Case Study Responses

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Case study responses Name Institutional affiliations Case study responses PART I Objectives The main objective of this project is to carry out diligent research on how to develop products that maximize value. This will involve organizing and prioritizing future and current projects in a manner that will fit the PMB 5 billion budget. The projects aim is to ensure that there is an increment in growth, sales and the value of stakeholders (Reyck, 2005). Constraints The research and development of drugs is a time-consuming exercise that is also risky and extremely expensive. XYZ Pharmaceuticals operates on a limited budget and therefore needs to make optimal decisions that will ensure efficient allocation of the available resources. The presence of generic drugs in the market that are lowly priced is another major concern because of the competition that the lower priced drugs bring to the market. The heavy industry regulations also pose major challenges as it takes a lot of time and money to be licensed. The shrinkage of the time span of the market and the overreliance of the return on investments to return part of the research and development costs is also an area that negatively impacts the project. Risks involved Researching and the subsequent development of drugs is quite an expensive venture and a lot of risks are involved. Some of the major risks include failure of the drugs to hit in the market, lack of enough funds to carry out quality research and the subsequent development of the drugs meaning that funds may be wasted if the process is not completed. Moreover, even those drugs that get into the market only a small percentage of 30 gain commercial

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