Pfizer swot

https://pestleanalysis.com/pfizer-swot-analysis/

https://notesmatic.com/2017/11/pestel-analysis-e-commerce-industry/
Porter generic

https://www.businessnewsdaily.com/5446-porters-five-forces.html
https://blog.csdn.net/chktsang/article/details/104749468
https://www.mindtools.com/pages/article/newSTR_82.htm
SWOT

TOWS

SO- strategies that use strengths to maximize opportunities

ST - use strength to minimize threats
WO - minimize weakness by taking advantages of opportunities
How to use opportunities to overcome the weakness
WT- in order to eliminate weakness to avoid threats
GE/Mckinsey

Grow- if a business unit is strong market attractiveness, the company should grow the business
Hold- if the business unit strength or market attractiveness is average, the company should hold
the business as it is. In this case, it is possible that the market is dropping in value, or that there is
high competition making it hard for business units to catch up.
Harvest- if the business unit or market attractiveness, the company should either sell or liquidate
the business or hold it for any residual value it has. The best step in this case would be to dispose
of the weak businesses and reinvest the money earned from the divestiture into business units
that are growing.

Thus, based on the GE/McKinsey matrix, a company can manage its products portfolio
efficiently and can take the right decision of grow, hold, and harvest for its products
The strategic significance for managers when using this matrix is:

● Growth strategy: If the business unit is strong and competing in attractive

industries.
○ Business units in these areas are expected to get the highest returns in
the future. It should provide investment for research and development,
advertising, acquisitions, and increase production capacity to meet
 future demand. Providing cash and resources to eliminate all obstacles
to its growth is essential. Examples of business units that may grow:
○ Strong business units in attractive industries
○ Average business sector in attractive industries
○ Strong business unit in general industry
● Holding strategy: If the business unit is at a medium level and competes in a
medium industry.
○ The business units in these boxes are the most uncertain, and you
should only invest the cash and resources left over from investing in
higher-performing business units. Examples of uncertain business units:
○ Average business in average industry
○ Strong companies in weak industries
○ Weak business in attractive industries
● Harvesting strategy: If the business unit is weak and competing in an
unattractive industry.
○ The performance of these business units is relatively poor. Moreover,
they do not have sustainable competitive advantages, nor can they
realize these advantages. You should consider deleting these business
units so that more time and resources can be invested in business units
that can generate greater revenue. Examples of business units you
should divest and reap:
○ Weak business units in unattractive industries
○ Average business unit in an unattractive industry
○ Weak business units in general industries
 Grow: invest in these businesses.
Hold: the potential of these businesses isn’t obvious. That’s not to say investments won’t be
made in this business. However, no investment should be made in this business until after
investment in the “grow” SBUs has been confirmed.
Harvest: invest just enough in this business to keep it operating or divest.

The diagram above provides a very simplistic breakdown of the options available. A more
detailed breakdown is shown in the diagram below:

Here is an explanation of what each option means:

 Protect Position: Invest to protect the market position and grow rapidly.
Invest to Build: Invest to strengthen market position by building on strengths. Manage areas
of vulnerability.
Build Selectively: Specialize around a potentially limited set of strengths to enhance the
ability to combat competition. Withdraw from the market if sustainable growth or
competitive advantage is not possible.
Manage for Earnings: Invest within these SBUs in those areas where the earnings are good
and the risks reasonably low. Upgrade the most profitable product lines to maintain
profits.
Expand or Harvest: Expand only if this can be done with minimal investment. Otherwise,
harvest the investment by streamlining operations.
Protect Position and Refocus: Determine if the business can be refocused so the current
strengths of the business are moved to a new market segment.
Divest: Cut costs and avoid investment immediately. Sell to realize a cash value for the
business.

Factors that Affect Market Attractiveness

Assessing market attractiveness is in many ways subjective in nature. Despite this, there are
many factors which can be ranked to help us determine market attractiveness, including:

Market size
Expected market growth rate
Market profitability trend
Pricing trends
Competition level
Ability to differentiate
Demand variability

Factors that Affect Competitive Strength

Competitive strength considers whether the SBU has a material competitive advantage over
competitors. Again, this is somewhat of an objective measurement. Factors to score to better
determine competitive strength include:

Total market share

Market share growth relative to competitors
Customer loyalty
Relative brand strength, brand recognition
Cost structure compared to competitors
Distribution strength and production capacity
Management strength
Porter generic strategies
Cost leadership
Differentiation

Focus
a. Focus cost leadership
b. Focus differentiation

● Cost leadership - you offer a product or service that is in high demand at the lowest
possible price.
● Differentiation - you offer a product or service that is in high demand but with
unique characteristics.
● Cost focus - you offer a product or service in a niche market, and you ensure the
lowest possible price.
● Differentiation focus - you offer a product or service in a niche market, and your
product or service has unique characteristics.
Understanding Porter's Five Forces

Porter theorized that understanding both the competitive forces at play and the overall industry
structure are crucial for effective, strategic decision-making, and developing a compelling
competitive strategy for the future.

In Porter's model, the five forces that shape industry competition are

1. Competitive rivalry

This force examines how intense the competition is in the marketplace. It considers the number
of existing competitors and what each one can do. Rivalry competition is high when there are
just a few businesses selling a product or service, when the industry is growing and when
consumers can easily switch to a competitor's offering for little cost. When rivalry competition is
high, advertising and price wars ensue, which can hurt a business's bottom line.

2. The bargaining power of suppliers

This force analyzes how much power a business's supplier has and how much control it has over
the potential to raise its prices, which, in turn, lowers a business's profitability. It also assesses
the number of suppliers of raw materials and other resources that are available. The fewer
supplier there are, the more power they have. Businesses are in a better position when there are
multiple suppliers.

3. The bargaining power of customers

This force examines the power of the consumer, and their effect on pricing and quality.
Consumers have power when they are fewer in number but there are plentiful sellers and it's easy
for consumers to switch. Conversely, buying power is low when consumers purchase products in
small amounts and the seller's product is very different from that of its competitors.

4. The threat of new entrants

This force considers how easy or difficult it is for competitors to join the marketplace. The easier
it is for a new competitor to gain entry, the greater the risk is of an established business's market
share being depleted. Barriers to entry include absolute cost advantages, access to inputs,
economies of scale and strong brand identity.

5. The threat of substitute products or services

This force studies how easy it is for consumers to switch from a business's product or service to
that of a competitor. It examines the number of competitors, how their prices and quality
compare to the business being examined, and how much of a profit those competitors are
earning, which would determine if they can lower their costs even more. The threat of substitutes
is informed by switching costs, both immediate and long-term, as well as consumers' inclination
to change.

Example of Porter's Five Forces

There are several examples of how Porter's Five Forces can be applied to various industries. The
ultimate goal is to identify the opportunities and threats that could impact a business. As an
example, stock analysis firm Trefis looked at how Under Armour fits into the athletic footwear
and apparel industry.

● Competitive rivalry: Under Armour faces intense competition from Nike, Adidas and
newer players. Nike and Adidas, which have considerably larger resources at their
disposal, are making a play within the performance apparel market to gain market share
in this up-and-coming product category. Under Armour does not hold any fabric or
process patents, hence its product portfolio could be copied in the future.
● Bargaining power of suppliers: A diverse supplier base limits supplier bargaining
power. Under Armour's products are produced by dozens of manufacturers based in
multiple countries. This provides an advantage to Under Armour by diminishing
suppliers' leverage.
● Bargaining power of customers: Under Armour's customers include wholesale
customers and end-user customers. Wholesale customers, like Dick's Sporting Goods,
hold a certain degree of bargaining leverage, as they could substitute Under Armour's
products with those of Under Armour's competitors to gain higher margins. The
bargaining power of end-user customers is lower as Under Armour enjoys strong brand
recognition.
● Threat of new entrants: Large capital costs are required for branding, advertising and
creating product demand, which limits the entry of newer players in the sports apparel
market. However, existing companies in the sports apparel industry could enter the
performance apparel market in the future.
● Threat of substitute products: The demand for performance apparel, sports footwear
and accessories is expected to continue to grow. Therefore, this force does not threaten
Under Armour in the foreseeable future.

●
Effective marketing feedback and control system

- Marketing rarely benefits from feedback for corrective control. Thus, it is necessary to
frequently base their decision on experience and control, relying on their ability to
motivate staff and agents.
- Feedback effects on sales growth
- Rate of sales of new product is a function of sales effort & sales effectiveness
- It sales rate generates a profit level of sales revenue, it likely lead to increase in sales
budget and sales effort (left hand linkages
- If sufficient productive capacity to meet the increased sales, order backlog will build up
& delay in delivery, then decrease in sales effectiveness (right-hand linkages)

Control concept

1. Open-loop control system (X adjust)

2. Close- loop control system (can adjust)
a. Feedforward control system

https://www.iedunote.com/feedforward-control#:~:text=Feedforward%20control
%20is%20a%20mechanism,the%20future%20to%20be%20effective.

Requirements for Feedforward Control

In short, the requirements for a workable feed-forward control system are:

1. Making a thorough and careful analysis of the planning and control systems.
2. Developing a model of the system.
3. Review the model regularly to see whether the input variables identified’ and their inter-
relationships continue to represent realities.
 4. Collecting data on input variables regularly, and putting them into the system.
5. Assessing regularly the variations of actual input data from planned for inputs, and
evaluating the impact on the expected result.
6. Taking action to solve problems.

Techniques of Future-directed Control

The most common technique some managers resort to is the use of forecasts based on the latest
available information.

By comparing what is desired with the forecasts, managers can introduce program changes that
will make the forecasts more promising.

Another technique is to plan carefully in advance the availability of cash to meet requirements.

Managers would hardly find it wise, for example, to wait for a report at the end of December to
determine whether they had enough cash in the bank to cover checks issued in November.

Yet, another technique is network planning, exemplified by PERT (Programme Evaluation and
Review Technique) networks which enable managers to see that they will have problems in such
areas as cost or on-time delivery unless they take action now.
b. Feedback control system
 Concept control

https://www.electrical4u.com/control-system-closed-loop-open-loop-control-system/

Step of basic control

1. Setting performance standards: Managers must translate plans into performance

standards. These performance standards can be in the form of goals, such as
revenue from sales over a period of time. The standards should be attainable,
measurable, and clear.
2. Measuring actual performance: If performance is not measured, it cannot be
ascertained whether standards have been met.
3. Comparing actual performance with standards or goals: Accept or reject the
product or outcome.
4. Analyzing deviations: Managers must determine why standards were not met. This
step also involves determining whether more control is necessary or if the standard
should be changed.
5. Taking corrective action: After the reasons for deviations have been determined,
managers can then develop solutions for issues with meeting the standards and
make changes to processes or behaviors.
Feedback control system

Feedback control is a key variables are maintained in a state of equilibrium even when there are
environmental disturbances

Feedback occurs after an activity or process is completed. It is reactive. For example, feedback
control would involve evaluating a team’s progress by comparing the production standard to the
actual production output. If the standard or goal is met, production continues. If not, adjustments
can be made to the process or to the standard.

An example of feedback control is when a sales goal is set, the sales team works to reach that
goal for three months, and at the end of the three-month period, managers review the results and
determine whether the sales goal was achieved. As part of the process, managers may also
implement changes if the goal is not achieved. Three months after the changes are implemented,
managers will review the new results to see whether the goal was achieved.

The disadvantage of feedback control is that modifications can be made only after a process has
already been completed or an action has taken place. A situation may have ended before
managers are aware of any issues. Therefore, feedback control is more suited for processes,
behaviors, or events that are repeated over time, rather than those that are not repeated.

Proactive control

Proactive control, also known as preliminary, preventive, or feed-forward control, involves

anticipating trouble, rather than waiting for a poor outcome and reacting afterward. It is about
prevention or intervention. An example of proactive control is when an engineer performs tests
on the braking system of a prototype vehicle before the vehicle design is moved on to be mass
produced.
Proactive control looks forward to problems that could reasonably occur and devises methods to
prevent the problems. It cannot control unforeseen and unlikely incidents, such as “acts of God.”
Feedback control (measure output, adjust input)
Measure output such as customer perspective or customer satisfaction.
If have any error or mistake need to make some adjust or correction action
Adjust input
Based on the output there are low customer satisfaction so we make adjust in input in
order to get the ideal output

this type of control focuses on the outputs of the organization after transformation is complete.
Sometimes called postaction or output control, fulfils a number of important functions. For one
thing, it often is used when feedforward and concurrent controls are not feasible or are too costly.

Sometimes, feedback is the only viable type of control available. Moreover, feedback has two
advantages over feedforward and concurrent control. First, feedback provides managers with
meaningful information on how effective its planning effort was. If feedback indicates little
variance between standard and actual performance, this is evidence that planning was generally
on target.

If the deviation is great, a manager can use this information when formulating new plans to make
them more effective. Second, feedback control can enhance employees motivation.

The major drawback of this type of control is that, the time the manager has the information and
if there is significant problem the damage is already done. But for many activities, feedback
control fulfils a number of important functions.

https://www.electronics-tutorials.ws/systems/closed-loop-system.html
Direct marketing

https://sendpulse.com/support/glossary/direct-marketing
Let’s take Nike’s promotion mix as an example and learn how they use each of the promotion
mix components.

1. Advertising. In advertising campaigns, Nike aims to reach large target audiences. The
brand invites celebrities who represent the image of an ideal consumer. Potential
customers associate themselves with famous ones, and this motivates them to trust the
brand and communicate with it.
2. Personal selling. Nike’s selling takes place in their stores. Trained store personnel assist
consumers, provide details on the company’s products and stimulate visitors to buy their
products. Besides, Nike’s employees help customers find the right Nike product and
promote the company through the use of personalized services.
3. Sales promotion. Usually, Nike’s sales promotions include special discounts for a
targeted audience. The brand motivates their customers with the savings they can have
when they buy discounted products. After that, they create a demand for purchasing more
products using those bonuses, turning new customers into loyal clients.
4. Public relations. Nike developed a social responsibility strategy, in response to global
ecological trends. Besides, Nike sponsors numerous sports events that build a better
brand image in the eyes of their audience.
5. Direct marketing. Nike uses direct marketing to promote its products among sports
organizations in universities, colleges, schools. Marketers call this lead nurturing.
Method of direct marketing

Catalog marketing

One of the oldest methods of direct marketing, catalog marketing, involves sending booklets of
products to prospective or returning customers – usually through the mail or email.

Catalogs showcase an organization’s products, potentially leading to revenue generation.

Typically, catalogs are sent to consumers who have expressed an interest in a company through a
past purchase or website visit.

Telemarketing

Telemarketing has gotten a bad rap over the years. There’s even a national “Do Not Call
Registry” in the U.S. However, if you have the right target audience and message, telemarketing
can be an effective and low-cost way to increase awareness and sales. Other benefits include the
ability to get immediate feedback on your products and services and the ability to analyze and
measure results.

Promotion mix
1. Advertising. This is a non-personal promotion of products and services. Marketers use
advertising as a vital tool for increasing brand awareness. Advertisers show promotions
to masses of people using email, webpages, banner ads, television, radio, etc.
2. Direct selling. This is a one-to-one communication between a sales representative and a
potential customer. Direct selling influences people to decide to buy certain products or
services. It is one of the most effective ways of promoting your brand because the sales
rep can tailor the promotion precisely to those who are most likely to make a purchase.
On the other hand, this is the most expensive form of sales because companies need to
pay for one person’s time.
3. Sales promotion. This is a set of short-term activities that are designed to encourage
immediate purchase. Sales promotions are a campaign that uses time-sensitive offers —
sales, discounts, coupons, etc., to engage existing consumers and bring in a larger
audience. Many companies make this a core component of their marketing efforts, though
sometimes it’s the most annoying type of communication for people.
4. Public relations. This type of promotional method determines the way people treat the
brand. Companies using PR try to build a firm and attractive brand image by planting
interesting news stories about their activities in the media. Public relations are not fully
controlled by the company, though, as some reviews and webpages may negatively
highlight the brand. If a company adequately solves these issues, people will reward them
with positive word-of-mouth consideration.
Marketing metrics

https://www.mindtools.com/pages/article/pricing-strategy-matrix.htm
Marketing metrics is to determine or measure whether the company achieve its goals or
objective

Marketing metrics focus on marketing operation

Marketing Metrics are measurable values used by marketing teams to demonstrate the
effectiveness of campaigns across all marketing channels. Whether you are looking to track
digital marketing performance, SEO progress, or your social media growth, having measurable
marketing metrics and KPIs set up can help your business reach targets month-over-month.
Track your marketing goals with these marketing metrics and KPI examples.

Metrics make you more intelligent:

If you put in the time to monitor, analyse, evaluate and act upon your performance metrics, you
are able to increase your competitive intelligence, assess your strengths and weaknesses, and
make vital budgetary decisions that will certainly impact upon your success and ROI.
Financial analysis & implementation of the marketing plan

https://courses.lumenlearning.com/boundless-finance/chapter/profitability-ratios/
https://corporatefinanceinstitute.com/resources/knowledge/finance/dupont-analysis/#:~:text=The
%20basic%20DuPont%20Analysis%20model,generated%20per%20dollar%20of%20sales.

Financial ratio analysis

1. Profitability ratio
a. Ability to generate revenue in excess or expenses
i. ROE
ii. ROA
iii. Sales growth
2. Liquidity ratio
a. Ability to meet its short-term financial obligation
3. Operational efficiency ratio
a. Efficiency with which assets are utilize and the productivity obtained
b. The operating ratio shows the efficiency of a company's management by
comparing the total operating expense (OPEX) of a company to net sales. The
operating ratio shows how efficient a company's management is at keeping costs
low while generating revenue or sales. The smaller the ratio, the more efficient
the company is at generating revenue vs. total expenses
c. The operating margin (also called the operating profit margin or return on sales )
is a ratio that shines a light on how much money a company is actually making in
profit. It is found by dividing operating income by revenue, where operating
income is revenue minus operating expenses.
d. The higher the ratio is, the more profitable the company is from its operations. For
example, an operating margin of 0.5 means that for every dollar the company
takes in revenue, it earns $0.50 in profit. A company that is not making any
money will have an operating margin of 0: it is selling its products or services, but
isn’t earning any profit from those sales.
4. Leverage / gearing ratio
a. The extent to which non-equity capital is used by the firm

5. Investment ratio
a. The performance of the firm in the relationship to the investment made by the
shareholder.
Sales and profit model

Profit Model

How You Make Money

Innovative profit models find a fresh way to convert a firm’s offerings and other sources of value
into cash. Great ones reflect a deep understanding of what customers and users actually cherish
and where new revenue or pricing opportunities might lie. Innovative profit models often
challenge an industry’s tired old assumptions about what to offer, what to charge, or how to
collect revenues. This is a big part of their power: in most industries the dominant profit model
often goes unquestioned for decades.

Common examples of profit model innovations include premium prices, where companies figure
out how to charge more for their offering than competitors do, or auctions, where the market sets
the price for goods. The ideal profit model will vary widely by context and industry. A new
entrant may design its profit model to make it easy for customers to try and adopt its products
(say, metered use), while the incumbent may counter with models that make it difficult for
existing customers to switch (say, subscriptions). One constant: to succeed, profit models—
perhaps more than any other type of innovation—must align with a company’s overarching
strategy and innovation intent.

Strategic Profit Model

a tool used to assess a firm's profitability; return on equity is calculated by multiplying the net
profit margin by the asset turnover to obtain the return on assets which, in turn, is multiplied by
the financial leverage. See Asset Turnover; Financial Leverage; Net Profit Margin; Return on
Assets; Return on Equity.
Eg company sales and profit model

Z= (P-C)Q-F-A-D
Company profit can be calculate based on the formula above
Company profit represent Z equal to the average price of the firm produce minus average
variable cost times number of unit sold minus fixed cost minus advertising and promotion cost
and minus distribution and sales force cost
B.
Profitability ratio-
Liquidity ratio
Investment ratio