Eli Lilly Case Study

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Case Study: Eli Lilly The pharmaceutical business could be one of the most difficult businesses to stay successful in, and Eli Lilly is attempting to stay successful by dealing with some big problems and important decisions. The biggest problem we face is we will be losing 75 percent of our annual revenue in the next seven years, so we need to find a way to replace or replenish the revenue we will be losing. While making the plan for solving that problem, there are a few factors we need to consider. One is we cannot increase employment of any kind, in fact we recently had to lay off some of our workforce. The factor is we cannot increase our research and development budget, as we recently cut funding for that also. With time also being a factor,…show more content…
With time being an issue, we need to move away from having centralized approval and move towards a more decentralized approval. Decentralizing approval will allow for faster response times on questions that are essential in every process of the goal. Decentralizing also allows the possibility of moving towards an organic organizational process, which would give employees the freedom to brainstorm with their authority. Recently, Eli Lilly has been pushing their scientists and developers to find the next “blockbuster” drug to make up for our upcoming revenue losses, but focusing all our efforts on the next big drug could lead to the complete downfall of Eli Lilly. Changing our strategy to becoming more analyzers rather than prospectors would allow us to have our chances at finding the “blockbuster” drug, but would allow us to focus on producing a higher quantity of smaller profitable drugs and slowly but steadily help make up for some of the disappearing revenue. Both of these alternatives could potentially help with our impending…show more content…
The proposed timeline would be a 5-year timeline with adjustments possible throughout those years. During the beginning of the first year, we would outsource packaging and implement the decentralized approval, because knowing how the authority works will be pivotal for the other adjustments. After an adjustment period of six months, we will implement the team based product structure and outsource product testing. The goal is to give employees enough time to adjust and ask questions and allow us to make the proper adjustments within the first year of implementing these new structures. During the first year, the goal would be to make up for 10 percent of the revenue we will be losing and then 15 percent for the remaining four years on the 5-year plan. With this timeline and attainable goals set, Eli Lilly has the power to make up 70 percent annual revenue income in five years out of the 75 percent of the annual revenue income that we will be losing in seven
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