Case Study Hospital Supplies Essays

1708 Words Jul 6th, 2015 7 Pages
I. PROBLEM City Hospital Supplies, Inc. is faced with the means to develop the Philippine market for the three product lines of Sneider Company for its startup operations.

• Limited liability of owners

The shareholders are not personally liable for corporate acts and debts. This means that in case of liquidation of the company, if the company's assets are insufficient to meet the liability, nothing is required to be contributed by the owners. Only the owners' contribution is at stake rather than their personal assets.

• Raising capital is easy as approved by stockholders

The company’s form of business organization, corporation, makes possible the raising of large amounts
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WEAKNESSES • Greater Regulation Regulations imposed and formalities required by the Securities and Exchange Commission may slow down the implementation of major decisions like the issuance of stocks for expansion plans. A corporation can be subject to greater regulation that can add to the cost of doing business. • Incorporators’ inexperience in supervising sales personnel None of the three had any training or experience in supervising sales personnel. • Lack of support from the incorporators Mr. Jaime would be the General Manager of City Hospital Supplies, Inc. and the other two would be members of the Board of Directors. All three were engaged in the practice of their individual professions so none, except Mr. Jaime, was expected to be involved in the company operations. • Investment in office equipment and furniture instead of utility vehicles The matter of buying utility vehicle was discussed. It was decided that investments will be in the most essential office equipment and furniture instead of transport equipment. In a company which aims to promote and distribute, utility vehicles are more important in performing operations than office equipment and furniture.

OPPORTUNITIES • Extendable contract With respect to

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