Page 9 - CIMA SCS Workbook November 2018 - Day 2 Tasks

STRATEGIC MANAGEMENT (E3) - PRACTICE TASKS

EXERCISE 2

UPDATE
You are working at your desk late one morning when you receive the following email from Anton
Frind, Novak’s Director of Research:

TRIGGER

Email

To: Senior Manager
From: Anton Frind, Director of Research
Subject: Investment in orphan drug and response to criticism

I have been forwarded a proposal from one of our senior research scientists; a copy is attached
for your information.

As we are all well aware, the topic of orphan drugs is the subject of much debate. Pharmaceutical
companies such as Novak and its competitors want to challenge continually the boundaries of
medical science, but we also have a responsibility to our shareholders to produce a return. I think
it is inevitable that some research on orphan drugs will always be discontinued simply on the
grounds of cost and limited potential revenue until governments intervene. I am conscious that
this matter will be on the agenda at the forthcoming summit of world leaders.

I need to respond to this proposal today but am tied up in other meetings – could you please set
out the benefits and risks of agreeing to the NX1 research project and provide a preliminary
conclusion?

Secondly, you might have heard that I and several other Board members have received
anonymous threats due to the company’s use of animal testing in its laboratories. I am afraid that
this is an occupational hazard; we must accept that the research we consider so vital does not sit
well with certain activists. I feel that Novak should make some public statement, as the wording in
the most recent threats has been troubling (company policy on threats to employee welfare is to
report all such matters to the police, and this has already been done).

Could you please advise on the possible ethical stances Novak might take in the face of claims that
the company is unethical in its behaviour towards testing on animals?

Many thanks

TASK

Prepare an email in response to Anton Frind’s requests (Time allowed: 60 minutes)

(Refer to the reference materials overleaf)

KAPLAN PUBLISHING 25