Ely Lilly and Company
El- Lilly: A pharmaceutical company was founded by a 38 year-old pharmacist and El lilly in May 1876, it was founded in Indianapolis, USA. By opening the door to a small laboratory. Currently it has its headquarter in Indianapolis Indiana, USA, with 38,000 employees worldwide. El-lilly focuses on meeting some of the world’s most urgent medical needs, in the areas of oncology, cardiovascular disease, diabetes, critical care, neuroscience, men’s health and musculoskeletal. El-Lilly has competitive advantage indulging world class scientist in its research and development to produce highest quality of medicine that would solve the world medical need on the areas of it focuses. Profitability by net income is $(mill) 4,088.6 and Market share is 0,03% Lilly focuses on innovation-driven strategies. They choose to remain independent. Their goal is to deliver a flow of new products at lower costs. They are one of the most productive research and development organizations, R&D also being one of their main focuses. Their strategy seems to be rather unclear, they still see their key to success as ”clear”. Their strategy revolves around the fact that they can deliver innovative products at a higher rate with lower costs, and continually increasing the organizations productivity and flexibility. They also aim to be more sustainable, creating a good image for their organization. Their success will stem from their comparative advantage in having one of the most efficient research and development teams, with a plan to launch two medicines per year starting from 2013. They introduced the Lillytab which is a blog provided to exchange information amongst the company and stakeholders in general. This allows them to be closer to consumers and policy makers. They also tend to keep a strong cash-flow to constantly supply the research and development section. In other words, Global growth with cost reduction. Lilly also plan to expand into China and have a strategic partnership with a Chinese manufacturer, Novast Laboratories. They intend to combine the strenghts of both companies, Lilly´s expertise in innovation, commercialization and operations with Novast´s strengths in product development and quality manufacturing. We think that the strategies chosen have worked for the company. The strategies focus on organizational development and expansions into different global areas. They intend to increase their cash flow which will be invested into the research and development sector. With this investment, they are planning to produce two new products yearly. They also give money to charities and relief-programs. Money to charities is good for two reason; people who need charity come from countries in which diseases are quite common, so this could be an indirect expansion plan. The second reason is that it’s an action that is seen positively to the public eye. This way, they increase trust amongst stakeholders and create a positive brand for themselves. This is important because a company must operate on ethical grounds. The expansion into China seems like a great opportunity to increase market share and profitability by combining the strengths of both companies. They can create innovative
products with good quality, strengthening their global comparative advantage. With this cooperation, they gain strong alliances with different companies. The two main ethical issues in the last years consist in two court cases: the first one is the Standard Gravure shooting and the second one is the Zyprexa case. The Standard Gravure shooting involved Joe Wesbecker, a pressman suffering of mental illness, who entered his former workplace and murdered 8 people, before killing himself. Since it was verified that the murder was under the effect of Prozac during the fact, the relatives of the victims sued Eli Lilly and Company. It was the first of 160 cases pending against Prozac, which represented almost one third of all Lilly’s sales. Lilly won...
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