Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991

Gary P. Pisano; Steven C. Wheelwright; Jonathan   West

Case | HBS Case Collection | December 1991 (Revised October 1998)

Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991

by Gary P. Pisano, Steven C. Wheelwright and Jonathan West

Abstract

Outlines the evolution of Lilly's corporate manufacturing strategy over the past decade. The corporate vice president of manufacturing must decide on the next phase of Lilly's strategy for the early 1990s, as well as to what extent and what role process development will play. Provides data outlining three different points in the product development process at which manufacturing process development might be initiated. Using learning curve concepts and data, students can estimate the economic costs and benefits (as well as organizational issues and challenges) associated with each. Illustrates process improvement's substantial impact in a capital-intensive industry, describes possible roles of manufacturing process technology in an industry that has viewed product R&D as its primary competitive advantage, illustrates phases through which manufacturing can evolve in pursuit of comparative advantage, and introduces students to a challenging and changing industry.

Keywords: Cost vs Benefits; Management Practices and Processes; Industry Structures; Product Development; Production; Research and Development; Competitive Advantage; Corporate Strategy; Manufacturing Industry;

Format: Print

18 pages

Educators Purchase

Citation:

Pisano, Gary P., Steven C. Wheelwright, and Jonathan West. "Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991." Harvard Business School Case 692-056, December 1991. (Revised October 1998.)

For more than two decades, scientific advances have been driving profound changes in drug discovery and the drug industry itself. This case provides an overview and description of these technical and scientific advances. Written for the nonscientific reader, it may be used as companion reading for other case materials that require basic knowledge of the tools, techniques, and approaches used in the pharmaceutical and biotechnology industries.

Case | HBS Case Collection | August 2019

Humanistic Capitalism at Brunello Cucinelli

Francesca Gino and Gary Pisano

This case explores one company’s attempt to experiment with a different underlying model for a capitalist enterprise. Brunello Cucinelli, S.p.A. is a leading manufacturer of luxury fashion apparel. Despite being a publicly traded enterprise with annual revenues exceeding 500 million, the company follows a somewhat unique human resource and cultural model. The company’s founder, Brunello Cucinelli, has striven to create an enterprise that follows principles of what he calls “humanistic capitalism”. Human capitalism, according to Cucinelli, means pursuing growth and profitability in a “gracious way.” At the company, humanistic capitalism manifests itself in a very specific set of policies and behavioral norms. Workers are paid wages that exceed 20% of the market norms; the workday (even for senior executive) is limited to the hours of 8:30 AM to 5:30 PM; emails are not to be sent after hours or on weekends; lunch breaks are one and half hours long to allow workers to have lunch at home should they choose. There are also strong cultural norms emphasizing respect and dignity. As part of this culture, employees are expected to keep their workspaces clean; eating at desks is not permitted; water can only be drunk from cups (not bottles); speaking should be done in hushed tones so as not to disturb colleagues. None of these cultural norms, however, are explicitly described in any written documents. The company has adopted this model in both its Solomeo, Italy headquarters and in its North American headquarters located in New York City.
The case allows students to explore the strengths and weakness of this culture and human resource model. A particular focal point of the case concerns the question of whether such a model is scalable and transferable across geographies. Does this model contribute to the company’s success or is ‘humanistic capitalism’ only possible because of the company’s underlying success? Is this model sustainable? The case invites discussion of deeper issues concerning alternative models of modern capitalism.

Keywords: corporate culture; Human Resource Practices; Growth; growth strategy; motivation; values; fashion; Capitalism; Organizational Culture; Values and Beliefs; Human Resources; Management; Business Model; Policy; Behavior; Growth and Development Strategy; Luxury; Italy;

Citation:

Gino, Francesca, and Gary Pisano. "Humanistic Capitalism at Brunello Cucinelli." Harvard Business School Case 920-007, August 2019. View Details

Cite View Details Educators Purchase

Faculty & Research

Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991

Abstract

Citation:

About the Authors

More from these Authors