Essay on Chadwick Inc.

Words: 2908
Pages: 12

Case Analysis: Chadwick Inc. case analysis
Hamzah. Najib, Mustapha, Syed Hasan

Chadwick. Inc was a diversified producer of personal consumer products and pharmaceuticals. The Norwalk Division of Chadwick developed, manufactured and sold ethical drugs. The company was respected for the high quality of its products. Norwalk sold its products through several key distributors who supplied local markets. Norwalk relied on its excellent relations with the distributors who promote Norwalk’s products to customers and also received their feedbacks about new products desired. Chadwick’s long-term success depended on how much money distributors could make by promoting and
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2) Challenging financial targets based on ROCE: The top management in Chadwick Inc. has been setting challenging financial targets for the division managers. The financial targets have been set based on Return on Capital Employed (ROCE), which is considered inappropriate for a pharmaceutical company. Due to the desperateness to meet the specified target, there is tendency for the division managers to try to manipulate the actual data to reduce the gap between the budgeted results and the actual results.
3) Pressure to increase yield: The top management has also been pressurizing the scientists of Chadwick Inc. to increase the yield of the products and to reduce the time and cost of production. Generally, if the top management emphasizes on reducing the cost, it may have negative effects on the quality of the products. Therefore, it may result in customer dissatisfaction or loss of customer loyalty.
1) Bio-engineering techniques: The bio-engineering mechanism can help the scientists to identify only the active compounds which desired and useful applications, instead of the random search process currently employed by the scientists. Then, they will perform tests on each and every one of them to find useful applications on the compound. This traditional search process results in wastage and very