Recommendation:
After a thorough evaluation of various options available to Nucleon Inc. to bring their product to market, we recommend that Nucleon Inc. pursues the option of In-house Pilot Plant for Phase I and Licensing for Phase III.
The available options for Phases I/II/III can be summarized as below: Phase I / II Phase III
Option # 1 In-house Pilot Plant In-house Large Scale Commercial Manufacturing
Option # 2 In-house Pilot Plant Licensing manufacturing to a marketing partner
Option # 3 Contract Manufacturing In-house Large Scale Commercial Manufacturing
Option # 4 Contract Manufacturing Licensing manufacturing to a marketing partner
Option # 5 Licensing product and manufacturing
Each of the available option/strategy for Phase I/II
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The NPV will drop significantly if Phase III decision is not to enter in the in-house large scale commercial manufacturing.
• Knowledge Transfer: Allows protection of IP (intellectual property). Allows development and protection of manufacturing and technology know-how. Knowledge transfer is relatively easy to transfer as the transfer occurs internal to organization
• Scalability: Relatively easy to scale up due to complete control over the processes
• Core competencies, capabilities and capacity: This option would require a high level of changes within the organization. Nucleon’s existing core competencies and capabilities is in the area of R&D. It has no prior experience of production and manufacturing. Manufacturing is significantly different than R&D. It would require Nucleon to acquire different talent, skillsets, experience and very difference focus in developing manufacturing competencies and capabilities.
• Risks: Due to lack of core competencies in the area of manufacturing, there is a high risk of failure due to mistakes and poor execution particularly working on a first large scale project. There is also a risk that if the trial is unsuccessful, the plant will be
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Also, Nucleon is mainly a R&D firm and lacks core competencies and capabilities to support large scale manufacturing. As discussed earlier, the changes in organization required to pursue large scale manufacturing for the first time with no significant skill sets, manufacturing know-how and experience can pose a very high risk and detrimental impact on Nucleon’s long term success. Licensing with a proven partner will be a low risk and safe strategy in short term.
Conclusion:
The global growth market in the industry where Nucleon competes is dynamic and complex. Many of the large pharmaceutical enterprises have R&D capabilities along with in-house manufacturing technologies. Some also have collaboration with startup companies.
A great competitive advantage in the industry will be to have an integrated enterprise that is capable of R&D and large scale commercial manufacturing. In this context, Nucleon’s long term strategic goal should be to gain this competitive advantage by continuing to leverage its existing R&D competencies along with acquiring in-house manufacturing
Northrop Grumman is primarily involved in four related by also distinct industries which are also their core competencies. They are involved in aerospace systems, electrical systems, information systems and technology systems. Involvement in these key areas allows them to focus on their customers’ needs for unmanned air systems; command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR); logistics, and cyber security.
Capabilities: Schmitz (2012) refers to capabilities as “what the organization can do” to effectively utilize its resources. Some examples of Raytheon’s capabilities are Raytheon’s Six Sigma progress, integrated supply chain management, and a variety of technological capabilities. Raytheon’s Six Sigma is “a disciplined, knowledge-based approach designed to increase
Looking at CSP technology only from the Mon Valley perspective is a mistake – the current plant puts a lot of restrictions on the project. If the technology and market is looked at independently from Mon Valley, then my recommendation would be more concretely recommend investing in a new greenfield plant based on the minimills model. It may also be practical for USS to house the disruptive technology as an independent entity.
Nucor must now consider the need to keep up with the changing dynamics of a globalized corporate world. Nucor already has a business model that proved to be successful in the American markets. Using the same business model, Nucor should now consider penetrating and exploiting other international markets that promise low costs of production and higher revenue generation such as India and China. This could be done by either setting up operations in those countries or getting into
Nucleon is a small biotechnology start-up company focused on developing biotechnological pharmaceutical products based on a class of proteins known as cell regulating factors. The company has been in the market for five years, and currently, they are in the process of human trials for their first potential product, “cell regulating protein-1” (CRP-1). Overcoming these phases, Nucleon has to decide among several alternatives on producing CRP-1. Knowing that the process involved a tremendous amount of time and money, Nucleon has to choose the right decision for their long-term survival in the intensively competitive and high-stakes drug industry.
Opportunities for Sharp Corporation increase over time as the demand for technology is constantly increasing in the world. This presents the company with many potential opportunities to explore new and emerging markets in order to expand its international market share (Dubovskiy, 2012). In addition to the steadily growing market, Sharp’s new Sakai facility involved numerous partners including co-located suppliers as well firms using the output from the plant (Lehmburg, 2012). These opportunities to create partnerships offer a variety of potential advantages for the company.
Nucor has been facing many industry challenges including the overall development of the industry. They are competing with foreign firms on cost and efficiency. Nucor has a low cost strategy because as they say their product is not necessarily very attractive. It does not have attractive or unique selling features other than its cost. The commodity of steel is in a very competitive market. Nucor understands that innovation and productivity are going to be key factors to keep their buyers satisfied with their prices. Nucor is facing many challenges with a growing world market and many of their competitors merging in order to create stronger more dominate
However, RLK’s competitors are downsizing and outsourcing R&D and exploiting on the cost advantages. If RLK decides to invest more money into R&D and should the new product stall on launch,
My recommendation is for the company to stay focused on its main competitive advantage of supplying a
The second alternative will allow Nucleon to have a manufacturing strategy with less risk since this option requires no capital investments on Nucleon’s part. Compared to the first alternative, the contract-manufacturing fee is less ($4.8 M) and companies supplying contract-manufacturing services will provide facilities and
This illustrates that Albany has the needed support of industries in competitive areas, which is a great start for it to become a nanotechnology cluster. As for the Dresden team’s role, it should pass on their experiences along with the refined methods of process operations to the new fab. Like AMD Dresden’s beginning, Albany should send its managers and engineers to Dresden for training in order to copy its successful formula. However, processes can be copied exactly but culture can’t. AMD Dresden’s success is not only the processes of its operations, but it includes the people and the culture of Germany. Many industries in Germany are well known for the attention to detail, innovation, and precision engineering. This is not something that can be easily copied. Therefore, AMD’s strategy for Dresden and Albany is to divide them into different areas. The key to success understands the real strength of Dresden, and that is their ability of innovation. Dresden should become the innovation and research focus center while Albany takes control of manufacturing and development.
risks and determine the likelihood and consequence of that risk occurring during the project. The
Experts in physics, chemistry, electronics, and explosives with the technical know how of the special apparatus and complex systems must be acquired to conduct the assembly of the weapons. This is the most delicate and important component because a successful nuclear explosion demands a complete chemical reaction which is highly difficult to achieve. Millions of dollars
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Nuclear medicine is being used to help fight diseases as well as being able to take