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1.
2.
3. AN INTRODUCTION TO PFIZER
Pfizer Inc, founded in 1849, is dedicated to better health and greater access to healthcare
for people and their valued animals. Our purpose is helping people live longer, healthier,
happier lives. Our route to that purpose is through discovering and developing
breakthrough medicines; providing information on prevention, wellness, and treatment;
consistent high-quality manufacturing of medicines, consumer products; and global
leadership in corporate responsibility. Every day we help 38 million patients, employ
more than 100,000 colleagues, utilize the skills of more than 12,000 medical researchers,
and work in partnership with governments, individuals, and other payers for healthcare to
treat and prevent illnessesadding both years to life, and life to years.
Pfizer is a research-based global pharmaceutical company. Pfizer discovers, develops,
manufacturers and markets leading prescription medicines for humans and animals, as
well as many of the worlds best-known over-the-counter medicines and consumer
healthcare products.
Pfizer operates through five distinct divisions:
1. Pfizer Global Research & Development PGRD
PGRD is dedicated to drug discovery and to the development of
medicines ready for the market.
2. Pfizer Global Manufacturing PGM
PGM is the manufacturing and largest division of Pfizer Inc. PGM
supports our global manufacturing and distribution of Pfizer products.
3. Pfizer Global Pharmaceuticals PGP
PGP markets a wide range of prescription-only medicines and
consists of all the commercial departments responsible for supporting
the business.
4. Pfizer Animal Health PAH
PAH provides some of the most innovative and successful medicines
for companion animals and livestock.
5. Pfizer Consumer Health Products Company PCH
PCH is responsible for the sales and marketing of all consumer
healthcare products, over-the-counter medicines, and other health
BUSINESS POLICY
3.1 HISTORY
1849 - 1899
In 1849 cousins Charles Pfizer and Charles Erhardt founded Charles Pfizer &
Company in a red brick building in Brooklyn, NY.
1900 1950
The new century brought prosperity to Pfizer. The pioneering of the mass
production of citric acid from sugar through mold fermentation fueled growth for
years.
1951 1999
The second half of the 1900's saw intense research and great successes for Pfizer.
2000
After successfully merging with Warner-Lambert and Pharmacia to create the
world's fastest-growing major pharmaceutical company, Pfizer continues its
mission to become the world's most valued company to patients, customers,
colleagues, investors, business partners, and the communities where we work and
live.
2001
In June 2001, Hank McKinnell announces a new mission for Pfizerto
become the world's most valued company to patients, customers, colleagues,
investors, business partners, and the communities where we work and live. In
July, he announces a commitment to fund the building of a regional treatment
and training center on the campus of Makerere University in Kampala, Uganda
as part of the Academic Alliance for AIDS Care and Prevention.
Pfizer launches Geodon (ziprasidone hydrochloride), a new antipsychotic
for the treatment of schizophrenia.
2003
Pfizer Inc and Pharmacia Corporation combine operations, bringing together
two of the world's fastest-growing and most innovative companies
Pfizer launches Relpax (eletriptan HBr), a medication developed specifically
for the treatment of migraines.
BUSINESS POLICY
2004
Caduet (amlodipine besylate and atorvastatin calcium), the first single pill that
treats both high blood pressure and high cholesterol, is launched.
2005
Pfizer launches Lyrica (pregabalin), the first treatment approved by
the U.S. Food and Drug Administration to treat two distinct forms of
neuropathic pain associated with diabetic peripheral neuropathy (DPN),
postherpetic neuralgia (PHN) and adjunctive treatment of partial onset
seizures in adults with epilepsy.
2006
Pfizer's roster of outstanding drugs grows with the launch of Sutent (sunitinib
malate), a new, oral, multikinase inhibitor to treat patients with metastatic renal cell
carcinoma (mRCC), or advanced kidney cancer, and gastrointestinal stromal tumor
(GIST) after disease progression on, or intolerance to, imatinib mesylate.
Pfizer launches Eraxis (anidulafungin), a new medicine to treat certain infections
caused by Candida, a yeast-like fungus that can cause serious infections in hospitalized
patients or patients with compromised immune systems.
Exubera (insulin human [rDNA origin]) Inhalation Powder, the first diabetes
treatment for adults with type 1 and type 2 diabetes that can be inhaled, is launched by
Pfizer.
Chantix (varenicline), a prescription medicine to help adults stop smoking, is
launched by Pfizer.
Iqbal Bengali
Website Address:
Aromasin Relpax
Caduet
Revatio
Camptosar Spiriva
Celebrex Sutent
Chantix
Vfend
Detrol/DetroViagra
l
Xalatan/Xalacom
Exubera
Genotropin Zmax
Lipitor
Zoloft
Lyrica
Zyrtec
Norvasc
Zyvox
Benadryl
Cortizone
Desitin
Listerine
Clavamox/Synulox
Equimax
Naxcel/Excenel
Rimadyl
Dectomax
Respisure/Stellamune
Revolution/Stronghold
Lubriderm
Rolaids
Sudafed
Visine
TO BE BEYOND NUMBER 1
BY WORKING TOGETHER
WITH OTHERS, WE CAN DO
MORE GOOD FOR MORE
PEOPLE THAN ANY OTHER
COMPANY ON THE PLANET."
BUSINESS POLICY
Customers
BUSINESS POLICY
Products/services
Technology
Concern for survival and growth
Concern for employees
WE BELIEVE OUR FIRST RESPONSIBILITY IS TO THE DOCTORS, NURSES AND PATIENTS ALONG WITH
THE INSTITUTIONS WHO USE OUR PHARMACEUTICAL PRODUCTS. WE ARE DEDICATED TO THE TOTAL
SUCCESS OF PFIZER AS A WORLDWIDE COMPETITOR THROUGH THE EFFECTIVE USE OF LATEST
TECHNOLOGY. IN THIS RESPECT THE COMPANY WILL CONDUCT ITS OPERATIONS PRUDENTLY AND
WILL PROVIDE THE PROFITS AND GROWTH, WHICH WILL ASSURE PFIZERS ULTIMATE SUCCESS. WE
WILL ACHIEVE CORPORATE SUCCESS THROUGH A FIRM COMMITMENT TO PROVIDE CUSTOMERS
HIGH QUALITY PRODUCT TO THEIR ULTIMATE SATISFACTION. WE WILL VIGOROUSLY PROMOTE AND
SAFE GUARD THE INTEREST OF OUR EMPLOYEES, OUR SHAREHOLDERS, OUR SUPPLIERS AND ALL OUR
OTHER BUSINESS ASSOCIATES. WE SHARE OUR OBLIGATION TOWARDS THE WORLD IN THE
PROTECTION OF THE LIFE, HUMANITY AND ENVIRONMENT.
BUSINESS POLICY
2 PHARMACEUTICAL INDUSTRY IN
PAKISTAN
The pharmaceutical industry of Pakistan comprises of over 400 manufacturing
units including 31 multinationals, besides 10,000 retail chemists, 6,000 drug
wholesaler/distributors and about 1,500 importers. Total sales of Pharmaceutical
products, both locally manufactured and imported, in a year (from march 03 to
march 04) was reported Rs. 60 billion1, out of which 55% sales ( Rs.33 billion)
comes from multi national companies while remaining is distributed among local
pharmaceutical companies of Pakistan.
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2.2
S.N
O
COMPANY
MARKET
SHARE
RS.
1.
GSK
7,987,750,135
13.20%
2.
Abbott
2,904,640,250
4.80%
3.
Aventis
2,699,991,179
4.46%
4.
Novartis
2,268,555,782
3.75%
5.
Pfizer Upjohn
1,861,564,832
3.08%
6.
Merck Marker
1,834,187,026
3.03%
7.
Wyeth
1,442,285,909
2.38%
8.
Roche
1,356,600,371
2.24%
10.
Bristol Myers
1,250,593,204
2.07%
11.
Parke Davis
1,180,453,290
1.95%
12.
1,143,787,197
1.89%
13.
Nestle
1,062,838,419
1.76%
14.
AGP
988,883,618
1.63%
15.
Knoll
975,283,711
1.61%
16.
Searle
957,283,711
1.58%
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17.
Total
Others
29,364,541,868
60,536,968,907
48.89%
100%
Potential
Entrants
High
Moderate
Suppliers
Industry
Competitors
Low
Buyers
Rivalry Among
Existing Firms
High
High
Substitutes
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10
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11
CRITICAL FACTORS
YES
(+)
NO
(-)
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12
Low
Moderate
High
There is high threat of new entrant because of governments favorable policy for
the local pharmaceutical firm. Most of the new companies do not even have the
valid license they can easily get it through bribery or there influences.
YES
(+)
NO
(-)
BUSINESS POLICY
13
|
Moderate
Low
Strong
YES
(+)
BUSINESS POLICY
NO
(-)
14
Low
|
Moderate
Strong
There are a lot of generic products emerging in the industry lowering the overall
profitability of the industry. Availability of the herbal and homeopathic
medicines increases competition and the threat of substitutes. Increased
competition for Viagra as its high cost encourages use of cheaper alternative
treatments. Generic products are in rise, as people tend to spend lesser amount
on allopathic medications because of slow economy. There is a moderate to
strong threat of substitutes because of availability of the herbal and homeopathic
medicines and customers illiteracy rate. They get the cure from these medicines
along with this there has been a failure towards the governments end to washout
fake and smuggled medicines from the market.
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15
YES
(+)
NO
(-)
6) My business is important to my
suppliers?
Low
Moderate
Strong
YES
(+)
BUSINESS POLICY
NO
(-)
16
Low
|
Moderate
Strong
17
The rivalry is not only among national and multinational companies, National
companies are against each other on battle field of cost management to offer
FAVOURABLE
Threat Of
New Entrants
Bargaining
Power Of
Buyers
Threat Of
Substitutes
Bargaining
Power Of
Supplier
Intensity Of
Rivalry Among
Competitors
TOTAL
MODERATE
UNFAVOURABLE
21
16
lowest possible cost, same as; MNCs are striving to outclass each other through
advanced products based upon research and technology.
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18
19
Political disturbance
Local pharmaceutical industry also suffers because of the political disturbances
in the country like strikes in both public and private sectors.
Legal factors
Ministry of healths strong regulations about the pharmaceutical industry for
launching new medicine and changing the prices for the specific medicine has
affected the profit margin of the industry.
Easy issuance of license to sell drugs to the local companies has increased the
price competition in the industry there are 370 national pharmaceutical units
while 30 MNCs.
Import Duty
Import duty on the raw material for the medicine is quite high (35%) which
increase the cost of manufacturing the medicine and strict regulation about the
price increase inversely affect the profitability of the industry. Most of the import
takes place from UK, Switzerland & India.
Pricing policies
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20
In Pakistan, government decides the price for pharmaceutical products, since the
past 4 years government has not allowed increasing the prices of pharma
products. This creates problem with profitability of products and keeps back
companies to profit from their new innovative products
Strict government control over pricing has made many medicines uneconomical,
with the result that they either become available only on the black market at
inflated prices, or disappear completely. In this environment, manufacturers,
both local and foreign-owned, have proved unable to generate the profits needed
for capital investment. This is not helped by a regulatory system best described as
rudimentary.
There is virtually no public drug reimbursement or IP protection; patent law was
officially tightened in December 2000, although the effectiveness of this has been
questioned. In 2002, further changes were made, making Pakistan's IP laws even
weaker Prices of medicines are officially controlled, although the government
lacks the capacity to enforce its policies in this area. Some price rises have been
allowed since 2000, but the current government shows little sign of enacting any
serious reform of the pharmaceutical sector, preferring to allege profiteering on
the part of the pharmaceutical industry.
Import Law
An import law allowing Indian-made drugs to enter the market was signed in
June 2005, although after several months, not one permit has so far been issued.
21
BUSINESS POLICY
22
23
Emerging Diseases
Now pharmaceutical industry after the coming of viruses like bird flu, anthrax,
Dengue Virus is involved in extensive R&D to find the cure or vaccines for these
diseases.
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24
Opportunity
Buyer
Supplier
New
Substitute
Rivalry
Effect
or Threat
Research
and Opportunity
Power
Low
Power
entry
Low
Low
High
Innovation
Emerging
Opportunity
Low
High
High
High
Opportunity
Low
Low
Low
Low
Threat
Opportunity
High
High
Low
High
Low
High
High
High
High
High
Low
High
High
Low
High
High
High
High
High
Low
Diseases
Pharmaceutical
Products
for
incurable
diseases
Self Medication
Viagra
Registration
Low
human Threat
development
ECONOMIC
Threat
FACTORS
Import Law
Pricing policies
Import Duty
Legal factors
Multilateral
Threat
Threat
Threat
Threat
Opportunity
High
High
High
High
High
Low
Low
Low
High
Low
laws
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25
(EFE)
KEY EXTERNAL FACTORS
WEIGHT RATING
WEIGHTED
SCORE
Opportunities
1. Customers interest and
preference for buying foreign
.15
medicines rather than local
medicines
.45
.08
.24
.05
.20
4. Emerging diseases
.12
.36
5. Acquisition of local
companies
.12
.12
6. Governments interest in
having trade with India in
medicines
0.05
.10
.12
Threats
1. Continued weakening of the .10
PKR & fluid GOP policies
will put pressure on profit
BUSINESS POLICY
.20
26
.18
3. Economic
fluctuations
.09
.18
.06
.24
5. Government inclination of
encouraging more national
pharmaceutical companies
.11
.22
6. Self medication
0.05
.15
0.06
.18
TOTAL
1.00
and
political
4. Use
of
herbal
homeopathic medicines
and
2.94
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27
4 MICRO-ENVIRONMENTAL ANALYSIS
4.1 INDUSTRY ANALYSIS
From the internal analysis, we get the strengths and weaknesses of the company.
Which are derived from the following four components:
Value chain
Core Competencies
Strategic Costs
Financial Trends
Raw material
from China,
India &
Germany
Operations
Distributors
Sales &
Marketing
Retail
pharmacists
Final
Consumer
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28
OPERATIONS
Operational activities are done at the plant located at 12 Dockyard Road, West
Wharf, Karachi in Pakistan.
DISTRIBUTORS
PFIZER uses four major channels for the distribution of their products: drug
wholesalers, retail pharmacists, hospitals, and doctors.
The distributors are hired by PFIZER. PFIZER distributors have structured route plans
for distributing all its products. No expenses are shared by the company.
Trade Margin: The trade margin is set for this industry, 10% for distributors and 15% of
retailers. However there are trade promotions deals to keep them happy and also
incentives provided by PFIZER to retailers on good performance.
RETAIL PHARMACISTS
Drugs can only be sold through authorized chemists. Retailers have to get
registration approved by the government to sell drugs. The main focus of
companies like PFIZER is to convince doctors through their sales team to
prescribe their drugs. This sales team is on the companys payroll and especially
trained. The distributors sales force is responsible for distributing medicines to
chemists, retailer-cum-chemists and hospital pharmacies.
BUSINESS POLICY
29
Links with more than 250 partners in academia and industry strengthen its
position on the cutting edge of science and biotechnology by providing access to
novel R&D tools and to key data on emerging trends. A half century ago, despite
daunting odds and great risk, Pfizer pioneered the mass production of penicillin,
ushering in the modern pharmaceutical era. Now, more than 12,500 Pfizer
scientists at our research facilities around the world continue the quest for new
medicines with the same pioneering spirit.
30
and then assigning costs to the appropriate activity responsible for creating
the cost. The Strategic costs of Pfizer include the following costs:
Operational Cost (packaging and warehousing)
Raw Material Cost
31
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32
Pfizers animal health units market is one of the largest selling and broadest
product lines in its field.
6.
Social Responsive
Pfizers tradition of Philanthropic activities in making every community a
better place to work and live like wise Helping the tsunami orphans, Teaching
about vaccine preventable diseases and Women and children in health
education program etc.
7.
WEAKNESSES
1. Decreasing market share
After 2003, Pfizer is facing a decline in the market share of pharmaceutical
industry.
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33
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34
Rating
Weighted
Score
0.12
.36
0.80
3. Strong Marketing
0.07
0.21
0.17
0.51
Health 0.12
0.48
0.09
0.27
0.36
4. Mergers,
Acquisitions
Collaborations
5. Worlds
company
largest
Animal
and
6. Socially responsive
7.
Internal Weaknesses
1. Decreasing market share
0.08
0.08
0.06
0.12
TOTAL
1.00
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3.19
35
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36
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37
CPM
GSK
PFIZER
ABBOTT
CRITICAL
SUCCESS
FACTORS
Marketing
0.05
0.15
0.20
0.20
Product
Quality
0.15
0.6
0.6
0.6
0.1
0.60
0.60
0.45
New
Geographical
Regions
0.05
0.15
0.10
0.10
Financial
Position
0.10
0.4
0.3
0.4
Distribution
Network
0.10
0.4
0.3
0.3
Market Share
0.1
0.52
0.39
0.26
Mergers &
Acquisitions
0.075
0.15
0.225
0.225
Price
0.075
Competitiveness
0.225
0.225
0.225
R&D Skills
TOTAL
1.0
2.89
3.25
2.95
Note: The ratings values are as follows: 1 = major weakness, 2 = minor weakness, 3 = minor strength, 4 = major
strength.
BUSINESS POLICY
38
Interpretation of CPM
According to the competitive profile matrix as per pharmaceutical industry in
Pakistan, the evaluation of key success factors led the MNCs in order that GSK
as being the leader in Pakistan lies with 3.25 and Abbott with 2.95, while Pfizer is
lagging behind with a 2.89.
According to the market share GSK has the 7% and Abbott ahs 3.4% , while Pfizer
has only the 3.09 v% from a 15% population of Pakistan using pharmaceuticals.
Working with the above-mentioned success factors, as the competitors are
working, Pfizer should also consider doing some good practices.
Such as GSK and Abbot recently installed a MIS system in order to cover their
suppliers, byres, distributors, and retailers more in a systematic way. Therefore
they should also work hard to achieve strength in the industry success factors.
BUSINESS POLICY
39
Weaknesses-W
W1.
No clear
Statement
W2. Discontinuation
products
Opportunities-O
SO- Strategies
WO- Strategies
Threats-T
ST- Strategies
WT- Strategies
1. Reduce dependence on
Lipitor by launching Viagra and
Celebrex (W5, T4)
2. Decrease over all unit cost by
Backward/ Forward Integration
system. (W6, T5)
3.
Decrease
overall
development and launching
time to gain the First Mover
Advantage (W4, W7, T3).
BUSINESS POLICY
Mission
of
40
Ratings
leverage
liquidity
Net income
4.0
4.0
3.0
11.0
INDUSTRY STRENGTH
4.0
4.0
1.0
6.0
15.0
ENVIRONMENTAL STABILITY
COMPETITIVE ADVANTAGE
Market share
Research and Development
-3.0
-2.0
-5.0
-10.0
INTERPRETATION
Coordinates:
=
+1.25
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41
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42
1.
2.
3.
4.
5.
6.
Market Development
Market Penetration
Product Development
Forward Integration
Backward Integration
Horizontal Integration
Weak Competitive
Position
Strong Competitive
Position
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43
6 STRATEGIC ANALYSIS
6.1 CURRENT GENERIC POSITIONS AND
STRATEGY
Broad Range of
Buyers
Of
Differentiation
Differentiation
Strategy
Overall Low-cost
Provider Strategy
Best-cost
provider
strategy
Focused
Differentiation
Strategy
Narrow Buyer
Segment
Market Target
Low Cost
all
the
generic
strategies,
PFIZER
is
currently
using
BROAD
BUSINESS POLICY
44
TYPES OF FEATURE
Strategic target
Basis of competitive
advantage
Product line
BROAD
DIFFERENTIATION
PFIZERS POLICIES
STRATEGY
A broad cross section of PFIZER international is
market
physically present in 180
countries
An ability to offer buyers PFIZER only
something different from pharmaceutical company
competitor
which deals in animal
health care and keeps on
innovating and
producing new
medicines, as a researchbased pharmaceutical
company
Many product variations, With a 2006 estimated
wide selection, emphasis Pfizer budget of $7.8
on differentiating
billion in research &
features
development
(R&D),
Pfizer
boasts
the
industry's
largest
pharmaceutical R & D
organization:
Pfizer
Global Research and
Development.
Pfizer's
search for new treatments
spans
hundreds
of
BUSINESS POLICY
45
Build in whatever
features buyers are
wiling to pay for.
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46
SBUs
Total market
size '000
2881
Animal health
0.54%
332
Pharma products
0.59%
154
For constructing the BCG matrix, five Strategic Business Units of PFIZER have
been considered as follows:
Market Growth
Industry Sales
(In %s)
Star
Question Mark
Cash Cow
HIGH
1.0
Dog
MEDIUM
0.5
LOW
0.0
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47
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48
The EFE
Total
Weighte
d Scores
Average
2.0 to 2.99
3.0
Weak
1.0 to 1.99
2.0
1.0
High
3.0 to 4.0
3.0
Medium
2.0 to 2.99
2.0
Low
1.0 to 1.99
1.0
Interpretation of IE Matrix
According to the analysis of IE, PFIZER falls in the first division, which covers
the GROW AND BUILD strategies. Which includes Market
Penetration, Market Development, and horizontal integration.
Therefore they can go for the Pharmaceutical Business Segment and
should grow in its Consumer Health Care Business Segment plus
they can also go for the hair and skin care products as Pfizer are
already in ophthalmology.
BUSINESS POLICY
49
IE
X
X
X
X
SPACE
X
X
X
X
X
X
X
TOTAL
GRAND
COUNT
X
X
X
X
X
X
X
2
2
3
3
3
3
2
18
Interpretation
As per the summary matrix, based on the whole process they major strategies,
which are consistently, coming from the matrices are:
Product Development, Forward Integration, Backward Integration, Horizontal
Integration. These strategies can very well go with PFIZER for more better
results and improvement.
Therefore its suggested that they can go for any of these or either having a
combination of these strategies. Product Development: They can go for the new
varieties in the skin care products as per the growing industry in cosmetics etc. For
Forward Integration, they can go for forward integration through a good handshake
(merger and alliances) with any local company (e.g.: Bosch, Rosh, Hilton) to improve
their distribution and market share in the local industry. Backward Integration &
Horizontal Integration, like wise these two strategies Pfizer can have alliances with
other domestic pharmaceuticals of Pakistan in order to build a strong position and to
retain its market share, they can also for the companies which are having strong financial
positions, internal suppliers plus technology factor so that they can cover their weakness
as done with the PAK DAVIZ in 2004.
BUSINESS POLICY
50
Should pursue
Forward
Integration
Weight
AS
TAS
AS
TAS
.10
.40
.40
.05
.05
.05
.10
.40
.40
.10
.20
.30
.12
.48
.36
.05
.10
Opportunities
8. Customers interest and preference
for buying foreign medicines rather
than local medicines
9. Increased awareness about
allopathic mode of medicine
10. Pakistan has a population growth
rate of 2.6% per annum. Higher
population growth means that there
would be a larger market available
for the pharmaceutical industry.
11. Emerging diseases
12. Acquisition of local companies
13. Governments interest in having
trade with India in medicines
14. Allowing of TRIPS to have parallel
trade on some generic medicines.
BUSINESS POLICY
51
Threats
8. Continued weakening of the PKR &
fluid GOP policies will put pressure
on profit margins & can impede
sales
9. The
sale
of
FAKE
AND
SMUGGLED MEDICINES at low
prices
10. Economic and political fluctuations
11. Use of herbal and homeopathic
medicines
12. Government inclination of
encouraging more national
pharmaceutical companies
13. Self medication
Strong brand name of major
competitors such as GSK, ABBOTT.
.07
.28
.28
.05
.20
.15
.45
.45
.10
.40
.30
.11
.22
.44
.10
.40
.40
.10
.40
.30
.07
.28
.28
.05
.20
.15
.05
.20
.15
.07
.21
.21
.07
.28
1.0
Internal Strengths
1. A strong product portfolio
2. Strong Research and development
Network
3. Strong Marketing
4. Mergers, Acquisitions, and
Collaborations
5. Worlds largest Animal Health
Company
6. Socially responsive
Worlds largest selling medicine,
Lipitor
Internal Weaknesses
1. Decreasing market share
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52
1.0
5.94
6.21
Interpretation
Pfizer recently launched its new Strategic Imperatives, the overall theme being
"WORKING FOR A HEALTHIER WORLD. The imperatives that were
launched with fanfare all over the world & Pakistan are:
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53
7 STRATEGY IMPLEMENTATION
Implementing and executing strategy entails converting the organizations
strategic plans into action and then into results. The managements task is to
convert the strategic plan into action and get on with what needs to be done to
achieve the vision and targeted objectives and all the employees are participants.
Implementing strategy is far more difficult then formulating it.
Build a capable
organization
Exert strategic
leadership
Link budgets to
strategy
The strategy implementers action
Build a strategysupportive
corporate culture
agenda
What to do now vs. later
What requires much time and
personal attention?
Design strategysupportive
reward systems
Install support
systems
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country and production sites. Now PFIZER should also give autonomy to its
regional operating units to freely experiment on the regional diseases by
establishing an R&D department locally. Because the inhabitants of the regions
will be more concerned about the health of there people and they will be more
aware of the problems faced in their society.
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Financial Measures
Financial: How do we look to shareholders?
The inventors do not disregard the traditional need for financial data. Timely and
accurate funding data will always be a priority and managers will do whatever
necessary to provide it. Will achieve Profitable growth within the targets of Growth in
net margin annually, i.e. Yr 1: 50 % and Yr 2: 70% and will also achieve a target of
Return on investment for shareholders.
Operational Measures
Customers: How do customers see us?
Recent management philosophy has shown an increasing realization of the
importance of customer focus and customer satisfaction in any business.
These are leading indicators: if customers are not satisfied, they will
eventually find other suppliers that will meet their needs. Poor performance
from this perspective is thus a leading indicator of future decline, even
though the current financial picture may look good.
Internal process: What must we excel at?
This perspective refers to internal business processes. Metrics based on this
perspective allow the managers to know how well their business are running,
and whether its products conform to customer requirements.
Innovation and Learning: Can we continue to improve and create value?
This perspective includes employee training and corporate cultural attitudes
related to both individual and corporate self-improvement. In the current
climate of rapid technological change, it is becoming necessary for knowledge
workers to be in a continuous learning mode.
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Organizational Design
Boundary less
Teams
Organizational Culture
Strong Mutual Relationship
Sense of Community
Caring
Trust
Empowerment
THE LEARNING
ORGANIZATION
Information Sharing
Open
Timely
Accurate
Leadership
Shared Vision
Collaboration
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TARGETS
INITIATIVES
Growth in
net Margin
ROI Ratio
Growth in net
margin annually
Yr 1 50 %
Yr 2 70%
Through
questionnaire
s
Percent of
Service Level
Agreements
Present
Global
Health
Fellows
model (GHF)
Develop
Corporate
performance
measurement
s
Percent of
development
project
within effort
estimates
MEASURES
Profitable growth
Return on
investment for
shareholders.
Discovering and
Developing New
Medicines
Apply advanced
science and
technology in the
manufacture of
medicines to
produce costeffective, highquality products
Improving local
market Pakistan
Improving
profitability
CUSTOMER
INTERNAL
BUSINESS
PROCESS
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International
recognition by
Global
Reporting
Initiative (GRI)
50 % increase
in
Doctors
loyalty till
2007.
20 new
medicines for
FDA approval
till end of 2007.
Communicating
access for doctors
through regional
forums, meetings,
and seminars
Perform Activities
focused on
education, public
health, safety and
improvement of the
environment
Ensure that
contract
manufacturers and
key suppliers have
responsible
environment,
health and safety
management
related to
production of
materials for Pfizer
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INNOVATION,
LEARNING &
GROWTH
Educate
physicians new
prescription
medicine prior to
beginning TV
and print
advertising.
Employee
efficiency for
increase in
productivity.
Skills,
technologies, and
corporate culture
needed to
support your
strategy
To create local
R&D department
under the
supervision of
regional and then
main
headquarters
Expanding the
focus of the to
sustainable
health
solutions.
To create
awareness
about the
effectiveness of
allopathic
medicines and
overcome the
threat of fake
and smuggled
medicines.
Interpretation
The name Balanced Scorecard of Pfizer reflects the Balance between shortterm and long-term objectives, financial and non-financial measures, lagging and
leading indicators, external and internal performance perspectives. It proves a
complete Balance revenue growth and production improvement, Differentiate
your organization from competitors, Identify operational, customer-relationship,
and innovation processes to support your customer and financial goals and they
had, Define the skills, technologies, and corporate culture needed to support
your strategy.
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8. STRATEGY EVALUATION
The most important element of Pfizers management control process is evaluation.
Evaluation of the sales force is an action undertaken to verify the success of selling
program that is comparing planned and actual results, identifying reasons for variations
and making appropriate changes in the sales goals and strategies. After the execution of
any program by the company, it demands immediate feedback.
This feedback assists the managers to evaluate the performance of the employees.
Through evaluation the managers are assured whether the program is designed and
implemented properly or not.
A successful management control program promises the company a competent and able
workforce. It spots individuals who are ready for promotion, salary increases or
assignment to new territories and responsibilities, keeps sales job descriptions current and
on target, provides evidence about salespersons, which should be eliminated.
Top sales executives design the evaluation plan at PFIZER because they have the most
sales experience; they know the company, its products, and markets in the greatest detail.
PFIZER believes that the program is only effective if the knowledge and the
improvements meet the criterion. The evaluation process at PFIZER also includes a
follow-up and as soon as the program shows positive results it indicates that the
evaluation was done in an adequate manner.
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9. RECOMMENDATONS
The best strategies will be Mergers And Acquisitions with the local
companies to strengthen the regional trade and product development by
producing more innovative and differentiated products.
PFIZER should not change its strategy and should stick to the broader
differentiation but at the same time it should work to maintain its position.
It should grab the opportunity of the regional trade this will help it to be
present physically in the regions and it will also minimize the threat of the
economic instability of the countries because then it will work more under the
umbrella of international trade system like WTO and TRIPS.
It should also avail the opportunity of increasing customer needs by
product development by Creating new directions in health and wellness such
as skin care products, it should communicate doctors about its differentiated
products. This will increase its sales and create its brand recognition.
Deliver more new medicines more quickly to patients, Drive our
advantages in size, reach, and productivity, Build the performance potential
of each colleague and Shape a positive environment for better healthcare.
10.
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10. Bibliography
http://www.pfizer.com.pk/Default.aspx?tabid=44
http://www.dcomoh.gov.pk/pharma/layoutplans.php
www.dailytimes.com.pk/default.
www.patent.gov.pk/notification
http://www.pfizer.com/pfizer/main.jsp
Corporate citizenship report Pfizer 2005-2006
Main campus Pfizer Inc at Doc Yard
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