Question

New-product development is important to a company like Medtronic, but it is hard work, and often leads to failure. How can a company encourage its employees to take the initiative, make a profit, and be ethically and socially responsible?

Answer 1

• Medtronic is concerned with medical technology sector and therefore it has become a very important part for any medical technology company to keep experimenting new and innovative medicines.
• spending on research and development is a core part and basis for the development of the company.though it consist with huge expenditure and the recovery of such cost become a risk for the company.

IMPORTANT CONTRIBUTION OF EMPLOYEES-

employees plays and important role in the research and development process for the new medicines,therefore to keep the morale high of the employee is an important aspect and challenge of the company.company can encourage the employees by the following manner-

1. reasonable incentive
2. participation of employees in the consultancy and decisions.
3. considering their opinion concerned with the research
4. keep the morale high of the employee in both positive (in case of success) and adverse(in case of failure of a research)
5. by providing them the new and innovative research equipment for the development process

• the fact can't be denied that the future is uncertain and there is no guarantee of success in this research work.
• the company can' t avoid the risk of failure but can increase its potential to bear the risk and try to minimize its impact

1. the firm can maintain a R&D provisional fund and deposit adequate amount at some interval of time , this may reduce the lump sum amount to be invested in the R&D work.
2. there should be proper funds to manage the risk and loss in case of failure of a projects
3. consent of the investors should be duly included so it may not consequence in conflict between investors in case of failure or loss bearing capacities and future legal expenses.
4. proper planning and probability of getting success and favored result must be concluded before proceedings.
5. proper legal documentation concerned with copyright and know how should properly be registered.by doing this company can prevent from imitation impact and maximize profit.

by undertaking the above steps the firm can minimizes the impact of losses.if the chances are favorable thus ultimately in may increase the profit.

SOCIAL CONTRIBUTION-

the medical sector has a social responsibility towards the people

1. people should be provided the effective medicines after proper research and study and after getting approval from the concerned department.
2. the price should be reasonable and should be considering and affordable for lower,middle and upper class people.
3. proper disposal of chemicals should be undertaken so it may not lead to pollute the environment and adversely impact the civilian lives.