In the world of business today, there are so many macro and micro factors that affect business growth and development in different capacities. Some of these factors could be external such as infrastructure, availability of materials, government policies etc. that poses huge risks and threats that can affect any business existence tremendously to the extent of liquidating. Some of these factors are not limited to external factors but can also include internal factors such as staff capacity, welfare, sales etc. The process of looking at these factors critically and making an informed decision to enable business growth and development is called analysis of business problems.
Making a case study from facts and figures to analyze a business and identify problems using the 5wives and 1 husband theory and then looking at the alternatives in proffering an informed decision while also considering the criteria that surround the decisions we are making or solutions we are proffering. Mastering this process of looking at various business problems of various sectors of the economy and making the right decisions is the entrance into being an expert in analyzing business problems. Let’s take a look at some cases.
Looking at a case study of Liderm, a company that is into the sales of cosmetics medication for both treatment and prevention such as Micoderm. A product which is into the treatment and prevention of diaper rashes commonly known as diaper dermatitis. They are faced with a crucial management decision on the fate of the product in the nearest future considering the cost of production per unit.
Liderm operates in the Spanish dermatological and pharmaceutical market. This sector is valued at 1Billion of the Spanish economy. Many of these pharmaceutical products are being monitored and subsidized by the government through a program called SSRS. An abbreviation for, social security reimbursement system. This program allows drugs and other pharmaceutical products to be discounted at 60% and sometimes 100% for retirees as the case may be.
No doubt there are other competitors in the market such as l’oreal, Bayer, J&J, and Novatis. Of all these competitors, Liderm still controls 150million of the 1Billion. Market value. Despite
the fact that they are the only one that has one of their products listed on the SSRS. An edge mesoderm has over other cosmetics products for treatment and prevention of diaper rashes (dermatitis)
All this information amongst others will help make an informed decision.
Till I come your way again, I remain my humble self.