Case Study: Health Care Industry (Eli Lilly and Company)

On one hand, there is the need to target more pharmaceutical firms in order to have a wide portfolio of medicines, necessary to address a broad range of diseases and to try solving the prioritization problem.

Eli Lilly and Company (Lilly) is a global pharmaceutical company, ranked 115 on the Fortune 500. Lilly’s operating performance has been strong in 2011, with ROA and ROE much higher than its competitor, Pfizer. The company has improved sales in the year 2011; however, its net income fell. Lilly’s future performance is challenged by factors such as major patent expirations, which will expose the company to the generic version of their drugs being produced by other manufacturers. Lilly has also experienced some pipeline setbacks, which includes the discontinuation of major experimental drug projects.

Eli Lilly and Company is a pharmaceutical company, founded in 1876, that integrates many departments and supply-chain management.   The company in itself discovers, develops, manufactures, and sells a broad line of human health and agricultural products (Lilly.com). Eli Lilly had grown to become one of the leading pharmaceutical companies in the United States, and by 1992 its products were being manufactured and distributed

Contamination of the medicine due to slight imbalance in the formula, moisture, temperature, air pressure or dirt particles

Indian pharmaceutical companies hold considerable advantage over foreign pharmaceutical manufacturers in terms of cost-effectiveness of manufacturing processes as well as research and development. Thus, the Transaction has the potential to give rise to a formidable force in pharmaceutical manufacturing leading to wider presence and broader product portfolio. This M&A Lab analyzes in detail, the legal, regulatory, tax and commercial considerations behind the Transaction.

Looking at Porter’s Five Forces model and how it fits into the global pharmaceutical industry can start to explain the true attractiveness of the industry. Buyer power tends to be the strongest force in this industry due to the price control policies in state and private sectors that are a large determinant when it comes to likeliness to purchase. Another issue is that medical professionals wield a significant amount of power in what drugs are available to consumers or not. It is also to important to note that entry barriers may include many governmental regulatory issues that will vary from country to country and largely affect if specific drugs are allowed to be sold or not. Rivalry in the industry is also very strong due to the strong competition between larger firms and smaller generic companies fighting for the customer’s loyalty. Supplier power is also important to note while looking at this industry because the nature of the products being created require a lot of extra manufacturing and time. Due to the

1. Eli Lilly’s entry into the Indian market seems apt in view of India's large population. This is particularly so given that the demographics are predominantly middle-class. Therefore, this group offers a huge growth potential for Eli Lilly, since they are perceived to command higher disposable income that would allow them to afford Eli Lilly’s premium pharmaceuticals. Secondly, Eli Lilly’s timing to enter into the Indian market is apt due to India’s economic reformation, which allowed foreign firms like Eli Lilly to hold majority ownership in a joint venture. This mitigates Eli Lilly’s risks of losing technology to its local partner by allowing Eli Lilly to exert more control over the JV. Thus, this allows Eli Lilly to maintain its competitive advantage in a foreign market. Thirdly, the cost of running clinical trials in India

Glaxosmithkline is one of the heading pharmaceutical organizations in everywhere throughout the world and it is the world's second biggest organization with high positioning stands for Employee Cares. It was built by Glaxo Welcome and Smith Kline in 2002. Firstly it was affirmed in 2000 later in 2002 the first headquarter was formally opened at Brentford London. The building was assembled at an expense of £300 million and is home to around 3,000 staff. GSK made in Pakistan in January 1, 2001. GSK International is an United Kingdom based pharmaceutical, living, and medicinal services organization. It is the world's second biggest pharmaceutical organization and an examination based organization with a wide arrangement of pharmaceutical items

Pfizer has been trying to outsource its support functions to an outsourcing team in India. This means support tasks can be shifted from a high cost of operations destinations to a low cost of operations destination. Many multinational companies have thus begun to outsource many of their basic and standardised support functions to outsourcing companies in the Asian and other emerging markets of the world. This can be done by outsourcing the work to an independent outsourcing company which will bill the multinational for the work done or by buying a stake in an outsourcing company, like a captive outsourcing destination, which would undertake all the support related activities for the parent multinational. The presence of several outsourcing companies in the last two decades in India and other Asian countries like Philippines or Thailand has increased phenomenally (Tysiac 2013). These countries have a big pool of talented and skilled support and knowledge workers. Besides the low wages paid to the employees in these countries, makes the cost of operations come down. This activity was a part of the company’s cost cutting initiatives, where a reduction

To develop an International mobility process that allows the firm to align its business and strategic needs with the necessities of employee.

To be without illness, is to be able to experience the blessings of life. Today, medical and health advancements have not only extended the length of our lives, but have also allowed many to maintain momentary joys through the continued use of prescription drugs. As individuals have become more accustom to daily doses of pills, social views and opinions have shifted. And with such a unique market in which consumers are essentially ‘paying to live’, the pharmaceutical industry has quickly developed into an enormous revenue dispensing giant. Unfortunately, the pharmaceutical industry in the United States is now plagued by expensive prescription drugs and deficient regulation, while the prioritization of profits over human lives has become

The pharmaceutical industry is praised as one of the leading industrial sectors. The fruits of its extensive research and development are traded worldwide and have improved the length and quality of life of countless individuals. At the same time, however, the industry is criticized for its marketing and pricing practices—and even for its research and development priorities. Industry's consistently high profits and large expenditures on research and development as well as on marketing that foster scrutiny and criticism.

From rising customer expectations, to poor methods of research and development, there are many reasons to modernize the current business model of the pharmaceutical industry. The major issue is the fact that experts rely on traditional methods regarding management and a business model. The pharmaceutical industry is now facing the reality that other industries have previously dealt with, where companies have been forced to remodel themselves. This is not an easy task, as the landscape of the cultural industry has to fundamentally change. This in turns affects each level and individual in the corporation. There are many variations as to why modifications are

In 2013, GlaxoSmithKline’s (GSK) Chinese operations were investigated for paying millions of dollars in bribes to Chinese medical professionals via a network of travel agents and other parties. The UK based pharmaceutical company was bribing these professionals in order to obtain monetary gains and build their presence in China. GSK had a seemingly in-depth compliance program and code of conduct for its employees, management, and third parties, but it fell short as bribery ran rampant. GSK was eventually found guilty by Chinese courts and instructed to pay a significant penalty, while five members also received prison sentences. The gift giving culture in China may be partly to blame for the common practice of bribery, but there are also other internal and external factors to consider. GSK as well as other companies and the Chinses government are using this case as a learning tool and making an effort to make necessary changes to prevent corruption in the future. This case provides an excellent example of the risks and challenges companies – not just pharmaceutical companies – may face when doing business in China.

Pfizer Inc. is a biopharmaceutical company focused on providing access to safe, effective and affordable medicines and related health care services to the people who need them. By bridging the gap for patients in need, Pfizer believes all walks of life deserve access to quality healthcare in order to provide patients with the opportunity to live a healthy life. (Pfizer, n.d.) Pfizer accomplishes this mission by focusing attention on building healthcare capacity, expanding access to medicine, and promoting corporate citizenship. Moreover, Pfizer works alongside many research development centers and companies to provide healthcare organizations and world governments access to innovative technology and medicines to improve patient’s way of life.