Alliance Management At Eli Lilly Lesson Essay

Words: 8918
Pages: 36
Open Document
Alliance Management at Eli Lilly: Lessons on How Alliance Capability Contributes to Sustainable Advantage

Luvison, Dave, Journal of Applied Management and Entrepreneurship

Executive Summary
Alliances have long been an important strategy in the pharmaceutical industry even thoughmore than half fail. Eli Lilly set out to create a core competence in the area of strategic alliancemanagement that would not only improve its success rate, but also differentiate the firm fromits competitors in the industry. The manner in which Lilly approached that challenge providesan applied example of how theories of organizational values, the resource based view, the fiveforces and the extended value chain can promote sustainable advantage. More …show more content…
They are further subdividedinto four areas: principles of medical research; health, safety, and environment; direct- to-consumer advertising; and animal care and use ("Business practices," n.d.). Finally, they arearticulated in two formal statements of ethical behavior: the Red Book- Code of BusinessConduct and the "Code of Ethical Conduct for Lilly Financial Management."
Lilly's alliance collaborations are guided by a similar set of values that direct the firm to"discover, develop, and deliver the innovative pharmaceutical therapies that will help peoplelive longer, healthier, and more active lives" by following a collaborative vision, a globallynetworked strategy, and a straightforward approach ("Partnerships," n.d.). The companyholds three core principles toward its collaborations: (a) make alliances a true, writtencorporate policy, (b) establish an actual process for forming alliances and helping them workeffectively, and (c) ensure that certain foundational elements that feed alliance success areconsistent among all alliances (Stach, 2006).
However, goals and missions are ineffective if they are not communicated effectivelythroughout the organization (Neely & Wilson, 1992). To this end, Lilly appears to have gone tosignificant lengths to promote and reinforce its mission and values. In addition to theprominent placement of Lilly's core values on the corporate
Show More

Related Documents: Alliance Management At Eli Lilly Lesson Essay

Case 6-3 Eli Lilly in India: Rethinking the Joint Venture Strategy Essay

India and will be deciding what will be the best route to take. Ranbaxy Laboratories wants to be bought out, but Eli Lilly is worried of the financial implications of such move. There were two pharmaceutical companies that were looking for ways to expand globally to position themselves in a competitive advantage from their competitors. One was located in the United States, which was Eli Lilly and…

Words 3222 - Pages 13

Essay about MAN6636 Exam Study Guide

MAN6636 Exam Study Guide Session 1 Case: Go Global or Not? Why do firms need global strategy? The domain for global strategy should be in a blend of home country strategy and altering for uniqueness of each strategy Summary Data clear is faced with competition and is forced to go global or not. Need to know the pros and cons / it’s a commitment to go internationally and they may of not been ready for it . Company Dataclear is a Telecom and Finance Company. (CEO) Grey, (VP) David Lester. Revenue…

Words 4795 - Pages 20

Pfizer to Acquire Protalix Essay

The Rational of the Acquisition 1 1. Pfizer's Strategy 1 1.1. Pfizer Growth Strategy 2 2. Pfizer's Road Map 4 2.1. Pfizer's Acquisitions Rational 4 3. The strategy behind the acquisition 5 3.1. Acquisition Motives 5 3.2. M&A vs. Alliance 5 4. Target Identification 7 4.1. Protalix - an R&D Acquisition 9 5. Synergy Analysis 10 6. Standalone, Synergy and Premium Valuations 12 6.1. Market Value 12 6.2.…

Words 10040 - Pages 41