Case Study Hospital Supplies

1715 Words7 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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The company is assured that payment will only be made to the Exporter/Seller upon presentation of documents in strict compliance with the letter of credit evidencing the shipment of goods.

• Good mark-up of 35% of the landed cost of Sneider products

Landed cost is the total cost of a landed shipment including purchase price, freight, insurance, and other costs up to the port of destination. In some instances, it may also include the custom duties, and other taxes levied on the shipment. In this case, a 35% maximum mark-up of the landed cost to distribute exclusively all Sneider products in the Philippines is good enough.

• Reduced succession time through importing by air freight

Succession time refers to the time of getting goods from one point to the requested destination. The shorter the time it takes on delivery, the lesser is the chance of goods getting damaged. The lesser time the goods are in transit, the lesser danger they face.

• Documentation and verification through the use of purchase order

A purchase order is a document the purchasing department uses to place an order with a vendor. A purchase order authorizes a vendor to ship ordered merchandise at the stated price and terms by serving hospital orders with duly approved purchase order from the hospital can verify that the order is not void. The CHS can trace who to blame if the other parties failed to comply with the terms of the company.

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