Suppose Markman Corporation, a large pharmaceutical company, is concerned about the ability of its research and development department to develop profitable new prescription drugs. Once a drug has been developed and patented, it takes 9 to 12 years to meet all of the Food and Drug Administration (FDA) requirements. According to the U.S. Congressional Budget Office, the company can then market the drug for about 11.5 years, on average, before the patent expires.14 Then competitors produce generic drugs. Employees currently participate in profit-sharing plans, but the company wants to give additional bonuses to improve performance. Markman decided to implement a balanced scorecard approach.

A. Explain why monitoring and rewarding nonfinancial performance might be particularly important for Markman.
B. List one strategic objective for Markman’s learning and growth perspective.
C. List two performance measures for the strategic objective you listed in part (B).

  • CreatedJanuary 26, 2015
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