Business Strategy for Nucleon Essay Example | Topics and Well Written Essays - 1000 words

Business Strategy for Nucleon - Essay ExampleThis favors Nucleon building its own plant which means high costs and more time, although it also implies greater control. Contracting also involves more time and an estimated expense of about 4 million dollars. Moreover, there is the danger of mystical information about manufacturing leaking out, although it would free Nucleons R&D people to focus exclusively on their specialty which is research this is also the factor that has propelled Nucleon to the top.However, in my view, vertical integration is not favored in this case. The reason is that Phase I and II trials are still an experimental stage of development of the do drugs and all investments made on the pilot plant could be lost, part also deflecting funds from other research work. Contracting out is not a good option due to loss of confidentiality. However, the licensing option offers an excellent situation because it allows risks associated with clinical trials and expenses re lated to development, marketing and sales of the drug to a third Company, while also protecting Nucleons patent on the product. This will allow the Company to focus on its core competencies, i.e, research, and development. One of the developments in management scheme is the belief that most firms have only a few core competencies where they possess exceptional skills and abilities.