Monthly Archives: September 2018

Pharmaceuticals industry until 1980: Most commercial drug companies were large enterprises,

Pharmaceuticals industry until 1980: Most commercial drug companies were large enterprises, fully integrated from drug discovery through clinical development, regulatory affairs, manufacturing, and marketing. Drug discovery was conducted in house and, at least in the early part of this period, was dominated by large-scale “random screening” programs with limited requirements for deep knowledge about fundamental physiological processes. Licensing activity was driven largely by downstream concerns: Rights to sell drugs that were already approved (or in the late stages of clinical development) would be acquired to maintain efficient levels of use of manufacturing or marketing assets or, in the international context, to take advantage of local knowledge and access to regulators and distribution channels. Upstream technology was largely acquired either “for free” by reading journals and attending conferences or by purchasing tangible inputs and services, such as scientific instruments or highly skilled graduates. Pharmaceutical companies appropriated returns from R&D through a combination of extensive patenting, proprietary know-how, brands, regulatory barriers to entry, and favorable product market conditions. Most of these firms were long-lived, mature organizations, tracing their roots back many decades, often to the nineteenth century chemical industry. Their large and sustained investments in R&D, marketing assets, and human and organizational capital were largely financed from internal cash flow. Competitive advantage was driven by firms’ ability to effectively manage product market interactions with regulators and end users and to “fill the pipeline” with internally developed blockbuster drugs. In turn, the productivity of internal R&D appears to have been driven by economies of scale and scope in conducting research, efficient allocation of resources in internal capital markets, and the ability to capture internally and externally generated knowledge spillovers. In the upstream not-for-profit sector, taxpayers (and to some extent philanthropists) supported curiosity-driven research conducted at cottage industry scale inside government labs, universities, research institutes, and teaching hospitals. Legal constraints and a strong set of social norms limited commercial or contractual contacts between drug companies and the world of “open science.” Resource allocation in the not-for-profit sector was driven by peer-reviewed competition for grants on the basis of scientific merit and the reputation of individual researchers. The importance of establishing priority and reputation drove early and extensive publication of results, and social norms (and requirements of granting agencies) promoted routine sharing of research materials. Not-for-profit researchers concentrated largely on basic science and filed few patents. 1980 and beyond: After decades of stability and consolidation, in the 1980s the for-profit side of the industry experienced significant entry from biotechnology companies, many of which positioned themselves as an intermediate sector between academic research institutions and Big Pharma. By the mid-1990s several thousand biotech ventures had been launched, and several hundred had reached sufficient scale to be an important force in the industry. Existing vertical relationships were disrupted and reformed, with the new companies straddling (and blurring) the divide between for-profit and not-for-profit research. Although most were overtly profit oriented, they also had much tighter personal, geographical, cultural, and contractual links to nonprofit research institutions. Academic scientists played a particularly important role in the founding of these companies, either moving out of academic employment or participating actively in both worlds. While some of the new companies sought to be fully integrated horizontal competitors with Big Pharma, and a handful succeeded in doing so, most assumed the role of specialist suppliers of leading-edge technology to downstream firms. Several developments were responsible for such changes. First, revolutionary scientific discoveries in the 1970s, such as gene splicing and the ability to create monoclonal antibodies, opened up new areas of research, and the pace of discovery in basic biomedical science accelerated dramatically in subsequent decades, raising the importance of close contact with university science. At the same time, developments in patent law brought much of molecular biology and the life sciences within the ambit of the patent system. Without patent rights in inventions in areas such as isolation and purification of proteins, DNA sequences, monoclonal antibodies, knockout and transgenic organisms, gene expression systems, and so on (or at least the prospect of obtaining and enforcing them), many biotech companies would never have been founded. The passage of the Bayh-Dole Act also relaxed barriers to licensing of government-sponsored research. Before Bayh-Dole, government had invested large sums in U.S. research in academia but had also retained property rights in the innovations. Increasingly dissatisfied with the paucity of commercial successes derived from this investment, government (through Bayh-Dole) assigned property rights (patents) to universities and forced universities to establish technology transfer offices. Such offices were notified of all innovations by university researchers and were charged with finding outlets for these inventions. Finally, changes in tax and financial regulations brought about a venture capital industry (and ultimately a stock market) that was willing to support inexperienced companies entering a market with a seven-to-ten-year product development cycle. At least in the U.S. equity markets, tolerance for risk has risen, and after a few well-hyped early successes, investors became comfortable with the idea of “high science for profit,” developed a shared language and conceptual framework for valuing these new ventures, and—periodically—have been willing to support the new sector with substantial injections of capital. The revolution in life sciences also affected organizational and managerial aspects of drug research. As drug discovery became more science-intensive, with increased emphasis on “deep” understanding of physiology at the molecular level, it became not just more expensive but also more difficult to manage. As “rational drug design” took center stage, changes in the nature of research activity were accompanied by complementary changes in the internal structure of commercial R&D organizations. Drug companies began to look and behave more like universities, with increasing emphasis on collaboration, publication, and exchange of (precompetitive) information. This was accompanied by increased willingness to exploit external sources of technology, through in-licensing or strategic partnerships. In this environment, specialist research firms could expect at least to survive, if not to prosper. At the same time, the growing cost and complexity of academic research projects forced successful scientists to acquire managerial and organizational skills—leaving them better equipped to run business ventures and looking much more like entrepreneurs and managers to outside investors or business partners. As rising costs and growing societal pressure to justify their budgets pushed universities and other publicly funded institutions to become more tolerant of “just-off-campus” commercial activity, or even to actively encourage it, this cadre of scientist-entrepreneurs was well positioned to take advantage of the commercial opportunities their research created. By 1990 it was clear that biotechnology was here to stay. Although investors’ interest waxes and wanes, fresh waves of entrants have been able to take advantage of periodic opening of the financing window, and the pharmaceutical industry has developed a new vertical structure, with biotech “tool” companies as a specialized layer between Big Pharma and the nonprofit sector. Big Pharma now increasingly relies on the research tools and product leads provided by biotechs, and 25–40 percent of its sales are reported to come from drugs that originated in the biotech sector. The orderly world of the “waterfall model” has been replaced by one in which information and materials circulate rapidly between not-for-profits, Big Pharma, and the biotechs, supported by a complex set of contractual agreements and collaborative arrangements.

Adapted from Cockburn I.M. The changing structure of the pharmaceutical industry.

Q1: Utilizing Figure 3.1 and Table 3.1 in your book, identify and categorize the changes in the macro-environment which enabled the entry of biotechnology companies into the industry.

3 15:33 components of the macro-environment CORE CONCEPT The macro-environment encompasses the broad environmental context in which a company is situated and is comprised of six principal components: political factors economic conditions, sociocultural forces, technological factors, environmental factors, and legal/regulatory conditions. PESTEL analysis can be used to assess the strategic relevance of the six principal components of the macro-environment: political, economic, sociocultural, technological, environmental, and legal forces FIGURE 3.1 The Components of a Company’s External Environment Macro-Environment Economic Conditions and Competitive Political Factors Sociocultural Forces Substitute Product:s Suppliers Company Rival Firms Buyers Lega/Regulatory Factors New Entrants Technological Factors Environmental Forces page 39 TABLE 3.1 、 The Six Components of the Macro-Environment Included in a PESTEL

The episode of Hell’s kitchen you are about to watch was shot in December 2012 at Amy’s (minutes 4:20 to 8:00)

The episode of Hell’s kitchen you are about to watch was shot in December 2012 at Amy’s Baking Company (ABC) in Scottsdale, AZ. It was intended to portray the way business was being conducted at the establishment. While there are some obvious problems with the business, your task is to scrutinize it from an Operations perspective. As you are watching the video, list the Operational problems you identify (at least 3) below. Also consider what data (information) may be collected to better analyze the process and illustrate those problems. And then suggest possible ways to improve the processes involved.

Problem Data to collect (required/available Information) Improvement

Next using the axes below applying two of the Competitive Product Space dimensions at a time (e.g., Price vs. Quality or Response time vs. Variety), illustrate where in Competitive Product Space you would place ABC and where the owners would like it to be. Add two other restaurants to these diagrams (use ABC and the same other two in all the diagrams).

Each graph should present 4 points: ABC’s current position, ABC’s desired position and two other competitors.

Please Label axes.

Describe the process competencies that are required to achieve ABC’s desired position. Benchmark them relative to other well-known restaurants you are familiar with.


Product Attribute ABC’s desired    Product Attribute Required Process Competencies Competition’s process competencies

Scenario: You overhear your superior tell another manager in the company: “I’m tired of

In preparation for this discussion, watch the following videos.

From your point of view, what are the two main take-away points in the two videos?

Scenario: You overhear your superior tell another manager in the company: “I’m tired of our nation’s companies sending manufacturing jobs abroad and offshoring service work to lower-wage nations. Don’t any of them have any national pride?” The other manager responds, “I disagree. It is every company’s duty to make as much profit as possible for its owners. If that means going abroad to reduce costs, so be it.”

Do you agree with either of these managers in this scenario? Explain and defend your position.

As part of your argument with either of the two managers, find an article on the Internet that describes a company’s decision to relocate some or all of its business operations (goods or services).

Describe this situation and summarize your findings.

Respond to the following questions:

What reasons are stated for the relocation?

What technological factors, if any, impacted the decision to relocate?

Was any consideration given to employees who might be put out of work?

Was any consideration given to containing costs for its consumers?

You are responsible for determining the settings for your company’s stamping machine.

You are responsible for determining the settings for your company’s stamping machine. The target is for the stamping machine to place the stamp exactly 3.000 inches from the left edge (the horizontal direction) and 5.000 inches from the top edge (the vertical direction). Unfortunately, the stamping machine does not always place the stamp exactly at (3.000, 5.000) Part 1 Open the Excel workbook “Stamping machine” and enable macros. When you click on the button “Stamping Machine,” you are requested to enter the horizontal setting and vertical setting for the stamping machine. After clicking OK, you will see where the stamp is actually placed in columns D and E of the worksheet. You are testing 4 different decision rules for determining the settings for the stamping machine. The metric to judge the accuracy of the stamping machine will be the distance from the stamp to the target, or where x is the horizontal position (column D) and y is the vertical position (column E). Decision Rule 1: Always set the stamping machine to the target (3.000 inches horizontal, 5.000 inches vertical). Decision Rule 2: If the stamping machine places the stamp from the target, set the stamping machine from its most recent setting. For example, if the stamping machine is currently set at (3.001,4.985) and the machine places the stamp at (3.010, 5.020), the next setting should be (3.001-3.010-3).4985- (5.020-5)) (2.991,4.965). Decision Rule 3: If the stamping machine places the stamp from the target, set the stamping machine from the target. For example, if the machine places the stamp at (3.010, 5.020), the next setting should be (3-(3.010-3), 5-(5.020-5) (2.990,4.980). Decision Rule 4: Set the stamping machine at the stamp’s most recent location. For example, if the machine places the stamp at (3.010, 5.020), the next setting should be (3.010,5.020) Use the Excel sheet to run 30 trials for each one of the decision rules. Create a run chart based on the 30 trials for each decision rule. The run chart should have the trial number on the x-axis and the distance from the stamp to the target on the y-axis. Use the run charts to answer the following questions. You should turn in the results of the 30 trials and the run charts as part of your assignment. Which decision rules result in a stable process? Which decision rules do not result in a stable process? Which decision rule results in the smallest variation? Based on this information, which decision rule should be followed? Part 2 Your company purchases a new stamping machine. Open up the Excel workbook “New stamping machine.” Use the decision rule that you decided should be followed from Part 1 on the new stamping machine and run 30 trials. After running the 30 trials, where should you set the new stamping

Review the definitions for venue and change of venue on p. 53 of your text.

Review the definitions for venue and change of venue on p. 53 of your text. “Occasionally, pretrial publicity may prejudice jurors located in the proper venue. In such cases, a change of venue may be requested so that a more impartial jury can be found. The courts generally frown on forum shopping (i.e. looking for a favorable court without a valid reason).” (Cheeseman, p. 53)

Do you agree or disagree with a defendant requesting that the court grant his/her motion for a change of venue when there may be too much pretrial publicity? Explain.

Louis Clark, the new administrator for the surgical clinic, was trying to figure out how to allocate

#9 Referring to exhibit 12.10, suppose that instead of 2,000,5,000, and 3,000 visits for an initial, regular, and intensive visit, respectively, the number of visits was 3,000, 5,000 and 2,000. Assume that the costs associated with intake, new visits, medical records, and billing do not change in number or distribution.

Would there be a change in the overhead cost per visit of an initial visits using either the conventional or ABC method?

Would there be a change in the total overhead cost of initial visits using either the conventional or ABC method?


Louis Clark, the new administrator for the surgical clinic, was trying to figure out how to allocate his indirect expenses. His staff were complaining that the current method of taking a percentage of revenues was unfair. He decided to try to allocate utilities expense based on square footage for each department, to allocate administration expenses based on direct costs, and to allocate laboratory expense based on tests. What would the results be?

Carol West, the nurse manager of the cystoscopy suite, was given approval to add more space to her current area by converting 500 square feet of administrative space into another cystoscopy bay. What will her new fully allocated expenses be? Assume that there are no new additional costs incurred by adding the 500 square fee?

Bobbie Jones, the manager of the endoscopy suite, is concerned about adding more space. She contends that if the cystoscopy and endoscopy units were combined fewer staff would be needed, and direct costs could be reduced by 50,000 ($25,000 in each unit). She also feels that the day – op area is underutilized, and that 500 square could be used by a combined unit when excess capacity was needed. Assuming that the 500 square feet were to be allocated equally between the endoscopy and cystoscopy suits in addition to the renovation as described in part B, what would the total allocated costs for each of these two services be under this scenario?

Given the following calculate (a) cost using a level production plan, (b) cost using a chase aggregate

Given the following calculate (a) cost using a level production plan, (b) cost using a chase aggregate plan, and identify the lowest cost option. In the level production plan backorders are allowed but for each unfilled order it costs the company S10/unit. The employees work an 8 hour day and overtime is not allowed Demand Period 1240 Initial Emplo Period 2 235 Capacity/employee 40 Period 3 265 Hourly cost/emploveel $18 Period 4220 nventory Holdin Period 5220 Shortage Cost Period 6 260 Hiring Cost $10 $230 S190 Firing Cost a) A-5834, B-5472, C level b) A-5472, B-5834, C- level c) A-5834, B-5472, C chase d) A-5472, B-5834, C- chase e A-5834, B-5472, C either

Data Visualization and Geographic Information Systems As an IT manager,

Data Visualization and Geographic Information Systems As an IT manager, discuss how you would use the materials in Chapter 11 of your textbook communicating IT information to other department. Use APA throughout. Complete your main post no later than Friday of week 11. Read and respond to at least 2 of your classmates’ posts. Review posting/discussion requirements. 300 WORDS.

Using Successful Project Management Skills​

Using Successful Project Management Skills​

You have looked at many elements that affect the success of a project. Ensuring that projects comply with the existing mission and values of a company and that the appropriate strategy is used in determining what projects should be pursued are a couple of these techniques. To help you refine your plan to help the management at UPI better align projects with corporate values and structure, and to limit the projects assigned to employees, you enlist your peer network from your master’s program at your school. Through a series of questions, you and your peers will address key issues and offer insights and suggestions for solving the problems at UPI.

Consider the challenge of managing people and projects and respond to the following questions:

1. Give two examples of organizational changes that you think should be implemented at UPI through project management. What is it about your two suggestions that can most benefit UPI?

2. Suggest how you should go about gaining the trust of employees on your team and learning about management and the corporate culture. Is it ethical to use