5. In a local coordinate system [x and y axes in horizontal plane; z axis positive up; system right-handed], the (x,y,z) coordinates of the virtual centre of a total station are given as...

Case 1:
Question1: Did Eli Lilly pursue the right strategy to enter the Indian market?
Eli Lilly – a leading pharmaceutical firm of USA, entered in to a joint venture agreement
with an Indian Company (Ranbaxy) that marked its entry into India. The joint venture was
formulated as per the conditions of the US market, while it was formed to reap the benefits of
vast amount of opportunities available in the Indian pharmaceutical market.
Several opportunities available in the Indian market coupled with various factors like: lower
production costs, highly government control of the manufacturing sector, rising prices and
supportive regulations made it conducive for foreign investments (up to 51%).
Given the regulation on the amount of foreign investments in India, it was ideal to look out
for a joint venture agreement to enter into Indian market. During that time Ranbaxy one of
the most flourishing companies in the pharmaceutical industry in India. It was the second
largest manufacturer of generics and drugs in India, with approximately 15% market share
(India). Ranbaxy also had an established distribution network, besides being the second
largest exporter to numerous countries (including Russia). Given the range of above factors,
Eli Lillys move of partnering with Ranbaxy to enter India can be termed as a smart move.
Besides entry into the Indian market, Eli Lilly through Ranbaxy would also be able to capture
a share of Russian market which it had been eyeing since a long time. In addition, joint
venture with Ranbaxy also provided Eli Lilly with significant amount of opportunities to
conduct clinical trials in India at a much lower cost. In addition, Ranbaxy also worked on it
own process for developing Eli Lilly’s patented drug Cefaclor (whose patents expired in
1992). This was advantageous for both the companies.
The intellectual property rights in India were considerably weak compared to US. As a result,
the American partner did not share its research expertise with Ranbaxy. This led to severe
problems in the joint venture. However, Eli Lilly did realize the maximum benefit from this
arrangement by benefitting from the low cost research in India.
2. Carefully consider the evolution of the joint venture. How would you assess the
overall performance of the JV? What did the partners learn and gain from the IJV?
The Eli Lilly and Ranbaxy joint venture was mutually profitable for both the partners. While
Eli Lilly gained the entry into the Indian market besides access to cheaper clinical trials,
Ranbaxy gained from the code of Ethics of Eli Lilly and its strong presence in anti-cancer,
cardiovasculars and anti-infective drugs. In addition, through the joint venture, Eli Lilly was
also able to gain further insight about the peculiarities in the emerging markets.
Further, Ranbaxy also leveraged on the experience it gained through the joint venture to
expand beyond the Indian market to international markets including USA. Their sales
network strengthened, and the drug maker was considered more reliable then it was a few
years back. Thus it is quite clear that both the parties in this joint venture gained extensively
from their JV agreement.
Given the range of benefits driven by both the parties, this joint venture grew handsomely
registering a growth of approximately 8% per annum during 2000-2001.
3. What...