PHILIPPINE CHRISTIAN UNIVERSITY

GRADUATE STUDIES
Master of Business Administration

Introduction

In the complex landscape of the pharmaceutical industry, strategic alliances and partnerships play a
crucial role in driving innovation, market expansion, and revenue growth. One such significant episode
that underscored the delicate dynamics of these collaborations unfolded in 2009, when the global
pharmaceutical giant Pfizer, Inc. faced a critical challenge in maintaining its long-standing partnership with
the Japanese pharmaceutical manufacturer Eisai. This predicament arose in the wake of Pfizer's
proposed acquisition of Wyeth, a move that sent shockwaves through the industry and prompted Eisai to
threaten the termination of their established alliance.

Background: The Pfizer-Eisai Partnership

The partnership between Pfizer and Eisai had its roots dating back to the early 1990s. The two
companies had formed a strategic collaboration aimed at jointly researching, developing, and marketing
pharmaceutical products, with a particular emphasis on the oncology and central nervous system
therapeutic areas. Over the years, this alliance had yielded notable successes, leading to the launch of
several high-impact drugs that addressed critical medical needs.

The Proposed Acquisition of Wyeth: Industry Disruption

In 2009, Pfizer announced its ambitious plan to acquire Wyeth, another prominent player in the
pharmaceutical arena. The proposed acquisition was a strategic move designed to bolster Pfizer's drug
portfolio, pipeline, and global market presence. However, what seemed like a logical strategic step to
Pfizer appeared as a potential threat to its existing partnerships to other stakeholders in the industry.

Eisai's Reaction: A Threat to Terminate the Partnership

Eisai, a company deeply invested in its alliance with Pfizer, perceived the proposed acquisition of Wyeth
as a potential conflict of interest. Concerns emerged over the potential competition between Eisai's and
Wyeth's products, as well as the implications for shared resources and collaborative research efforts.
Fearing adverse consequences, Eisai took the extraordinary step of publicly expressing its discontent and
warning Pfizer that it might terminate the partnership if the acquisition proceeded as planned.

Significance of the Case: Navigating Partnering Dynamics

The Pfizer-Eisai case of 2009 holds significant implications for the pharmaceutical industry and the
broader realm of strategic partnerships. It sheds light on the intricacies of maintaining collaborations in an
industry characterized by fierce competition, rapid innovation, and complex global relationships. This case
also underscores the pivotal role of effective communication, alignment of interests, and risk mitigation
strategies in safeguarding long-standing partnerships during periods of disruption and transformation.

Objectives of the Case Analysis

In this paper, we will delve into the Pfizer-Eisai case of 2009, aiming to dissect the key factors that led to
Eisai's threat of partnership termination in response to Pfizer's proposed acquisition of Wyeth. Through a
comprehensive analysis, we will explore the strategic, financial, and ethical dimensions of the case,
examining the motives and concerns of both Pfizer and Eisai. Furthermore, we will assess the potential
implications of this episode for the wider pharmaceutical industry, drawing lessons about the complexities
of managing strategic alliances amid industry-shaping events.

As we proceed with this case analysis, we will unravel the strategic considerations, decision-making
processes, and subsequent outcomes that shed light on the delicate nature of partnerships in a rapidly
evolving pharmaceutical landscape. By doing so, we aim to glean valuable insights into the art of
maintaining and navigating collaborations when confronted with seismic industry shifts.
 PHILIPPINE CHRISTIAN UNIVERSITY
GRADUATE STUDIES
Master of Business Administration

SWOT Analysis: Political and Legal Aspect

Strength

 Global Reach and Influence: Pfizer's position as a global pharmaceutical giant lent it significant
political and lobbying power in various countries. This influence could potentially help in
navigating regulatory challenges and legal hurdles associated with the proposed acquisition.
 Strong Legal Team: Pfizer, being a multinational corporation, likely had an experienced legal
team well-versed in international business laws, mergers and acquisitions, and antitrust
regulations. This strength could aid in addressing legal concerns arising from the acquisition and
potential partner disputes.
 Reputation and Credibility: Pfizer's long-standing presence in the pharmaceutical industry and
its reputation for producing innovative drugs could have given it credibility with regulatory
authorities and government bodies, potentially facilitating smoother negotiations during the
acquisition process.
 Diverse Portfolio: Pfizer's extensive portfolio of drugs spanning various therapeutic areas could
have provided it with strategic leverage in negotiation discussions, potentially offsetting concerns
from partners like Eisai regarding competition or portfolio overlaps.
 Market Dominance: Pfizer's market dominance in certain therapeutic areas could have provided
the company with advantages in terms of market access and negotiation power, especially when
engaging with regulatory bodies or navigating legal issues related to the acquisition.

Weakness

 Antitrust Scrutiny: The proposed acquisition of Wyeth could have raised antitrust concerns,
potentially attracting regulatory scrutiny due to the consolidation of two major pharmaceutical
players. This could have led to delays or even forced modifications in the acquisition terms.
 Complex Regulatory Landscape: Operating in multiple jurisdictions means Pfizer must navigate
varying regulatory environments and legal frameworks. This complexity could have slowed down
the acquisition process and increased legal and compliance costs.
 Partner Discontent: The threatened termination of the partnership by Eisai exposed a
vulnerability in Pfizer's ability to maintain harmonious relationships with its partners during
strategic changes. This weakness could be leveraged by other partners or competitors in similar
situations.
 Reputation Risks: Public disputes with partners like Eisai could harm Pfizer's reputation, not
only among its partners but also among investors, regulatory authorities, and consumers.
Negative publicity and potential legal battles could impact Pfizer's credibility and long-term
business prospects.
 Negotiation Power: The public nature of Eisai's threat to terminate the partnership could
potentially weaken Pfizer's negotiation position with both Eisai and regulatory authorities. Pfizer
might have to make concessions to address partner concerns or regulatory demands.
 Cultural and Regional Differences: The international nature of the pharmaceutical industry
involves dealing with diverse cultures, legal systems, and business practices. These differences
could have led to misunderstandings or challenges when addressing partner concerns and legal
issues arising from the acquisition.

In the context of the 2009 Eisai issue, Pfizer's strengths and weaknesses in political and legal factors
played a crucial role in shaping its response to Eisai's threat of partnership termination and in navigating
the broader implications of the proposed acquisition of Wyeth.
 PHILIPPINE CHRISTIAN UNIVERSITY
GRADUATE STUDIES
Master of Business Administration

Opportunities for Pfizer in the 2009 Wyeth Merger (Political and Legal Factors)

 Enhanced Market Position and Influence: The merger with Wyeth provided Pfizer with an
opportunity to strengthen its market presence and influence in the pharmaceutical industry,
potentially enabling it to navigate regulatory landscapes more effectively and exert greater
political clout. (The merger with Wyeth provided Pfizer with an opportunity to solidify its position
as a major player in the pharmaceutical industry. With increased scale and resources, Pfizer
could potentially wield greater influence in regulatory discussions and negotiations. This
enhanced market position could have enabled the company to collaborate more effectively with
regulatory bodies and government agencies, thereby potentially streamlining regulatory
processes and approvals.)
 Diversified Portfolio: The merger allowed Pfizer to expand its product portfolio across various
therapeutic areas, potentially reducing its dependence on specific products and spreading
regulatory and legal risks more evenly. (The merger diversified Pfizer's product portfolio across
various areas. This diversification reduced the company's reliance on specific drugs, which could
be impacted by regulatory or legal challenges. A broader range of products could provide a buffer
against setbacks in any single product category, helping Pfizer better navigate potential
disruptions arising from regulatory or legal hurdles.)
 Access to Regulatory Expertise: Wyeth's experience in navigating regulatory processes could
have benefited Pfizer, helping the company better understand and adapt to various regional and
international regulations. ( Wyeth's established experience in dealing with regulatory agencies
worldwide could have been a valuable asset for Pfizer. This expertise could have facilitated
smoother interactions with regulatory authorities during the approval process for new drugs or the
management of ongoing regulatory obligations. Pfizer could have leveraged Wyeth's regulatory
insights to optimize its regulatory strategies and processes.)

(On the same year, Pfizer was fined for illegal marketing an off-label drug and paid $2.3 billion to resolve
criminal and civil allegations that the company illegally promoted uses of four of its drugs, the painkiller
Bextra, Geodon, an antipsychotic drug; Zyvox, an antibiotic; and Lyrica, an anti-epileptic drug.)

Additional answers

 Strategic Expansion: The merger with Wyeth offered Pfizer the opportunity to significantly expand
its product portfolio, enabling the company to diversify its offerings and strengthen its position in
various therapeutic areas.
 Enhanced Innovation: The merger could facilitate knowledge-sharing and collaborative research
efforts, potentially accelerating the development of innovative drugs and therapies.
 Global Presence: The merger could provide Pfizer with a broader international footprint, helping it
navigate diverse regulatory environments and potentially gaining advantages in negotiations with
regulatory bodies.

Justification for Opportunities

The merger's potential to enhance Pfizer's market position aligns with the company's growth ambitions
and long-term stability. A diversified portfolio reduces vulnerability to regulatory setbacks related to
individual products. Access to Wyeth's regulatory expertise provides Pfizer with insights to optimize its
regulatory strategies.

Threats to Pfizer in the 2009 Wyeth Merger (Political and Legal Factors)
 PHILIPPINE CHRISTIAN UNIVERSITY
GRADUATE STUDIES
Master of Business Administration

 Antitrust Scrutiny and Regulatory Approvals: The merger attracted antitrust scrutiny and
required regulatory approvals from various countries, leading to potential delays, legal
challenges, and demands for divestitures to address competition concerns. (The merger brought
together two large pharmaceutical companies, potentially leading to concerns of reduced
competition in certain therapeutic areas. Regulatory bodies closely scrutinize such mergers for
potential antitrust violations. The need to secure regulatory approvals from various countries adds
complexity to the process, often leading to delays and negotiations. Divestitures or concessions
might be required to address competition concerns, impacting Pfizer's intended benefits from the
merger.)
 Patent Litigation and Intellectual Property Issues: Merging two large companies could have
resulted in complex patent portfolios and potential infringement disputes, leading to legal battles
and erosion of exclusivity rights. (Merging two companies entails combining their patent
portfolios, which could lead to disputes over intellectual property rights. Competitors might
challenge the validity of certain patents, resulting in legal battles that could affect Pfizer's ability to
maintain exclusivity rights for its products. Such disputes could hinder Pfizer's market dominance
and revenue streams.)
 Global Regulatory Complexity: The merger necessitated navigating a complex web of global
regulations, potentially leading to operational disruptions, compliance challenges, and higher
legal costs. (The pharmaceutical industry is subject to varying regulations across different
countries. Merging with Wyeth added the challenge of harmonizing operations and adhering to
multiple regulatory frameworks. Navigating this complexity demands substantial resources and
legal expertise. Failure to comply with varying regulations could lead to operational disruptions,
regulatory penalties, and reputational damage.)

Additional answers

 Regulatory Scrutiny: The merger could attract regulatory scrutiny, especially due to potential
antitrust concerns resulting from the consolidation of two major pharmaceutical players.
Regulatory approval delays or restrictions could impact Pfizer's integration plans and revenue
projections.
 Legal Challenges: The merger could lead to legal challenges related to antitrust issues,
intellectual property disputes, and contractual obligations. Legal battles could drain financial
resources and hamper the integration process.
 Partner Concerns: The merger could raise concerns among Pfizer's partners, similar to the Eisai
situation, potentially leading to threatened partnerships or disagreements that could affect
collaborative efforts.
 Reputation Risks: Negative public perception surrounding the merger could result in reputational
damage, potentially triggering regulatory investigations or public scrutiny that could hinder Pfizer's
business operations.

Justification for Threats:

Antitrust scrutiny and regulatory approvals are common concerns in large-scale mergers, impacting
timelines and requiring negotiations. Patent litigation could arise due to overlapping products, threatening
Pfizer's market exclusivity. Global regulatory complexity poses challenges in harmonizing operations and
adhering to diverse legal frameworks.

In the context of the 2009 Wyeth merger, Pfizer faced both significant opportunities and threats in terms
of political and legal factors. The opportunities were rooted in market expansion, diversified expertise, and
increased regulatory influence. However, these opportunities came with substantial threats, including
antitrust scrutiny, patent disputes, and regulatory complexities. Pfizer needed to strategically manage
 PHILIPPINE CHRISTIAN UNIVERSITY
GRADUATE STUDIES
Master of Business Administration

these factors to maximize the benefits of the merger while mitigating potential negative impacts on its
operations, financials, and industry reputation.

Opportunities for Pfizer in the 2009 Wyeth Merger (Economic Factors)

Strengths

The internal factors that positioned Pfizer favorably during this period.

 Strong Market Presence: Pfizer had a well-established global presence and a strong brand
reputation in the pharmaceutical industry.
 Research and Development: Pfizer's robust R&D capabilities contributed to its innovative
product pipeline and potential for future growth.
 Diverse Product Portfolio: The company's broad range of pharmaceutical products diversified
its revenue streams.

Weaknesses

The internal factors that may have hindered Pfizer's performance during this time.

 Patent Expirations: Several of Pfizer's key drugs were facing patent expirations, exposing them
to generic competition and potential revenue loss.
 Eisai Partnership Issue: The partnership dispute with Eisai could have disrupted Pfizer's
operations and strained its reputation.
 Integration Challenges: The acquisition of Wyeth brought integration challenges that might have
impacted Pfizer's overall efficiency.

Opportunities for Pfizer in the 2009 Wyeth Merger (Economic Factors)

External factors that Pfizer could capitalize on during this period.

 Wyeth Acquisition: The acquisition of Wyeth provided opportunities for cost synergies,
expanded product offerings, and potential revenue growth. (The acquisition of Wyeth provided
Pfizer with opportunities for cost synergies and operational efficiencies. This could lead to
reduced costs in manufacturing, distribution, and research, enhancing Pfizer's profitability. The
Wyeth acquisition allowed Pfizer to diversify its product portfolio, reduce redundant expenses,
and create cross-selling opportunities. This consolidation could strengthen Pfizer's financial
position and competitive advantage.)
 Emerging Markets: Pfizer could tap into growing pharmaceutical markets in emerging
economies, leveraging its global reach. (Pfizer had the chance to tap into the growing
pharmaceutical markets of emerging economies. With its strong global presence, the company
could expand its market share and revenue by catering to the increasing healthcare needs of
these markets. Emerging markets like China, India, and Brazil were experiencing rapid economic
growth and healthcare expansion. By focusing on these markets, Pfizer could tap into a
substantial and relatively untapped patient base, boosting its revenue potential.)
 Research Breakthroughs: Any advancements in R&D could lead to new blockbuster drugs,
offsetting potential revenue losses from patent expirations. (If Pfizer's research and development
efforts yielded new blockbuster drugs, the company could capitalize on these breakthroughs to
address patent expirations and generate new revenue streams. Such innovations would allow
Pfizer to maintain its competitive edge and potentially dominate specific therapeutic areas. These
Research breakthroughs would enable Pfizer to introduce novel drugs that addressed unmet
 PHILIPPINE CHRISTIAN UNIVERSITY
GRADUATE STUDIES
Master of Business Administration

medical needs. These innovations would not only drive revenue but also solidify Pfizer's
reputation as a leading pharmaceutical innovator.)

Threats for Pfizer in the 2009 Wyeth Merger (Economic Factors)

External factors that posed risks to Pfizer's performance.

 Generic Competition: Patent expirations exposed Pfizer's drugs to generic competition, leading
to potential revenue decline. (Patent expirations for key drugs exposed Pfizer to generic
competition, leading to revenue decline and market share erosion. Generic versions of these
drugs would likely be sold at lower prices, impacting Pfizer's profitability. This exposed Pfizer to
significant revenue losses as generic competitors could offer similar drugs at lower prices,
undermining Pfizer's pricing power and market share.)

OVERCOME by
 Product Diversification: Pfizer might have diversified its product portfolio by focusing on
developing new drugs with unique formulations, delivery methods, or therapeutic benefits. This
would make it challenging for generic competitors to replicate their products.
 Patent Extensions: Pfizer could have explored options for extending the exclusivity of its patents
by seeking additional indications or uses for existing drugs. This would delay generic competition
and provide a longer period of market exclusivity.
 Legal Defenses: Pfizer might have engaged in legal battles to defend its patents, challenging
potential generic competitors' claims and prolonging the exclusivity of its drugs.

 Rising Research Costs: As the pharmaceutical industry evolved, research and development
costs tended to rise due to the increasing complexity of drug development, regulatory
requirements, and the need for advanced technologies. Escalating R&D expenses could strain
Pfizer's financial resources.

OVERCOME by
 Operational Efficiency: Pfizer could have focused on improving its R&D processes and
operational efficiency to contain rising research costs while maintaining high research output.
 Partnerships and Collaborations: Forming partnerships with research institutions, universities,
and biotech companies could help share research costs and risks.

 Regulatory Challenges: Stringent regulations and increased scrutiny on the pharmaceutical

industry could hinder product development and marketing. (Stringent regulations and increased
scrutiny on the pharmaceutical industry could lead to longer and more complex approval
processes for new drugs. Regulatory hurdles might result in delays, increased costs, and
limitations on Pfizer's product launches. Regulatory challenges could lead to extended
development timelines, increased costs for compliance, and potential rejections for new drugs.
These factors could hinder Pfizer's ability to bring new treatments to market and impact its
financial performance.)

OVERCOME by

 Regulatory Expertise: Pfizer likely utilized its regulatory expertise to navigate complex approval
processes. The company would have worked closely with regulatory agencies to ensure that its
products met all safety and efficacy requirements.
 PHILIPPINE CHRISTIAN UNIVERSITY
GRADUATE STUDIES
Master of Business Administration

 Clinical Data Transparency: Pfizer might have focused on transparency in sharing clinical trial
data, ensuring that its products were supported by robust scientific evidence, and addressing any
concerns from regulatory authorities.
 Collaboration with Regulators: Collaborating with regulatory agencies to understand their
expectations and aligning its drug development strategies accordingly could have helped Pfizer
anticipate potential challenges.

 Economic Factors: Economic downturns or fluctuations could impact consumer spending on

healthcare products. (Reduced purchasing power and healthcare budget cuts could lead to
decreased demand for Pfizer's products, affecting its revenue and profitability. During economic
downturns, consumers may cut back on non-essential spending, including healthcare products.
This could reduce demand for Pfizer's drugs and negatively affect its revenue and growth
prospects.)

OVERCOME by

 Diversification of Markets: Pfizer could have diversified its geographic markets, focusing on
both developed and emerging economies. This would have reduced its reliance on any single
market during economic downturns.
 Cost Rationalization: The company might have optimized its operational costs by streamlining
processes, improving efficiency, and eliminating redundant activities, thus maintaining profitability
despite reduced revenues.
 R&D Investment: Despite economic challenges, Pfizer could have continued to invest in
research and development to ensure a pipeline of innovative drugs. These investments would
position the company for growth when economic conditions improved.

Additional answers

 Healthcare Reforms: Changes in healthcare policies and reforms, such as government efforts to
control healthcare costs or increase generic drug usage, could impact Pfizer's pricing and
reimbursement structures. This could lead to reduced profitability for certain drugs. (OVERCOME
by Diversification of Product Portfolio: Pfizer could have focused on developing a diversified
portfolio of drugs that cater to various therapeutic areas, reducing its dependence on a few
specific products. / Collaboration with Payers: Collaborating with healthcare payers to
demonstrate the value and cost-effectiveness of its drugs could help negotiate better pricing and
reimbursement terms.)
 Currency Fluctuations: Pfizer's global operations exposed it to currency exchange rate
fluctuations. Variability in exchange rates could impact the company's revenues and earnings,
especially if the U.S. dollar strengthened against other currencies. (OVERCOME by Hedging
Strategies: Pfizer might have implemented currency hedging strategies to mitigate the impact of
currency fluctuations on its revenues and profits.)
 Rising Research Costs: As the pharmaceutical industry evolved, research and development costs
tended to rise due to the increasing complexity of drug development, regulatory requirements,
and the need for advanced technologies. Escalating R&D expenses could strain Pfizer's financial
resources. (OVERCOME by Operational Efficiency: Pfizer could have focused on improving its
R&D processes and operational efficiency to contain rising research costs while maintaining high
research output. / Partnerships and Collaborations: Forming partnerships with research
institutions, universities, and biotech companies could help share research costs and risks.)
 PHILIPPINE CHRISTIAN UNIVERSITY
GRADUATE STUDIES
Master of Business Administration

 Market Competition: Intense competition within the pharmaceutical industry, not only from other
major players but also from emerging biotech companies, could erode Pfizer's market share and
pricing power. This competition could lead to lower sales volumes and pressure on profitability
(OVERCOME by Innovation and Differentiation: Pfizer may have invested heavily in research and
development to bring innovative drugs to the market, differentiating its products from competitors
and maintaining its competitive edge. / Marketing and Branding: Strong marketing and branding
efforts could help Pfizer position its drugs as superior options in a crowded market.)
 Pricing Pressure: Healthcare payers, including governments and insurers, were becoming more
aggressive in negotiating drug prices. The increasing pressure to lower drug costs could impact
Pfizer's ability to maintain favorable pricing for its products. (OVERCOME by Value-based
Pricing: Demonstrating the clinical and economic value of its drugs to payers could justify higher
pricing and potentially mitigate pricing pressure. / Patient Assistance Programs: Offering patient
assistance programs for those who cannot afford the full cost of medication could help address
pricing concerns.)
 Intellectual Property Challenges: Legal challenges to Pfizer's patents or the potential for
intellectual property disputes could lead to uncertainties in product exclusivity and potential early
entry of generic competitors. This would threaten Pfizer's revenue streams. (OVERCOME by
Legal Defense: Pfizer might have actively defended its patents through legal means to ensure the
exclusivity of its drugs and prevent early entry of generic competitors. / Settlements and
Licensing: In some cases, Pfizer could have negotiated settlements or licensing agreements with
potential generic competitors to maintain its market exclusivity.)
 Stock Market Volatility: Economic instability and fluctuations in the stock market could impact
Pfizer's stock price and valuation. This could influence investor confidence, potentially affecting
the company's access to capital and its ability to fund operations and investments. (OVERCOME
by Strong Financial Performance: Maintaining consistent financial performance, meeting revenue
targets, and communicating growth strategies could help stabilize the stock price and investor
confidence. / Transparency and Communication: Providing transparent information about the
company's operations, R&D pipeline, and strategies can foster investor trust and reduce
uncertainty.)

Internal Environment Analysis: Human Resources Function

Strengths:

 Talent Acquisition Capabilities: Pfizer's HR function likely had established processes for talent
acquisition, allowing the company to attract skilled professionals needed to support its diverse
pharmaceutical operations. (UTILIZED BY Pfizer's HR function utilized its talent acquisition
capabilities to ensure the acquisition of Wyeth brought in the right skills and expertise to support
Pfizer's diverse pharmaceutical operations. They would have likely followed a systematic process
to identify key positions within Wyeth, assess the skills needed, and strategically onboard
talented individuals into Pfizer. This process would have ensured that critical roles were filled,
minimizing disruptions and maintaining operational continuity.)
 Employee Benefits and Wellness: Pfizer's HR function may have offered competitive employee
benefits and wellness programs, enhancing employee satisfaction, engagement, and overall well-
being. (UTILIZED BY Pfizer's HR function likely extended its competitive employee benefits and
wellness programs to the new employees from Wyeth. By offering consistent and attractive
benefits, Pfizer aimed to enhance employee satisfaction and engagement among the integrated
 PHILIPPINE CHRISTIAN UNIVERSITY
GRADUATE STUDIES
Master of Business Administration

workforce. This approach not only helped retain valuable talent but also demonstrated Pfizer's
commitment to the well-being of its employees during a period of change and uncertainty.)
 Experienced HR Leadership: Pfizer likely had a team of experienced HR professionals who
understood the complexities of managing human resources in a large pharmaceutical company.
This expertise would have been crucial during the integration of Wyeth. (UTILIZED BY Pfizer's
experienced HR leadership played a pivotal role in managing the complexities of the integration
process. These HR professionals would have utilized their deep understanding of HR best
practices, change management strategies, and organizational dynamics to ensure a smooth
transition. They likely designed comprehensive integration plans that addressed issues such as
cultural differences, role harmonization, and communication strategies.
 Cultural Integration: Pfizer's HR leadership would have recognized the importance of integrating
employees from different organizational cultures. They might have organized workshops, training
sessions, and cross-functional teams to promote a sense of unity and shared values among the
diverse workforce.
 Change Management: Experienced HR professionals would have developed change
management strategies to address resistance to change and alleviate employee concerns. This
could include clear communication of the integration process, transparent sharing of information,
and opportunities for employees to voice their questions and opinions.
 Leadership Development: Pfizer's HR function could have identified high-potential leaders within
Wyeth and provided development opportunities to align them with Pfizer's leadership style and
values. This would have contributed to a smoother leadership transition and ensured that the
integrated teams were effectively managed.)

 Global Presence: Pfizer's global presence meant that its HR function had experience in
managing a diverse and distributed workforce. This expertise would have been beneficial for
addressing HR-related challenges arising from the acquisition of Wyeth.
 Talent Management Expertise: Pfizer likely possessed a strong HR team with expertise in
talent acquisition, development, and retention. This was crucial for managing a diverse workforce
across various locations and functions.
 Change Management Skills: The acquisition of Wyeth and the issue with Eisai required effective
change management to integrate new employees, align corporate cultures, and ensure a smooth
transition.
 Global Reach: With a strong global presence, Pfizer's HR function could leverage its experience
in managing a geographically dispersed workforce, addressing cultural differences, and adhering
to local labor laws.

Utilization of Strengths:

 Experienced HR Leadership for Integration: Pfizer's experienced HR leadership would have

played a key role in managing the integration of Wyeth's workforce. They would have developed
strategies to harmonize HR policies, benefits, and cultural aspects to ensure a smooth transition.
 Global HR Expertise for Cultural Integration: Given Pfizer's global presence, its HR function
could leverage its experience in managing diverse cultural environments to facilitate the
integration of Wyeth's workforce from different regions.
 Effective Talent Management: Pfizer's talent acquisition capabilities could have been used to
identify and retain key talent within the Wyeth organization, preventing a loss of critical skills and
knowledge.

Weaknesses
 PHILIPPINE CHRISTIAN UNIVERSITY
GRADUATE STUDIES
Master of Business Administration

 Talent Retention: High-profile events like acquisitions and partnership disputes can lead to
employee uncertainty and attrition. Pfizer's HR function may have faced difficulties retaining key
talent during this period. (OVERCOME by Retention Strategies: To retain key talent, Pfizer's HR
function could have implemented retention strategies such as personalized career development
plans, incentive programs, and recognition initiatives.)
 Resistance to Change: HR functions often face resistance to change during major
organizational events like mergers and acquisitions. This resistance can hinder the smooth
integration of employees from different companies. (OVERCOME by Change Management
Strategies: Pfizer's HR function might have implemented change management strategies to
address resistance to change. This could include involving employees in decision-making,
providing clear reasons for changes, and offering training to help them adapt)
 Cultural Differences: Integrating the workforce of an acquired company involves dealing with
potential cultural differences, which can impact team dynamics, morale, and productivity.
(OVERCOME by Cultural Integration Programs: To address cultural differences, Pfizer's HR
function may have designed programs that promoted cultural awareness, sensitivity, and
collaboration among the integrated workforce. Cross-cultural training sessions and team-building
activities could have been organized.)
 Communication Challenges: During times of change, effective communication is essential. If
Pfizer's HR function struggled to communicate changes clearly to employees, it could lead to
confusion and anxiety.
 Communication Gaps: Ensuring clear and effective communication during organizational
changes is crucial. Pfizer's HR function might have faced challenges in maintaining transparent
and timely communication with employees regarding changes and their impacts.
 Leadership Development: The acquisition of Wyeth could have required developing new
leaders or reassigning leadership roles. Pfizer's HR function might have needed to assess
leadership competencies and provide development opportunities.
 Integration Challenges: The acquisition of Wyeth and the dispute with Eisai likely posed
challenges in terms of integrating employees, processes, and HR policies. Overcoming
resistance to change and cultural differences could have been difficult.

Actions Taken

 Integration Plans: Pfizer's HR function likely developed comprehensive integration plans for the
acquisition of Wyeth, addressing aspects such as workforce alignment, benefit harmonization,
and cultural integration.
 Communication Strategy: An effective communication strategy might have been devised to
keep employees informed about changes, addressing concerns, and providing platforms for
feedback.
 Leadership Development: Pfizer's HR function could have identified potential leaders from both
Pfizer and Wyeth, offering training and mentorship to ensure a smooth leadership transition.

Addressing Weaknesses

 Effective Communication Plans: Pfizer's HR function likely developed comprehensive

communication plans to ensure that employees were well-informed about the changes taking
place. Regular updates and town hall meetings could have been used to address concerns and
provide clarity.