Research in Motion (RIM) is a high end technology company that is undergoingextreme sales progress. David Yach, chief technology officer for software at RIM, has gotten a note for a planned meeting with the co-chief executive officer relating to his research and development (R&D) expenses. Despite the fact that RIM, producers of the much famous BlackBerry, expensed nearly $360 million in R&D in 2007, this figure was shortin contrast to its biggest rival, both in absolute figure as well a percentage of sales (e.g. Nokia expensed $8.2 billion on R&D). This creates an issue as it indicates the debate regarding if RIM has a viable standing or not in order to sustain the fulfillment of hopes and expectations, provide award-winning goods and services and continue to be the leader in the Smartphone industry. Additionally, in the fast paced and fast changing mobile telecommunications industry, investment forecasters and specialistsgenerally see a firm’s spending on R&D as a sign that the expected product growth would be profitable and manageable. In order to maintain its current standing and company image, Yach will need to recruit 1,400 software engineers in 2008 and is contemplating various different ways of administering the growth and development. These include: (1) Continue to do what they are presently doing – in larger numbers (2) Developing their present and satellite R&D sites, (3) Expanding through acquisition or (4) Going international.
1. Why is it important for RIM to grow its pool of software developers?
2. What are the different options for growing the pool of software developers?
3. Which option(s) should RIM pursue?
4. How would you advise David Yach begin to implement the option you recommend? Please devise an action plan. Be specific (e.g., one month, six months, by the end of 2008).