Jianeng Sunshine (ID: 11720021)

BUS 581

Dr . Locker room

July 2013

1 . Was your country wrong? Why India?

The was proper. Even though India was seen as low per capita GROSS DOMESTIC PRODUCT, but the populace of India cannot be overlooked. And 2 hundred million and 300 million of 800 million people in India were midsection class. That was a huge potential market for Eli Lilly and Company. Since the cost of health-care increased in developed countries in the 1990s, chose India was a good option for a international company just like Eli and Lilly. Especially could uses India because trade route to export goods to The ussr, so choose India had a lot of positive aspects. 2 . Was deciding to partner incorrect? Is alliance a good or bad factor? It was not wrong as a partner with Ranbaxy. Ranbaxy was your leading domestic pharmaceutical firm in India. And based on the government of India began the process of liberalization and the maximize of international ownership, the best way for Eli and Lilly was to be a partner of your local pharmaceutic firm. In cases like this, the relationship is a good thing for both Ranbaxy and Eli and Lilly. 3. Was the partner choice wrong?

The partnership with Ranbaxy was your right decision for Eli and Lilly, because Ranbaxy was the leading firm with this industry, and was able to help Eli and Lilly to ascertain an distribution system. Normally, Ranbaxy and Eli and Lilly had been both research-oriented and worldwide firms, and Ranbaxy used Lilly's " Red Book” entirely. Sometime later it was on, both of these companies started to enter the generics, which was more profitable.

some. Was the JV structure wrong?

The joint venture framework was not wrong. Lilly and Ranbaxy have 50 percent title was great for both of them. And Lilly retained the right to appoint the CEO was also good pertaining to the JOINT VENTURE to operate just like a international organization because the manufacturer value of Lilly plus the management experience of Lilly. In addition to this case, you observe clearly from your financial details...


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