Eli Lilly and Company Case Analysis Essay

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Eli Lilly and Company Case Analysis

The case under analysis, Eli Lilly & Company, will be covering the positives and negatives with regards to the business situation and strategy of Eli Lilly. One of the major pharmaceutical and health care companies in its industry, Lilly focused its efforts on the areas of "drug research, development, and marketed to the following areas: neuroscience, endocrinology, oncology, cardiovascular disease, and women's health." Having made a strong comeback in the 1990's due to its remarkably successful antidepressant Prozac, was now facing a potential loss in profits with its patent soon to expire. The problem was not only the soon to expire patent on Prozac, but the fact that Prozac accounted for as much
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Additional issues that seem to have hampered performance were their failure to meet international sales expectations, expiration of key patents, and its poor performance against competitors. On some measures this can be attributed to the fact that Lilly's rigid, centrally controlled operating structure did not fit well with today's rapidly changing pharmaceutical market environment. Although a culture change may be evident to boost company performance, "the leadership would without out a dought face resistance in any effort to lead organizational change at Lilly, especially change of organizational culture. "
(Greenberg, Jerald p 132-133)
External global conditions
The firm's external environment consists of three main sectors: the Remote Environment, the Industry Environment, and the Operating Environment. All of these environmental sectors affect the firm's operations both on an international and domestic level.
In comparing these conditions with Eli Lilly it's no wonder they were scrambling for an effective strategy that would keep them at the top of there game. The Remote sector is comprised of five factors that are not influenced by a single firm. The main factors are: economic, social, political, technological, and ecological. The managed health care programs launched by the Clinton
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