provides those nations access to more goods and services at much lower prices. Whenever nations trade amongst one another, there are always winners and losers. The side who stands to win if congress ratifies the US-Korea free trade agreement would be Korea. The side that would stand to lose would be the United States. In the United States the United Auto workers supported Korea trade deal. It was mostly due to the fact that they wanted to have the ability to export a large amount of vehicles and have many of the tariffs that were in there way removed. They see it as a landmark trade deal. Companies such as Ford were very disturbed by their limitations prior to the removal of the tariff. There are many reasons as to why the Global Automotive Industry was a lot of the time at the center of disagreements over trade relations. One of the reasons is that a reduction in South Korea’s tariffs would boost exports from the United States by 11 billion each year. Many US automakers stand to benefit from improved access to 48 million people. They show one of the largest interest because they have a large amount they could lose if things don’t go there way and a lot to gain if things go their way. They show the largest financial gain from a deal than many other American companies that have interest in...

Words: 415 - Pages: 2

Korea

... development model, including high debt/equity ratios, massive foreign borrowing, and an undisciplined financial sector. South Korea signed an enhanced US$58 billion package, including loans from the World Bank and the Asia Development Bank. Under the terms of the that program, South Korea agreed to accelerate the opening of its financial and equity markets to foreign investment and to reform and restructure its financial and corporate sectors to increase transparency, accountability and efficiency. By the end of 1998 it had recovered financial stability, rebuilding foreign exchange reserves to record levels by running a current account surplus of US$40 billion. Seoul has also made a positive start on a program to get the country's largest business groups to swap subsidiaries to promote specialization. The administration has directed many of the mid-sized conglomerates into debt-workout programs with creditor banks. The stock market, which fell sharply at the onset of the crisis, rose by 33 percent in 1998, and a further 70 percent through November 1999. South Korea substantial progress has been made in stabilizing the financial system, addressing corporate distress, strengthening the institutional framework for corporate governance and financial supervision, liberalizing capital markets and foreign investment, fostering transparency, and enhancing the role of market discipline. The institutional framework for restructuring is largely in place and major strides have been made......

Words: 2557 - Pages: 11