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Management 2.0

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Question:

What are the strengths and the weaknesses in the CEO`action in case 2( Eli Lilly and Yz-crisis)

Author: Henriette Bergo



Answer:

Project Omega: Realigning the company structure into five focused business units to improve decision-making and customer alignment. R&D Focus: Continued investment in internal R&D, despite pressure to cut costs, and pursuing selective acquisitions like Imclone to strengthen their oncology portfolio. Cost Reduction: Implementing cost-saving measures, including workforce reduction and restructuring without compromising the core R&D activities. Forward Guidance: Setting minimum financial targets and offering clear communication to reassure investors and employees during the transition period​. Weak Actions: Resistance to M&A: While maintaining independence was strategic, it limited short-term options for growth compared to peers that pursued mergers. Initial Skepticism: Internal resistance and external skepticism about the restructuring plan indicated that not everyone was convinced of the path forward.


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