Topic > Hematal - 1728

Problem: Doctor Rini's main and immediate problem is whether to decide whether to give further 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 to whether or not to extend further credit to the boy's family. It was demonstrated in the case that the family is very poor and will not be able to pay immediately and will most likely no longer be able to pay given the increasing hospital admission costs. This fact is important because Hematal will already have to consider writing off the family's debt, which will further affect the company's liquidity in the future when it extends additional credit. The boy still needs at least 20 more vials, Hematal has fewer in stock. With this I hypothesized that Dr. Rini's decision must be an "all or nothing" 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 first surgery, so I conclude that the boy will die if he is given fewer than 20 vials. Therefore, Hematal will have to order more vials from Gamma Corp. to meet the requirement of 20 vials.2. Media exposure and NGO support/protest can be both helpful and detrimental to Hemetal's reputation as a pharmaceutical company. Pharmaceutical companies must gain public trust for end consumers to patronize its products. Receiving bad publicity, especially being "young" in the industry, will greatly affect the company's sales and its life.3. Hematal will have to maintain a certain level of stock for regular paying customers brought in by their Haemophilia Society as they may need their supply of Factor A concentrate. This will mean Hematal will have to order more vials than required for stocking. If Hematal does not order to maintain stock levels and decides to run out of supplies for the boy, regular paying customers could create a problem with the Hemophiliac Society and no longer get their support. The Hemophiliac Society may also cause bad publicity for Hematal by voicing their concerns and protests. Additionally, the Company may influence Gamma to change its exclusive distributor in the country.4. Dr. Rini's conscience and peace of mind will be strongly influenced by her commitment as a doctor based on the Hippocratic Oath if she decides not to help.