What are some of the weaknesses or threats to the pharmaceut

What are some of the weaknesses or threats to the pharmaceutical firm if researchers are not assigned to clusters of diseases, and remain assigned to a specific drug research project?

Solution

As it was once rightly said \'Don\'t put all your eggs in one basket\' for it can really scramble your entire investment goal. One must understand that diversification is the key, not just while taking investment decisions but also while running the business one should ensure that too much concentration in one area can backfire and have adverse implications on the business. In this case we are talking about pharmaceutical company - it is advisable for such company to assign workforce in varied activities related to cluster of diseases rather than employing entire team of researchers to one specific drug research project. This is because of the high uncertainty involved in doing so - there is uncertainty in relation to whether or not the project will be successful and the duration of research. The company faces a huge threat of liquidity crisis, financial distress or even bankruptcy if all resources are focused on simply one project and the project doesn\'t do well or fails altogether. Instead the idea of involving researchers to a cluster of diseases increases the probability of success - as it is highly unlikely that each and every project will go unsuccessful. At least few successful projects can ensure that company functions smoothly and runs sufficiently enough to give the long duration projects enough time to work favourably. The threats other than the three mentioned above are - company shall find difficult to raise funds for continuing the research after some time if the research doesn\'t show positive movement forward, the creditors might go for only cash basis in dealing or they might significantly reduce the credit period. Not enough finance to support the company and to operate it effectively might result in job insecurity among the researchers and there might be implications like higher attrition. The public perspective of the company shall not be very favourable and if the company is listed, the market value of its security would be low due to high perceived company specific risk. Thus such pharmaceutical company needs to assign researchers to cluster of diseases and not just to one specific project.