Poor Strategy at R&D

Big Blue’s R&D Machine Helps Shareholders

Rolfe Winkler. Wall Street Journal. (Eastern edition). New York, N.Y.: Sep 20, 2010. pg. C.8

                R&D paid investors by doubling operating profit margins, but in doing so research and development might be at risk. The article claims that this is an issue of “robbing peter to pay Paul.” This action to pay investors their profit margin could have long term consequences, could be a costly monetary investment and affect the entire organization. Although the article seems to believe this was a bad move as it will affect the advancement of research and development, the action was a part of CEOs strategic plan. Although we do not have the insight of his decision yet it was made strategically because of the affects it had on the company.

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