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Nucleon Case Study

GROUP 3Naveed PGP/19/150

Ramkumar D PGP/19/219

Sohom Karmakar PGP/19/21

Sumanra! " PGP/19/22

Prakash R PGP/19/15#

Economics of Strategy

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SWOT

Stren$ths

R%D &o'erhouse

Stron$ &atent

&os(t(on o) CRP*1+eader (n ,(o-ech

.eaknesses

+o' (nanc(als

+o' arket(n$&otent(al

&&ortun(t(es

ammal(an host

research

or'ard (nte$rat(on

-(e &s

-hreats

ncerta(nty due toPatent +a'

Com&et(tors

a(lure o) Dru$

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Phase 3 and

33

Phase 333

Options

What are the options?

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Option 1

3nternal P(lot 4Phase 1%2 and 3nternal Commerc(al anu)actur(n$ 4Phase

6ssum&t(on

.6CC 7 108Year

Total Cost

Incurred Revenue

1991 3350

1992 1840

1993 6204

1994 4000

1995 4000

1996 4000

1997 5000

1998 26480

1999 39800

2000 50000

2001 52000

2002 60000NPV $66,586.20

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Option 2

3nternal P(lot 4Phase 1%2 and +(cens(n$ 4Phase

6ssum&t(on

.6CC 7 108Year

Total Cost

Incurred Revenue

1991 3350

1992 1840

1993 2204

1994 0

1995 0

1996 0

1997 0

1998 12370

1999 9950

2000 12500

2001 13000

2002 15000NPV $17,923.63

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Option 4

Contract 4Phase 1%2 and +(cens(n$ 4Phase

6ssum&t(on

.6CC 7 108Year

Total Cost

Incurred Revenue

1991 250

1992 1995

1993 2550

1994

1995

1996

1997

1998 12370

1999 9950

2000 12500

2001 13000

2002 15000NPV $20,353.76

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Option 5

+(cens(n$ 4Phase 12%

6ssum&t(on

.6CC 7 108Year

Total Cost

Incurred Revenue

1991 3000

1992

1993

1994

1995

1996

1997

1998 2685

1999 4975

2000 6250

2001 6500

2002 7500NPV $13,167.32

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onc!"sion

"ven thou$h the return on (nvestment (s very h($h )or o&t(on 1 the total(nvestment '(ll :e a sunk cost () e(ther o) the &hase )a(ls or () there (s a ne'

develo&ment (n the &rocess; S(nce r(sk (s very h($h (t (s not (deal to $o )or

o&t(on 1

Return on (nvestment (s very lo' )or o&t(on 5 (;e; l(cens(n$ o) all the &hases

3) Nucleon o&ts )or contract/l(cens(n$ (n &hase 1 and 2 then (t should not

choose (nternal commerc(al manu)actur(n$ )or &hase s(nce they lackca&a:(l(t(es to carry out ma(ntenance &rocurement

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T#$%& 'OU