The Evolution of the JV, Case Study Example

Did Eli Lily pursue the right strategy to enter the Indian market?

It does not appear that Eli Lily pursued the right strategy to enter the Indian market. While the company that he partnered with is a leader in the industry which makes it seem that this is a safe partnership, it appears that Lily did not closely examine the political and legal factors that were relevant in establishing this relationship. Instead, he should have done a thorough analysis to determine which countries have similar pharmaceutical regulations to those that are in place in the United States to be certain that his profitability will continue over the long-term.

Considering the evolution of the JV, evaluate the challenges that JV leaders faced in each phase

In each phase of the joint venture, the leaders faced a variety of challenges. The primary challenge was involved in establishing the relationship, as a business plan needed to be established. The individuals involved in this relationship needed to determine how each sector would split profit and what the individual responsibilities of each partner would be. As the Indian government is changing regulations, it will become necessary to make alterations to this plan to ensure that all business actions are in accordance with the newly established standards.

How would you assess the overall performance of the JV? What did the partners learn from the experience?

The overall performance of the joint venture can be determined by calculating the baseline profit and sales made by the company before establishing this new relationship. These figures can then be compared to the profit made after establishing the joint venture and these numbers should be tracked over time to determine how this partnership was beneficial. Furthermore, business decisions could be tracked in a similar way to determine which interventions caused an increase of decrease in business. This will provide information statistics that will allow both partners to be aware of the advantages and disadvantages that the partnership brought about.

What actions would you recommend regarding the Ranbaxy partnership? What are the implications of your recommendation? How would you implement this?

It appears that this business relationship could continue in some manner, although it is likely that the terms of the joint venture will have to be modified in order to accommodate the changing Indian laws. It seems valuable to have an international joint venture in place for Eli Lilly and Company because India will allow the sale of many of the products that can legally be sold in the United States, therefore allowing the company’s market to expand. In addition, this continued partnership would allow the trading of pharmaceuticals between countries and organizations to be more efficient, which would allow both to profit. Ultimately, it is still beneficial for these companies to function as a joint venture despite this shift in regulations. However, they will need to modify the terms of the joint venture in order to ensure that the business will continue to be profitable.