Marketing Management Essay Example | Topics and Well Written Essays - 2000 words

Marketing Management - Essay Example Successful organizations tend to such things and hence positive results follow. The organization that I have chosen is TESCO, which is a well diversified company working in many different ventures and has created a great deal of value in the eyes of their customer. Tesco’s Mission statement and Aim The mission that Tesco wants to achieve is ‘creating value for customers, to earn their lifetime loyalty.’ Tesco holds values which give priority to the customers, their wants, requirements and expectations. It sets principles which motivate innovation and strategies to initiate programs and introduce services which the loyal customers expect to have. Tesco believes in the principle, ‘treat people how we will like to be treated.’ It emphasizes an organizational environment where respect, mutuality, collaborative work and sharing is highly regarded. It provides clear aims of satisfying customers and the employees are given guidelines on achieving these aims (Tesco plc). Marketing Mix – TESCO The main function of marketing is to satisfy customer need profitably through an appropriate marketing mix. Marketing mix comprises product, price, place, promotion. Marketing mix is an important and strategically important concept. The 4P’s element in the marketing mix act substitutes for each other, hence they must be integrated e.g. higher quality of any particular product would lead to higher selling price being sought for it (Sandhusen, 2000). TESCO marketing mix in USA under the Fresh and Easy title is; Product Product element shows the product that a particular company is about to sell. TESCO, entered the USA market with a business well diversified from their core activities, under the brand name of Fresh and Easy, TESCO opened up a grocery store to sell up grocery related products, proper branding was done under the Fresh and Easy label to make customer aware of the presence of a different brand. Fresh and Easy was not profita ble initially when it was launched in 2007 in the U.S.A. later on it provided favorable results and it is expected that by the mid of year 2010 it would turn around as a good profitable venture. Price TESCO approached an aggressive pricing strategy to grab its market share. It went on to give its customers ready meals i.e. selling high value meals at fraction of the normal cost. This pricing strategy would be considered Penetration Pricing i.e. to charge lower prices than that of competitors to achieve early market share. Place Place deals with how product is distributed and how it reaches its final customers. Fresh and Easy had to absorb heavy distribution cost as they had to build their own independent distribution channels. Logistics are an important feature as they determine the efficiency of the distribution system i.e. a warehouse close-by would make it easy and fast to make the product quickly available for the customer. Promotion Promotion is one factor of the marketing mix over which a company usually enjoys greater control. Promotion helps in increasing the knowledge and know-how about the product within its customers. Fresh

Resource Management Essay Example | Topics and Well Written Essays - 2000 words

Resource Management - Essay Example In the article "Motivational Management. Developing Leadership Skills" written by D. M. Eade, the author gives some recommendations as for employees motivation and change strategies, which can be successfully in health care practice. The purpose of the article is to single out the most important characteristics of effective leaders and evaluate the importance of leadership in health care. The author examines employees perception and understanding of the notion of a leader and the role of a leader in the process of management. Summarizing the main features of an ideal leader it is possible to say that being a leader is not a position, but a function. It requires getting the job done. In terms of leadership, the aim is to recruit and develop motivated managers who lead proactively. They are expected to be clear, to delegate and to get others to participate. A key aspect of leadership is that of aligning people with the goals and values of the company. In resource management effective leaders identify productive areas of confusion and uncertainty that exist in society, demonstrate that they do not have all the answers but are willing to learn, and is able to act differently, think differently, and seek inspiration from different sources, than leaders of the past. The obligations of leadership include effective training, deep insight into new tools and advancements and their impact on the future, strong corporate nurturing, and repeated practice could yield the best result, a well-rounded, skilled, and insti nctive leader. On the other hand, the author of the article does not include in her discussion such important features of good leaders as the ability to cope with complex technological change in their organizations. The author: "noted that solid strategies are necessary, but not sufficient in and of themselves, for good planning. Detailed action plans based on those strategies are critically important" (Eade , 1996). General leadership skills are not sufficient in enriched environments. It must directly relate to the tools, medium, strategies, and competencies found within this culture. Leader should possess the competencies to use and evaluate new tools, but he/she must also have the insight into the impact these tools will have on the future of organizations. The ability to develop a shared vision for new resources within an organization is an essential part of management, especially in health care. Employees prefer to have a leader who is a self-achiever and motivated to become a role model. Changes in resources often produce a "chaos situation" where change management in the use of instructional technology in teaching and learning becomes increasingly important. The leader must be ready to cope with difficult situations. Effective leaders recognize that what they know is very little in comparison to what they still need to learn. Leading others is not simply a matter of style, or following some how-to guides or recipes. Ineffectiveness of leaders seldom results from a lack of know-how or how-to, nor it is typically due to inadequate managerial skills. Leadership is even not about creating a great vision. It is about creating conditions under which all followers can perform

The Different Models of Disability Essay Example | Topics and Well Written Essays - 2000 words

The Different Models of Disability - Essay Example According to the research findings, it can, therefore, be said that two of the most prominent models of disability are the medical and social models. These models have been greeted with great skepticism in that they are thought of as being less reflective of the dynamics of disability in the real world. Additionally, they are thought of as being restrictive in nature in that they force individuals to perceive disability in a predefined and very rigid manner. These models, however, to prove to be helpful in that they establish a framework which can be utilized as a means of enabling individuals to gain an intimate understanding of the issues related to disability and the perspective of those who conceive the models as well as the institutions which utilize these models in policy setting initiatives. This report focuses on the obtaining an understanding of the different models of disability and its implications and ramifications. First and foremost, the Medical Model maintains that dis ability is the resultant of an underlying physical or mental limitation and is largely independent of social or geographical context. It is sometimes referred to as the Biological-Inferiority or Functional-Limitation Model. The most poignant conceptualization of this model can be seen in the definition as set forth by the World Health Organization (WHO) and devised through the contribution of several medical doctors. Under this conceptualization, a disability is defined as any restriction or lack of ability to perform an activity in the manner or within the range that is considered normal for humans while impairment is defined as any or abnormality of psychological or anatomical structure or function. Additionally, a handicap is defined as any disadvantage experienced by an individual which results from an impairment or disability which limits or prevents the fulfillment of a role that has become customary for that individual.

Ventilator-Associated Pneumonia Middle Range Theory Application Research Paper

Ventilator-Associated Pneumonia Middle Range Theory Application - Research Paper Example The tasks of caring and the promotion of human dignity are the central philosophies on which Swanson’s theory of caring is anchored. Swanson’s theory expands the aspect of nursing beyond the mechanics of professional processes between the caregiver and the patient to incorporate higher levels of commitment and responsibility on the part of the nurse. The caring theory entails a marked departure from conventional and traditional theories such as the medical model, the Nightingale model, and other theories that place the process of nursing within the province of professionalism. This theory acquires its relevance from the fact that it involves fewer concepts. The theory is also considered as user-friendly in the sense that it involves adaptable concepts. The adaptability of its concepts are essentially important in the task of maintaining some substantive approaches towards the management of multiple health challenges. This theory shifts the focus of nursing from the casual skills of the caregiver to the personality, character, and resolve of the individual nurse. The theory of caring promotes a special kind of relationship between the client and the nurse in a way that unites the entire healing process into a meaningful whole. This theory is based on specific aspects of healing that require some inner connection of processes that provide the healing force to the client. This theory distinguishes itself from other theories of nursing in the sense that it infuses some element of behaviorism.... This theory distinguishes itself from other theories of nursing in the sense that it infuses some element of behaviorism within the entire discourse of nursing. The relationship between the nurse and the client is revised to one that captures some aspect of utilitarian kinship between the two. Notably, this theory invents new concepts to incorporate into the aspect of healing. The theory invents the essence of the environment as a complex and fluid environment that determines, to a significant degree, the levels of success in the nursing process. The environment, as defined in this theory, is not limited to the physical essence of the term. The environment, according to Swanson, is situational. It could vary from the definition of an individual to a community. Furthermore, the meaning of the environment could be altered to capture the body of the client as it relates to other parts of the same. On this note, this theory sought to situate the meaning of environment from the convention al sense of the term in order to give broader meaning to the element of value nursing practices. The environment, as understood within this definition, has the potential to affect and be affected by the client. The complexities of nursing are explored as consequences of the interaction between the environment and the nursing process. The processes that determine the nature of professionalism between the nurse and the client must take place in a supportive environment that provides the synergies that operationalize the various aspects of the process. Swanson’s theory lays emphasis on the aspect of informed nursing. In the theory of caring, it is important for

Captain Cook Essay Example | Topics and Well Written Essays - 1500 words - 1

Captain Cook - Essay Example Cook managed to rise through ranks from seaman, soon became a mate and within four years became a master but it was not until 1759, that he was given the capacity to command the Mercury and he managed to sail to Canada up to the St Lawrence River, where he assisted in the survey of the river channel. At this point, Cook was made responsible and managed to successfully pilot the fleet, and they took over took Quebec. For his expeditions, Cook choice of vessel was precise. He went for sturdy and practical vessels, preferably the one that could hold lots of provision as well as be able to be managed by a small crew if need be. Among his crew members was, Dr Green who was responsible for the scientific instruments that were used for observations used in the expedition. In his lifetime Cook went for three major voyages across the pacific, each voyage however a different purpose had and was directed to different parts of the world. According to Simmons, (41), James Cook was only twenty-nine years old when he set for the voyage with the chilling experience. A few years to come, he was to achieve recognition for his success in preventing the loss of the men under his command to scurvy, in. It marked as one of the most outstanding accomplishment he managed to attain during his voyages and exploration around the world. Cook was always cautious; he paid close attention to the health of the ship’s company on those voyages as he had not witnessed the terrible suffering aboard Pembroke. When Cook arrived in Halifax outbreaks of scurvy were not uncommon in the city itself maybe due to lack of property rights discouraged settlers from erecting fences and cultivating home gardens and this made fresh vegetables be scarce. On June 19th the British started bombarding the fortress with heavy artillery and two days later the French vessel cà ©là ¨bre was hit by gun fire and burst into flames. They put a strong resistance against the

The motorcycle Helmet law Essay Example for Free

The motorcycle Helmet law Essay Millions of people all over the United States choose motorcycles over automobiles for the thrill, speed, and high performance capabilities. On the other hand, motorcycles are not at all the safest way of transportation. Motorcycles do not provide the passenger with the outer protection that cars provide, therefore, when one crashes, the results are usually much more serious. Injuries to the head are responsible for 76% of fatalities when dealing with motorcycle crashes many of which could have been prevented had the rider been wearing a helmet. For this reason, many states have adopted the motorcycle helmet law. The law states that every passengers must wear a helmet at all times when riding on a motorcycle. This law has created a great deal of controversy. One side supports the law, believing that it protects motorcyclists from danger and saves the economy a great deal of money. The other side argues that the law is unconstitutional and it violates our right to freedom. However, statistics show overwhelming support in favor of the motorcycle helmet law. Although wearing helmets cannot prevent motorcycle crashes, they can greatly reduce the number of deaths caused by head injury as well as lowering taxes, insurance rates, and health care costs. Therefore, the helmet law should be put into effect in every state across the United States. Helmets drastically reduce the tremendous number of deaths caused by head injuries as well as reducing the severity of any nonfatal injuries to the head. Statistics gathered by the Safety Nationwide Insurance Enterprises show that an unhelmeted rider is 40% more likely to suffer fatal head injuries, compared with a helmeted rider. Also, with the helmet law in effect, close to 100% of motorcyclists wear a helmet. Without the law, only 50% of motorcyclists wear helmets. Also, death rates are twice as high in states without the law. One study estimated that because 25 states ratified the law, over 3,300 lives were saved last year alone. Since helmets reduce the risk of injury and death, they will also, in tern, help the economy. The Vice President of Safety Nationwide Insurance Enterprises, Tim Hoyt, states, We may not be able to eliminate all the risk from motorcycling, but helmet laws greatly reduce the most expensive injuries head injuries. Reducing these costs is good for the consumer and it Is good for business, too. Health care costs and insurance rates are lowered because it is not as expensive to treat smaller-scale injuries. The government ends up paying a large portion of peoples medical bills because of different types of public assistance programs. Hence, when health care costs are lower, the government does not need as much of our money to pay for those programs and taxes are reduced. The Insurance Institute for Highway Safety estimated that over $4 million dollars were saved last year as a direct result of the motorcycle helmet law. For these reasons the motorcycle helmet law should indisputably be enforced in every state. If the motorcycle helmet law helps the economy and more importantly saves lives, why doesnt the entire country enforce the law? The answer is, many people feel that the helmet law is a violation of the rights granted to Americans in the Constitution. Most people in opposition to this law do not necessarily believe that it is a wise choice to ride a motorcycle without a helmet and they do recognize the positive impinge the helmet law has created. However, they do not think that the government has the right to tell people that it is mandatory to wear a helmet. One man argues, If we let the government dictate things like how we should ride a motorcycle, we will slowly develop characteristics of a communist government. Isnt communism what we fought against for so many years? Because of these strong points of view, a number of states do not endorse the motorcycle helmet law. Some people believe that the motorcycle helmet law violates our freedom as Americans, but the law is actually used to protect us from harm and maintain order. There are limitations on almost everything we do, because a society without some type of laws or rules would be complete chaos. Just as there are speed limits, drinking restrictions, and seatbelt laws to protect us while in an automobile, there needs to be some type of law to protect us while riding on a motorcycle (especially since motorcycles are more dangerous in the first place). Therefore, in response to the opposing argument, the helmet law is not imposing on our Constitutional rights, but merely the governments way of saving money for itself and consumers and protecting riders. The motorcycle helmet law was designed to lower taxes, insurance rates, and health care costs and more importantly to save the lives of our loved ones. Statistics have proved just that. There is not one study that disproves the positive effect the motorcycle helmet law has created thus far. Helmets will not stop a motorcyclist from getting into an accident, but with a helmet, the rider will most likely be able to survive the crash. The extra second it takes to put on a helmet could be the second that saves someones life. Why not make it the law?

Dangers of Escalation of Commitment in Accounting

Dangers of Escalation of Commitment in Accounting This report analyses the issue of escalation of commitment to a course of action from the perspective of the pharmaceutical industry. Escalation can be defined as a situation where a failing venture is supplied with additional resources beyond the point of feasibility. As such, escalation carries substantial dangers for organisations by generating avoidable economic losses. The report inquiries into the generic causes of escalation by examining subject literature. Accordingly psychological, social, organisational and project-specific factors are identified as common escalation activators. Exploration into the particulars of the said industry categorises profitability issues, market performance concerns, maturing products portfolio alongside development pipeline conditions as features amplifying pharma companies vulnerability to escalation. The point is supported by real-life case examples located in the appendix. Appreciation of escalation causes allows for development of effective prevention policies. The report suggests preventive measures aimed at reducing the occurrence of escalation triggers, such as challenging the individual and social causes. Approaches for reducing other factors impact on decision-making are outlined in the form of strategy alteration as well as process management policies. The report finalises with suggestions on escalating situations management. Statement of Reference The aim of this 2000-word report is to inquiry the causes and dangers of escalation of commitment to a course of action from the perspective of pharmaceutical companies. This report is to assess the dangers of escalation of commitment to a chosen course of action through the perspective of pharmaceutical companies. In order to achieve the aim set, the paper first analyses the definition and threats arising from the phenomenon of escalation. Next, following the framework proposed by Ross Staw (1993) generic causes of escalation are summarised. Subsequently, the report looks at industry- and drug development-specific escalation triggers in an attempt to identify why the pharmaceutical companies are particularly vulnerable to the dangers of escalation of commitment. Then, escalation prevention provisions organised around tackling previously identified triggers are outlined. The report concludes with suggestions concerning the issue of escalating situation management. Escalation of commitment: Definition and dangers Escalation can be defined as a situation where an individual over-commits resources to a failing venture after receiving negative feedback on its performance. Having an option to discontinue, the decision-maker forgoes rational behaviour and devotes more money, time or effort in a false belief that greater involvement will bring the project to successful completion (Staw, 1981). Some examination suggests that escalation as such should not be automatically assigned negative connotation. Low level of employee commitment is also damaging to organisational performance; background factors might justify over-commitment (Heath, 1995). Another view assumes escalation to be a natural feature of the business decision-making that should be treated as an unavoidable expense (Bowen, 1987). The dominant notion supported by extensive research suggests that escalation of commitment should be acted against (Brockner, 1992) because of carrying dangers of: Ultimately leading to multiplication of avoidable losses; Introducing irrational decision-making; Undermining the basic premise of business activity: to maximise gains with minimal costs; Generating substantial opportunity costs Consuming unrecoverable resources, such as time. Appreciation of escalation triggers allows for development of efficient prevention methods aimed at reducing the occurrence of such factors, subsequently protecting the company from the aforementioned detriments. Generic causes of escalation Psychological Initial research suggested that escalation arises primarily from the natural incline of the human being to self-justify behaviour. Supplying the course of action with additional resources serves as unconscious defence technique: the individual reassures him/herself that the original decision made was rational (Staw, 1976). Self-justification need is heightened if the decision-maker holds responsibility for the resource allocation (Staw, 1981), which is typical for investment decision setting. Prospect theory applied to escalation suggests that self-justification is not vital prerequisite for its occurrence. Escalation is induced by the decision-maker using a frame to make decisions under conditions of uncertainty of results. The decision-maker views subsequent decisions in reference to outcomes of initial judgements in order to produce a coherent frame. The negative feedback on the initial resource allocation results in the subsequent distribution being viewed as a choice between definite and possible loss, or a negative frame. Subsequently individuals are prone to escalation by becoming risk-seeking: failing to accept a definite loss even at the cost of incurring greater in the future (Whyte, 1986). How the decision-maker perceives incurred costs, constitutes another escalation trigger (Garland Newport, 1991). Following prospects theory, the sunk costs effect suggests that costs incurred viewed in relation to the total expenditure induce a negative frame, leading to escalating behaviour. Linked with that, the dislike of waste provides another motivation to supply the course of action further, rather than face a definite loss (Arkes Blumer, 1985). Interestingly, excitement about the project outcomes (Schmidt Calantone, 2002), and sunk-time effect ­ (Navarro Fantino, 2009) aid escalation occurrence. Social Importantly, the aforementioned need to justify the correctness of behaviour is not limited to the individual and applies to the wider social context (Staw, 1976). Maintaining an image of a consistent decision-maker among peers proves equally, or more, important to meeting self-justification needs. The desire to obtain social approval is exacerbated under insecurity of the social status in the group, or in a presence of an adverse crowd (Staw, 1976). In such instances the individual is likely to model his/her behaviour to reproduce the model endorsed by the audience (Brockner, 1992). As the group replicates leader stereotypes that emphasize the need for decision-makers to be consistent in actions in order to be perceived as competent (Staw Ross, 1980), the individual aspiring to achieve consistency with the stereotypical image will over-commit not to distort others belief in their leadership potential, and to reaffirm position in the group structure. Intra- or inter- group competition can indicate escalation. The focus is shifted away from objective assessment of the possible outcomes of a chosen decision onto the motivation to win. The need to do whatever it takes to get a step ahead of the competitors introduces scope for irrationality and escalation as such irrational behaviour is common to both of the parties involved (Bazerman, 2006). Organisational Projects receiving strong organisational support are prone to escalation (Pfeffer, 1981 in Ross Staw, 1993), as the decision-makers identify them with the existence of organisation itself. Furthermore, the centrality of the project to organisational values and its entrenchment in the organisational structure account for the projects being continued despite reservations (Goodman et al., 1980 in Ross Staw, 1993). Unwinding the supporting infrastructure might threaten the very basis of working organisational structure; induce change that is often associated with risks and dangers. The costs of acceptance of status quo are perceived as minor to the potential dangers of modified environment. Maintaining reputation and consistency between values and actions prove to constitute forces inducing over-commitment from organisational perspective (Ross Staw, 1993). Companies having publicly announced success might be more hesitant to admit failure and discontinue with the course of action. Project-specific High development costs and risky market performance of the finished product, the acceptance of failures and losses as a feature of the RD process, and reluctance of decision-makers to emotionally detach from the prolonged projects account for greater escalation exposure of RD projects (Schmidt Calantone, 2002). Low potential reusability (Staw Ross, 1993) of the generated output results in reluctance to discontinue the venture in order to avoid waste. Negative framing induces the perception of exit costs, such as compensation packages as definite waste, leading to escalation. The advancement of the project on a timeline constitutes another threat due to sunk-cost effect (Navarro Fantino, 2009). Projects reaching advanced stages of development would be discontinued reluctantly because of accumulation of used resources, including time, and the perception of imminent availability of the anticipated gains. Industry-specific Escalation Triggers Profitability issues Recent data suggests that pharmaceutical companies are to face decline in profit figures in forthcoming years (Datamonitor, 2010). This can be attributed to steadily increasing drug development costs: the costs producing the final product exceed $1 billion, with as few as 20% of successful product entries achieving the break-even point (Innovation.org, 2010). Estimates suggest that pharmaceutical companies should launch two to four drugs annually to maintain steady profit margins (Gassmann Reepmeyer, 2005). However, due to high attrition rates the overall success of organisations strategy is often reliant on the success of a single project (Kola Landis, 2004). These factors pressurise the companies to continue with projects and disregard arising reservations to maintain profitability. Maturing product portfolio The reduction in new component approvals can be partially attributed to strengthening drug registration requirements. Other explanation lies in the controversial innovation deficit experienced by the industry (Schmid Smith, 2004). Lower innovation figures account for pharmaceutical companies being faced with maturing product portfolio. Consequently, the companies engage in a variety of innovative projects overly-optimistically assessing their revenue potential, failing to discontinue when reservations arise. Eventually, the companies face greater losses as the projects fail to generate anticipated revenues, but incurring avoidable losses (Appendix: Dimebon case). Concerns for market performance The pressure to persist is further reinforced by the need to be consistent with companys vision (Ross Staw, 1993). Endorsing the projects demonstrates consistence with the mission statement; reaffirms the reputation as well as reassures the market and investors on following the profitable trail. However, forgoing ethical and safety aspects of drug delivery over concerns for market performance and cost-cutting proves detrimental (Appendix: GSK Puerto Rico Plant). Development pipeline conditions The specificity of the drug development pipeline further adds to the vulnerability to the dangers of escalation of commitment. The drug development time is estimated to surpass 10 years, with the costs amplifying as the project progresses (Accenture, 2007). This suggests heightened emotional attachment and excitement towards results, as well as existence of supporting infrastructure as powerful motivators of escalation. Attrition figures reveal that escalation is common in the industry as the most projects are withdrawn after reaching the most cost intensive stage of advanced clinical trials that precedes the registration process; or are recalled after reaching the patient due to safety concerns that have been ignored earlier on (Kola Landis, 2004) (Appendix: Avandia case). Escalation: how to prevent it? Tackling individual and social causes Perhaps introduce appraisal procedures emphasizing ones ability to build on past actions, rather than progression of the project. This will reduce managers fear of negative consequences if the project fails. Confidential treatment of sensitive matters, such as personal failures, will reduce the reputation retention motivation for escalation (Simonson Staw, 1992). Consider developing positive leader stereotypes supported by convergent organisational values emphasizing the rationality of decision-making. Furthermore, introducing panel decision-making procedures contribute to preventing escalation by reducing individual responsibility for the decision taken (Simonson Staw, 1992; Schmidt Calantone, 2002). Inviting members of relevant departments allows for assessing the projects success potential from a variety of angles limiting scope for escalation to arise. Ponder developing neutral decision frames by rotating managers in charge of the project so that different individuals held responsibility for initial and subsequent resources allocations (Simonson Staw, 1992). Additionally, foster for emotional detachment from sunk costs by introducing training in mental budgeting (Heath, 1995). Project evaluation and management Clear and achievable targets should be set out at the project initiation alongside exit points at various stages of progression (Schmid Smith, 2004). Measuring projects performance against set aims; assessing the efficiency with which resources yield results at the selected points allows for early estimation whether the project is following the anticipated pathway, thus allowing to avoid greater losses. Consider adopting attrite early strategy (Schmid Smith, 2004) as companys motto. Consider participation in multi-stakeholder analysis projects evaluating the potential value of innovative drug projects at early stages of development such as the consultations conducted within the European Healthcare Innovation Leadership Network (AstraZeneca, 2010). Ponder involving external parties in the project (Schmidt Calantone, 2002). Perhaps engage auditors to assess the success projects success potential at its outset or to devise effective contingency planning. This will ensure objectivity and independence of organisational politics. Consider outsourcing the project to subcontractors to avoid its institutionalisation in the organisational structure. Alternating middle-to-long-term strategy Consider renewing existing product portfolio and engagement in me-too drug developments. This ensures steady revenue generation from inelastic demand segments (Ganuza et al., 2009) and carries less risk comparing to reliance on anticipated gains from innovative compounds. Estimations suggest that involvement in drug-related sectors or focusing on advancement in licensed compounds constitute a potentially profitable alternative (Schmid Smith, 2004). Consider GSKs involvement in healthcare brands as an example. Managing Escalation Suppose the escalating situation arises, consider replacing the project manager or establishing panel assessment in order to remove the negative thinking frame, rid off the potential self-justification needs and assess realistically projects success potential (Simonson Staw, 1992). Consequently, ponder engaging external consultants to develop plausible solutions and introduce other point of view independent of the political and organisational influence. Otherwise, evaluate potential salvage value of the project towards establishing uses other than the initial one anticipated (Appendix: Viagra case). Furthermore, consider whether external financial support for advanced research is available; and if is feasible to use towards accomplishment of the projects aims. Otherwise, ponder engaging in partnership with a company undertaking research in similar compound in order to combine knowhow and reduce costs. Appendix Avandia case Recent withdrawal of GSKs highly innovative and best-selling diabetes drug, Avandia, in EU was caused by the linkages with deaths by heart failures among the patients on the medication (FT.com, 2010b). Allegedly, the company was aware of the severity of adverse effects, however launched the drug to the market (Avandia Recall News, 2010). Estimations suggest that GSK could face between $1.1bn and $6bn in compensation costs (FT.com, 2010a) that could have been avoided had the company ceased the project when safety concerns were brought to light. Additionally, bad publicity incurred after the allegations surfaced resulted in fall of GSK share prices, and the company facing negative profit accounts (FT.com, 2010c). Dimebon case Pfizer has recently withdrawn from advanced clinical trials (undertaken in partnership with Medivation) of highly anticipated Alzheimers disease cure, Dimebon, after the drug exhibited no promising therapeutic results (MedScape Medical News, 2010). The reservations about the curative properties of the compound have been raised at early stages of the process. It is assumed that the logic behind Dimebons miraculous effects was never properly investigated. Furthermore, similar compounds failed in previous trials (ABC News online, 2010). Escalating behaviour in such case could be linked to Pfizer losing patent rights the currently marketed Alzheimers treatment, Aricept and was in need of a profitable replacement. As a result of failure to investigate and evaluate promptly, Pfizer has incurred $725 million in RD costs (the Economist.com, 2010). GSK Puerto Rico Plant case GSK is reported to pay $750m in penalty payment to US government and other claimants following allegations on manufacturing malpractice and failure to adhere to safety standards in production plant in Puerto Rico. The allegations regarding mal-adjusted doses of active ingredients and ineffectiveness of drugs submitted to government programmes were revealed by a former employee and resulted in the company being charged with a criminal offence (Wall Street Journal Law Blog, 2010). Viagra case Initially Viagra was developed as a cordial drug aimed at decreasing blood pressure and preventing cardiac arrests. Clinical trials unexpectedly revealed potentially exploitable and marketable properties of the drug: high effectiveness in fighting erectile dysfunction in men. In the six months following its launch as a revolutionary treatment, in 1998 Viagra worldwide sales have exceeded  £300 million (BBCnews.com, 1999).