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Health Medical Center (HMC) is a large and well regarded hospital having the reputation of being a discerning customer for purchase of supplies. In its endeavor to get the best prices and terms it has not hesitated to bypass GPO and APG contracts in the past…
The primary concern of all these people at HMC is reducing the budget deficit through price reduction and Joanne is charged with a specific task. She will make all efforts to reduce prices without considering other factors. The other divisions report rapport with end-users but the key persons at HMC are obviously Stan Delaney and Judy Koski who have the authority and capacity to look beyond mere prices and weigh the value of services offered by BD.
Ted Barber, of City Surgical, has worked at HMC and is today has a 'strong lock' on supplies to HMC, supplying 80% of their requirements of medical supplies. Though he is out of the organization he wields considerable influence on HMC. His concern, naturally, is the good of his own distribution company.
Becton Dickinson (BD) is faced with the threat of global competition and must change to meet it. Ed Haire was wrong; the competitor is no fly-by-night organization. Terumo products were being used earlier and the needles and syringes have also been approved. Terumo has a product portfolio of more than 1000 products and has 28% share of the overall world market and 33 % share of the market in syringes and needles. They have recently begun production in the US any misgivings the customers have will be allayed through a product manufactured in the US. ...
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