PLEASE EXPLAIN AND ANSWER IN DEPTH Tazer, a pharmaceutical manufacturing company, entered the pharmaceutical market 15 years ago with the introduction of six new drugs Five of the six drugs were simply permutations of existing drugs and therefore did not sell very heavily The sixth drug, however, addressed hypertension and was a huge success Since Tazer had a patent on the hypertension drug, it experienced no competition, and profits from the hypertension drug alone kept Tazer in business Pharmaceutical patents remain in force for 20 years, so this one has five more years before it expires During the past 15 years, Tazer continued a moderate amount of research and development, but it never stumbled upon a drug as successful as the hypertension drug One reason is that the company never had the motivation to invest heavily in innovative research and development The company was riding the profit wave generated by its hypertension drug and did not feel the need to commit significant resources to finding new drug breakthroughs Now Tazer is beginning to fear the pressure of competition Tazer knows that once the patent expires in five years, generic drug manufacturing companies will swarm into the market like vultures Historical trends show that generic drugs decrease sales of branded drugs by 75 percent Tazer is, therefore, looking to invest significant amounts of money in research and development this year to begin the search for a new breakthrough drug that will offer the company the same success as the hypertension drug Tazer believes that if the company begins extensive research and development now, the probability of finding a successful drug shortly after the expiration of the hypertension patent will be high As head of research and development at Tazer, you are responsible for choosing potential projects and assigning project directors to lead each of the projects After researching the needs of the market, analyzing the shortcomings of current drugs, and interviewing numerous scientists concerning the promising areas of medical research, you have decided that your department will pursue five separate projects, which are listed below Project Up Develop a more effective antidepressant that does not cause serious mood swings Project Stable Develop a drug that addresses bipolar disorder Project Choice Develop a less intrusive birth control method for women Project Hope Develop a vaccine to prevent HIV infection Project Release Develop a more effective drug to lower blood pressure For each of the five projects, you are only able to specify the medical ailment the research should address since you do not know what compounds will exist and be effective without research You also have five senior scientists to lead the five projects You know that scientists are very temperamental people and will only work well if they are challenged and motivated by the project To ensure that the senior scientists are assigned to projects they find motivating, you have established a bidding system for the projects You have given each of the five scientists 1,000 bid points They assign bids to each project, giving a higher number of bid points to projects they most prefer to lead The following table provides the bids from the five senior scientists for the five individual projects Project Dr Kvaal Dr Zuner Dr Tsai Dr Mickey Dr Rollins Project Up 100 0 100 267 100 Project Stable 400 200 100 153 33 Project Choice 200 800 100 99 33 Project Hope 200 0 100 451 34 Project Release 100 0 600 30 800 Source Hillier, F and Hillier, M Introduction to Management Science , McGraw Hill Irwin, 4 th ed , 2011 QUESTIONS What is the best way to assign project directors Justify your approach What are some factors perhaps not mentioned in the description above that may complicate your decision How would the situation change if you allowed one (or more) scientist to direct two projects Dr Rollins is being courted by Harvard Medical School to accept a teaching position You are fighting desperately to keep her at Tazer, but the prestige of Harvard may lure her away If this were to happen, the company would give up the project with the least enthusiasm Which project would not be done To receive full credit, make at least two (2) substantive posts, preferably one in response to what someone else has written

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PLEASE EXPLAIN AND ANSWER IN DEPTH! Tazer, a pharmaceutical manufacturing company, entered the pharmaceutical market 15 years ago with the introduction of six new drugs.

PLEASE EXPLAIN AND ANSWER IN DEPTH!

Tazer, a pharmaceutical manufacturing company, entered the pharmaceutical market 15 years ago with the introduction of six new drugs. Five of the six drugs were simply permutations of existing drugs and therefore did not sell very heavily. The sixth drug, however, addressed hypertension and was a huge success. Since Tazer had a patent on the hypertension drug, it experienced no competition, and profits from the hypertension drug alone kept Tazer in business. Pharmaceutical patents remain in force for 20 years, so this one has five more years before it expires.

During the past 15 years, Tazer continued a moderate amount of research and development, but it never stumbled upon a drug as successful as the hypertension drug. One reason is that the company never had the motivation to invest heavily in innovative research and development. The company was riding the profit wave generated by its hypertension drug and did not feel the need to commit significant resources to finding new drug breakthroughs.

Now Tazer is beginning to fear the pressure of competition. Tazer knows that once the patent expires in five years, generic drug manufacturing companies will swarm into the market like vultures. Historical trends show that generic drugs decrease sales of branded drugs by 75 percent.

Tazer is, therefore, looking to invest significant amounts of money in research and development this year to begin the search for a new breakthrough drug that will offer the company the same success as the hypertension drug. Tazer believes that if the company begins extensive research and development now, the probability of finding a successful drug shortly after the expiration of the hypertension patent will be high.

As head of research and development at Tazer, you are responsible for choosing potential projects and assigning project directors to lead each of the projects. After researching the needs of the market, analyzing the shortcomings of current drugs, and interviewing numerous scientists concerning the promising areas of medical research, you have decided that your department will pursue five separate projects, which are listed below:

Project Up: Develop a more effective antidepressant that does not cause serious mood swings.
Project Stable: Develop a drug that addresses bipolar disorder.
Project Choice: Develop a less intrusive birth control method for women.
Project Hope: Develop a vaccine to prevent HIV infection.
Project Release: Develop a more effective drug to lower blood pressure.

For each of the five projects, you are only able to specify the medical ailment the research should address since you do not know what compounds will exist and be effective without research. You also have five senior scientists to lead the five projects. You know that scientists are very temperamental people and will only work well if they are challenged and motivated by the project. To ensure that the senior scientists are assigned to projects they find motivating, you have established a bidding system for the projects. You have given each of the five scientists 1,000 bid points. They assign bids to each project, giving a higher number of bid points to projects they most prefer to lead. The following table provides the bids from the five senior scientists for the five individual projects:

Project

Dr. Kvaal

Dr. Zuner

Dr. Tsai

Dr. Mickey

Dr. Rollins

Project Up

100

267

100

Project Stable

400

200

100

153

Project Choice

200

800

100

Project Hope

200

100

451

Project Release

100

600

800

Source: Hillier, F. and Hillier, M.Introduction to Management Science, McGraw-Hill/Irwin, 4^thed., 2011.

QUESTIONS

What is the best way to assign project directors? Justify your approach.
What are some factors perhaps not mentioned in the description above that may complicate your decision?
How would the situation change if you allowed one (or more) scientist to direct two projects?
Dr. Rollins is being courted by Harvard Medical School to accept a teaching position. You are fighting desperately to keep her at Tazer, but the prestige of Harvard may lure her away. If this were to happen, the company would give up the project with the least enthusiasm. Which project would not be done?

To receive full credit, make at least two (2) substantive posts, preferably one in response to what someone else has written.