General Importance Of R & D

Research and development – totaled $98,280.00 in year 7, and in years 7 to 8 decreased -16.3% or $15,996.00. This is weakness in sales and performance, but a smart decision because of the cut in R&D saved -16.3% or $15,996.00 that would have been looked at as profit. They were able to use the previous year’s investment on R&D.

3. What is your evaluation of Iridium 's organizational design? What changes could you have made to increase the probability of Iridium 's success?

In terms of Porter’s analysis, cost-leadership and product differentiation strategies were implemented by the team during the simulation, which resulted in the maximum profit of 278.59 million dollars.

Discuss the approach your organisation used to manage its new initiatives especially new product developments.

1.From the annual reports you previewed, what is the company's corporate strategy? What are their company goals and were they successful in achieving those goals? Please list the company of the annual report you previewed.

20 5. Corporate-level strategy 25 6. How is the effectiveness of the company’s strategies? (ROIC) 26 7. What strategic problems does the company have?

Technological change is a fundamental driver of economic development and performance, not only at the level of firms and industries but also economies. Innovation is the organizational process through which new

After analyzing the results from the previous quarter, it was determined that the prices set for each segment were not sufficient. Product sales priority were also not properly adjusted. With the R&D investments, sales priorities needed to be changed for the main focus to become the most profitable market segments. Prices were not competitive which in turned decreased revenue, market share, and profitability. To become more competitive we altered the prices in each market segment. The Workhorse product was the first to change, the price was lowered to $2500 in an attempt to increase sales; at this price Team 4 was still making a profit on this product, as well as making the price much more competitive. The Workhorse sales priority was also lowered to 3rd in Americas and 4th in APAC and EMEA. This product was not selling as well as we had hoped, and was no longer as profitable as it once was which led to this decision. Next, the Innovator product’s price was adjusted; this involved a price increase to $4100. This price was adjusted to include the new

Q1. Use the Cyclic Innovation Model (Fig 1.9, pg 30) figure to illustrate the innovation process in this case and provide a brief description?

Codman & Shurtleff is a subsidiary of Johnson & Johnson which supplied hospitals and surgeons worldwide with over 2,700 products for surgery. Codman is now facing a profit shortfall of two million. A series of actions was decided in order to recover the shortfall, while the decisions made were somehow not aligned with J&J’s group philosophy. Codman managers decided to cut budgets of R&D expenditure which might have negative effects on the long term performance of the firm. The management of Codman ought to choose a better way that has a positive effect on operations in the long run and use a formal process, “stage gate”, in new product development.

These R&D labs usually concentrated on bringing out new technologies for self-commercialisation. This process can be viewed in the form of a funnel, where a large number of varied ideas and concepts can be trimmed down to few of those concepts and ideas that best meet the requirements of the company. (OECD, 2008) In recent times, companies have become more open with their innovation process, leading to revolution described as “Open Innovation” by Chesbrough (2003). This ‘open innovation’ model is a more dynamic model when compared the traditional model as there is much more interaction between knowledge assets outside the company as well as inside. Henry Chesbrough (2003) in his book “Open Innovation: New Imperative for creating and profiting from technology” defines open innovation as a concept in which companies must use ideas from inside as well as outside sources and find internal and external ways to reach the market in order to advance their technological capabilities. Open innovation combines these 3

Research and development helps with predicting the cost and the effectiveness of the approach on the system. The idea is that the research and development will increase students’ future accomplishment.

Today’s managers have a growing need to understand scientific findings and incorporate them into decision making. Research always facilitates effective management. At many government organizations research drives every aspect of major decision making. In some organizations, research is so fundamental that management makes hardly any significant decision without the benefit of some kind of research.

Investing in research and development to create new product line or enhance current products adds considerable expenses. Development costs will need to be re-cooped. This will keep competitors in check, but will be challenging to keep pricing competitive.

Although R&D has been retained by the large pharmaceutical firms, there has been a continuous decline in the R&D productivity. Controlling R&D is imperative to the success of a Pharmaceutical firm. However, as the pharmaceutical industry is maturing, there are diminishing returns to the R&D investment. Fewer and fewer blockbuster drugs are being discovered and therefore R&D is not the most value adding component in the value