Business Case Studies & Business Publications

From Lab to Market: Navigating Uncertain...

Sun, Bo

Case

From Lab to Market: Navigating Uncertainty

Sun, Bo

GEM-0235 | Published March 26, 2025 | 6 pages Case

Collection: Darden School of Business

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This case explores how different players in the biotech-pharmaceutical ecosystem manage uncertainty through distinct approaches determined by their resources, capabilities, and strategic positioning. Through the lens of founder Maya Patel’s strategic decision at the mid-sized biotech start-up BioGenetyks, Inc., students examine how organizations navigate the extreme uncertainty inherent in drug development. The case considers three fundamental approaches to managing uncertainty: the “wait and see” approach grounded in real options theory, which emphasizes the value of delaying decisions until more information becomes available; the “sprint” approach derived from minimax strategy in robust control theory, which advocates aggressive action against extreme scenarios; and the “outsource uncertainty” strategy employed by resource-rich organizations to externalize risk. The case is ideally positioned midway through an MBA course on managing uncertainty, after students have been introduced to basic frameworks but before diving into specific applications.

- Master three fundamental approaches to managing uncertainty, including the "wait and see," "sprint," and "outsource uncertainty" approaches - Identify the key factors that determine which strategy is most appropriate, including the cost of waiting, asymmetry in potential outcomes, and availability of institutional backstops - Analyze how industry structure shapes uncertainty management strategies