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Pfizer Case Analysis Shondrell Edwards Troy University MGT 6685 XTIA Management Strategy Term 2, 2011 December 5, 2011 Dr. Chekwa
Author Note Shondrell Edwards, Student, Troy University.
E-mail: sameri@troy. SHONDRELL #1138929 Correspondence concerning this sample paper should be addressed to Shondrell Edwards. 2 .edu.Pfizer Case Study EDWARDS. Student.
Pfizer Case Study EDWARDS. SHONDRELL Executive Summary #1138929 3 .
dietary supplements. reach patients we have never reached before. arthritis and pain. The mission statement of Pfizer says. cough/cold/allergy remedies. Established Products. cancer. global biopharmaceutical company whose diversified global healthcare portfolio includes human and animal biologic and small molecule medicines and vaccines. infectious and respiratory diseases. socially responsible and commercially viable manner”. SHONDRELL Pfizer’s Vision. . Objectives. The Diversified segment includes Animal Health products that prevent and treat diseases in livestock and companion animals. The Biopharmaceutical segment includes the Primary Care. This vision or intent of the company for future dealings outlines the new prospects for business in developing countries. is a research-based. The company was founded by Charles Pfizer and Charles Erhart in 1849 and is headquartered in New York. Consumer Healthcare products that include over-the-counter healthcare products such as pain management therapies. central nervous system disorders. among others (Pfizer. “We will build bold and innovative partnerships. and Strategy #1138929 Pfizer. 2010). as well as nutritional products (Pfizer. The company operates in two commercial organizations which constitute two business segments: Biopharmaceutical and Diversified. be recognized for having the best talent in healthcare. Nutrition products such as infant and toddler formula products. was as follows: We will be recognized for meeting the diverse medical needs of patients in Emerging Markets around the world in an innovative. which represents its hard capsules business (Pfizer. 2010). and Capsugel. become a leading pharmaceutical company in emerging 4 . urogenital conditions. Inc. eye disease and endocrine disorders. Mission. Specialty Care.Pfizer Case Study EDWARDS. Emerging Markets and Oncology Customer-Focused units.Pfizer’s Vision outlined in the text. NY. provide medicines and services at an affordable manner. 2010). which includes products that prevent and treat cardiovascular and metabolic diseases. hemorrhoidal care and other personal care items.
We will help patients. enter the vaccines market. improve current performance by having a unique business model. My proposed mission statement is as follows: “Pfizer is more than medicine. 2009). 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. strengthen leadership in emerging markets. Mission and Vision Statements In response to the objectives and strategies. and other customers (The World's Premier Pharmaceutical Company. human and otherwise to become healthy as possible with our products and continue to develop cutting edge methods. The objectives are to become a leader in biologics. invest in complementary businesses. The strategies for achieving this goal are to extend global health care leadership. Pfizer External Opportunities and Threats Pfizer has many opportunities for growth. Celebrex. I propose the following vision statement: “Pfizer will continue to lead the world by helping mankind across the world”. 4) Major competition in the pharmaceutical industry 5) Over the counter drug availability. having consistent and stable earnings. physicians. while satisfying ethical and environmental concerns”. and Bextra lawsuits abroad. and meeting the unmet needs of patients. and establishing a lower and more flexible cost base. SHONDRELL #1138929 markets”. 5 . due to their strengths.Pfizer Case Study EDWARDS. provide our great products at affordable prices. expand and investing and areas. create new opportunities for established products.
visualize.10 0.15 0. IFE.10 0.15 0.40 0. Pfizer total weighted 6 .30 1.30 0.60 0. P FIZER Crit ical Success Fact ors MERCK NOVART IS W eight ed Score W eight W eight Rating ed Rat ing Score W eight ed Rat ing Score 1 M arket C ap Employees R evenue Gross M argin Operatio nal M argins Net Inco me EP S T OT A L 0. The EFE matrix is concerned solely with external factors.30 0.00 2 1 1 1 1 3 As you can see from the table above Merck has the lowest score. As you can see from the chart.20 0.20 0.05 0.45 0.20 0.Pfizer Case Study EDWARDS.45 0. Pfizer External Factor Evaluation (EFE) Matrix External Factor Evaluation (EFE) matrix method is a strategic management tool that shows current business conditions.10 0.65 2 1 2 3 3 2 1 0. The purpose of a Competitive Matrix analysis is to critically profile and compare your firm against known competitors. economic.20 2. External factors assessed in the EFE matrix are the ones that are subjected to the will of social. which shows they have the strongest position.10 0.30 0. and prioritize the opportunities and threats that a business is facing.10 2. SHONDRELL Pfizer Competitive Profile Matrix (CPM) #1138929 Stage one (1) of the strategy analytical framework is the input stage where a CPM. political.15 0. legal.15 0.20 0. and EFE are created for the company.20 0.30 0. and other external forces.40 0.20 0.30 3 3 3 2 2 3 2 0.60 0.10 1.
which shows average response to existing opportunities and threats in its industries. Below Average (2).30 0. Superior (4) 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. and their bad things are extremely bad.24 Rating Weighted Score Poor (1).16 0. The current strategy utilized is average.45 0. meaning their good things are great. Bextra lawsuits abroad 4) Over the counter drug availability Total Weighted Score 100% 8% 15% 15% 9% 2 2 2 3 0.Pfizer Case Study EDWARDS.60 0. Weight Opportunities 1) Proposed Wyeth acquisition 2) Global growth 3) Expansion into biologics/vaccine market 4) Partnership with other countries Threats 1) Regulation hurdles in the United States and European Commission 2) Pfizer will have to take on Wyeth’s possible litigation 3) Norvasc.92 15% 15% 15% 8% 4 4 3 3 0. 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 . Above Average (3).27 2.92.60 0. Pfizer’s weaknesses are 1) Pfizer’s continued problem with disobeying regulations 2) Many patent protections ending and Food and Drug Administration (FDA) issues 7 .5) Pfizer’s program of helping those who need drugs and lost jobs has helped build a loyal customer base. but will need to be improved to keep Pfizer in the top position amongst all competitors. Celebrex.30 0. SHONDRELL #1138929 score for its External Factor Evaluation (EFE) Matrix is 2. 6) Pfizer is very active and known in politics 7) Greatest marketing power Pfizer has had extremes of all factors.
Minor weakness (2).06 TOTAL WEIGHTED SCORE 100% 33 2. 6) Pfizer is very active and known in politics 7) Greatest marketing power Internal 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.40 0.15 0.40 0.05 0.64 Major weakness (1).10 0. Pfizer total weighted score for its Internal Factor Evaluation (IFE) Matrix is 2. Minor strength (3).20 0. 4) Finances need more visibility 5) Lowest earning per share (EPS) although ranked ahead all competition 6) 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.05 0. SHONDRELL #1138929 in 2010 3) Customer disapproval due to medicines not being approved and/or safe.40 0.40 0.09 0.10 0. Major strength (4) 8 . 10% 5% 10% 5% 10% 10% 8% 5% 5% 10% 10% 9% 3% 4 4 4 3 4 4 3 1 1 1 1 1 2 0. 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. Internal 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 world 5) Pfizer’s program of helping those who need drugs and lost jobs has helped build a loyal customer base.64.24 0. and that score shows the company has possesses a very strong internal position within the industries.Pfizer Case Study EDWARDS.
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.Pfizer Case Study EDWARDS. 4) Finances need more visibility 5) Lowest earning per share (EPS) although ranked ahead all competition 6) Changes in health care coverage may impact Pfizer's sales. Bextra lawsuits abroad 4) Over the counter drug availability 9 . Celebrex. Opportunities 1) 2) 3) 4) Proposed Wyeth acquisition Global growth Expansion into biologics/vaccine market Partnership with other countries Threats 1) Regulation hurdles in the United States and European Commission 2) Pfizer will have to take on Wyeth’s possible litigation 3) Norvasc. SHONDRELL #1138929 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 world 5) Pfizer’s program of helping those who need drugs and lost jobs has helped build a loyal customer base.
2 A v e r a g e 5 To t al Ax i sXScor e: 3 .Pfizer Case Study EDWARDS.1 . SHONDRELL #1138929 Pfizer SPACE Matrix Values and Dimensions I n t e r n a l S t r a t e g i c P o s i E i x tne r n a l S t r a t e g i c P o s i t i o n to X A x i s C o m p etitiv en es s ( C A ) I n d u s t r y ( I S) Y A x i s .7A5v e r a g e 5 .2 B r a n d & I m a g e6 A c c e s s t o F i n a n c i n g .1 P r o d u c t L i f e C y 5c l e C o n s o l i d a t i o n . 50 F i n a n c i a l ( F SE) n v i r o n m e n t a l ( E S ) -1 ROA 3 I n fla tio n -1 L ev er age 6 T ec h n o lo gy -2 L iq u id ity 5 D em an d E lastic ity -2 C ash F lo w 5 T axatio n .2 5 CA -1 (best) to -6 (worst) FS -1 (best) to -6 (worst) IS +1 (worst) to +6 (best) ES +1 (worst) to +6 (best) 10 .2 P r o d u c t Q u a l i t4 y B ar r ier s to E n tr y -2 M ar k et Sh ar e 6 G r o w th P o ten tia l .1 .7 A v e r a g e 5 T o t a l A x i s Y S c o r e : 3 .5 v e r a g e A 4 .
11 . It needs to use its internal strengths to develop a market penetration and market development strategy. Some suggestions are product development.Pfizer Case Study EDWARDS. integration with other companies. and acquisition of competitors. and has a strong competitive position in the market with rapid growth. SHONDRELL #1138929 Pfizer Completed SPACE Matrix Aggressive-Suggested strategy type 6 5 4 3 2 1 1 2 3 4 5 6 This particular SPACE matrix tells us that our company should pursue an aggressive strategy.
Pfizer must consider the question marks of the generic 12 Q .Pfizer Case Study EDWARDS. SHONDRELL #1138929 Pfizer BCG Matrix high Viagra is in the dog category because it has been found that a safer herbal supplement can produce the same results with less risk.
which points at a company with an above-average internal strength. and VI suggest the hold and 13 . The total weighted score calculated on this page is 2. V.92.78.Pfizer Case Study EDWARDS. which means they have an above-average internal strength. Lipitor and Zoloft catapulted the company into its number one position. The EFE matrix for Pfizer is 2. and if they should venture into that area or continue their research and development. Cells IV. SHONDRELL #1138929 drugs.64. which suggest a less than average ability to respond to external factors.9 2 3 2 1 4 IFE Scor e 2. Phizer IE Matrix EFE Sco 4 re 2.64 3 2 1 Low Strong Average Weak High HOLD AND MAINTAIN Medium The IFE matrix score for Pfizer is 2.
Pfizer must focus on current market and 14 . and is in excellent strategic position. SHONDRELL #1138929 maintain strategy. For Pfizer this means tactical strategies should focus on market penetration and product development. Pfizer GSM Matrix Pfizer GSM Pfizer is in Quadrant 1 of the GSM.Pfizer Case Study EDWARDS. Pfizer has competitive situation and rapid market growth. Therefore.
Pfizer Case Study EDWARDS. and products development are appropriate strategies. SHONDRELL #1138929 appropriate to follow market penetration. 15 . market development.
0 5 0 10 0 0 .0 2 0 1 .0 10 0 0 .00 8.0 1 . Celebrex. O P R U IT S P O T N IE 1 ProposedWyeth acquisition ) 2) Global growth 3) Expansion into biologics/vaccine m arket 4) Partnershipwith other countries 3 2 1 1 4 3 4 3 1 2 1 3 2 1 2 1 38 0 T RA S HE T 1 Regulation hurdlesinthe United Statesand ) European Com mission 2) Pfizer will have to take on Wyeth’spossible litigation 1 .00 7.0 8 0 .00 7.00 6.0 0 0 7 0 .0 0 0 1 .0 2 0 2 4 2 3 5 4 2 5 3 2 1 2 4 4 2) Lipitor isthestrongest drug in itscategory 3) Pfizer hasthe largest market cap in the world 4) Pfizer’semployeeworkforce isthe largest in the world 5) Pfizer’sprogramof helping those who need drugs and lost jobshashelped build a loyal custom base.0 0 0 1 .0 1 . 4) Financesneed more visibility 5) Lowest earningper share (EPS) although ranked ahead all competition 6) Changesin healthcare coverage may im pact Pfizer'ssales.0 > 1 2 1 2 1 3 1 2 1 2 1 1 2 1 7 1 0 7 1 4 5 1 8 8 1 4 8 1 6 8 7 2 0 7 19 4 1 5 1 8 1 0 3 0 2 4 1 1 3 6 1 5 19 5 W AK E S S E N SE 1 Pfizer’scontinued problemwith disobeying ) regulations 2) Many patent protectionsendingand Food and Drug Adm inistration(FDA) issuesin 201 0 3) Custom disapproval due to medicinesnot being er approved and/or safe.0 1 0 1 .00 7 0 .0 5 0 10 0 0 .0 8 0 4) Over the counter drug availability 1 .0 8 0 . SHONDRELL #1138929 Q PM(Q AN S U TITATIVE S TRETEG PLAN IN M IC N G ATRIXF R PF ER O IZ Alterna tive 1 Alternative 2 Acquire C petitor om E xpand Internally KeyFa ctors W ht eig SRN T S TE GH 1 Pharm ) aceuticalsdom inatethe majority of the businessunitswithin Pfizer Attractiveness Score Total Attractiveness Score W eight Attractiveness Score Total Score Attractiveness 7.0 1 .0 1 .00 5.0 8 0 .00 5.0 1 .0 10 0 0 .0 8 0 .0 S MT T LA T A T E E SS O E U O A T R C IV N S C R 3) Norvasc.0 0 0 1 .Pfizer Case Study EDWARDS.0 0 0 7 0 .00 8. er 6) Pfizer isvery active and known in politics 7) Greatest marketing power 1 4 2 0 1 4 2 1 2 5 2 4 1 6 3 5 2 4 1 6 8 1 4 4 0 2 8 29 9 4 5 1 8 1 0 1 0 4 8 3 3 7 2 4 5 21 8 50 8 7.00 7.0 1 0 1 .0 7 0 .0 1 .0 8 0 . Bextra lawsuitsabroad 16 .0 8 0 .0 5 0 9 0 .0 8 0 1 .0 5 0 9 0 .0 7 0 .00 7 0 .00 5.00 6.0 0 0 1 .00 5.00 7.
investments in R & D. forward. (2) Continue their focus on customer relationship to build customer loyalty and have their brand become the preference. Policies. 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. Pfizer is able to maintain their spot at the number one position. Pfizer may also want to exploit the external opportunities and magnify the wealth in numerous areas of dealings. (5) Continue and focus on global expansion and international sales. such as their joining the United Nations Global Impact (that focuses on corporate responsibility and citizenship). SHONDRELL #1138929 Stage 3 is the QSPM. (3) Continue cutting edge technology of pills that can treat more than one ailment (Caduet). (6) Consider lowering prices to compete with competitors. and global goals Pfizer should continue to dominate the pharmaceutical market. due to the number of pharmaceutical companies in existence today. Between their workforce. 17 . Pfizer should adopt the expansion program and indulge in backward. Objectives. Review. (4) Make safety a number one priority by providing more information about their products. Pfizer Recommended Strategies. 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.Pfizer Case Study EDWARDS. side effects. which is the decision stage for the strategy framework. or horizontal integration in a careful way that includes biannual review and evaluation. Pfizer trail blazes in a lot of new ways. and consumption.
September 30). (2011). (2010.com/files/annualreport/2010/financial/fi nancial2010.com/investors/financial_reports/financia l_reports.html?symb=PFE Pfizer.pdf.PwC-09. The World's Premier Pharmaceutical Company.pdf Pfizer. Pharma 2020: The vision. Why population aging matters: A global perspective. Pfizer. Company Symbol PFE (2011).pdf PricewaterhouseCoopers (2007).Pfizer Case Study EDWARDS.cnn.com/portal/site/imshealth/menuitem. Retrieved October 30.pwc.com/files/investors/presentations/q4earnings_january012509. 30.imshealth. Retrieved from http://www.pfizer. 2010 Financial Report.com.S.). Washington. Retrieved October 30. (2009. Retrieved from http://www. from Pfizer : http://www.). Retrieved from http://www.be/en/pharma/pdf/Pharma-2020-vision. 2011.pfizer.money. Which path will you take? Retrieved from http://www. and Subsidiary Companies (2010).pfizer. New Jersey: Prentice Hall. Retrieved from http://www. Publication Manual of the American Psychological Association (6th ed.jsp American Psychological Association (2010). Strategic management: Concepts and cases (13th ed. Department of State (2011). SHONDRELL #1138929 REFERENCES 2010 Financial Report (2010). January 26).com/quote/profile/profile. MSN Money. F.a9 18 .com/investments/company-report? symbol=PFE David. Inc. Pfizer. Retrieved from http://investing. Inc. (2011). Pfizer’s commitments for a healthier world.msn. from CNN Money: http://money.pdf U.com/files/about/pfizer_commitments. DC: American Psychological Association.pfizer.
yahoo.strategyclub. asp 19 . com or http:// moneycentral.Pfizer Case Study EDWARDS.com S& P Industry Survey material in the college library http:// finance. SHONDRELL #1138929 53aef4d73d1ecd88f611019418c22a/vgnextoid=bb967900b55a5110V gnVCM10000071812ca2RCRD&vgnextfmt=default www. msn/ investor/ home.
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