Case Statement:
Eli Lilly and Company encounter decline in its business environment for the next few years due to an intense contestant in the pharmaceutical industry and the making of similar generic drugs at low prices. Therefore, the company must reach and increase its global economics expectations to boost its performance.
Mission and Vision Evaluation:
Eli Lilly & company respect and appreciate ourselves for providing excellent, innovative medicines development and research by producing the best drugs to treat different diseases/disorders in the society for our consumers. By pursuing our mission and purposes, we operate worldwide to analyze data on medicines for severe illnesses. We use several great types of equipment and people to guarantee the better encouraging product development for every person. At Eli Lilly & Company, we believe that excellent standards lead to satisfying business and try to exceed all government laws in each aspect of medicine development. We think that important leadership management can develop great responsibility and we concentrated on raising awareness and knowledge among our clients to encourage them to prevent any diseases before it happens. We also welcome a diverse work environment with a broad understanding in which the health, professional advancement, security, and maintaining the respect of our workers are our essential priorities.
Milestones:
An External Factor Evaluation is a method that used to review and evaluate the company's external factors such as economic, social, cultural, demographic, political, environmental, legal, technological, and competitive information. These factor evaluations prepared through the opportunities and the threats that are affecting the business. Since Eli Lilly & Company has opportunities in the external factors and has threats that could influence the company, the firm needs to recognize each of them and have an active method to handle those factors. Therefore, the company must recognize the opportunities and threats to avoid any problems in the future. Also, the weighted score explains that the firm had a significant influence on its possibilities and threats in producing new drugs more quickly.
The Internal Factor Evaluation (IFE) Matrix
The IFE Matrix is a tool that used for evaluating the strength and the weaknesses of companies. The IFE Matrix above was summarizing the critical internal environment of the business of Eli Lilly & Company. The table shows the strengths as well as the weaknesses that practiced within the firm. While looking at those factors, it indicates that Eli Lilly needs to work on improving and developing new technologies to help them create new and different drugs for different diseases. Therefore, the IFE Matrix is an essential factor for the company to look at many areas on where they can change and improve their products/services. Also, there are areas that the business was doing great at such as gaining the customer's satisfaction by maintaining their dedication to making other's lives healthier.
Industry Analysis:
Porter's Five Forces is a strategic, powerful tool that helps the strategic managers in evaluating the industry in which their businesses operate in determining strategies to stay in a strong position in the market. It also benefits the firms to identify strategies to gain an advantage by knowing the competitiveness of the business situation or understanding the markets that might influence the potential profitability. This method will support the business by being able to change the approaches they need and take advantage of a strong position or develop a weak one and avoid using incorrect steps in future.
Financial Analysis:
The financial statements of Eli Lilly and Company are used to help the managers to be able to summarize the financial information. It is essential for them to know the numbers because each number/ratio/data matter when it comes to any company. Also, finding the financial strength helps the business to provide information that is used by the industry and investors. However, Eli Lilly is doing good compared to the pharmaceutical industry. The table below shows a remarkable increase in its sales in the past four years in the market. According to Nasdaq Annual Report, Eli Lilly sales in the year of 2017 was 23,113.10, net income of 4,684.80, and an EPS of 4.32. This growth was excellent compared to the years from 2014-2016. Therefore, in 2017 Eli Lilly and Company improved its sales by 7.77%. Also, according to the MSN Money key statistics that industry sales (revenue) was -1.83 which meaning that the industry is on a descending direction., Net Income 0.83, Sales (Revenue) for the 5-Year Annual Average was 4.78 whereas Eli Lilly sales revenue for 5-year annual was 0.24, Dividends for the industry was 0.10 and for Eli Lilli was 1.20 (5-Year Annual Average). However, Eli Lilly and Company is achieving great compared to the Pharmaceutical industry (MSN, 2018).
Financial Managers/Strategies
Eli Lilly and Company financial administrators have significant experience and skills in both business management and the pharmaceutical industry. According to Forbes, Eli Lilly as the 10th most significant pharmaceutical business in the world with $94.1 billion market capitalization. Since Lilly concentrated, it worked in the fields of drug analysis, development and marketed in the areas of endocrinology, neuroscience, cardiovascular disease, oncology, and women's health. The business made a significant improvement in the 1990's, because of its successful antidepressant Prozac. But Eli Lilly has faced a possible loss in profits with its patent early expiration. The issue was not just the early expiration of copyright on Prozac, but the point that Prozac valued for as considerably as 30% of total income. According to the Fortune article, "Since it was launched in early 1988, Prozac has been one of the biggest-selling drugs in history; its $21 billion in sales represents some 30% of Lilly's revenues in that period. It's not too much to say that Lilly is the house that Prozac built." Therefore, Lilly appeared to have both purposely or accidentally chosen to spend their works in the field of neuroscience for the top seller drug of patented products Zyprexa and Prozac. Its unbalanced responsibility and delaying global businesses were the result of its dependency on only several medicines. This kind of an approach with a center for neuroscience only was not well satisfied to the foreign countries whose center was the treatment of many different illnesses. Therefore, Eli Lilly needs to develop a strategy where it can increase its development for each drug to maintain their stability in the market and to gain success in foreign markets as well.
The Markkula Center for Applied Ethics
The Markkula app is a tool that is used to determine how ethical are the choices as it relates to utility, rights, justice, common good and virtue produced different results for each recommendation. Each group will have its benefit based on how the company rates them and the choices they make. Also, the company will benefit from the measurements of a good outcome and how it could potentially impact the business financially, how the action will affect others, and how the actions will affect the company regarding others. Therefore, the decisions that must be considered based on the Markkula process is by looking at each, group, and change the scale rating and based on how it will affect the industry and apply those results to how the change might affect the whole outcome. Evaluating each group is not easy, sometimes the company must set up a new goal plans for each group and then that group must follow the new goals and then business will hopefully make a positive change. As for Eli Lilly and Company, the Markkula app evaluation gave the value of 83, which is probably ethical.
Recommendations based on the Markkula app; 1. Eli Lilly must increase their market research to provide many alternative medicines for many consumers. 2. Employing or hiring people from different places create the diversity in the workplace to improve its strategies and plans for its future market. 3. these marketing methods will enhance the company’s vision, purposes, and it will increase the awareness about different health problems among many consumers/suppliers as well. However, all the above recommendations need to be recognized, and then Eli Lilly will be able to develop the different concerns of their marketing research.
In conclusion, Eli Lilly and Company should utilize the options, like working globally and testing each drug to improve its developments must be considered. All the strategies and recommendations mentioned above will develop the local economies and enhance the image of Eli Lilly more than employing marketing techniques.
Implementation Plan:
Eli Lilly and Company will have a well-defined implementation strategy, which will involve communicating with global businesses through using technology (online meetings) and in-person meetings to gain their trust and to discuss the critical marketing plans that will increase research and development of new medicines for many people. Also debating different marketing plans such as the financial relations that might influence the company when operating locally and globally, even the business will address how these economic relations will help the company to obtain more business share in the global market.
These meetings will be managed by David A. Ricks, Chairman and Chief Executive Officer of Eli Lilly. Ricks will be the best person who will handle these meetings because he served Eli Lilly in many international locations. According to Lilly, Ricks was president of Lilly in the USA, the company’s most significant member, from years 2009 to 2012. He worked as president and worldwide manager of Lilly China, working in one of the world’s fastest-growing developing businesses, from the years of 2008 to 2009. And he was general director of Lilly Canada from the years of 2005 to 2008 as well. Therefore, Ricks focus will be on the elements of the implementation that handles the discovery of new ways and strategies as well as constant and viable growth. This method will be a crucial part of making Eli Lilly and company employees, suppliers, and customers to help in enforcing the implementation of the necessary plans.
Below are the explanations of Ricks first plans that will cover the financial, research, and development strategies that will focus towards the organization's success locally and globally. However, the Chief Financial Officer of Eli Lilly named Jamere Jackson will go over these specific strategies. Also, the plans will describe the center of the elements and requirements for each of the different departments of Eli Lilly.
Eli Lilly and Company will have meetings every five months to address significant concerns such as the present situation of the plan that is required and the real agenda, financial planning, and any changes as well as any suggestions as to how these parts might influence the policies. Eli Lilly managing team will also take these conferences as possibilities to consider any additional problems concerning the plans.
Eli Lilly and Company encounter decline in its business environment for the next few years due to an intense contestant in the pharmaceutical industry and the making of similar generic drugs at low prices. Therefore, the company must reach and increase its global economics expectations to boost its performance.
Mission and Vision Evaluation:
Eli Lilly & company respect and appreciate ourselves for providing excellent, innovative medicines development and research by producing the best drugs to treat different diseases/disorders in the society for our consumers. By pursuing our mission and purposes, we operate worldwide to analyze data on medicines for severe illnesses. We use several great types of equipment and people to guarantee the better encouraging product development for every person. At Eli Lilly & Company, we believe that excellent standards lead to satisfying business and try to exceed all government laws in each aspect of medicine development. We think that important leadership management can develop great responsibility and we concentrated on raising awareness and knowledge among our clients to encourage them to prevent any diseases before it happens. We also welcome a diverse work environment with a broad understanding in which the health, professional advancement, security, and maintaining the respect of our workers are our essential priorities.
Milestones:
- 1876- Colonel Eli Lilly founded the global research company, Lilly Pharmaceuticals in Indiana State.
- 1926- Lilly sales reached $9 million, and the business had created more than 2,800 various products.
- 1980’s - The first significant foundation of treatments for clinical depression was introduced. Also, Prozac (fluoxetine) entered the market in the same year.
- 2016- Lilly celebrates 140 years of commitment to the caring for others with the discovery of many drugs to make life healthier and better for people around the world
An External Factor Evaluation is a method that used to review and evaluate the company's external factors such as economic, social, cultural, demographic, political, environmental, legal, technological, and competitive information. These factor evaluations prepared through the opportunities and the threats that are affecting the business. Since Eli Lilly & Company has opportunities in the external factors and has threats that could influence the company, the firm needs to recognize each of them and have an active method to handle those factors. Therefore, the company must recognize the opportunities and threats to avoid any problems in the future. Also, the weighted score explains that the firm had a significant influence on its possibilities and threats in producing new drugs more quickly.
The Internal Factor Evaluation (IFE) Matrix
The IFE Matrix is a tool that used for evaluating the strength and the weaknesses of companies. The IFE Matrix above was summarizing the critical internal environment of the business of Eli Lilly & Company. The table shows the strengths as well as the weaknesses that practiced within the firm. While looking at those factors, it indicates that Eli Lilly needs to work on improving and developing new technologies to help them create new and different drugs for different diseases. Therefore, the IFE Matrix is an essential factor for the company to look at many areas on where they can change and improve their products/services. Also, there are areas that the business was doing great at such as gaining the customer's satisfaction by maintaining their dedication to making other's lives healthier.
Industry Analysis:
Porter's Five Forces is a strategic, powerful tool that helps the strategic managers in evaluating the industry in which their businesses operate in determining strategies to stay in a strong position in the market. It also benefits the firms to identify strategies to gain an advantage by knowing the competitiveness of the business situation or understanding the markets that might influence the potential profitability. This method will support the business by being able to change the approaches they need and take advantage of a strong position or develop a weak one and avoid using incorrect steps in future.
Financial Analysis:
The financial statements of Eli Lilly and Company are used to help the managers to be able to summarize the financial information. It is essential for them to know the numbers because each number/ratio/data matter when it comes to any company. Also, finding the financial strength helps the business to provide information that is used by the industry and investors. However, Eli Lilly is doing good compared to the pharmaceutical industry. The table below shows a remarkable increase in its sales in the past four years in the market. According to Nasdaq Annual Report, Eli Lilly sales in the year of 2017 was 23,113.10, net income of 4,684.80, and an EPS of 4.32. This growth was excellent compared to the years from 2014-2016. Therefore, in 2017 Eli Lilly and Company improved its sales by 7.77%. Also, according to the MSN Money key statistics that industry sales (revenue) was -1.83 which meaning that the industry is on a descending direction., Net Income 0.83, Sales (Revenue) for the 5-Year Annual Average was 4.78 whereas Eli Lilly sales revenue for 5-year annual was 0.24, Dividends for the industry was 0.10 and for Eli Lilli was 1.20 (5-Year Annual Average). However, Eli Lilly and Company is achieving great compared to the Pharmaceutical industry (MSN, 2018).
Financial Managers/Strategies
Eli Lilly and Company financial administrators have significant experience and skills in both business management and the pharmaceutical industry. According to Forbes, Eli Lilly as the 10th most significant pharmaceutical business in the world with $94.1 billion market capitalization. Since Lilly concentrated, it worked in the fields of drug analysis, development and marketed in the areas of endocrinology, neuroscience, cardiovascular disease, oncology, and women's health. The business made a significant improvement in the 1990's, because of its successful antidepressant Prozac. But Eli Lilly has faced a possible loss in profits with its patent early expiration. The issue was not just the early expiration of copyright on Prozac, but the point that Prozac valued for as considerably as 30% of total income. According to the Fortune article, "Since it was launched in early 1988, Prozac has been one of the biggest-selling drugs in history; its $21 billion in sales represents some 30% of Lilly's revenues in that period. It's not too much to say that Lilly is the house that Prozac built." Therefore, Lilly appeared to have both purposely or accidentally chosen to spend their works in the field of neuroscience for the top seller drug of patented products Zyprexa and Prozac. Its unbalanced responsibility and delaying global businesses were the result of its dependency on only several medicines. This kind of an approach with a center for neuroscience only was not well satisfied to the foreign countries whose center was the treatment of many different illnesses. Therefore, Eli Lilly needs to develop a strategy where it can increase its development for each drug to maintain their stability in the market and to gain success in foreign markets as well.
The Markkula Center for Applied Ethics
The Markkula app is a tool that is used to determine how ethical are the choices as it relates to utility, rights, justice, common good and virtue produced different results for each recommendation. Each group will have its benefit based on how the company rates them and the choices they make. Also, the company will benefit from the measurements of a good outcome and how it could potentially impact the business financially, how the action will affect others, and how the actions will affect the company regarding others. Therefore, the decisions that must be considered based on the Markkula process is by looking at each, group, and change the scale rating and based on how it will affect the industry and apply those results to how the change might affect the whole outcome. Evaluating each group is not easy, sometimes the company must set up a new goal plans for each group and then that group must follow the new goals and then business will hopefully make a positive change. As for Eli Lilly and Company, the Markkula app evaluation gave the value of 83, which is probably ethical.
Recommendations based on the Markkula app; 1. Eli Lilly must increase their market research to provide many alternative medicines for many consumers. 2. Employing or hiring people from different places create the diversity in the workplace to improve its strategies and plans for its future market. 3. these marketing methods will enhance the company’s vision, purposes, and it will increase the awareness about different health problems among many consumers/suppliers as well. However, all the above recommendations need to be recognized, and then Eli Lilly will be able to develop the different concerns of their marketing research.
In conclusion, Eli Lilly and Company should utilize the options, like working globally and testing each drug to improve its developments must be considered. All the strategies and recommendations mentioned above will develop the local economies and enhance the image of Eli Lilly more than employing marketing techniques.
Implementation Plan:
Eli Lilly and Company will have a well-defined implementation strategy, which will involve communicating with global businesses through using technology (online meetings) and in-person meetings to gain their trust and to discuss the critical marketing plans that will increase research and development of new medicines for many people. Also debating different marketing plans such as the financial relations that might influence the company when operating locally and globally, even the business will address how these economic relations will help the company to obtain more business share in the global market.
These meetings will be managed by David A. Ricks, Chairman and Chief Executive Officer of Eli Lilly. Ricks will be the best person who will handle these meetings because he served Eli Lilly in many international locations. According to Lilly, Ricks was president of Lilly in the USA, the company’s most significant member, from years 2009 to 2012. He worked as president and worldwide manager of Lilly China, working in one of the world’s fastest-growing developing businesses, from the years of 2008 to 2009. And he was general director of Lilly Canada from the years of 2005 to 2008 as well. Therefore, Ricks focus will be on the elements of the implementation that handles the discovery of new ways and strategies as well as constant and viable growth. This method will be a crucial part of making Eli Lilly and company employees, suppliers, and customers to help in enforcing the implementation of the necessary plans.
Below are the explanations of Ricks first plans that will cover the financial, research, and development strategies that will focus towards the organization's success locally and globally. However, the Chief Financial Officer of Eli Lilly named Jamere Jackson will go over these specific strategies. Also, the plans will describe the center of the elements and requirements for each of the different departments of Eli Lilly.
Eli Lilly and Company will have meetings every five months to address significant concerns such as the present situation of the plan that is required and the real agenda, financial planning, and any changes as well as any suggestions as to how these parts might influence the policies. Eli Lilly managing team will also take these conferences as possibilities to consider any additional problems concerning the plans.