Paper

TABLE OF CONTENTS

1.0 Introduction3

2.0 Strategic Issues & Problems3

3.0 Analysis & Evaluation4

4.0 SWOT Analysis5

5.0 Strategy5

6.0 Alternative Actions6

7.0 Recommendations7

8.0 Conclusion8

1.0 Introduction

The given discussion is based on Eli Lilly, a multinational pharmaceutical company founded in 1876 by Colonel Eli Lilly “when he purchased a laboratory on Pearl Street in Indianapolis, Indiana” (Ofek & Laufer, p. 1). Lilly had developed an antidepressant drug called Prozac that ruled the pharmaceutical industry for years; however, the patent was soon to expire. The core strategy of Lilly was to replace its premier drug “Prozac” by concentrating and devoting resources to only 5 Assets: “R-fluoxetine, OFC (olanzapine-fluoxetine combination), 5HT2 Antagonist SSRI, Business Development Opportunities, and Cymbalta (duloxetine)” (Ofek & Laufer, p. 8). In the initial section of the paper, the company’s strategic issues and problems will be analyzed. With such an analysis, the underlying problems as well as the strengths and weaknesses of the organization can be understood effectively to help Lilly come to a decision on what will replace their premier drug. In the next section of the paper, an analysis and evaluation of several company related factors is performed which will help develop the facts and data. Finally, alternative solutions have been prepared, in relation to these actions, and some effective recommendations are also suggested for the firm's enhanced future business.

2.0 Strategic Issues & Problems

Since the inception of its business, Eli Lilly achieved tremendous successes due to the conception of effective drugs for the treatment of depression. The company gained major successes due to the sale of Prozac; however, after two decades of its business...