Question 1
Biotechnological commercialization can have daring risks to the founders, the stakeholders, and the employees. The major risks include the failure to have enough funds to finance their activities, which mostly leads them to borrow a lot. The other problem is the production of commodities which the market does not need. The heavy post-commercialization duties paid to the government endanger the growth of biotechnological industries (Durai et al., 2006).
The failure to secure strong partnerships in the business makes it a challenge for all the people operating the business. The lacks sufficient resources which can be used to secure and even develop the companies are a major problem in the business. Poor It technology and poor infrastructure inhibits the research and development strategies in the organizations which make profits low, and eventually the closure of the businesses (Haseley et al., 2015). The various approvals and the stages which a product has to undergo in ensuring that it has an international appeal is a major challenge to the stakeholders in the biotechnological companies.
Question 2
The various challenges faced by the organization can be mitigated through the application of the required procedures. Problems can be reduced if there is a steady and firm supply of capital. For the organizations to grow beyond the commercialization stage there should be a steady and sure capital supply which facilitates growth and company management strategies (Szuhaj, 2008). The IT development and general infrastructural development in most of the areas ensures there is a fast and steady assurance of research and business development.
The reduction in the government taxes and the product improvement also gives the advantage of having a highly competitive business in the market (Kobelak&Vanderbyl, 2008). The government intervention to have the business grow and provide the required raw materials at prices which are affordable is a good chance to save the biotechnological industry from the frustrations which the founders, the investors and the employees go through, for the success of the business entirely depends on the resource availability, economic stability, capital and intellectual flow, the infrastructural development and the general government support and extension services.
References
Durai, A., Li, B., Metkar, S., Pelayo, M., and Phillips, N., (2006), CHALLENGES IN A BIOTECH STARTUP: HEALTHCARE NUTS, Kellogg School of Management (http://www.kellogg.northwestern.edu/biotech/faculty/articles/startupchallenges.pdf)
Haseley, S., Tucker, G., and Furtis, K., (2015), Growing Pains: What Biotechnology Companies Transitioning to Commercialization Need to Know, Protiviti Inc., (https://www.protiviti.com/en-US/Documents/White-Papers/Industries/Biotech-Growing-Pains-whitepaper-Protiviti.pdf)
Kobelak, S., and Vanderbyl, S., (2008), Risk management for the biotechnology industry: A Canadian perspective, JOURNAL OF COMMERCIAL BIOTECHNOLOGY, Vol.14, No 2 (2008), DOI: http://dx.doi.org/10.5912/jcb235
Szuhaj, M., (2008), How Can Biotechnology Companies Manage Growth and Mitigate Risk in a Global Market? AREA DEVELOPMENT, Retrieved from http://www.areadevelopment.com/specialPub/bio08/Biotechnology-Global-Growth.shtml
