The big corporation Sample Clauses

The big corporation. One of the principal characteristics of a large organisation is that the corporate management is driven by economic considerations, and is not often so interested in the technology underlying their products. This means that a researcher from their own R&D department, or a researcher from outside the organisation, needs to make a strong case for new technology development – a case that is built on the financial benefits, not on the cleverness of the technology. This is a difficult role for researchers to play, and to be successful they need to work with the commercial and marketing arms of the company to show an adequate customer take up to justify the investment in development. A big corporation will also have other considerations. Existing customers need to be supported, and existing product lines should be reinforced by any new developments rather than replaced. There is an investment involved in the development effort needed to bring new IP to the market, and for a large corporation that investment will come from company budgets – in other words the cost will come off the bottom line. This means that the management will be looking for a short pay-back period [6], probably within one or two financial years, a requirement that mitigates against investment in new markets or completely new product lines. It is for this reason that large corporations tend to be risk averse, and will more often buy smaller companies that have done the investment and market development already rather than make the investment in-house.
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