BUMGT5980 Managerial Decision Making: Applying Solutions to Problems

This report critically analyzes a problem encountered at PPH Pharmaceutical Limited, where unethical supplier behavior led to financial losses and compromised the company's reputation. The problem was identified through financial audits revealing inconsistencies in drug supply and delivery. The report details the process of generating and evaluating solutions, including apprehending the responsible individuals (Tom and John West), closing illegal retail outlets, and implementing preventative measures through company committees. The implemented action plan involved legal charges, financial recovery, and new policies to ensure ethical conduct and sustainable growth. The report concludes by highlighting the importance of ethical practices and proactive measures in maintaining a company's financial stability and reputation.

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Topic 1: Introduction and Identification of Problem
Problem Background
The purpose of this paper is to critically analyze and examine a problem observed from PPH
Pharmaceutical Limited. This company was formed to manufacture medical drugs and to supply
the drugs in wholesale to different outlets. The process of forming the company was done
through location of manufacturing plant. In that connection, the company gathered resources and
the manufacturing plant was set (Risak, 2010). Other requirements were also set ready from the
overall objectives. Lastly, the company recruited human resources that would propel the
company business growth and development.
The first group to be recruited a team of pharmacists whose main objective was to manufacture
medical drugs in large scale. The other set of workers that the company recruited was sales
representatives whose main objective was to supply medical drugs to other outlets at wholesale
supply channel. Two years later, I was recruited as a sale representative in the company
(Rothbard, 2007). The process was effective and efficient thereby making the company to
generate a lot of money from the business. However, six, months later, the management of the
company noted some inconsistencies of sales made along with some an authorized supply and
delivery of medical drugs to unknown destinations. This issue created a problem that will be
defined in this paper. Solutions generated will be evaluated, implemented as action plan will be
considered.
Problem Definition
The issues to be considered in this case occurred two years after a period of smooth running of
the company. Typically, the problem was detected by audit team that scrutinized financial
records of the company. The management team realized the some inconsistencies in the supply
and delivery of medical drugs to unknown destinations. This problem exposed PPH
Pharmaceutical Limited to financial constraints. This company lost a lot of money since part of
manufactured medical drugs was not producing return to the company. The company was
straggling to make payments to employees due to lack of proportionality in manufacturing that
would not correspond to sales made. The management team has to investigate the main cause of
the problem. The team of pharmacists was investigated but there were no results associated to the

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problem. Therefore, the team had to investigate sales representatives and suppliers. The
investigations was done to verify the cause of the problem. This process took three weeks but
finally the issue was discovered.
After an exclusive analysis of the findings, the team discovered that the problem was as a result
of unethical performance of the suppliers. It was realized that Tom, one of the suppliers was
taking some deliveries from the manufacturing plant without authorization by logistic and
clearance department (Thomas, 2009). In this case, Tom of stealing from the company where he
sold the products to local consumers at a lower price in the market as compared to the company.
The worst part of it was when the company realized that Tom was selling the products using
brand name for the company as well as using distribution channels set by the company to reach
the market.
As a result, the company lost majority of potential customers thereby becoming difficult to
sustain business operations of the company. Again, Tom’s lacked ethics thereby compromising
the company as well as jeopardizing the life of many employees of the company. At that point,
the company was operating in large scale thereby maintain the capacity of workers at 50. This
number of employees relied on the existence of the company to survive (Ryan & Deci, 2017).
Again, medical drugs were very crucial to the community so as to main a healthy life as well as
to cater for acute and chronic diseases. For those reasons, the company had to initiate a program
to determine the best course of action to be taken so as to resolve the issue. The solution was also
very important to prevent future occurrence thereby bringing more damage to the company and
other stakeholders.
Topic 2: Solution Generation and Evaluation
Solution Generation
This process was very important so as to save the company from possible collapse as well as to
preserve jobs for about 50 workers. First, the company made sure that Tom would be
apprehended by law enforcement team thereby investigating more on the problem. Tom was
arrested and investigations were conducted to determine if there was other members of the
company who collaborated with him. The investigation teams came to my home as a process of
determining those members involved in the scandal (Richard, 2013). Tom was also close

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examined by police so as to evaluate what made him to commit the crime. Tom was apprehended
because the company had realized that he was making unauthorized deliveries from the
manufacturing plant to unknown destinations. Throughout the investigation, the solution that the
company suggested was to dismiss Tom as the main supplier of medical products from the
company. Again, it was also possible to use Tom in the investigation so as to determine other
people involved the crime. In that connection, Tom told the police the main person behind the
problem was Mr. John West, head of manufacturing team. John West was a pharmacist who
owned a number of retail store across major cities in Australia. Therefore, he was using Tom to
supply pharmaceutical products to his stores (Rebecca & Hyman, 2013). Later on he would
apply other distributors to reach final consumers. He was also arrested and dismissed from the
company.
The last solution was to determine whether to charge them in the court of law as well as to
recover all the revenue lost in this scandal. All the retail outlets owned by John West would be
closed down so as to retain the initial supply of medical drugs from the company’s official
suppliers (Puttee et al., 2011). Then, John West and Tom would demanded by the court to pay all
the alleged amount of money lost by the company within the period of six months. This money
would be used to restore the company to financial position it was before business activities were
compromised by John West and Tom. Again, the company would use the money to pay all
employees their salaries that were withheld due to financial constraints faced by the company
within that period. Later on, Tom and John West would be charged for embezzlement of funds
and resources from PPH Pharmaceutical Limited.
Apart from dealing with Tom and John West, the company had to set a long-lasting solution to
prevent such cases from occurring. The company formed several committee across different
department in the company so as to offer options and strategies that would help the company to
growth and develop economically, socially, technologically and culturally (McGregor, 2012).
These committees were set to make sure PPH Pharmaceutical Limited moved forward in all
aspects of development. Again, the committee were required to provide a clear way forward to
employees caught having stolen resources from the company. The scandal of Tom and John
West would be used as a case study in the future and courts will be using it as precedent to
prevent recurrence of such case in the company (Shapiro & Stefkovich, 2016). After all the

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solution we generated, it was very important to evaluate them so as to set a clear path on their
implementation process.
Solution Evaluation
The solutions above were to be evaluated so as to determine their viability to growth and
development of the company along with personal development of workers of the company. In
the first evaluation, we consider the solution of closing all the retail outlets owned by John West.
After deep investigation, it was discovered that John did not register his retail outlets (Maslow,
2013). In that case, he was trying to evade taxation process that would realize his business was
operating illegally. If this solution would be implemented, then PPH Pharmaceutical Limited
would restore potential customers thereby recovery lost money as well as rebrand the company
(Marylene, 2014). Again, the company would recover revenue lost in the six months. This would
as well regain hope for the company to continue manufacturing more products thereby
improving healthcare of the community.
The other evaluation of solution generated on fining Tom and John would be appropriate so as to
gain access to fund lost by the company. The financial records of the company indicated the
amount of money lost within that period (Kanungo & Manuel, 2014). It also indicated the
amount of salary due for workers within the same period. Therefore, I would be appropriate to
fine them so that the company would clear all bills as well as to propel other manufacturing
programs. The money would as well be applied to open other manufacturing plants for PPH
Pharmaceutical Limited within major cities in Australia.
It was also very important to evaluate solution on charging Tom and John in the court of law.
This would be a good step so as to make other members of the company to learn the result of
involving themselves in criminal activities (Jonasson, 2012). In that connection, people with bad
intentions would use Tom and John as examples. It can also be used as a precedent in the court
of law thereby resolving case in different companies not necessarily in PPH Pharmaceutical
Limited.

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Lastly, the solution to set committees to research various aspects that would affect the company
positively was evaluated. This would ensure the company would grow in all aspects of
development such as economic, social, culture and technology. Economic aspect would ensure
PPH Pharmaceutical Limited increase manufacturing capacity, social aspects would promote
positive and coherent relationship among employees of the company (Henry, 2008). On the other
hand, culture aspects would promote the working culture of the company. Lastly, technology
would be applied to increase manufacturing units, to secure manufacturing plants as well as to
monitors and control operations of the company. These solutions would be implemented.
Topic 3: Solution Implementation
Implementation and Action Plan
The first solution to be implemented was concerning the retail outlets owned by John West. The
Regulation Authority realized that John was operating illegally by handling stolen products. For
that reason, his outlets were closed down. All the medical drugs found in these outlets were
supply back to PPH Pharmaceutical Limited warehouses for storage purposes (Donald & James,
2005). Again, the consumers were made to know that those outlets were operating illegally with
stolen products. This was implemented and many of potential consumers were shocked by the
issue under consideration. For that reason, many of wholesale consumers started buying the
products directly from manufacturing plant. Currently, PPH Pharmaceutical Limited is making a
lot of sales to consumers who prefer accessing the products from production plant directly.
Again, the solution to fine John and Tom was implemented. The company was required to
submit a copy of financial records so as to provide evidence on the amount of many lost. The
courts ordered Tom and John to pay $300,000 each for embezzling resources of PPH
Pharmaceutical Limited. This money was used to clear salary due for workers of the company.
Again, it was used to recover money lost by the company within the six months.
Again, the solution to charge Tom and John was implemented where the PPH Pharmaceutical
Limited charged them for stealing resources from the company (Bjornsson, 2016). Both were
charged in the courts of law and convicted for crimes set against them. Currently, they are
serving 10 years each in federal prison. It was important to implement this solution so as to
prevent other criminals in the company and other areas.

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Lastly, the ideas set by the committees were also implemented. The ideas on economic aspects
were implemented where were added more salaries, remunerations to motivate them in their
work. Again, the issue of cultural aspects was implemented through vacation of workers thereby
improving working culture as well as empowering the management team of PPH Pharmaceutical
Limited (Arnold, 2010). On the other hand, the social aspects were implemented through sharing
programs so as to improve all ethical considerations of workers thereby reducing cases of
embezzlement of funds. Lastly, action plan taken in technology where the company used
technology to monitor delivery of the products. All medical drugs were sealed with a serial
number that would be used to monitor and control delivery.

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