Bioco - Teaching Note

Bioco is a biotechnology company that sells various drugs with oncology, nephrology and hematology applications in Spain. Due to wait time and inventory issues at the San Gabriel Hospital pharmacy, their director proposes that Bioco begin to distribute its flagship drug, Lempura, to the homes of outpatients rather than to the pharmacy directly. Bioco Spain's CEO believes that the home delivery operation will be costlier, more complex and riskier than the current distribution model. However, it could also bring greater efficiency to the system, while differentiating Bioco's service offerings and strengthening its competitive position. All these aspects must be evaluated before deciding on the hospital's proposal. Bioco has one week to respond.

Collection: IESE (España)
Ref: PT-53-E
Format: PDF
Number of pages: 12
Publication Date: Jan 29, 2015
Language: English, Spanish

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Description

Bioco is a biotechnology company that sells various drugs with oncology, nephrology and hematology applications in Spain. Due to wait time and inventory issues at the San Gabriel Hospital pharmacy, their director proposes that Bioco begin to distribute its flagship drug, Lempura, to the homes of outpatients rather than to the pharmacy directly. Bioco Spain's CEO believes that the home delivery operation will be costlier, more complex and riskier than the current distribution model. However, it could also bring greater efficiency to the system, while differentiating Bioco's service offerings and strengthening its competitive position. All these aspects must be evaluated before deciding on the hospital's proposal. Bioco has one week to respond.
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Learning Objective

The case has been successfully used in MBA, executive education and custom programs. Consequently, multiple in-class approaches to help implement it in distinct courses with differing educational objectives have been identified. The following are some examples of possible uses:
-In a general course on the analysis of business problems, with the aim of examining a decision's operational, economic-financial, ethical, and commercial implications from a general management perspective.
-In a course on operations management, in order to deeply analyze the problem of peak hour queues and the economic and financial implications of various distribution models characterized by different inventory management systems.
-In a course on operations strategy or competitive strategy, in order to deeply analyze the possibilities of product differentiation and servitization, which may be incorporated into the distribution model.
-In a course on business management, in order to accurately identify customers' hidden needs, of which they themselves are not aware.
-In a course on business ethics, in order to deeply understand the ethical implications of conducting home deliveries.
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"Bioco - Teaching Note"