Explain the Impact of Rewards on Strategy and the Use

question 109

Essay

Explain the impact of rewards on strategy and the use of various control mechanisms to tighten this connection.

Distinguish between the marginal cost and the marginal benefit of R&D spending.

Explain the significance of the interest-rate cost-of-funds curve being perfectly elastic.

Understand the role of diminishing marginal returns in shaping the expected-rate-of-return curve for R&D investments.

Recognize different sources of funds for R&D and their implications for R&D decision making.

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Definitions:

Corporate Codes

Formal statements of values, ethical principles, and guidelines for conduct expected from employees and the organization as a whole.

Codes of Conduct

Written guidelines designed to set out acceptable behaviors for members of a particular group, organization, or profession.

Ethical Behavior

Conduct that is in accordance with accepted principles of right and wrong governing the conduct of a profession.

Bad Barrel

A metaphor implying that systemic issues within an organization or environment lead to unethical behaviour or corruption, not just individual 'bad apples'.