Amgen Inc Case Analysis The biotechnology company Amgen Inc. puts a lot of thought and time into the planning process. Since the results for a company like Amgen are often very uncertain and many employees are quite skeptical about the use of such planning, the main question can be described as follows: What is the added value of planning for a rapidly growing company in an uncertain and dynamic context? To address this issue, an analysis based on the following elements will follow: Liability Structure Amgen Inc. is a biotech company. The responsibilities of product development teams (PDTs) can be described as “discretionary cost centers.” The output of a PDT is therefore difficult to relate to its input. Based on the long-term planning a reasonably clear definition of the budget available for each team is given. Early-stage research has less stringent policies. Planning and Budgeting Within Amgen, a lot of time and effort is devoted to creating long-range planning (LTP). In the early stages of Amgen, strategic planning was performed by top management and implemented from the top down. The PDTs then created their own budgets and five-year planning. Subsequently, Amgen's planning process has developed into an interactive process where planning and information from PDTs are also used from the bottom up. Amgen's LTP is now prepared primarily as a capital budget, whereby PDTs have their own operating budget. The current interactive planning process ensures that employees are better informed and greater commitment to planning is established. Initially the LTP was primarily financially driven. After the initial success of some of its products, Amgen's LTP pays more attention to quality objectives....... middle of paper...... susceptible to financial rewards, the reward system should be more focused on soft rewards (extra facilities, extra flexible hours, extra privileges). The problem of middle management not actively using plans could be resolved with more frequent evaluation of these plans. This is because middle management recognizes that reviewing plans creates added value in checking whether they are still doing the right things. By evaluating plans every quarter, your commitment will increase, without losing the necessary flexibility. Bibliography:- Trader, K., Planning and Budgeting Systems, in: Trader KA, WA van der Stede, Management Control Systems, Performance Measurement, Evaluation and Incentives, Prentice Hall, 2007- Simons, R., Building a profit plan, in: Simons, R., Performance measurement and control systems for strategy implementation, Prentice Hall, 2000