Eli Lilly - Research Paper Example

Companies’ decision making Eli Lilly is apharmaceutical company with various branches and with an headquarter in Indianapolis, Indiana. The company also has its branches in over 15 nations while it has its market in more than 100 countries. It was founded in 1876 and has been on a growing trend due to its collaboration with other related companies and good customer relations. This discourse is about the effects of other companies on certain companies’ management strategies. Lilly Endowment Inc. is a privately owned Philanthropic foundation in Indianapolis. It was created by three Lilly family by delivering goods from their pharmaceutical company, Eli Lilly and Company. It there for means that Eli Lilly and company is basically the bedrock or pillar of Lilly Endowment. However, Lilly Endowment remains a motivator for the pharmaceutical company, and hence it affects some of its business and management strategies. Lilly Endowment entails some community and volunteer programs in the community. It is believed that its budget is greatly financed by Eli Lilly and company and this means that the pharmaceutical company would do anything to make gain, to put in a capacity to support Eli Endowment. This could mean cutting on expenses like reduction of labor, adoption of modern and effective digital management strategies like e-human resource management (E-hrm) to reduce the number of workers hence reduce on the labor expenses among others. Furthermore, the pharmaceutical company may have to organize some workshops and seminars to encourage the beneficiaries and officials from the Lilly endowment and this could mean some cost and time as well. Some senior management team are always required to mentor the youths and women in the Lilly Endowment and this means they have to forego their core roles in the Eli Lilly and company to encourage some members of the Lilly Endowment Inc. Lilly Endowment was founded by the core owner of Eli Lilly and company and his three core values revolved around community development, education and religion among others. This means that the same principles must be incorporated in the pharmaceutical management strategy. The element of community development could be related to its CSR which entails building schools for the locals, initiating clean water projects in the community, constructing health institutions and funding certain health related projects to eradicate epidemic like HIV and TB among others. The company is known to donating food and pharmaceuticals to the less fortunate like the street homes and elderly homes among others. With regard to religion, the pharmaceutical company is obliged to stick to the Christian values and ethics, and this compels the company to ensure honesty and transparency in all its dealings. Wellington Management Company, whose ownership is private, provides investment advices to various clients, Eli Lilly and company included. The company has good record of success and this qualifies it to have more than 2000 institutional clients in more than 100 nations. Wellington Management Company revolves around asset classes and investment approaches. It also has a stake in public equity, alternative markets and fixed income among others. Eli Lilly and company could consult Wellington Mgt Company on issues concerned with alternative markets and approaches to expand its business, strategies to cut on operational costs, marketing strategies and safer ways to acquire additional capital to expand its operations (Black, 45). This means that the pharmaceutical company’s management team must incorporate Wellington Mgt company ideas in their overall decisions. Wellington company could a times provide alternatives that differ with the pharmaceutical company’s values and traditions and a times this could compromise the company’s relations with its stakeholders, customers included. The Vanguard Group, another investment management company, is based in Malvern, Pennsylvania. It is also the third largest Exchange-traded funds contributor in the United States. Vanguard Group is one of the multination businesses that control the smaller national and international businesses in the country. First, Vanguard group provides financial loans to smaller businesses and this means they dictate the interest rates that affect companies like Eli Lilly and company. Large companies like the Vanguard dictate the foreign exchange rates and this affects the decisions made in smaller companies like Eli Lilly and Company among others. Such decisions could revolve on production rates, distribution costs and labor among others. #2 Pfizer, Inc. is a Multinational pharmaceutical Corporation with its headquarter in New York. It has various research centers in various parts of the globe. In terms of revenue, its among the world’s best pharmaceutical companies. The company’s main products include both medicine and vaccines among others. Its top management decisions depend on other multinational companies like Vanguard group, Blackrock and State Street Corporation among others. The Vanguard group is a financial and asset management company and this means that its one of the largest contributor to the GDP, which in turn affects the Pfizer,Inc. operations. For instance, Pfitzer, Inc. could be forced to get rid of some workers to reduce the operational cost and meet the anticipated revenue, a subject of the stipulated GDP. The GDP also dictates the economy of the nations and this affects the customers’ abilities to afford various products. BlackRock Inc. is among the largest asset managers and risk managers in the entire globe, it there for means that its contribution to the overall GDP is a great deal. This further dictates the general economy of the nation and that of the globe, which further dictates the production cost and consumers’ capabilities to afford the medical products from Pfizer Inc. Such large companies also dictate the taxes imposed on similar and even much smaller companies. Such facts could force Pfizer top management team to slow their activities to meet the stipulated scales among other decisions. #3 From the above findings, it is evident that the big companies put more pressure on smaller businesses in various ways. First, they have the highest pay scale to their workers and this means every graduate or the top brains wish to be employed in such companies. This put more pressure on much smaller companies as they have to upgrade their pay scale to keep their workers, otherwise, everyone will resign and seek much greener pasture in the biggest shareholders companies. Such companies are the main contributors to the national and global GDP and this means they set a pace that must be kept by other companies. This means that the smaller companies could be forced to reduce their operational costs by reducing labor, choosing the least costly alternatives, engaging cheapest management strategies like the e-hrm among others. Majority of the biggest companies could be financial institutions and this means they dictate the interest rates that could affect the decisions of smaller businesses. Finally, the biggest shareholders in any company would wish to have their voices heard by dictating the terms and engaging more pressure to ensure gain in such companies. Any violation of their wishes could see them withdraw from such companies and invest in others. This means that their suggestions or wishes are incorporated in the decision making, regardless of their feasibility. For instance, Eli Lilly and Company ensures that Eli and his sons’ principles are involved in the pharmaceutical company management strategy. Furthermore, Pfizer, Inc being a public company ensures that the interest of the public are well observed in any decision made by the relevant authority. Work cited Black, Ken. Business Statistics: For Contemporary Decision Making. New York: John Wiley & Sons., 2011.print Read More