A major pharmaceutical firm is developing a new medical drug for the market. Stockholders are pressing for an early release date, as the drug is expected to generate significant profits. Unions representing production workers are pressing for wage increases, which would reduce the resources available for development and marketing, thus delaying the release date. Consumer activists are pressing for increased testing which would both increase costs and delay the release date. Which organizational effectiveness criterion is most applicable in this situation?

Question

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A strategic constituency is any group of individuals who have some stake in the organization-for example, resource providers, users of the organization's products or services, producers of the organization's output, groups whose cooperation is essential for the organization's survival, or those whose lives are significantly affected by the organization. Strategic constituencies (or stakeholders) generally have competing or conflicting interests.

A Major Pharmaceutical Firm Is Developing a New Medical Drug