Research In Motion (RIM) is a high technology firm that is experiencing explosive growth in sales. David Yach, chief technology officer for software at RIM, has received notice of the upcoming meeting with the co-chief executive officer with respect to its research and development (R & D) expenses. While RIM, the manufacturer of the popular BlackBerry, spent almost $ 360 million in R & D in 2007, this figure was low compared with major competitors, both in absolute terms and as a percentage of sales (eg, Nokia spent $ 8.2 billion on R & D). This is problematic, as it anticipates the question of whether or not RIM may well continue to meet expectations, to deliver award-winning products and services, and to maintain its leadership in the smartphone market. In addition, the very dynamic mobile telecommunications, investment analysts often look at the company's commitment to R & D as a signal that sales growth will be sustainable. Just to maintain the status quo, Yach have to hire 1,400 software engineers in 2008 and is considering a number of alternative ways to manage the. The options are: (1). Do what they do now, only larger, and (2) building on the existing satellite and R & D areas, (3) growing through acquisition, or (4) there is a global "Hide
by Paul Beamish, Roderick E . Wight, Daina Mazutis Source: Richard Ivey School of Business Foundation 21 pages. Publication Date: May 15, 2008. Prod. #: 908M46-PDF-ENG
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