Myrdal On Wall Street :: Roger and Me Economics Essays

Myrdal On Wall StreetMyrdals economic theory of circular and cumulative motive is depicted in the film Roger and Me. In rocklike, Michigan, General Motors closes eleven factories, which causes over thirty thousand people to become unemployed. The company claims that they need to close the factories to apprehension competitive. The viewer sees the truth they are greedy and will make money wherever they can, regardless of the people they may harm. Labor is much less dearly-won in Mexico, where GM only has to pay the workers $0.70 an hour. As a result, General Motors begins to close plants in stony and move them to Mexico. Some people leave Flint to find work elsewhere and some remain, struggling to find new forms of employ manpowert. As more than and more workers lose their jobs, poverty in Flint becomes more severe. Increasingly people are evicted from their homes, become ill, the violent crime sleuthe in Flint becomes the highest in the country, and the general standard of livi ng plummets for the poor. Michael Moore describes their living conditions, The rat population has now surpassed the human population. Their environment worsens to the point where Money Magazine declares Flint the worst place to live in the country. The poor citizens in Flint live Myrdals circular and cumulative causation theory. In addition, the rich population of Flint prospers during this quantify of great poverty. The wealthy community of Flint spends their time at the ballet, golfing and relaxing at Grosse Point. When the jail becomes too full and another one is built there is a large party in which couples pay one hundred dollars to stay over night in one of the new cells. They didnt seem to mind celebrating American tragedy, as Moore had say in another instance. At the end of the documentary, Michael Moore says, The rich were richer, the poor, poorer and the people everywhere had a lot less lint thanks to the lint rollers in my town. It truly was a infiltrate of a new era. Myrdals theory is also highlighted in the films, Wall Street and The Boiler Room. By not hiring women and creating a male dominated environment, the men progressively gain power, just like the rich getting richer in Roger and Me. The women do not have the same opportunities to earn money and power. Several factors reach the portrayal of Mrydals theory of circular and cumulative causation.

Gunslingers :: essays research papers

GunslingersThe wall beside Gerard exploded as a high velocity bullet afflicted the already heavily battered bricks and sent them shattering outwards in a spray of red shards. Gerard stood still, whizz hand casually flicking the ignition swan on his lighter. As he lit the end of his cigarette, another volley of bullets stuck the wall behind which he was hiding. Bullet holes riddled it like holes in a Swiss cheese, and the cover was becoming steadily more useless. He took a puff and tucked the black lighter back into the pocket of his trench coat. He put two fingers to the cigarette and removed it from his lips to breath out the slow stream of smoke whilst his opponent continued to waste his bullets and his time shooting aimlessly at Gerard. A row of bullets riddled the wall five feet to his right and he called out, Hey, nearly got me that time. In a mocking voice. His enemy muttered a disapprobation and Gerard heard the impenetrable of footsteps approaching. The cowardly bastard had called for backup. Oh well, the more the merrier. A fresh stream of shots, this time from a multi-barreled rotary cannon spat out on Gerards cover. He watched with casual indifference as the red brick wall lento disintegrated around him, slowly reducing his cover to just the tiny department of masonry that he hid behind. There was an ominous silence broken only by the sudden thump as an entire section of wall collapsed to the ground. Gerard heard the sound of one of his adversaries reloading their weapon. He dropped the cigarette on the ground and stamped it out with his boot. He reached within his trench coat and withdrew a shining silver revolver. He slowly and almost carelessly loaded one shot after another into the weapon, occasionally jerking his head to one side as a roll up bullet clipped the edge of the wall. As he placed the last shot in the ancient weapon he spun the wheel and gripped the handle. He past paused for a moment until his opponents clip ran dry again and he heard the sound of the rotary cannon being loaded again. Gerard took one step to the left and with barely a glance calculated exactly how far his opponents were from him. In the same fluid motion as he all told removed himself from cover, he leveled the revolver at the two enforcers across the deserted plaza from him and squeezed the trigger.

Chose in Leadership Books :: essays research papers

So, you want to be a leader but dont know where to start? Well, after camping out in the self- sustain section at my local bookseller, Ive got good news and bad news. The good news is that youve got lots of help to choose from. The bad news is that youve got lots of help to choose from. In my brief reconnaissance, I discovered a legion of writers who are just itching to let you in on their secrets. Dont believe it? Well, Ill pull through you a trip. I brought back proof. Dont expect a definitive list though. The cottage industry thats grown up around the subject of lead advantageously keeps an army of loggers working overtime. So I just jotted down a representative s colossal -- enough I think to convince even the roughly skeptical that theres something for almost everyone. So, FOLLOW ME and read on. As you might have guessed, leadership books are all over the map. If you want your leadership hard-edged and bloody-minded, you can come on up with Attila the Hun or Niccolo Machia velli ( leading Secrets of Attila the Hun, by Wess Roberts Machiavelli on Modern Leadership by Michael Ledeen). If you worry that Attila might be too old school, dont despair. There are ample contemporary choices. How about a couple of political celebrities like Rudy Giuliani (Leadership) and Colin Powell (Oren Harari, The Leadership Secrets of Colin Powell)? Sorry, Colin, but Im guessing that theyre not so secret any more. Finally, for the truly avant garde, theres Leadership for the Twenty-first Century, by Joseph C. Rost. Not to digress, but Colin got me thinking. Ive read The Da Vinci Code and Ive heard about conspiracies to keep the rest of us in the dark. I applaud if theres a cabal of leaders trying to hide their secrets from the hoi polloi. Well, maybe. Colins not the only one whos decided to fess up. GEs former boss, Jack Welch is another insider whos finally talk (Robert Slater, 29 Leadership Secrets From Jack Welch). Even Santa Claus has decided to come clean (Eric Harv ey, The Leadership Secrets of Santa Claus). Who knew that the teamsters kept secrets? Theres also a heated debate over whether leadership is art or science. Max Depree says Leadership is an Art. And, hes got lots of company including retired General Barry McCaffrey, (Leadership The Warriors Art) and Ken Blanchard (Heart of a Leader Insights on the Art of Influence).

Problems in Australian Society :: australia

Australia Still the Lucky Country?Fire, flood, drought & cyclones. These are just some of the natural disasters that the so c totallyed, Lucky Country, Australia endures every year. And, with 5% of Australias population living overseas, we are beginning to question if Australia really is the lucky country. ITS true, that Australians are luckier than people from most other countries in the world, but are we really living in THE lucky country? Is there even really a lucky country at all?Once a dumping ground for criminals and never-do-goods during military personnel War II. Australia became a home for almost seven million immigrants, many of them British people who want a new start over in a sunny country with a hopeful future.Australia was once a dumping ground for criminals and never-do-goods during World War II.Now, Australias luck may have run out. Australia has had many different sorts of problems throughout the recent years, asTwenty years ago, the regular Australian employee w as too busy to worry about the happenings of parliament. Numerous people waited until Bob Hawke became Prime Minister, after only two years in parliament. The politically dewy-eyed voted for this regular bloke who understood real Australians and he spoke like one to. His fair dinkum accent was his greatest asset.As soon as he became Prime Minister this courageous, fair minded, man for the nations citizens turned into a wimpy, deceitful man, who had lost touch with his fel modest Australians and walked the same direction as his forerunners.The Howard government was not much improved it improved the economy, but had a terrible record on human rights issues. Its only actual bliss had been to restructure the indirect tax system and to boost the reserve banks independence. Then there are natural disasters over the years, Australia has experienced more than enough natural disasters. Drought is without doubt one of the most complex troubles that Australia must deal with. Due to the fact that Australia has an enormous area of desert, and very low annual rainfall, the country is very modify.Fire is another problem within Australia. They are among the natural disasters that cause the greatest loss of both humans and material. The fires time out out for many different reasons, but one of the main causes is the dry air, that throughout summer, blows from the deserts to the coast. Another cause is during droughts, there is a lot of dry land, the heat from the sun can cause fires.

Prostitution Essay -- essays research papers

Ive often wondered what drives women into prostitution? Is it always by choice or are they forced into it? The whole approximation of paying for sex seems so undignified. Something so intimate, in my opinion, should not be up for sale. It is thought that those who are prostitutes are driven to do so because of their childhoods. late research does support this idea. Dr. Melissa Farley and Dr. Howard Barkin reported that out of 130 prostitutes surveyed fifty-five percent reported that they had been sexually abused as a child by three perpetrators or more. Ninety-four percent reported that a caregiver had physically abused them until they were bruised or injured. This gives us a good idea that almost prostitutes have had an unstable childhood. Their childhoods have caused them to enter a profession where they repeat the abuse from the childhood in their adult lives. Of those interviewed eighty-two percent said they had been physically assaulted since they entered prostitution and si xty-eight percent had been raped. Which makes you wonder why they would stay in the profession if it causes them so much pain.Eighty-eight percent expressed a disposition to leave the profession, but complained they need help. They needed training and education. They also needed medical attention because most of them had health problems from prostitution. When you face so many problems it sometimes seems easier just to s...

Prostitution Essay -- essays research papers

Ive often wondered what drives women into prostitution? Is it always by superior or are they forced into it? The whole idea of paying for sex seems so undignified. Something so intimate, in my opinion, should not be up for sale. It is thought that those who are prostitutes are driven to do so because of their childhoods. Recent research does support this idea. Dr. Melissa Farley and Dr. Howard Barkin reported that out of 130 prostitutes surveyed fifty-five percent reported that they had been sexually abused as a child by three perpetrators or more. Ninety-four percent reported that a caregiver had physically abused them until they were bruised or injured. This gives us a good idea that close to prostitutes have had an unstable childhood. Their childhoods have caused them to enter a profession where they repeat the abuse from the childhood in their adult lives. Of those interviewed eighty-two percent said they had been physically assaulted since they entered prostitution and sixty -eight percent had been raped. Which makes you wonder why they would stay in the profession if it causes them so a great deal pain.Eighty-eight percent expressed a desire to leave the profession, but complained they need help. They needed training and education. They also needed medical attention because most of them had health problems from prostitution. When you face so many problems it sometimes seems easier just to s...

Neoclassicism

Neoclassicism is a lawsuit of the revivification of a classical style of quaint Greece and/ or ancient Rome in decorative arts, literature, architecture, and music. One such movement was dominant in Europe from the mid-18th to the 19th centuries. Neoclassicism focuses on symmetry, primarily with the use of circles and squares. The use of trilateral pediments and domed roofs is also prevalent among Neoclassical architecture. These characteristics were affected by the Age of Reasons ideas that architecture should be logical and balanced instead of everyplace decorative. Neoclassicism was influential in the decorative arts too.Furniture was designed by designers and produced by furniture makers. One famous architect who designed furniture is Robert Adam. In assembly line to the cabriole style leg, he used straight legs and he designed his own patterns on the backs of his chair. Robert Adams decorative arts can be seen in the interiors, such as in the Etruscan Room (figure 1) at Os terley Park House. Here, Robert Adam uses classical Roman decorative motifs inspired by Herculaneum and Pompeii. Adam also designed flat grotesque panels, which were inspired from Roman mural painting. figure 1Although neoclassical architecture was primarily influenced by Roman and Greek architecture, it become a movement of its own, with its own standards and leading figures. The Rotunda (figure 2) by Andrea Palladio was inspired by the Pantheon in Rome. It in turn, was inspired by Brunelleschis double walled pointed arch dome. The large windows used became hold up as Palladian windows, which is a prominent feature in neoclassical architecture. The Rotunda then influenced the Chiswick House (figure 3) designed by Lord Burlington. The Chiswick House has a fair symmetrical plan and consist of many Palldian style architectural elements.The Chiswick House then influenced Thomas Jeffresons Monticello in the United States. figure 2figure 3 By the late 18th century, Thomas Jefferson had embraced the neoclassical style in his designs for Monticello (figure 4) and the Virginia State Capitol (figure 5). Monticello was based on the neoclassical principles of Andrea Palladio. Monticello is similar in appearance to the Chiswick House. The Virginia State Capitol is the starting signal Neoclassical building in the United States, inspired by the Mason Carae, with Etruscan stairs, portico, and triangular pediment. Jefferson advocated Neoclassicism as the official rchitectural style of the United States, also known as the Federal style after the American Revolution. For Jefferson, it implied new democracy by tracing its roots back to Greece, the origin of democracy. (figure 4)(figure 5) Neoclassicism was more than just an antique revival it was a reaction against the over decorative Baroque Art and the Rococo Art of the times. Striving for equality after the revolution of United States and France, Neoclassicism quickly grow and influenced Europe and North America in decora tive arts, literature, architecture, and music.In the end, it also lead people to a new way of thinking. Bibliography Buie Harwood, Bridgate May, and Curt Sherman, Architecture and Interior send off through the 18th Century. Encyclopedia Britannica, NEOCLASSICISM, http//lilt. ilstu. edu/jhreid/neoclassicism. htm Architecture 411, Neo-Classical Architecture, http//www. architecture411. com/notes/note. php? id_note=6 GreatBuildings, Neo-Classical Architecture, http//www. greatbuildings. com/types/styles/neo-classical. html

How much did Hitler’s foreign policy owe to his predecessors? Essay

Hitler offered that his overseas policy was original most of it having been written down in the in any case original Mein Kampf, which included a huge mix of ideologic hatred, that had mainly been written in the first place in some kind during the previous 50 years. So it was with outside policy. Although some elements were new, they were mostly because Hitlers predecessors had not had a encounter to deal with them they were results of the outcome of the First World War. These included lebensraum and pan Germanism, along with the desire to smash Communism and the idea of a racial war, including the destruction of the Jewish race worldwide. However, the most important idea was to crush the treaty of Versailles, something which Bismarck could not have envisaged, as he was dead before the war even started.However, Stresemann was interested in totally revising Versailles, although not going so far as ripping it up. There are alike several ambiguous points, which featured before i n German policy, but to which Hitler added a slim of his own personal flavour. For example, the desire to expand into Russia was clear before even the war, and shown with the humiliating treaty of Brest-Litovsk, but no-one envisaged that Hitler would and then try to use the Russians after annexing them as a slave labour force. Hitler perhaps owes a debt to the Kaiser, for they dual-lane many of the same qualities. It has been mused that Hitler was the natural successor to the Kaiser, and this is certainly true when it comes to the area of Foreign policy.The Kaiser and Bismarck operated a right wing government from the creation of a united Germany in 1871, and in the 1870 Franco-Prussian war. Bismarck, however, was more cautious than the war-mongering Kaiser, and his personal ideas are perhaps more homogeneous to Hitler before 1938, whilst the Kaisers mirror the second period, from 1938 to 1941 and the onset of the Soviet Union. This was because Bismarck was always worried about Germanys dangerous geopolitical position sandwiched between several other great powers of the continent. He also had to be wary of the results of 1870, because French hostility to the Germans from then onwards became a constant element of europiuman foreign policy and diplomacy. Thus, to offset this disadvantage, he think the Dual alliance with Austria-Hungary in 1879, which Italy joined in 1882. He also signed a defensive treaty with Russia and Austria.This policy was pursued by Hitler with similar effect, as he pushed for several alliances that did not necessarily mean anything. These included the Rome-Berlin Axis, the Anti-Comintern Pact, and non-aggression pacts with Russia and Poland. However, although Germany wanted a place in the sun, Bismarck was happy to stay on the sidelines when it came to Africa and Asia, as colonies not only led to tensions among the nations, but most of the nations with any economic appeal had already been grabbed by the other imperialist powers. Hi tler, however, subscribed to Weber, who in 1895 stated that the foundation of thee German empire was not a terminal achievement, but that it was a step towards more glory and success. The Kaiser also shared this feeling, initiating Weltpolitik, and full admiral Tirpitz decided to build a fleet to support this, similar to Hitler, who built up a huge forces after the introduction of conscription in 1935.Under the Kaiser, politics were perceived by foreigners as inflammatory, swaggering, insensitive and overly aggressive. Like Hitler, the Kaiser believed preserving the status quo would lead to decline, and thus Germany had to expand, preferably eastwards, the policy of Mittleuropa. Possibly Hitler use a kind of Weltpolitik for the same reasons that the Kaiser did, which were actually domestic. After the failure of the anti-socialist laws, the ruling elite wanted to reconcile the working class with the state, through integrative nationalism, hotness for overseas expansion and concer n for national prestige. Finally, the personality of the Kaiser was such that it can be compared to Hitler, for they both were nationalists, racists, obsessed with expansion, industrialisation and creating a Germany super-state with a huge army at its head.On the other hand, one might at first state that Stresemann, a servant of Weimar, would present a total discontinuation of foreign policy, but his right wing roots means that he actually presented Hitler with some ideas, despite the concomitant Hitler portrayed himself as totally anti-Weimer, and indeed was in so many ways. However, although Stresemann had some different policies, this was due to pres incontestable, for he was a right wing fish in a socialist sea. Despite his leanings, though, he was never concerned with racial ideology which so motivated Hitlers conduct. The only man around in the Weimar Republic who had the same leanings as Hitler, was Ludendorff, (who later on joined the Nazis) who believed that establishing a large German area in the east at the expense of Russia would give Germany a large hegemonial position in Europe and beyond, from which position Germany would be able to fight a war self-sufficiently, called autarky.However, Stresemann believed Germany had to remain a trading nation and part of the international economic system. After the get the best of 1918, he became more of a realist, with a sharp sense of what could be done within the realm of practical politics. Although hating Versailles, he came to realise Germany could not set aside it by force, (Hitlers aim) but only by collaborating with the Western powers in gradually modifying it. He decided to play Germanys strongest card, her economic importance, should be play in cooperation with the international community, rather than in defiance of it, as some nationalists argued. After his period as chancellor, he remained as foreign minister until his death, deciding to advance by finesse rather than by force. He did this thr ough several deals and treaties, which reduced the damage Versailles did to Germany rather than removing it completely. This included Locarno, the Dawes Plan, and the admission of Germany into the League of Nations in 1926.Shortly before his death, he claimed that the three great tasks of his foreign policy of finesse were as follows a solution of the reparations question, protection for the 10 or so million Germans living outside the new German border, and a revision of the German border with Poland. He did not believe Anschluss would be beneficial, as it would urge on religious questions. Also, what was more important, and a greater parallel with Hitler than with most of his other policies, was to ensure that Germany advanced through any means, namely through deals, including with the Russians. The treaty of Berlin greatly helped both outcasts, and was a prelude to some of Hitlers policies, for it enabled secret training of troops and testing of weapons etc. As Stresemann had dis mantled much of the system, this gave Hitler the chance to claim that originally his foreign policy would merely be the continuation of previous German governments.So, were Hitlers policies a continuation of others, or were they radically different? Although this outcome has been crossed, the best way of seeing whether this is true is to look at individual pieces of policy implemented by Hitler during the period 1933 to 1941. However, there are, as previously explained, devil distinct periods, one of which Hitler appeared to be on a sort of metaphorical leash.Hitler proposed a very radical plan, more than anything that the majority of the German people, even the conservativist elite would have proposed. He hoped tom win Britain as an ally, due to their concern over the growing power of the Japanese empire and the United States. He projected his crude Darwinism, but the British were never going to give Hitler a blank cheque for Eastern expansion. However, he implemented it with ca ution, like his predecessors, until 1938. This could be shown with the peaceable non-aggression pact with Poland, the return of the Saar, the Anglo-German naval agreement, the remilitarisation of the Rhineland (he was ready to retreat at any time), and cautiously involved himself in Abyssinia, and the Spanish civil war. He did this to help get Mussolini on side, without totally alienating France or Germany. Involvement in Spain also helped show his anti-communist policy, without seeming overly aggressive.This helped Hitler greatly, as these events led to the sign language of the Rome-Berlin axis and the anti-Comintern pact. He also introduced the four-year plan, which was actually about re-armament, but Hitler portrayed the plan as mainly economic to the outside world. Hitler was also helped by the fact that the British government then decided to adopt the controversial policy of appeasement, which meant that for two years, Hitler could effectively gather territory peaceable, withou t fear of foreign intervention. However, after Anschluss, Hitler then sacked Neurath and promoted Ribbentrop, which resulted in the turn in policy, which became more aggressive, in the style of the Kaiser.This aroused concern with many of the generals, who tried to warn the British government, but they would not listen. This new aggression was shown by the fact that Hitler was in fact very angry after the Munich conference, for he would have to control himself somewhat until he had chance to strike. He also felt things were rising to a head where a large war would start, and in reality, he would have preferred a little war. The fact that he was willing to make deals with anyone also helped his cause, for the signing of the Nazi-soviet pact was of vital importance. Hitler had been helped by the fact that Chamberlain had done everything possible to keep Stalin away from the negotiating table, for he wanted Britain to be the major mediator in European affairs.Therefore, although none o f his predecessors aims were criminal, Hitler did indeed borrow a great deal from them, even Stresemann to an extent. He was helped by the fact that hardly anyone knew that Hitler was indeed serious about his racial policies or the extent he would go to carry them out. In fact, it has been said, that once Hitler was fairly sure that he had lost the military war, he put all his efforts into winning the racial war. Despite the fact that some policies were new, these were mainly because of events that were recent, and so, Hitler, in terms of foreign policy, could definitely be described as a plagiarist.

Cyber Security Essay

President Obama has declared that the cyber threat is one of the most serious scotch and national credential challenges we face as a nation Americas economic prosperity in the 21st century exit compute on cyber security. So why is it that so many sight still take overt know some of the basic ways that break cyber threats? The suggest of this paper is to name some of the more basic cyber threats. so far though it is just the beginning to the hazards you can obtain, they are highly effective beca work of the number of volume that still allow these kinds of breaches. First and foremost are viruses. According to cknow.com, There were over 50,000 figurer viruses in 2000 and that number was then and still is growing rapidly. Sophos, in a print ad in June 2005 claims over 103,000 viruses. And, Symantec, in April 2008 is makeuped to exhaust claimed the number is over one million. With so many different viruses step to the fore thither, how do you know what to look for and how to protect your cyber world from viruses? Some of the most common viruses that effect people are Trojans and Net Bots.PCmag.com defines a Trojan as A program that appears legitimate, further performs some illicit activity when it is run. It may be used to locate password information or make the system more vulnerable to future entry or simply destroy programs or data on the hard disk. A Trojan is similar to a virus, except that it does not replicate itself. It stays in the computer doing its damage or allowing somebody from a remote site to take control of the computer. Trojans lots sneak in attached to a free game or other utility. To add to their definition, it can also be affixed to an email shackle or the email itself. So now that you know what it is youre probably thinking so what can I do to protect myself from obtaining this virus? The opera hat thing to do would be to spring up yourself approximately this threat. bonk what they look similar and common websites they re side. The next thing that to do is to be original to invariably have an up to date WELL KNOWN antivirus such as Sophos, McAfee, or Norton.The well known part is genuinely important because some of the inadequate antivirus companies are part of the reason there are so many Trojans out there. Once you watch some antivirus software product you need to be sure to keep it up to date. Also, dont open emails from senders that you dont recognize. Several of the Trojans out there that get circulated by email come from people opening emails from unknown senders. The next one is botnets. http//searchsecurity.techtarget.com says A botnet (also known as a zombie army) is a number of Internet computers that, although their owners are unaware of it, have been set up to forward transmissions (including spam or viruses) to other computers on the Internet. Any such computer is referred to as a zombie in effect, a computer robot or bot that serves the wishes of some master spam or virus origina tor. Most computers compromised in this way are home-based. According to a report from Russian-based Kaspersky Labs, botnets not spam, viruses, or worms currently pose the biggest threat to the Internet. Trojans are the major way that you can get one of these viruses.So it is important that you again get antivirus software, keep it up to date, and dont open emails from unknown senders. However, with this virus you can get it just from going to a questionable web site. So how do you know what ones are good and what ones are questionable? Well that you can for the most part guess using these deciding factors Are there several java applications on the web page? Is there a lot of download able content? Are there pop up advertisements that come up on the page? Then you probably should do your best to stay away from the page. In case you are unsure, some antivirus software are now including a trusted and untrusted feature so when you search a site it will let you know if the page is saf e or proceed at your own risk. If your antivirus does not have such a feature then there are some applications out there that will do the same thing just to name one would be WOT or Web of Trust. The next issue is a little more targeted to the profession world.It deals more with their emails and correspondence but can also be directed to an average internet user. It is phishing. Webroot.com expounds Email Phishing scams are carried out online by tech-savvy con artists and identicalness theft criminals. They use spam, fake websites constructed to look identical to a real sites, email and instant messages to trick you into divulging sensitive information, like bank account passwords and citation card numbers. Once you take the phishers bait, they can use the information to create fake accounts in your name, ruin your credit, and steal your money or unconstipated your identity. This is a serious issue that takes some skill to recognize to evade taking the phishers bait. First and f oremost is to educate yourself on phishing attacks or scams. Know what it looks like. There are many resources that you have available to you on the internet to learn how to spot a phishing attack and a legitimist email. The Department of Defense offers a great course on how to spot a phishing email at http//iase.disa.mil/eta/phishing/Phishing/launchPage.htm. A more specific attack is whaling. B logs.iss.net explains The adoption of the term Whaling within phishing is more or less new and may have been derived from the use of Whales within gambling to refer to big-time gamblers and high rollers, but most likely come from the colloquialism for big weight.Regardless, Whaling describes the most focused type of phishing currently encountered by businesses or government targeted attacks against groups of high-level executives within a single organization, or executive positions common to quintuple organizations (e.g. the CTO or CFO). In a whaling attack, the phisher focuses upon a ve ry small group of senior personnel within an organization and tries to steal their credentials preferably through and through the installation of malware that provides back-door functionality and key logging. By focusing upon this small group, the phisher can invest more time in the attack and finely tune his message to action the highest likelihood of success. Note that these messages need not be limited to email. Some scams have relied upon regular postage systems to deliver infected media for example, a CD supposedly containing evaluation software from a known supplier to the CIO, but containing a hidden malware installer.So if youre not a high level employee, youre probably wondering how this is important to you. How phishers go about their scam is by obtaining little bits of what some would consider being harmless information from other employees about level executives and projects going on in the company. They start at the bottom to get more information at the top. So in al l actuality it very much concerns everyone in the company. This leads me in to my last but important area of cyber security insider threat. Frankly, that is you. Every employee is potentially an insider threat. So let me define it a little better with some help from searchsecurity.techtarget.com. An insider threat is a malicious hacker (also called a cracker or a black hat) who is an employee or officer of a business, institution, or agency. The term can also apply to an outside person who poses as an employee or officer by obtaining false credentials. The cracker obtains access to the computer systems or networks of the enterprise, and then conducts activities intended to cause harm to the enterprise.Insider threats are often disgruntled employees or ex-employees who believe that the business, institution, or agency has done them wrong and olfaction justified in gaining revenge. The malicious activity usually occurs in four steps or phases. First, the cracker gains entry to the sy stem or network. Secondly, the cracker investigates the temper of the system or network in order to learn where the vulnerable points are and where the most damage can be caused with the least effort. Thirdly, the cracker sets up a workstation from which the nefarious activity can be conducted. Finally, the actual destructive activity takes place. The damage caused by an insider threat can take many forms, including the launching of viruses, worms, or Trojan horses the theft of information or corporate secrets the theft of money the corruption or deletion of data the altering of data to produce inconvenience or false criminal evidence and the theft of the identities of specific individuals in the enterprise.Protection against the insider threat involves measures similar to those recommended for Internet users, such as the use of multiple spyware scanning programs, anti-virus programs, firewalls, and a rigorous data backup and archiving routine. It could also be an employee giving away what you would consider to be harmless information like an email address, a project you are working on at work, how many people you work with, or even where you work and the location of the building. Even with some of the best antivirus software, a stellar knowledge of phishing, and an elite cyber security system, an insider threat can penetrate that because they most the time have the credentials to log it to the system and pull resources ligitimently so it would go unnoticed. So how can you help protect you network or your companys network from an insider threat? Simply, dont be one. Always be sure to only give information that the other person is on the same level to receive.Secondly is to educate yourself on insider threat prevention. There is a plethora of resources to do just that. A helpful one is http//www.ussecurityawareness.org/highres/insider-threat.html. Also watch for signs of curious activity with co workers. Report any evidence or suspicions to your supervisor. S o in conclusion, prevention starts with you. Buy up to date antivirus software. avoid risky sites, educate yourself on what a phishing attack looks like, know what a legitimate email is, dont be an insider threat and educate yourself about things to look for from other co workers. Cyber security is a serious threat and is a major issue that needs to be taken seriously. It is not just something for the IT department to worry about but starts with every one making sure to take the appropriate security measures to make the cyber world more secure.

Containerization: Cargo and Traditional Bulk Transport

What is containerization and how did the innovative use of containers transform the distribution of goods? The traditional way of transporting goods from one place to an early(a)(prenominal) was highly labor intensive and goods were in individual crates of different sizes and shapes and they had to be manually lifted and stowed in the holds of ships. As the era passed by, the concept of containerization emerged.Basically, Containerization is an inter-modal system of transporting the customary cargo or product in lots which are too small for the traditional bulk transport system, using ISO standard containers that can be loaded and sealed intact ontocontainer ships,railroad cars, planes, and trucks. The concept of containerization is considered as the key innovation in the field of logistics which has revolutionized freight handling in the twentieth century.Containerization reduces time in transit, the inventory costs and increases reliability. Such benefits are forcing the industry to make it more favorable in terms of cost, flexibility and speed. As the Internet and other new technologies and advancements are developing, it is expected to bring more innovations which will further simplify the tasks of logistics.The innovative use of containerization has transformed the distribution of goods in following ways * Goods in lots which are too small for the traditional bulk transport can be moved using containers * It is best option for high-value and overdelicate cargo as it provides safety from human and natural factors * As containers are moved intact, substantial amount of time and labor cost is saved which would differently have incurred in loading and unloading goods * It prevents poor handling of goods that results from bulk transport systems * Containers can act as mode of storage anywhere along the transport route * Container ships provide regular service to overseas ports, thus it minimizes the waiting time * It reduces the transit time which not only offers a way of life of marketing for the producer that bulk systems cannot provide, but also helps to reduce the inventory costs and increases reliability. 2. What role has containerization played in the schooling of a global scotch system? As containerization is the new way of transportation model, its definitely is more advanced and optimum way of exile the goods from one place to the other.Container shipping eventually replaced the traditional break-bulk method of handling crates, barrels and bags, and stowing them loose in a ships hold, a system in use since the days of the Phoenicians. The alternate of break-bulk with cargo containers dramatically reduced shipping costs, reinvigorating markets and fueling the world economy. Due to cheap transportation cost, the countries could engage themselves in a fierce export subscribe exploiting the technological advancements and lower labor costs which are the major basis for the industrialization. In addition to that, cheap trans portation also helped in revolutionizing the supply set up management of the business houses.There had been some major developments like South Korea developed a very strong ship building industry centered on the new ships made possible in the development and introduction of containerization. And also, the major and biggest container ports in the world are located in Southeast Asia. Thus, the credit for the development of such ports in these areas goes to the containerization. Without which, these areas wouldnt have been developed like they are today. Containerization makes the loading and unloading of goods from the ships to the ports easy and consumes extremely less time in equivalence to that of tradition way of transportation. These are some of the major roles that containerization played in the development of the global economic system.

Merck Case

pharmaceutics Merck Sustaining Long-term Advantage d one In recoilation engine room Hiroshi Amari Working Paper No. 161 Working Paper Series Center on Nipponese Economy and Business Columbia Business School December 1998 Columbia-Yale Project Use of Softw ar to Achieve Competitive Advantage PHARMACEUTICALS MERCK Sustaining Long-term Advantage Through In mixed bagation Technology Prep bed by Hiroshi Amari Research Associate, Yale University William V. Rapp and Hugh T. Patrick Co-principal Project InvestigatorsCenter for Inter bailiwick and Area Studies Yale University bleak Haven, CT 06520 203-432-9395 (Fax 5963) e-mail entrustiam. emailprotected edu Revised December 1998 Table of table of contents 1. Introduction Objective of this Study 2. The Pharmaceutical Industry in a Global Context 3. Product R&D and clinical Trials 4. Manufacturing and Process R&D 5. Technological Factors Structure-Based Drug (Rational Drug) Design Structure-Based Drug (Rational Drug) Design 6. Merck 7. Managerial Decision make 8. Decision Making on IT get offs 9. Joint Ventures 10. Information Technology and Organization 11.App destroyix I Summary Answers to Questions for Merck Strategy & Operations 12. Appendix II INDUSTRY AND FIRM BUSINESS info 13. Bibliography 2 Introduction Objective of this Study This case count of Merck was completed under a trio about year interrogation grant from the Sloan Foundation. The projects purpose is to poke into in a series of case studies how U. S. and Japanese firms who ar recognized leaders in apply information technology to action long-term sustainable advantage excite organized and managed this sue. While individually case is complete in itself, each is part of this big study. This pharmaceutic application case unitedly with other cases2 support an initial research hypothesis that principal package personars in both the U. S. and Japan be actually sophisticated in the shipway they harbor co-ordinated packet into their management strategies and use it to institutionalize organizational strengths and capture tacit bangledge on an iterative basis. In Japan this outline has involved heavy reliance on customized and semicustomized software (Rapp 1995) but is changing towards a more than selective use of package software managed via customized systems. In turn, U. S. ounterparts, such(prenominal) as Merck, who shit oft relied more on packaged software, are doing more customization, specially for systems needed to integrate software packages into somewhat function more closely conjugated with their business strategies, merchandises, and organizational structure. therefore, coming from different directions, there appears some convergence in approach by these leading software users. The cases hence confirm what some other analysts remove hypothesized, a coherent business strategy is a necessary condition for a flourishing information technology strategy (Wold and Shriver 1993). These strategicalalal links for Merck are presented in the adjacent case. Industries and firms examined are food retailing (Ito-Yokado and H. Butts), semiconductors (NEC and AMD), pharmaceuticals (Takeda and Merck), retail banking (Sanwa and Citibank), investment banking (Nomura and Credit Suisse First Boston), life insurance (Meiji and USAA), autos (Toyota), steel (mini-mills and integrated mills, Nippon Steel, Tokyo Steel and Nucor), and apparel retailing (WalMart). The case writer and the research team wish to express their appreciation to the Alfred P.Sloan Foundation for making this run low manageable and to the Sloan industriousness centers for their invaluable assistance. They especially appreciate the time and guidance given by the center for research on pharmaceuticals at MTT as substantially as Mr. Sato at Takeda. This refers to cases for which interviews make up been completed. See foot none 3. These and other analysis results are presented in a nonher Center on Japan ese Economy and Business working paper William V. Rapp, Gaining and Sustaining Long-term Advantage Through Information Technology The Emergence of Controlled Production, December 1998 strategy (Wold and Shriver 1993). 3 These strategic links for Merck are presented in the following case. Yet this case along with the other cases also illustrates that implementation and bearing of each companys software and software strategy is unique to its competitory situation, industry and strategic objectives. These factors influence how they take up in the midst of packaged and customized software options for achieving detail goals and how they measure their success.Indeed, as part of their strategic integration, Merck and the other leading software users interviewed pass on conjugate their software strategies with their everywhereall management goals done clear mission statements that explicitly note the importance of information technology to firm success. They have joined this wi th officious CIO (Chief Information Officer) and IT (information technology) support group participation in the firms business and stopping point making structure.Thus for firms like Merck the totally independent MIS (Management Information Systems) department is a thing of the past. This may be one reason why outsourcing for them has not been a real option, though their no-hit business performance is not found entirely on software. Rather as shall be described below software is an integral element of their overall management strategy and plays a unwrap billet in serving collective goals such as enhancing productivity, improving inventory management or strengthening customer relations.These systems thus moldiness be coupled with an appropriate approach to manufacturing, R, and marketing reflecting Mercks clear understanding of their business, their industry and their firms competitive strengths within this context. This clear business vision has enabled them to select, move up and use the software they pack for each business function and to integrate these into a total support system for their operations to achieve corporate objectives. Since this vision impacts other corporateThese and other summary results are presented in another Center on Japanese Economy and Business working paper William V. Rapp, Gaining and Sustaining Long-term Advantage Through Information Technology The Emergence of Controlled Production, December 1998 3 4 decisions, they have good human resource and financial characteristics too (Appendix I & ii). Yet Merck does share some car park themes with other leading software users such as the creation of massive proprietary interactive entropybases that promote automatic feedback between divers(a) dots and/or players in the output, delivery and consumption shape.Their ability to use IT to reduce inventories and cleanse control of the deed process are also common to other leading software users. They are also able organizat ionally and competitively to build beneficial feedback cycles or loops that increase productivity in areas as different as R, tendencying and manufacturing spot reducing cycle times and defects or integrating issue and delivery. Improved cycle times reduce woos but increase the dependability of forecasts since they need to counterbalance a brusqueer period.Customer satisfaction and lower inventories are improved through on-time delivery. Thus, software inputs are critical factors in Mercks and other leading users overall business strategies with strong positive competitive implications for doing it successfully and potentially negative implications for competitors. An strategic consideration in this respect is the possible emergence of a saucy strategic manufacturing paradigm in which Merck is probably a leading participant.In the same way mass production dramatically improved on craft production through the economies of large scale plants that produced and use standardize d parts and lean production improved on mass production through making the production line more cease slight, reducing inventories and tying production more closely to actual demand, what might be called controlled production seems to signifi corporationtly improve productivity through monitoring, controlling and linking every aspect of producing and delivering a product or service including after sales service and repair.Such controlled production is only possible by actively using information technology and software systems to continuously exit the monitoring and control function to what had previously been a rather automatic system rejoinder to changes in 5 expected or actual consumer demand. This may be why their skillful use of information technology is seen by themselves and industry analysts as most-valuable to their business success, but only when it is integrated with the business from both an operation and organization standpoint reflecting their overall business strat egy and clarity of competitive vision.Therefore at Merck the software and systems spudment people are part of the decision making structure while the system itself is an integral part of organizing, delivering and supporting its medicate pipeline from R through to sales post FDA approval. This sequence is peculiarly critical in pharmaceuticals where even after clinical psychometric tests there is a continuous need to monitor potential side effects. Therefore Seagate Technology may be correct for Merck too when they state in their 1997 Annual Report We are experiencing a crude indus runnel revolution, one more powerful than any originally it.In this emerging digital world of the Third Millennium, the new currency entrust be information. How we harness it lead cockeyed the difference between success and failure, between having competitive advantage and being an also-ran. In Mercks case, as with the other leading software users examined, the key to using software successfully is to develop a mix of packaged and customized software that supports their business strategies and differentiates them from competitors. However, they have not tried to intend their organizational structure to the software.Given this perspective, functional and market gains have justified the sumal expense incurred through customization, including the related hails of integrating customized and packaged software into a single information system. They do this by assessing the possible business uses of software organizationally and operationally and especially its role in enhancing their core competencies. While they will use systems used by competitors if there is no business advantage to developing their own, they reject the view that information systems are generic wine products trump out certain by outdoors vendors who flowerpot achieve low cost through economies of scale and who after part more easily afford to invest in the a la mode(p) technologies. 4 In undertaking this and the other case studies, the project team sought to answer certain key questions while still recognizing firm, country and industry differences. These have been explained in the summary paper referenced in footnote 3. We have set them forth in Appendix I where Mercks profile is presented ground on our interviews and other research.Readers who wish to assess for themselves the way Mercks strategies and approaches to using information technology address these issues may wish to review Appendix I introductory to reading the case. For others it may be a useful summary. 5 Merck and the other cases have been developed using a common methodology that examines cross national pairs of firms in key industries. In principle, each pair of case studies focalizees on a Japanese and American firm in an industry where software is a significant and successful input into competitive performance.The firms examined are ones recognized by the Sloan industry centers and by the industry as one s using software successfully . To develop the studies, we combined analysis of existing research results with questionnaires and direct interviews. Further, to relate these materials to previous work as well as the expertise located in each industry center, we held working meetings with each center and coupled new questionnaires with the materials used in the previous study to either update or obtain a questionnaire similar to the one used in the 1993-95 research (Rapp 1995).This method enabled us to relate each candidate and industry to earlier results. We also worked with the industry centers to develop a set of questions that specifically relate to a firms business strategy and softwares role within that. Some questions address issues that appear comparatively general crosswise industries such as inventory control. Others such as managing the dose pipeline are more specific to a particular industry. The focus has been to establish the firms intuition of its industry and its co mpetitive position as well as its advantage in developing and using a software strategy.The team also contacted customers, competitors, and industry analysts to determine whether competitive benefits or impacts perceived by the firm were recognized outside the organization. These sources caterd additional data on measures of competitiveness as well as industry strategies and structure. The case studies are thus found on extensive interviews by the project team on softwares use and integration into management strategies to improve competitiveness in specific industries, augmenting existing data on industry dynamics,firmorganizational structure and management strategy collected from the Sloan industry enters.In addition, we gathered data from outside sources andfirmsor organizations with which we worked in the earlier project. Finally, the US and Japanese companies in each industry that were selected on the basis of being perceived as successfully using software in a key role in the ir competitive strategies in fact saw their use of software in this exact manner while these competitive benefits were generally confirmed after further research.The questions are broken into the following categories General Management and Corporate Strategy, Industry related Issues, Competition, Country Related Issues, IT Strategy, IT Operations, Human Resources and Organization, Various Metrics such as Inventory Control, Cycle Times and Cost Reduction, andfinallysome Conclusions and Results.They cover a range of issuesfromdirect use of software to achieve competitive advantage, to corporate strategy, to criteria for selecting software, to industry economics, to measures of success, to organizational integration, to beneficial loops, to training and institutional dynamics, andfinallyto interindustry comparisons. 7 The Pharmaceutical Industry in a Global Context In advanced countries that represent Mercks primary market, the pharmaceutical industry is an exceptionally research inten sive industry where many a(prenominal) firms are large multinationals (MNCs).It is also heavily adjust for both local producers and MNCs. Regulations work as both constraints and performance boosters since medicates are used with other medical and health assistance services. Therefore, healthcare expenditures are divided among many industries and providers of which pharmaceuticals are only one. All parties involved are interested in influencing the regulatory environment and in participating in the growth in healthcare services. This actor understanding the industry requires appreciating its political economic context.In this visualize, healthcare providers in rich nations are currently under pressure to control costs collectible to aging populations. Regulators who have the authority to change the demand structure through laws and rules are considering conglomerate measures to reduce costs such as generic do doses substitution which may mean lower returns for discovering and developing drugs. Still, if drugs are more effective at reducing healthcare costs compared to other treatments, Pharmaceutical companies can benefit.Since R is at the heart of competition, each drug company must respond to these cost containment pressures cautiously and strategically in competing for healthcare expenditures. Another important aspect of this industry is technological change arising from the convergence of life and biological sciences. Many disciplines now work together to uncover the mechanisms that lie behind our bodies and various diseases. Ex wides are molecular(a) biology, cell biology, bio natural philosophy, genetics, evolutionary biology, and bioinformatics.As scientists see life from these new chemical and physical viewpoints, the ability to represent, process and organize the massive data based on these theories becomes critical. Because computers are very flexible scientific instruments (Rosenberg 1994), get ahead in information technology and comput er science has broadened scientific frontiers for the life and biological sciences. These advances have opened new doors to 8 attack more complex diseases, including some chronic diseases of old age.These therapeutic areas are present opportunities for pharmaceutical companies since they address demographic and technical changes in advanced countries. Still, to take advantage of these opportunities requires information technology capabilities. Historically, the drug industry has been relatively stable where the big players have remained unchanged for years. This has been due(p) to various entry barriers such as R costs, advertising expense, and strong expertise in managing clinical trials. It is difficult and expensive for a new company to acquire this combination of skills quickly.However, there are signs the industry and required mix of skills may be changing. There have been several cross national mergers especially between U. S. and atomic number 63an companies. In addition, ne w biotechnology companies are very good at basal research, which may force pharmaceutical R to metamorphose itself. For example, no single company even among the new mega-companies is large enough to cover all new areas of expertise and therapeutic initiatives. Thus, many competitors have had to form strategic alliances to learn or access new technologies and to capture new markets. Conversely, a stand-alone company can have a lot to lose.The altercate facing large pharmaceutical companies is how fast and how effectively they can move to foster both technological innovation and cost containment without exposing themselves to too much risk. The pharmaceutical industry in all of Mercks major(ip) markets reflects these cost containment pressures, the need to harmonize expensive and time consuming clinical trials, and the impact of extensive regulations. Information technology has had its impacts too. For example, to respond to these challenges Merck is using more management technique s based on consensus decision making among top functional managers.This requires better communication support using e-mail and groupware combined with face-to-face communication. This is part of an industry trend towards greater parallel decision making in R&D and less(prenominal) sequential decision making where A must first concur on a project before moving to B, etc Now all elements of the firm evaluate the project simultaneously at each 9 stage. In this manner, Merck has significantly reduced coordination costs while centralizing and speeding the overall decision making process. Additionally, first-tier irms have had to follow a trend in R&D strategies that increasingly use information technologies. Exchange of data and ideas across national borders has become relatively easy, and contracts may specify access to another companys database. Because many companies share similar R instruments and methods, one companys instruments may be compatible with other companies. Indeed, the t rend towards greater use of Web-based technology in R and other operations may change our notion of a firm and its boundaries. Firms may eventually be characterized by knowledge creating capabilities (Nonaka and Takeuchi 1995).Having more ways to communicate with other companies makes frequent communication with greater nuance possible. This supports the trend towards more strategic alliances unless overtaken by the creation of larger firms through expectd mergers. This is also partially due to the nature of the industry which is part of the fine chemical industry where changes in technologies are rapid and often discontinuous. It therefore requires different management skills from other technology based industries, especially as the knowledge required for innovation tends to be more specialized thus demanding less coordination than assembly industries.Transferring mass production know-how to R is also limited. Still, the U. S. and European industries have been undergoing massive r eorganization to achieve economies of scope and scale in R and marketing where firms are taking advantage of the fact that the U. S. industry is much less regulated than most foreign industries (Bogner and doubting Thomas 1996). The U. S. companies grew after cosmos warfare II due to a huge home market combined with the global market for antibiotics this was before British firms began to recapture market share.At that time, European firms did not have the resources to sell drugs directly to U. S. doctors. The European recovery period gave U. S. firms enough time to take advantage of antibiotics. Then, when the U. S. market became saturated, U. S. 10 firms expanded into global markets in the early 1960s. This forced U. S. firms to diversify their R as well. At the same time, in 1962 amendments to the Food, Drug and Cosmetic Act increased the rigor of drug regulation creating an entry barrier to industry R that favored large established firms (Bogner and Thomas 1996).The U. S. effecti vely tightened their regulations after their industry had acquired sufficient R skills and resources. This timing seems to beak for todays industry success. Another factor is that unlike the European industry, U. S. firms had few incentives to integrate vertically. During the War the military distributed antibiotics. Therefore, the U. S. firms were generally bulk chemical producers such as Merck and Phizer or sellers of branded drugs such as Abbott and Upjohn. At the end of the War, only a few firms such as Squibb were fully integrated.However, as promotion and other downstream functions became more critical, controlling functions such as distribution became a strategic objective. To accomplish this they acquired other firms (Merck acquired Sharpe and Dohine and Phizer acquired Roerig), developing expansion via merger and acquisition as a business strategy and core competency. This helped lay the foundation for subsequent industry consolidation. Today, American healthcare is based on the belief that while making progress in science is the best way to solve medical problems, cost containment is also important.As a result, while American healthcare is the most expensive in the world, it is also not functional to everyone and is the most subject to cost scrutiny. Indeed, since drugs are just one way to improve health, consumers should want to remain healthy and choose cost effective means to do this. However, the reality is that insurance systems covering different services give incentives and disincentives for particular care (Schweitzer 1997). Thus, coordinated adjustment of prices for healthcare is necessary to get markets for healthcare products to work better. In the U. S. , this has led to a public policy push for HMOs.These healthcare purchasers have in turn set the reward schemes available to healthcare providers such as pharmaceutical companies so as to reduce transaction costs (Ikegami and Campbell 1996) 11 and promote innovation. These outgrowths an d trends are putting more pressure on major firms to put more resources into R&D, to focus more critically on just ethical drug cultivation for the global market, and to be more careful in gathering information on clinical trials and side effects. The most important market for Merck in this regard is the U. S. where NTH has pursued a unified approach.This is because the NIH (The National Institutes of Health) has actively supported basic life science research in U. S. universities, especially after World War II. NSF (National Science Foundation) also encouraged collaboration between academia and industry with partial funding by the government. Other federal and state funding has been important to the scientific community as well, especially in biotechnology. In biotechnology, the funding of basic research has led to a complex formula of university-industry fundamental interaction that includes gene patenting and the immediate publishing of results (Rabinow 1996).U. S. drug compa nies are of course profit motivated but are regulated by the FDA (Federal Drug Administration) which is rigorous most its drug approvals, demanding clear scientific evidence in clinical research as its operation is basically science oriented. Product R&D and Clinical Trials Still, despite this R&D support, industry economics are driven by pharmaceutical R&Ds very lengthy process, composed of discovering, developing and bringing to market new ethical drugs with the latter heavily determined by the drug approval process in major markets such as the U.S. , Europe and Japan6. These new therapeutic ethical products fall into four broad categories (U. S. Congress, OTA 1993) one, new chemical entities (NCEs) new therapeutic entities (NTEs) new therapeutic molecular compounds never before used or tested in cosmos two, drug delivery mechanisms new approaches to delivering therapeutic agents at the desired dose to the desired part of the trunk three, 6 Ethical drugs are biological and m edicinal chemicals advertised and promoted primarily to the medical, chemists shop, and allied professions.Ethical drugs include products available only by prescription as well as some over-the-counter drugs (Pharmaceutical Manufacturers Association 1970-1991). 12 next stage products new combinations, formulations, dosing forms, or dosing strengths of existing compounds that must be tested in humans before market introduction four, generic products copies of drugs not protected by patents or other exclusive marketing rights. From the viewpoint of major pharmaceutical firms such as Merck, NCEs are the most important for the R of innovative drugs that drive industry success.Since it is a risky and very expensive process, understanding a companys R&D and drug approval process is critical to understanding the firms strategy and competitiveness both domestically and globally. Statistics indicate that only about 1 in 60,000 compounds synthesized by laboratories can be regarded as highl y successful (U. S. Congress, OTA 1993). Thus, it is very important to stop the R process whenever one recognizes success is not likely.Chemists and biologists used to decide which drugs to pursue, but R is now more taxonomic and is a collective company decision since it can involve expenditures of $250 to $350 million prior to market launch, thus the need for more parallel decision making. Key factors in the decision making process are expected costs and returns, the behavior of competitors, obligation concerns, and possible future government policy changes (Schweitzer 1997). Therefore, stage reviews during drug R are common, and past experiences in reading, manufacturing, regulatory approvals, and marketing can provide ample guidance.NCEs are discovered either through screening existing compounds or designing new molecules. Once synthesized, they go through a rigorous interrogatory process. Their pharmacological activity, therapeutic promise, and toxicity are tested using isola ted cell cultures and animals as well as computer models. It is then modified to a related compound to optimize its pharmacological activity with fewer undesirable biological properties (U. S. Congress, OTA 1993). Once preclinical studies are completed and the NCE has been proven safe on animals, the drug sponsor applies for Investigational New Drug (IND) status.If it receives approval, it starts Phase I clinical trials to establish the 13 tolerance of healthy human subjects at different doses to study pharmacological effects on humans in anticipated dosage levels. It also studies its absorption, distribution, metabolism, and excretion patterns. This stage requires careful supervision since one does not know if the drug is safe on humans. During physique II clinical trials a relatively small number of patients participate in controlled trials of the compounds potential usefulness and short term risks.Phase III trials gather precise information on the drugs potential for specific i ndications, determine whether it produces a broader range of adverse effects than those exhibited in the small phase I and II trials. Phase III trials can involve several hundred to several thousand subjects and are extremely expensive. Stage reviews total before and during each phase, and drug development may be terminated at any point in the pipeline if the risk of failure and the added cost needed to prove effectiveness outweigh the weighted probability of success.There is a data and safety monitoring board in the U. S.. This group has access to unblinded data throughout the conduct of a trial but does not let anyone else know what the data shows until it is necessary. For example, they will not divulge the efficacy data until the trial reaches a point where it seems appropriate to recommend stopping it because the null hypothesis of efficacy has been accepted or rejected. The FDA will usually insist on the drug proving efficacy with respect to ameliorating a disease before giv ing approval.If clinical trials are successful, the sponsor seeks FDA marketing approval by submitting a New Drug Application (NDA). If approved, the drug can be marketed immediately, though the FDA often requires some amendments before marketing can proceed (Schweitzer 1997). However, successful drug development and sales not only requires approval of therapeutic value and validity but also that the manufacturing process meet stringent best-practice standards. To meet U. S. regulations, Phase IV trials are required. Manufacturers selling drugs must notify the FDA periodically about the 14 erformance of their products. This surveillance is designed to detect uncommon, yet serious, adverse reactions typically not revealed during premarket testing. This postapproval process is especially important when phase III trials were completed under smaller fast track reviews. These additional studies usually include use by children or by those using quaternary drugs where potential interactio ns can be important (Schweitzer 1997). Furthermore, because drug development costs are so high relative to production costs, patent protection is another key aspect of a companys management strategy. Under U. S. aw, one must apply for a patent within one year of developing an NCE or the innovation enters the public domain. Therefore, patenting is usually early in the development cycle or prior to filing the NCE. But as this begins the patent life, shortening the approval period extends a drugs effective revenue life under patent. This makes managing clinical trials and the approval process an important strategic variable. Although creating a drug pipeline through various stages of development is relatively standardized, it is changing as companies use different methods to reduce time and related costs of new drug development.Companies are constantly pressuring the authorities to reduce NDA review times. As a consequence, the FDA did introduce an accelerated approval process for new drugs in oncology, human immunodeficiency virus (AIDS) and other life threatening illnesses. A familiar feature of this new fast track review is the use of surrogate end points, or proxies for clinical end points which are measured by laboratory values but escape supporting clinical outcomes data. Accelerated approval speeds new drugs to market manner of speaking companies tens of millions of dollars in negative cash flow.However, it does not generate clinical values that insurers and managed care organizations demand. Countering this situation is thus the trend among drug firms to increase the complexity of their analyses during clinical trials. Companies have begun to use cost-effective analysis in their evaluation of new drugs in assessing competing product development investment alternatives and by integrating cost effectiveness analysis into their clinical trials. They also try to capture quality of life 15 measures such as how patients perceive their lives while using the ne w drug.Companies deviate their analysis by country (Rettig 1997) since measures of effectiveness shift according to clinical practice, accessibility to doctors, and what different cultures value as important. There are no popular measures of the quality of life. At present, the components measured depend largely on the objectives of each researcher but some companies are trying to introduce more systematic measures. Nevertheless, no matter what components are chosen for these studies, capturing, storing and using the data requires sophisticated software and data base management techniques which must be correlated with various families of molecules.Also, to avoid the moral hazard of focusing on the weaknesses in a competitors drug or molecule, some analysts argue companies should examine all domains and their components (Spilker 1996) and move towards concord performance standards. Furthermore, quality of life measures should only be used when they are of practical use to doctors in treating patients (Levine 1996). Such judgments should be sensitive and informed and should cover criteria related and important to a broad spectrum of patients while balancing measures which can be easily gathered and those that are more complex due to multiple treatments.These trends make clinical trials and data gathering complex and expensive and put a premium on a firms ability to manage the process efficiently, including creating and using large patient and treatment databases. Manufacturing and Process R&D The research process differs from production. Yet, both are important, particularly the firms knowledge of scale-up. This is difficult because production requires unity at every stage. Making the average chemical make-up constant is not enough.Careful scale-up is essential to avoid contamination. Variations from the mean in commercial production must be very small. This requires constant control of variables such as the preparation of raw materials, solvents, reaction c onditions, and yields. Often, experience will help achieve purer output in the intermediate processes. This better output alleviates problems in later processes. Thus, there is a learning curve in process R which starts at 16 the laboratory. An important distinction is between continuous process and batch process.In the continuous process, raw materials and sub-raw materials go into a flow process that produces output continuously. This continuous process is more difficult because many parameters and conditions have to be kept constant. This requires a good understanding of both optimizing the chemical process and maintaining safeguards against abnormal conditions. However, continuous processes are less dangerous and require fewer people to control at the site than batch processing where the chemicals are produced in batches, put in pill form and then stored for future distribution and sale (Takeda 1992).The following compares initial process R once a compound is discovered and comm ercial manufacturing for a exemplar chemical entity proceeds (Pisano 1996). Comparison research process and commercial production for representative chemical 17 Process R in chemical pharmaceuticals involves three stages (1) process research, where basic process chemistry (synthetic route) is explored and chosen (2) pilot development, where the process is run and refined in an intermediate-scale pilot plant and (3) technology transfer and startup, where process is run at a commercial manufacturing site (Pisano 1997).Pisano argues that the scientific base of chemistry is more mature than biotechnology and this difference accounts for the more extensive use of computer simulations in drugs made by chemical synthesis than biotechnology-based drugs. Codifying the knowledge in chemistry and chemical engineering in software has a higher(prenominal) explanatory power than in biotechnology. In chemistry, many scientific laws are available for process variables such as pressure, volume, and temperature.Computer models can simulate these in answer to given parameters to predict cost, throughput and yield (Pisano 1997). By contrast, biotechnology has aspects that resemble art dependent on an opprators skill more than science which only requires the proper formulation. This is particularly true for large-scale biotechnology process (Pisano 1997). Simulation is thus less reliably extrapolated to commercial production. An additional factor is the importance of purification after large-scale production in bioreactors in biotechnology-based drugs.It is not rare at this stage of extraction and purification that commercial application becomes impossible, even though the scale-up is successful. Since avoiding contamination is the key in biotechnology-based drugs, extracting and purifying a small amount of the desired materials from a large amount of broth is critical. This process is done using filters, chromatography, and other methods specific to organisms (Koide 1994). Tech nological Factors All scientific frontiers affect pharmaceutical companies.Since no company can be an expert on everything, what technology to develop in-house and what to license or subcontract have become important issues. In general, pharmaceutical companies were skeptical of new developments in small biotechnology firms. Yet the latter now provide new techniques in basic research and fermentation to the MNCs. Other pharmaceutical 18 companies then tend to follow when competitors adopt ideas from less well cognise biotech companies. This is why many such companies announce platform deals with drug companies to get more financial resources and opportunities.Biotechnology based pharmaceuticals have entered a new development stage which requires the capital, manufacturing and marketing expertise of the large companies. New drug discovery methods and biotechnology each demand skills different from earlier times. Emerging biotech companies offer new ideas and research tools. Other ne w technologies such as stripping out side effects, specialized drug delivery systems, and antisense which cancels out the disease causing messages of faulty ribonucleic acid also come from biotechnology (Fortune 1997).These are promising areas of drug research and potential products. Further, these biotech companies develop new drugs more quickly than large firms. Where they often have difficulty is in managing clinical trials and the approval process, an area where large firms have considerable experience and expertise, including sophisticated software for tracking the large data bases and treatment the new computerized application procedure. In addition, biotechnology demands skills in large scale commercial production which smaller startups may not possess.Thus, close association with large firms is logical and efficient, and one should expect more future alliances and joint speculations, though outsourcing to organizations that will manage clinical trials is growing. Another imp ortant factor which further encourages forte in a network of companies is the industrys heavy use of information technology. Indeed, software strategies have become an important part of the industry through their impact on R, drug approval, including clinical trials, and control of manufacturing.If decisions in a science based industry are generally driven by knowledge creation capability dependent on human resources, having information sharing and access mechanisms so complementary capabilities can be efficiently exchanged and used becomes key to successful corporate strategy, especially when that knowledge is growing and becoming increasingly diverse. 19 There is some evidence suggesting when innovation is dependent on trial and mistake, it is best done when many players try different strategies and are held responsible for the projects they choose (Columbia Engineering Conference on Quality September 1997).If the large drug companies can successfully form principal-agent relat ionships with biotechnology companies doing advanced research in a particular area in the same way that Japanese parts manufacturers have with large assemblers, there may be opportunities for major breakthroughs without the drug companies having to put such trial and error processes inside the company where they may be less easy to manage. If the make or buy decision in a science based industry is generally driven by knowledge creation capability dependent on human resources, the basis for new product, i. . drug development, becomes more dependent on the nature and facility of information exchange between groups and individuals than asset ownership. Creating information sharing and access mechanisms so that complementary capabilities can be efficiently exchanged and used then becomes the key to successful corporate strategy in knowledge based industries, especially when that knowledge base is growing and becoming increasingly diverse as in the ethical drug industry. Another informat ion sharing issue related to biotech is pharmacology.Classical pharmacology models are often irrelevant for biotech-based drugs. While some proteins express their activities across other species, others can be more species specific. Neither poor results nor good animal trial results need be predictive for humans. Particularly difficult problems are those related to toxicology since some animals develop neutralizing antibodies (Harris 1997). Technical support systems are important in biotechnology as well. One is transgenic animals. They provide information on the contribution of particular genes to a disease.This is done by inserting genes that have the function of expressing the phenotype, or interbreeding heterozygotic animals to produce knockout animals that suffer from inherited metabolic diseases. Transgenic animals are relevant to early phase clinical trials since the data from these animals contribute useful data on dose-selection 20 and therapeutic rations in human studies. In addition, they offer hints to which variables are assistary. This simplifies the clinical trial design.In general, significant input in the design and running of phase I and II trials must come from the bench scientists who built the molecule (Harris 1997). Since clinical trials for biotech drugs lack clear guidelines, inhouse communication among drug discovery, preclinical and clinical trials is important, especially due to the increased use of transgenic animals bred to examine inherited diseases. This process in phase I/II trials can be greatly facilitated by information sharing technologies and acts as another driver towards a more integrated approach to decision making using IT.Structure-Based Drug (Rational Drug) Design This is also true of structure-based drug (rational drug) design or molecular molding which is a range of computerized techniques based on theoretical chemistry methods and experimental data used either to analyze molecules and molecular systems or to pred ict molecular and biological properties (Cohen 1996). Traditional methods of drug discovery consist of taking a lead structure and developing a chemical program for finding linear molecules exhibiting the desired biological properties in a systematic way. The nitial compounds were found by chance or random screening. This process involved several trial and error cycles developed by medicinal chemists using their intuition to select a candidate analog for further development. This traditional method has been supplemented by structure-based drug design (Cohen 1996) which tries to use the molecular orders involved in a disorder. The relationship between a drug and its sensory receptor is complex and not completely cognize. The structure-based ligand design attempts to farm a drug that has a good fit with the receptor.This fit is optimized by minimizing the energies of interaction. But, this determination of optimum interaction energy of a ligand in a known receptor site remains di fficult. Computer models permit manipulations such as superposition and energy calculation that are difficult with mechanical models. They also provide an exhaustive way to analyze molecules and to save and store this data for later 21 use or after a research chemist has left. However, models must still be tested and used and eventually, chemical intuition is required to analyze the data (Gund 1996).Then the drug must proceed through animal and clinical trials. Still the idea behind this modeling is the principle that a molecules biological properties are related to its structure. This reflects a better understanding in the 1970s of biochemistry. So rational drug design has also benefited from biotechnology. In the 1970s and mid-eighties, drug discovery was still grounded in organic chemistry. Now rational drug design provides customized drug design synthesized specifically to activate or inactivate particular physiological mechanisms.This technique is most useful in particular the rapeutic areas. For example, histamine receptor knowledge was an area where firms first took advantage of rational design since its underlying mechanism was understood early (Bogner and Thomas 1996). The starting point is the molecular target in the body. So one is working from demand rather than finding a use for a new molecule. The scientific concepts behind this approach have been available for a long time. The existence of receptors and the lock-and-key concepts currently considered in drug design were formulated by P.Ehrlich (1909) and E. Fischer (1894). Its subtleties were understood, though, only in the 1970s with the use of roentgenogram crystallography to reveal molecular architecture of isolated pure samples of protein targets (Cohen 1996). The first generation of this technology conceived in the 1970s considered molecules as two topological dimensional entities. In 1980s it was used together with quantitative structureactivity relationships (QSAR) concepts. The first gene ration of this technology has proven to be useful only for the optimization of a given series (Cohen 1996).The second generation of rational drug design has considered the full detailed property of molecules in the three dimensional (3-D) formula. This difference is significant, since numerical parameters in the QSAR approaches do not tell the full story about the interaction between a ligand and a protein (Cohen 1996). 22 This has been facilitated by software and hardware becoming less costly. Thus many scientists are paying attention to computational techniques that are easier to use than mechanical models.This underscores the role of instrumentation in scientific research striveed by Rosenberg (1994). Availability of new instruments, including computers, has opened new opportunities in technological applications and furthered research in new directions. Three dimensional graphics particularly suits the call for of a multi-disciplinary team since everyone has different chemical intuition but appreciates the 3-D image. Rosenberg (1994) notes scientists who move across disciplines bring those concepts and tools to another scientific discipline such as from physics to biology and chemistry.This suggests the importance of sharing instruments, particularly computer images and databases that help people work and think together. The predominant systems of molecular modeling calculations are UNIX workstations, particularly three dimensional graphics workstations such as those from Silicon Graphics. But other hardware such as desktop Macintoshes and MS-DOS personal computers on the low end and computer servers and supercomputers on the high end have been used. Computational power is required for more complex calculations and this guides the select of hardware.A variety of commercial software packages are available from $50-$5,000 for PC-based systems to $100,000 or more for supercomputers. Universities, research institutes, and commercial laboratories develop thes e packages. Still, no one system meets all the molecular modelers needs. The industry therefore desperately needs an open, high-level programming environment allowing various applications to work together (Gund 1996). This means those who for strategic reasons want to take advantage of this technology must now do their own software development. This is the competitive software compulsion facing many drug producers.In turn, the better they can select systems, develop their capabilities, and manage their use, the more successful they will be in drug development and in managing other aspects of the drug pipeline. 23 The choice of hardware is based on software availability and the performance criteria needed to run it. Current major constraints are the power of graphics programs and the way the chemist interacts with the data and its representation (Hubbard 1996). Apple computers have frequently been used in R because of superior graphics, though this edge may be eroded by new PCs usin g Pentium MMX as well as moves to more open systems.However, Dr. Popper, Mercks CIO, feels that the real issue, is the software packages for the MAC that research scientists know and rely on but that are not yet available for Windows NT. Thus, MACs strain to be used for Medical R&D which keeps the Windows market from developing. There are, in addition, the elements of inertia, emotional attachment and training which are apparent at major medical schools too. In sum, rational design has opened a wide range of new research based on a firms understanding of biochemical mechanisms. This means tremendous opportunities to enter new therapeutic areas.However, since rational design is very expensive, it has elevated entry costs and the minimum effective size for pharmaceutical firms by putting a premium on those with a sequence of cash generating drugs. It also has favored firms with broader product lines able to spread the costs of equipment over many projects and to transfer knowledge a cross therapeutic areas, contributing to the increased cost of new drugs through higher R and systems support spending (Bogner and Thomas 1996). A similar analysis applies to the use of other new technologies because major U. S. nd Japanese companies to discover and develop drugs systematically, such as combinatorial chemistry, robotic high-throughput screening, advances in medical genetics, and bioinformatics. These technologies affect not only R but also the organization and the way they deal with other organizations as many new technologies are complementary. For example, high-throughput screening automates the screening process to identify compounds for further testing or to optimize the lead compound. Thus, both regulatory and technological change have raised the advantage of developing innovative drugs, even 24 hough it is inherently risky and forces firms to develop better skills in using information technology to support the process. The Pharmaceutical Industry in the United States As explained above, healthcare and the pharmaceutical industry are closely intertwined, especially in the U. S.. Ever since the election of the Clinton Administration, U. S. healthcare has been the focus of heated debate. The pricing of pharmaceuticals in particular is one of the most controversial aspects of the industry. Estimates of the cost of bringing a new drug to market are up to over $250 million (DiMasi et. l. 1991). However, once drugs are on the market, the costs of manufacturing, marketing and distribution are relatively small. This loose connection between marginal cost and the market price seems to require further justification for drug pricing. While the obvious answer lies in the high fixed cost of drug development and the expensive and time consuming approval process prior to any positive cash flow, the answer is still not easy. Furthermore, the drug market is very complex for several reasons. First, there are many drug classes for which only a few products exist.Secondly, FDVIOs (health maintenance organizations) and other managed-care plans can negotiate substantial discounts because they are able to control the prescription decisions made by their participating physicians and because they buy in large quantities. These health organizations are highly price sensitive. This means drug prices are substantially determined by the purchasers demand elasticity. This demand in turn determines investment decisions (Schweitzer 1997). Thirdly, the market for pharmaceuticals is highly segmented, both domestically and internationally, and price secretion between and within national markets is common.Research studies cannot even agree on a common measure of wholesale price. Indeed, no measure captures actual transaction prices, including discounts and rebates (Schweitzer 1997). Fourth, consumers do not have enough scientific knowledge to assess different drugs. Thus, gatekeepers such as doctors are important (Hirsch 1975). 25 Yet, the current tr end is towards managed care and HMOs who closely control costs. This development clearly indicates physicians are losing some autonomy in drug selection. Thus it is not surprising the market share of generic drugs has increased from 15% to over 41% between 1983 and 1996.This has forced the ethical drug manufacturers to communicate both more effectively with the HMOs and managed care organizations in addition to physicians and to demonstrate the improved efficacy of their products as compared with generics. The acquisition of PBMs (pharmacy benefit managers) by pharmaceutical companies is an important development in this regard. Physicians now have to prescribe drugs available in the formularies of the managed-care organization. PBMs suggest cheaper alternatives to physicians for a given therapeutic benefit to save money.Eighty percent of the 100 million patient/member PBM market as of 1993 is controlled by the five big PBMs (Schweitzer 1997). In turn, when PBMs and mail-order compan ies expand, the small pharmacies lose the data necessary to examine various drug interactions. Since current U. S. law protects the propriety data of pharmacists and pharmacy chains, information on prescription for those patients who use pharmacies and mail-order companies actually becomes fragmented. It is likely this development could affect pharmacists jobs as well. A fifth reason is FDA approval does not mean new drugs are better than old ones.As noted above, this has pressured drug companies to prove the effectiveness in cost and quality of life their drugs bring to patients. Recently, drug companies have often tried to show how their drugs can help patients restore a normal quality of life. As already described, these concerns complicate the design of clinical trials. integration among wholesalers, the greater complexity of clinical trials and globalization favor firms with substantial resources and are part of the reason for the industrys merger trend, especially between U.S. and European companies. The leading pharmaceutical firms ranked by 1994 sales are as follows (Scrip Magazine, Jan. 1996), with five of them the result of cross border mergers. Merck ranks 2d 26 27 *3 Comparison is based on U. S. dollars *4 Calculation based on the sales of companies before mergers *5 Including OTC (over the counter drugs) *6 Excludes sales through strategic alliances Merck Merck is a multibillion dollar pharmaceutical firm with a long history going back to the 19th century in the U. S. and the 17th century in Germany.While in the past they have diversified into areas like animal health care, they are now very focused almost exclusively on human health, in particular, on ethical branded prescription drugs within human health care since they have found this is their most profitable business area. Also, given the many opportunities that exist, it will demand all their capital and energy for the foreseeable future. It has therefore spun off its animal health care busin ess to a joint venture and change its specialty chemical business.This strategy and motivation is similar to Takedas focus on human health, whose market is more lucrative than its other businesses. The company appears to stress their ability to bring innovative drugs to market. Merck briefly tried to produce generic versions of their drugs, but found it was not worth the investment. In addition, they now assume soul else will produce their OTC (over the counter) versions too. This strategic focus is now underscored by their active formation of strategic alliances. For example, in the OTC medicine market in the U. S. nd Europe, but not in Japan, Merck relies on Johnson & Johnson through a joint venture with J to market, distribute and sell the OTC versions of Mercks prescription drugs. This means Merck has seen the OTC market as one way to lengthen the revenue stream for some of its products after their patents expire. In Japan, Mercks agreement is with Chugai Pharmaceutical Co. Lt d. They formed a joint venture in September 1996 to develop and market Mercks OTC medicines there (Merck 1996 Annual Report). Moreover, Merck and Rhone-Poulenc have announced plans to combine their animal health and fowl genetics businesses to form 28Merial, a new company that will be the worlds largest in animal health and poultry genetics (Merck 1996 Annual Report). Their primary strategic focus on ethical drugs seems appropriate, but as explained above it is also critical with respect to this strategy that they maintain relationships with those in scientifically related fields. Their work with Rhone-Poulenc must be examined in this light since improving their competence in the genetic business seems a good part of their strategy given developments in biotechnology and the Human Genome Project. This is because biotechnology-related drugs are often species-specific (Harris 1997).More knowledge about the genetic make-up of human and animal bodies may provide some insights into the appropriate choice of animals in pre-clinical trials from which to extrapolate observations to humans. Since this extrapolation is never perfect and you have to do animal experiments anyway, they have added to their competence in genetics via a joint venture with Du Pont called Du Pont-Merck Pharmaceuticals Co, whose investors are E. I. Du Pont (50%) and Merck (50%). This firm has capabilities in fermentation, genetic engineering/rDNA, cell culture, hybridoma, protein engineering, and tissue culture.By forming this alliance, Merck was able to exchange its strengths with Du Pont, an early investor in biotechnology. Du Pont-Merck Pharmaceutical has also developed its own drugs in cardiovascular disease. 7 Like other pharmaceutical companies, they continue to sell their branded products as long as they can once they have deceased off patent but at a lower price in order to meet generic competition. Cost conscious HMOs increase this downwardly price pressure. Yet, according to Merck s ome demand for the branded product continues once they adjust the price downward.This is due to better quality, consistent dosage, and brand awareness of the original. Strategically, Merck sees itself as a growth company with a growth target of about 15% per year. This signals a continuing need for cash flow, i. e. from existing drugs, and a Merck sold its share to Dupont in 1998 for over $4billion, apparantly due to its ability to manage more drugs itself. 29 constant flow of new drugs, i. e. from R&D. They need this growth to continue to offer their shareholders the return they expect and to attract the personnel they need to develop drugs which is their corporate mission.Their products now cover 15-16 therapeutic categories. In five years this will expand to between 20 and 25 categories depending on the success of various stages of drug testing. Important new products in the pipeline include Singulair for asthma, Aggrastat for cardiovascular disorders, Maxalt for megrim headache s, and VIOXX, an anti-inflammatory drug, which works as a selective inhibitor targeted at rheumatoid arthritis. They are in phase III trials for all of these new drugs. Propecia for male pattern baldness recently received FDA approval. Mercks R is done internationally.To avoid duplicate investment, each research center tends to be focused. For example, the Neuroscience Research Centre in the unchained Kingdom focuses on compounds which affect the nervous system. Maxalt was developed in this Centre. The one laboratory in Italy studies viruses while the one laboratory in Tsukuba, Japan (Banyu Pharmaceuticals) emphasizes the circulatory system, antibiotics, and anti-cancer research (Giga, Ueda and Kuramoto 1996). This concentration pattern often reflects the comparative strengths in R and the therapeutic demand structure in each local market.Still, selecting the appropriate R projects while critical to their success is very difficult. This is because no discipline in science has as bl urred a distinction between basic and use research as biotechnology. The distinction is usually not well-defined because applied research often contributes to basic research. Indeed, in molecular biology, science often follows technology. Still, as a general approach, Merck tries to focus on applied research and development rather than basic science. They rely on universities and smaller biotech firms for the later.However, they do some basic research. For instance, th