Development of new drugs and getting them to market is critical for remaining competitive in the pharmaceutical industry. The final option I see for Merck in this situation is to create new capabilities through a spinout organization. As it stands, Merck is unprepared (with its current competencies) to rapidly move into the pharmacy management arena. This is primarily due to the fact that most of their resources are devoted to drug research and development. Spinout organizations, however, should primarily be used when a separate organization is required because the
c) Analyze and summarize Trexel/Bernstein’s business models prior to the next board meeting David Bernstein’s business models for Trexel started as long term development and shifted to fast track. As we’ll see, these were unsuccessful because relying on partner development and turnkey technology didn't give Trexel enough control and ability to follow through with projects. The initial goal Bernstein laid out should have been the primary focus all along - to make Trexel a self sustaining company with control over every step of the process for a particular market. Not to say the previous plans were utter failures. A lot was learned about the technology and the feasibility of market inception.
CB is facing a dilemma because the CEO wants new products that are healthier without straining relations with existing customers who made the CB wealthy. The problem is further compounded by the dissention between Dale Berry, (CEO), Terry Hersch, (VP New Product Development) and Pat French (VP Manufacturing). Both Berry and Hersch wanted a new product but French was against such a development. The Approach: Engaged by CB to consider alternatives, I would first reiterate what steps led to Innovation Technology being retained. Problem 1: The current products of CB lead to obesity and associated with heart disease, which is the meritorious reason that justifies a needed change.
Levine has put a lot of efforts for success of the project but at the same time he had a personal interest of becoming independent GM in the company. He did not estimate the project resources like monetary costs and human capital involved with the project ahead of time which created problem during the execution phase of the project when the Aurora team was over the allocated budget. Also, he was aware of the cyclical nature of the business and potential restriction on staffing but he did not plan accordingly including the risk assessment of a great idea like Aurora. In a nut shell, we think that Aurora project was a success overall but Levine could have managed it better with detailed resource planning and risk assessment for better and accelerated execution in short term. [Exhibit 1 and 2] Challenges Faced One of the biggest challenge faced by Levine is to venture into a disruptive technology market because this resulted in him (and Teradyne) facing the ‘Innovator’s Dilemma’.
The third route to consider, which is the safest out of the three and the most relevant as well revolved around Packard Electric following through with the IHG for all 1992 models. For future references and benefits, this would relieve the firm, but the possibilities for these future projects would have to be forfeited because of lack of success in developing technology to enable growth for the company that would be substantial. In the shoes of a chief engineer, I can see how difficult it would be to decide which route to recommend for action. The way I see it, Packard Electric is going to have to apply new
However, the drug needs to be tested extensively and researched further before it can be used in humans. This would require millions in investments but little financial returns, because most of the affected people in third world country cannot afford the drug. Merck spent a lot of money on research and believed that its future success depended on inventing new drugs. A possible hope for Merck was that some international organization like WHO might partially fund the program. Dr. Vagelos would make the final decision.
So they believed that local market would not have need in as much services and complexity as contrary markets. Also they believed that the local markets would give to company much higher margins and other benefits. But by being small company, Logoplaste for faraway locations needed a huge number of senior managers to control new firms at new markets. Unfortunately Logoplaste did not have enough senior managers to enter new markets. And as well, it was very difficult from financial perspective due to financial crisis, when banks were not giving out loans and funds for every single company.
However, to run an office is also very expensive and companies tend to economize much on offices, which could lead to undesired outcomes, that are sometimes directly related and obvious but most outcomes are hidden indirectly and people are not aware of it. Many outcomes are revealed thanks to the work of ergonomic scientists. The science of ergonomics tries to find out all the aspects that improve system performance and human wellbeing. ("Human factors and," 2013)The following essay will explain why ergonomic office solutions should be considered by companies, who want to improve office performance and save cost, in order to be more competitive. Ergonomic office solutions can decrease human resource costs and increase health of employees.
The weakest force among all will be the threat of new entrants, because in North America and International markets, the costs for entering the industries are high and this discourages businesses from entering into such markets. (See Appendix 1) Long-term industry attractiveness In all the industries, there are tremendous opportunities for growth and sustainability but it will require capital investment to realize the growth. Sara Lee should continue
The larger expenses coming along with high quality and services render salespeople a disadvantage when talking to their clients for business. The standards of performance (SOP) set for extra compensation seem unrealistic, with 75% of salespeople earning no commission in the first half of 1992, and so conceivably, fail to motivate them. This makes the result control less effective as they failed to evoke the desired behaviors – achieving sales targets. Together with other offers by competitors, this resulted in high turnover rate. Profit Sharing - Result controls may serve well with congruence between employees’ and company’s objectives, but employees take for granted the law-required 10% profit sharing of the company’s income and so their motivational effect seems little.