Elan Corporation Turnaround Harvard Case Solution & Analysis

Elan Corporation Turnaround Case Study Help

Advertisement and Socializing Focus:

The Elan Corporation should focus on its advertisement and socializing, because its   medicines have failed to meet the criteria for life savings drugs, which is the reason behind the occurrence of several issues in the company, restricting it from having sales in the general market In order to overcome this issue; Armen suggested that the company should spread awareness among its consumers regarding their drugs, which will increase the worth of its drugs as lifesaving drugs, ultimately contributing to the betterment of the patient’s  health, who are openly using the company’s drugs.

In addition to this, there are several advantages and disadvantages related with this option, which are stated below:


The main advantage of this option is to save cash, which is divesting in the research and development option. In addition to this, there is another advantage associated with this option, which is the reduction of risk factor as compared to research and development option, in which after investing several amount there is always uncertainty about the success. There is always a doubt in research and development method that after making investment there is no guarantee that the outcome will be positive, which would cause the loss of all the money that is spent by the company, creating negative image for the company among its investors and other stock holders.


  • Loss of competitive edge in a dynamic industry.
  • Competition on price with generics is a downward spiral.

The Choice of a Successor

Now, the question arises that what type of successor should Armen choose? – An expert belonging to the non-pharmaceutical turnaround or an internal manager, having the targeted operational expertise of the company or should Armen avail any other option. So, in my opinion; Armen should not opt to take help of an expert belonging to the non-pharmaceutical turnaround and neither should he involve any internal manager with an operational expertise, he should rater select another option, which is synergies.

Elan Corporation should go with the making of clear synergies between the product development and sales and marketing with other established companies, in the market. In addition to which, the company should separate its two units from each other’s, which will create success for the company in future, and the investors could easily focus that where they need to make investments, and if the one segment is not making profits; another would not be affected. Hence, the overall organization will enjoy the benefits................................


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