Reference no: EM132840676

Scenario: The sugar substitute research decision

You are the head of research and development (R&D) for a major beer company. While working on a new beer product, one of the scientists in your unit seems to have tentatively identified a new chemical compound that has few calories but tastes closer to sugar than current sugar substitutes. The company has no foreseeable need for this product, but it could be patented and licensed to manufacturers in the food industry.

The sugar-substitute discovery is in its preliminary stages and would require considerable time and resources before it would be commercially viable. This means that it would necessarily take some resources away from other projects in the lab. The sugar-substitute project is beyond your technical expertise, but some of the R&D lab researchers are familiar with that field of chemistry. As with most forms of research, it is difficult to determine the amount of research required to further identify and perfect the sugar substitute. You do not know how much demand is expected for this product. Your department has a decision process for funding projects that are behind schedule. However, there are no rules or precedents about funding projects that would be licensed but not used by the organization.

The company's R&D budget is limited, and other scientists in your work group have recently complained that they require more resources and financial support to get their projects completed. Some of these R&D projects hold promise for future beer sales. You believe that most researchers in the R&D unit are committed to ensuring that the company's interests are achieved.

Can anyone help me in answering these questions related to this scenario:

What is the issue/ what decision has to be made?

What level of employee involvement should be used and why?