Case Study of Eli Lilly&Company Example | Topics and Well Written Essays - 1000 words

Of Eli Lilly&Company - Case Study Example An aging population and the introduction of new products create new opportunities for the firm in the future. New markets in Asia and Africa also present new opportunities for these drug companies (David, 2011). Pharmaceutical sales globally are set to increase in the region between 5 to 7 percent in 2011 to the way over $880 billion, majorly driven by the expected growth in the developing markets (David, 2011). China’s sales alone are expected to grow 25- 27 percent, showing an increase in the middle class, growing standards of living, and grown government healthcare funding. Bio tech companies have over the years shown a robust revenue growth, albeit from a way much smaller base. Purchasing the bio tech firms will increase their projected sales by between 3 – 5 percent (David, 2011). Another reason as to why it is important for Eli Lilly to purchase bio tech firms is; the discovery and development of drug usually takes a number of years to finish, and could cost way above $500 million, with a no guarantee that there is eventual approval in the market. When a drug becomes registered and gets a patent, it becomes protected against the same or generic drugs for 5- 15 years (David, 2011). Due to this, loss of the patent protection can greatly affect the firm’s sales and earnings. Acquiring biotechnology drugs companies is an attractive route. Lily should purchase this biotechnology drug companies since it will be essential in the pharmaceutical industry in the long run. Biotech companies have continued to experience good revenue growth, and by purchasing them; lily would become assured of continued profits in the industry (David, 2011). The best way that lily can enter the global market is by introducing a new product in the market. The top three drugs of Eli Lily; Zypera, Cymbalta, and Humalog have patent expiration by 2013 (David, 2011). The

Budget Analysis Essay Example | Topics and Well Written Essays - 1250 words

Budget Analysis - Essay Example Budget analysis Determination of Goals and objectives of the City It is very important to determine and consider the goals and objectives of the City Council of the Ypsilanti in the initial stage of preparing the council’s budget. Knowing the goals and objectives will help me as the budget officer understand and draw appropriate boundaries that reflect mission and annual goals of the organization1. Goals and objectives of the council will work as benchmark that guide me in staying within the limits of the council’s expectations of growth and development. Determination of Expenditure As the budget officer of the City of Ypsilanti, I will make thorough and critical consideration of the current expenditures incurred to help me in structuring and estimating the scope of expenditure likely to be incurred during the next financial year. As the budget officer of Ypsilanti City I will determine the contemporary expenditure records of the city council on various areas of its ope ration. This will help me draw a budget forecast of the next financial year.2 I will basically make consultations with the accountant and financial officers in the council. This move will assist me in collecting all receipts and or any other testimonials that disclose any kind of expenditure incurred by the council. As in the case of this city that witnesses daily entrance and exit of 20, 000 university students, I will need to determine the average daily costs incurred by the City Council of Ypsilanti to host such visitors. In addition, I will need to determine the total expenditure incurred by the council in caring and managing the 35000 potential residents of the city. The outcome will be added to the previous expenditure on visitors to determine the total cost on human operations. These expenditures together with other operational costs shall be calculated with high level of diligence and accuracy. With forecasts on the possible changes in future, I will be able to draw a realis tic budget for the city council3. Determination of Income For the budget administrator to draw a convincing and propelling budget that will attract the attention and recognition of the council legislators, he/she should indicate the possible incomes expected and their possible sources. I recognize that determination of income and their sources is a crucial stage that requires utmost diligence to convince the legislature to pass the budget. 4Indicating sources of income will make the budget of the City Council of Ypsilanti appear realistic and convenient. This will likely attract good participation and speculation of the legislators. As the budget manager in this city, I have decided that the city authority raise the gas tax to 51% and also raise vehicles registration fees to 57% in order to avail funds for repairing the road systems in this city. Other sources of required funds for the roads maintenance will also be gathered from 33% tax increase in the mileage travelled by vehicles operating within the city. Ensuring balance The next and probably sensitive point in preparing the budget of the city council is achieving a balance between the expenditure and the expected income. I understand that council legislatures will not approve any budget viewed to cause big deficit above the financing