Eli Lilly in India: Rethinking the Joint Venture Strategy

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Eli Lilly and Company is a leading U.S. pharmaceutical company. The new president of intercontinental operations was re-evaluating all of the company's divisions, including the joint venture with Ranbaxy Laboratories Limited, one of India's largest pharmaceutical companies. This joint venture had run smoothly for a number of years despite their difference in focus, but recently Ranbaxy had been experiencing cash flow difficulties due to its network of international sales. In addition, the Indian government was changing regulations for businesses in India, and joining the World Trade Organization would have an effect on India's chemical and drug regulations. The president must determine if this international joint venture still fits Eli Lilly's strategic objectives.
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