A major pharmaceutical firm is developing a new medical drug for the market. Stockholders are pressing for an early release date, as the drug is expected to generate significant profits. Unions representing production workers are pressing for wage increases, which would reduce the resources available for development and marketing, thus delaying the release date. Consumer activists are pressing for increased testing which would both increase costs and delay the release date. Which balanced scorecard perspective is most applicable in this situation

Question

Natalya Hines

Business

4 June, 07:28

A major pharmaceutical firm is developing a new medical drug for the market. Stockholders are pressing for an early release date, as the drug is expected to generate significant profits. Unions representing production workers are pressing for wage increases, which would reduce the resources available for development and marketing, thus delaying the release date. Consumer activists are pressing for increased testing which would both increase costs and delay the release date. Which balanced scorecard perspective is most applicable in this situation

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Francesca Park · Answer 1

The financial scorecard perspective is the most appropriate. With it, the pharmaceutical company will be able to look at how its financial decisions related to the development of the new drug affect the stakeholders (stockholders, unions, and consumers).

After completing the scorecard, the pharmaceutical company will be able to balance its financial decisions in order to cause the least problems to all stakeholders (some stakeholders will be more affected than others by any decision).