Edwards. Shondrell Mgt 6685 Phizer Case Analysis

Running head: PFIZER CASE ANALYSIS

Pfizer Case Analysis

Shondrell Edwards

Troy University

MGT 6685 XTIA Management Strategy Term 2, 2011

April 9, 2023

Dr. Chekwa

Author NoteShondrell Edwards, Student, Troy University.

Correspondence concerning this sample paper should be addressed to Shondrell Edwards, Student, E-mail: [email protected].

Pfizer Case Study EDWARDS, SHONDRELL #1138929

Executive Summary

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Pfizer’s Vision, Mission, Objectives, and Strategy

Pfizer, Inc. is a research-based, global biopharmaceutical company whose diversified

global healthcare portfolio includes human and animal biologic and small molecule medicines

and vaccines, as well as nutritional products (Pfizer, 2010). The company was founded by

Charles Pfizer and Charles Erhart in 1849 and is headquartered in New York, NY. .Pfizer’s

Vision outlined in the text, was as follows: We will be recognized for meeting the diverse

medical needs of patients in Emerging Markets around the world in an innovative, socially

responsible and commercially viable manner”. This vision or intent of the company for future

dealings outlines the new prospects for business in developing countries. The company operates

in two commercial organizations which constitute two business segments: Biopharmaceutical

and Diversified. The Biopharmaceutical segment includes the Primary Care, Specialty Care,

Established Products, Emerging Markets and Oncology Customer-Focused units, which includes

products that prevent and treat cardiovascular and metabolic diseases, central nervous system

disorders, arthritis and pain, infectious and respiratory diseases, urogenital conditions, cancer,

eye disease and endocrine disorders, among others (Pfizer, 2010). The Diversified segment

includes Animal Health products that prevent and treat diseases in livestock and companion

animals; Consumer Healthcare products that include over-the-counter healthcare products such

as pain management therapies, cough/cold/allergy remedies, dietary supplements, hemorrhoidal

care and other personal care items; Nutrition products such as infant and toddler formula

products; and Capsugel, which represents its hard capsules business (Pfizer, 2010). The mission

statement of Pfizer says, “We will build bold and innovative partnerships, reach patients we have

never reached before, provide medicines and services at an affordable manner, be recognized for

having the best talent in healthcare, become a leading pharmaceutical company in emerging

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markets”. The objectives are to become a leader in biologics, enter the vaccines market, expand

and investing and areas, strengthen leadership in emerging markets, create new opportunities for

established products, invest in complementary businesses, and establishing a lower and more

flexible cost base. The strategies for achieving this goal are to extend global health care

leadership, improve current performance by having a unique business model, having consistent

and stable earnings, and meeting the unmet needs of patients, physicians, and other customers

(The World's Premier Pharmaceutical Company, 2009).

Mission and Vision Statements

In response to the objectives and strategies, I propose the following vision statement:

“Pfizer will continue to lead the world by helping mankind across the world”. My proposed

mission statement is as follows: “Pfizer is more than medicine. We will help patients, human

and otherwise to become healthy as possible with our products and continue to develop cutting

edge methods, provide our great products at affordable prices, while satisfying ethical and

environmental concerns”.

Pfizer External Opportunities and Threats

Pfizer has many opportunities for growth, due to their strengths. Pfizer’s opportunities

include 1) Proposed Wyeth acquisition 2) Global growth 3) Expansion into biologics/vaccine

market 4) Partnership with other countries

Pfizer’s threats include 1) Regulation hurdles in the United States and European

Commission 2) Pfizer will have to take on Wyeth’s possible litigation 3) Norvasc, Celebrex, and

Bextra lawsuits abroad. 4) Major competition in the pharmaceutical industry 5) Over the counter

drug availability.

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Pfizer Competitive Profile Matrix (CPM)

Stage one (1) of the strategy analytical framework is the input stage where a CPM, IFE,

and EFE are created for the company. The purpose of a Competitive Matrix analysis is to

critically profile and compare your firm against known competitors.

As you can see from the table above Merck has the lowest score, which shows they have

the strongest position.

Pfizer External Factor Evaluation (EFE) Matrix

External Factor Evaluation (EFE) matrix method is a strategic management tool that

shows current business conditions, visualize, and prioritize the opportunities and threats that a

business is facing. The EFE matrix is concerned solely with external factors. External factors

assessed in the EFE matrix are the ones that are subjected to the will of social, economic,

political, legal, and other external forces. As you can see from the chart, Pfizer total weighted

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score for its External Factor Evaluation (EFE) Matrix is 2.92, which shows average response to

existing opportunities and threats in its industries. The current strategy utilized is average, but

will need to be improved to keep Pfizer in the top position amongst all competitors.

Pfizer’s Internal Strengths and Weaknesses

Pfizer has many strengths and as such those things have contributed to the company

being strong and succeeding this long. Pfizer’s strengths are as follows: 1) Pharmaceuticals

dominate the majority of the business units within Pfizer 2) Lipitor is the strongest drug in its

category 3) Pfizer has the largest market cap in the world 4) Pfizer’s employee workforce is the

largest in the world .5) Pfizer’s program of helping those who need drugs and lost jobs has

helped build a loyal customer base. 6) Pfizer is very active and known in politics 7) Greatest

marketing power

Pfizer has had extremes of all factors, meaning their good things are great, and their bad

things are extremely bad. Pfizer’s weaknesses are 1) Pfizer’s continued problem with disobeying

regulations 2) Many patent protections ending and Food and Drug Administration (FDA) issues

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in 2010 3) Customer disapproval due to medicines not being approved and/or safe. 4) Finances

need more visibility 5) Lowest earning per share (EPS) although ranked ahead all competition 6)

FDA 7) Changes in health care coverage may impact Pfizer's sales.

Pfizer Internal Factor Evaluation (IFE) Matrix

The IFE Matrix together with the EFE matrix is a strategy formulation tool that can be

utilized to evaluate how a company is performing in regards to identified internal strengths and

weaknesses of a company. Pfizer total weighted score for its Internal Factor Evaluation (IFE)

Matrix is 2.64, and that score shows the company has possesses a very strong internal position

within the industries.

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Pfizer SWOT Matrix

Strengths

1) Pharmaceuticals dominate the majority of the business units within Pfizer 2) Lipitor is the strongest drug in its category 3) Pfizer has the largest market cap in the world 4) Pfizer’s employee workforce is the largest in the world5) Pfizer’s program of helping those who need drugs and lost jobs has helped build a loyal customer base. 6) Pfizer is very active and known in politics 7) Greatest marketing power

Weaknesses

1) Pfizer’s continued problem with disobeying regulations 2) Many patent protections ending and Food and Drug Administration (FDA) issues in 2010 3) Customer disapproval due to medicines not being approved and/or safe. 4) Finances need more visibility5) Lowest earning per share (EPS) although ranked ahead all competition 6) Changes in health care coverage may impact Pfizer's sales.

Opportunities

1) Proposed Wyeth acquisition2) Global growth3) Expansion into biologics/vaccine market 4) Partnership with other countries

Threats

1) Regulation hurdles in the United States and European Commission2) Pfizer will have to take on Wyeth’s possible litigation 3) Norvasc, Celebrex, Bextra lawsuits abroad4) Over the counter drug availability

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Pfizer SPACE Matrix Values and Dimensions

CA -1 (best) to -6 (worst) IS +1 (worst) to +6 (best)

FS -1 (best) to -6 (worst) ES +1 (worst) to +6 (best)

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Pfizer Completed SPACE Matrix

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5

4

3

2

11 2 3 4 5 6

This particular SPACE matrix tells us that our company should pursue an aggressive

strategy, and has a strong competitive position in the market with rapid growth. It needs to use

its internal strengths to develop a market penetration and market development strategy. Some

suggestions are product development, integration with other companies, and acquisition of

competitors.

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Aggressive-Suggested strategy type


Pfizer BCG Matrix

Viagra is in the dog category because it has been found that a safer herbal supplement can

produce the same results with less risk. Pfizer must consider the question marks of the generic

drugs, and if they should venture into that area or continue their research and development.

Lipitor and Zoloft catapulted the company into its number one position.

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Phizer IE Matrix

Strong Average Weak

4High

3HOLD AND MAINTAIN

Medium2

1 Low

4 3 2 1

The IFE matrix score for Pfizer is 2.64, which means they have an above-average internal

strength. The EFE matrix for Pfizer is 2.92, which suggest a less than average ability to respond

to external factors. The total weighted score calculated on this page is 2.78, which points at a

company with an above-average internal strength. Cells IV, V, and VI suggest the hold and

maintain strategy. For Pfizer this means tactical strategies should focus on market penetration

and product development.

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EFE Score 2.92

IFE Score 2.64


Pfizer GSM Matrix

Pfizer is in Quadrant 1 of the GSM. Pfizer has competitive situation and rapid market

growth, and is in excellent strategic position. Therefore, Pfizer must focus on current market and

appropriate to follow market penetration, market development, and products development are

appropriate strategies.

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Pfizer GSM


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Stage 3 is the QSPM, which is the decision stage for the strategy framework.

Pfizer Recommended Strategies, Objectives, Policies, Review, and Evaluation

My recommendations for Pfizer are as follows: (1) Focus on short-term goals and

orientation when it comes to working with drugs that have a patent expiration coming up. (2)

Continue their focus on customer relationship to build customer loyalty and have their brand

become the preference, due to the number of pharmaceutical companies in existence today. (3)

Continue cutting edge technology of pills that can treat more than one ailment (Caduet). (4)

Make safety a number one priority by providing more information about their products, side

effects, and consumption. (5) Continue and focus on global expansion and international sales.

(6) Consider lowering prices to compete with competitors.

Pfizer is able to maintain their spot at the number one position. Pfizer trail blazes in a lot

of new ways, such as their joining the United Nations Global Impact (that focuses on corporate

responsibility and citizenship). The Research & Development business unit has been very

successful as far as their new developments and this is where spending exuberant amounts of

money has paid off for Pfizer. Between their workforce, investments in R & D, and global goals

Pfizer should continue to dominate the pharmaceutical market. Pfizer should adopt the

expansion program and indulge in backward, forward, or horizontal integration in a careful way

that includes biannual review and evaluation. Pfizer may also want to exploit the external

opportunities and magnify the wealth in numerous areas of dealings.

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REFERENCES

2010 Financial Report (2010). Pfizer.com. Retrieved from http://www.pfizer.com/investors/financial_reports/financia l_reports.jsp

American Psychological Association (2010). Publication Manual of the American Psychological

Association (6th ed.). Washington, DC: American Psychological Association. Company Symbol PFE (2011). MSN Money. Retrieved from

http://investing.money.msn.com/investments/company-report? symbol=PFE David, F. (2011). Strategic management: Concepts and cases (13th ed.). New Jersey: Prentice

Hall.

Pfizer. (2010, September 30). Retrieved October 30, 30, from CNN Money: http://money.cnn.com/quote/profile/profile.html?symb=PFE Pfizer, Inc. and Subsidiary Companies (2010). 2010 Financial Report. Retrieved from

http://www.pfizer.com/files/annualreport/2010/financial/fi nancial2010.pdf Pfizer, Inc. (2011). Pfizer’s commitments for a healthier world. Retrieved from

http://www.pfizer.com/files/about/pfizer_commitments.pdf PricewaterhouseCoopers (2007). Pharma 2020: The vision. Which path will you take? Retrieved

from http://www.pwc.be/en/pharma/pdf/Pharma-2020-vision- PwC-09.pdf.

The World's Premier Pharmaceutical Company. (2009, January 26). Retrieved October 30, 2011, from Pfizer : http://www.pfizer.com/files/investors/presentations/q4earnings_january012509.pdf

U.S. Department of State (2011). Why population aging matters: A global perspective. Retrieved from http://www.imshealth.com/portal/site/imshealth/menuitem.a9 53aef4d73d1ecd88f611019418c22a/vgnextoid=bb967900b55a5110V gnVCM10000071812ca2RCRD&vgnextfmt=default

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http://www.pwc.be/en/pharma/pdf/Pharma-2020-vision-%20PwC-09.pdf


www.strategyclub.com S& P Industry Survey material in the college library

http:// finance. yahoo. com or http:// moneycentral. msn/ investor/ home. asp

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http://www.strategyclub.com/

Edwards. Shondrell Mgt 6685 Phizer Case Analysis

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