Eli Lilly and Business Case Analysis The case analysis, Eli Lilly & Company, will cover the positive and negative aspects related to the business situation and strategy of Eli Lilly. One of the leading pharmaceutical and healthcare companies in its industry, Lilly has concentrated its efforts in the areas of "drug research, development and commercialization in the following areas: neuroscience, endocrinology, oncology, cardiovascular disease and women's health." After making a strong comeback in the 1990s thanks to its remarkably successful antidepressant Prozac, it was now facing a potential loss of profits due to its expiring patent. The problem was not only the impending patent expiration on Prozac, but the fact that Prozac accounted for up to 30% of total revenue was the reality Eli Lilly was facing. (Pearce & Robinson, 34-1) Summary of Key Strategic Issues By choosing to narrow its focus to its core pharmaceutical business in the 1990s, Lilly appears to have deliberately or inadvertently chosen to channel its efforts into the neuroscience category with patented products Prozac and Zyprexa, Lilly's top sellers. Its unbalanced portfolio and slowing international sales were the result of its reliance on only a few key products. This type of neuroscience-focused strategy was not suited to more cost-conscious international regions whose focus was disease treatment. Other factors working against them were regulations in non-U.S. developed countries on drug pricing and payment schedules through national health insurance programs. For this reason, Lilly would not have earned such a high profit margin on its blockbuster drugs, Prozac and Zyprexa, in Europe and Japan as... middle of the paper... exa products, i The company is located at address numerous market challenges related to demographic change, intensifying competition, industry consolidation, regulatory pressures and healthcare cost constraints. It is recommended that Lilly diversify its product portfolio, carefully begin acquiring small businesses, and work to change its organizational culture to encourage flexibility and organization-wide learning. References Gadiesh, Orit & Buchanan, Robin "The Leadership Testing Ground: Mergers May be the Truest Test of Great Leaders," Journal of Business Strategy, 23(2), pp. 12-17.Greenberg, Jerald Managing Behavior in Organizations (Upper Saddle River, NJ: Prentice Hall, 1996), pp. 132-133.Pearce II, John A. and Robinson, Jr., Richard B. (2005). Strategic Management: Formulation, Implementation, and Control (9th ed.). The McGraw-Hill Companies, Inc., New York.