The company's main assets are its research staff.

Strategy 'A' and 'B' have exactly the same low risk of financial failure and are both good, risk resistant strategies that will greatly enhance the chances of the company's future survivability.

While the current strategy is highly challenging for talented scientists and engineers, the alternative strategy 'A' is far less exciting than strategy 'B'. There is a danger with strategy 'A' that the talented scientists capable of conducting high risk research will leave the company or become demotivated. With strategy 'B' there is a significant chance of attracting new scientists because research investment is increased.

An eventual consequence of strategy 'A' will be a gradual loss in the ability of the strategist to even consider undertaking high risk research again in the future, because of the likely major and delaying changes in staffing this would entail.