Case Scenario 2: Compliance, Inc

question 17

True/False

Case Scenario 2: Compliance, Inc.
Compliance, Inc. (CI)conducts clinical human and animal trials for the pharmaceutical and biotechnology industries. Revenues are split evenly between early and late drug development services and the firm is a leader in the laboratory technologies needed for such testing. One of CI's internal quality managers, Sharon Kline, has approached the CEO with a new business proposal. She would like to see the firm take one of its in-house software programs and develop it as a leading­edge commercial product for three specific target markets-medical care providers, payers of medical care, like insurance companies, and suppliers to medical care providers, like pharmaceutical companies. The features of the software are easy to use and include electronic distribution, data harvesting, and robust reporting capabilities. With this software Sharon believes that medical care providers will be able to collect data to market to and negotiate contracts with payers or employers, profile performance of individual physicians or practice sites, identify best clinical practices, generate reports that satisfy regulatory or accreditation requirements for provider sites, and supply professional societies with data for influencing payer and government policies. Another target market, insurance companies and other medical services payers, will be able to use the software to profile performance of individual physicians or practice sites, identify best clinical practices, generate reports that satisfy regulatory or accreditation requirements, and collect data to market to and negotiate contracts with employers. Finally, the software will allow suppliers to medical care providers to assess how products perform compared to competitor products, assess outcomes in real-world compared to clinical trial settings, obtain information on provider-specific practice patterns, determine whether products are being used correctly, get "face- time" with physicians and HMOs, obtain information on product switching behavior, offer providers a value-added service, and meet FDA post-marketing surveillance requirements. CI has never launched such a product before and, even if successful, software is a very different product than the clinical trials services it provides now. The CEO must determine how to build and manage this new business for CI.
-(Refer to Case Scenario 2). The idea for the software product came about via induced strategic behavior.

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, with rights and liabilities, capable of conducting business.

Promoter

An individual or company responsible for organizing and often financing concerts, plays, or other events.

Duty to Be Careful

The duty to be careful, often referred to as a duty of care, is a legal obligation imposed on individuals to act with the caution and attentiveness of a reasonable person to avoid causing harm to others.

Director

An individual appointed or elected to oversee the management and strategic direction of a company or organization.