Overview of PFizer firm from strategic management point of view

Overview of PFizer firm from strategic management point of view

1. Prepared By Usman ahmad khan Muhammad hamid baig Nawab khattak Haider manan RizwanUllah

2. Pfizer Introduction Pfizer Inc. is a multinational pharmaceutical company and one of the world's largest pharmaceutical companies, known for its research, development, and manufacturing of a wide range of prescription drugs and vaccines. The company has a long and rich history, dating back to its founding in 1849 by cousins Charles Pfizer and Charles F. Erhart in Brooklyn, New York . Pfizer's primary focus areas include immunology, oncology, cardiology, endocrinology, and neuroscience. The company has been a pioneer in the development of various drugs to treat a range of medical conditions.

3. Pfizer Introduction Pfizer operates on a global scale with a presence in numerous countries. It has research and development facilities, manufacturing plants, and offices around the world . Pfizer has a strong commitment to research and development (R&D). The company invests significantly in discovering and developing new drugs, aiming to address unmet medical needs and improve healthcare outcomes . Pfizer is involved in various philanthropic and social responsibility initiatives, including programs aimed at increasing access to healthcare, supporting education, and addressing global health challenges.

4. Pfizer mission statement Pfizer's mission, like many companies, is focused on improving health and well-being. However, specific mission statements may evolve overtime . Here's a general representation of Pfizer's mission as of my last update : Pfizer's mission is to be a global leader in advancing health and well-being for individuals around the world. We strive to discover, develop, and provide innovative medicines and vaccines that contribute to a healthier and more sustainable future. Our commitment extends to improving access to healthcare, supporting communities, and fostering scientific advancements to address the world's most pressing health challenges .

5. Pfizer vision statement Pfizer envisions a world where everyone has access to high-quality, innovative healthcare solutions that improve and extend lives. We strive to lead in the discovery and development of groundbreaking medicines and vaccines, addressing unmet medical needs and contributing to the overall well-being of individuals and communities worldwide. Our vision is rooted in a commitment to scientific excellence, ethical practices, and a dedication to making a positive impact on global health.

6. IFE Matrix Internal Factor Evaluation (IFE) Matrix is a strategy tool used to evaluate firm’s internal environment and to reveal its strengths as well as weaknesses . According to the author, This tools are used to summarize the information gained from company’s and internal environment analyses. Strengths and weaknesses are used as the key internal factors in the evaluation. When looking for the strengths, ask what do you do better or have more valuable than your competitors have. In case of the weaknesses, ask which areas of your company you could improve and at least catch up with your competitors

7. Strengths Weight (W) Rating (R) Weighted Score Strong brand reputation 0.10 4 0.40 Efficient production processes 0.08 4 0.32 Skilled and motivated workforce 0.12 4 0.48 Technologically advanced systems 0.09 4 0.36 Financial stability 0.11 4 0.44 Product innovation 0.10 4 0.40 Employee training programs 0.10 4 0.40 Market share 0.10 4 0.40 1.00 3.20 Weaknesses Weight (W) Rating (R) Weighted Score (W * R) Outdated technology 0.10 2 0.20 High employee turnover 0.08 2 0.16 Limited financial resources 0.12 2 0.24 Inefficient supply chain 0.09 2 0.18 Lack of product diversification 0.11 2 0.22 Inadequate employee training 0.10 2 0.20 Weak market presence 0.10 2 0.20 Dependence on a single product 0.10 2 0.20 Total 1.00 1.60

8. EFE Matrix An External Factor Evaluation (EFE) Matrix is a  strategic tool  used by businesses to  evaluate  their current  strategies .  It does this by considering the  key external factors  in a company´s environment that may affect its performance. These factors may be, among others: Competitive , Economic , Legal , Social , Political , Technological.

9. Opportunities Weight (W) Rating (R) Weighted Score (W * R) Emerging markets expansion 0.10 4 0.40 Growing demand for sustainable products 0.08 3 0.24 Technological advancements 0.12 4 0.48 Strategic partnerships 0.09 4 0.36 Increasing consumer awareness of health 0.11 3 0.33 Regulatory support for the industry 0.10 3 0.30 Shift towards online healthcare services 0.10 4 0.40 Demographic trends favoring the industry 0.10 3 0.30 1.00 2.41 Threats Weight (W) Rating (R) Weighted Score (W * R) Intense competition 0.10 3 0.30 Economic downturn 0.08 4 0.36 Regulatory challenges 0.12 3 0.36 Rapid technological obsolescence 0.09 3 0.27 Supply chain disruptions 0.11 4 0.44 Shifting consumer preferences 0.10 3 0.30 Geopolitical instability 0.10 2 0.20 Natural disasters 0.10 3 0.30 Total 1.00 2.49

10. CPM Matrix The Competitive Profile Matrix (CPM) is a tool that compares the firm and its rivals and reveals their relative strengths and weaknesses .  In order to better understand the external environment and the competition in a particular industry, firms often use CPM. The profile matrix identifies a firm’s key competitors and compares them using industry’s critical success factors. The analysis also reveals company’s relative strengths and weaknesses against its competitors. As a result, a company can easily identify the areas it should improve and the areas it should protect.

11. Critical Success Factors Weight (W) Company A Rating Company B Rating Company C Rating Market Share 0.15 4 3 2 Product Quality 0.12 3 4 3 Brand Reputation 0.10 4 3 4 Innovation Capability 0.12 3 4 3 Financial Stability 0.10 4 3 3 Distribution Network 0.08 3 4 2 Customer Loyalty 0.10 4 3 4 Cost Efficiency 0.13 3 4 3 Total 1.00 3.32 3.46 3.21

12. SWOT Analysis SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. SWOT Analysis is a tool that can help you to analyze what your company does best now, and to devise a successful strategy for the future. SWOT can also uncover areas of the business that are holding you back, or that your competitors could exploit if you don't protect yourself. A SWOT analysis examines both internal and external factors – that is, what's going on inside and outside your organization. So some of these factors will be within your control and some will not.

13. Strengths Weaknesses Internal External Strong brand name, image and reputation. Large market share. Strong global presence. Specialized training for managers known as the Hamburger University. McDonalds Plan to Win focuses on people, products, place, price and promotion. Strong financial performance and position. Introduction of new products. Customer focus (centric). Strong performance in the global marketplace. Unhealthy food image. High Staff Turnover including Top management. Customer losses due to fierce competition. Legal actions related to health issues; use of trans fat & beef oil. Uses HCFC-22 to make polystyrene that is contributing to ozone depletion. Ignoring breakfast from the menu. Opportunities S-O Strategies W-O Strategies Growing health trends among consumers. Globalization, expansion in other countries (especially in China & India). Diversification and acquisition of other quick service restaurants. Growth of the fast food industry. Worldwide deregulation. Low cost menu that will attract the customers. Freebies and discounts. Focus on Plan to win to attract customers and expansion in other countries (S5, O2, O6). Expansion in market share by more investments in Asia (S2, O2). Minimize customers losses by provide low cost menu and discounts (W3, O6, O7).

14. Threats S-T Strategies W-T Strategies Health professionals and consumer activists accuse it of contributing to the country’s health issue of high cholesterol, heart attacks, and diabetes. The relationship between corporate level McDonald's and its franchise dealers. McDonald’s competitors threatened market share of the company both internationally and domestically. Anti-American sentiments. Global recession and fluctuating foreign currencies. Calorie counts & nutritional value posted . More control on franchise dealers to maintain McDonald's reputation and quality (S1, T2). Provide new product and keep innovation (S7, T3). Applying 0 grams Trans fat in all worldwide McDonald's (W1, W4, O1). Fast food industry must have a nutrition guide in their menu. (W5, T6).

15. Space Matrix The space matrix is a management tool used to analyze a company. It is used to determine what type of a strategy a company should undertake. The Strategic Position & Acton Evaluation matrix or short a space matrix is a strategic management tool that focuses on strategy formulation especially as related to the competitive position of an organization.

16. Financial Strength Rating Environmental Stability Rating Return on investment 4 Rate of inflation -3 Leverage 4 Demand Changes -3 Net Income 6 Price Elasticity of demand -1 EPS 5 Competitive pressure -3 ROE 5 Barriers to entry new markets -3 Cash Flow 4 Risk involved in business -2 Average 4.67 Average -2.5 Y-axis 2.17 Competitive Advantage Rating Industry Strength Rating Market share -1.00 Growth potential 5 Product Quality -1.00 Financial stability 5 Customer Loyalty -1.00 Ease of entry new markets 4 Control over other parties -2.00 Resources utilization 4 Profit potential 5 Demand variability 3 Average -1.25 Average 4.33 X-axis 3.08

17. Conservative Defensive Competitive Aggressive Directional vector point is :( 3.08, 2.17) FS ES CA IS

18. Grand Strategy Matrix This is also an important matrix of strategy formulation frame work. Grand strategy matrix it is popular tool for formulating alternative strategies. In this matrix all organization divides into four quadrants. Any organization should be placed in any one of four quadrants. Appropriate strategies for an organization to consider are listed in sequential order of attractiveness in each quadrant of the matrix. It is based two major dimensions. 1. Market growth 2. Competitive position All quadrant contain all possible strategies

19. Quadrant II Quadrant III Quadrant IV Quadrant I Rapid market growth Weak competitive position Slow market growth Strong competitive position Quadrant I 1. Market development 2. Market penetration 3. Product development 4. Forward integration 5. Backward integration 6. Horizontal integration 7. Concentric diversification

20. BCG Matrix The BCG matrix, also known as a growth/share matrix, is a business tool that you can use to help you create strategic, long-term plans regarding investment in competitiveness and market attractiveness. It is a framework for portfolio management that allows you to prioritize different products. You can write a BCG matrix as a table that is divided into four parts, each of which represents a particular product or business, with a vertical axis that represents growth and a horizontal axis that represents market share. Where: The vertical axis representing growth is the amount of potential a product has to bring in money. The horizontal axis representing market share is the portion of an area where you conduct commercial deals that you control.

21. Question mark Star Cash cow Dog pfizer Rapid mkt share Market growth rate High Low High Low Star Forward, Backward integration Star Horizontal integration

22. The Internal-External (IE) Matrix The Internal-External (IE) matrix is another strategic management tool used to analyze working conditions and strategic position of a business. The Internal External Matrix or short IE matrix is based on an analysis of internal and external business factors which are combined into one suggestive model. The IE matrix is a continuation of the EFE matrix and IFE matrix models. The IE matrix belongs to the group of strategic portfolio management tools.The IE matrix positions an organization into a nine cell matrix. The IE matrix is based on the following two criteria Score from the EFE matrix -- this score is plotted on the y-axis. Score from the IFE matrix -- plotted on the x-axis.

23. I II III IV V VI VII VIII IX The IFE Total Weighted Score 3.20 The EFE Total Weighted Score 2.41 High 3.9 3.0 Medium 2.0 Low 1.0 High 4.0 3.0 Medium 2.0 1.0 Low Pfizer

24. QSPM Matrix The Quantitative Strategic Planning Matrix (QSPM) is a strategic management tool that helps businesses evaluate and prioritize potential strategies. The QSPM helps businesses make informed decisions about which strategies to focus on by providing a structured and quantitative assessment of their potential impact on the organization's success

25. Strategic Alternatives Weight (W) AS (Attractiveness Score) TAS (Total AS * Weight) Expand product line 0.10 4 0.40 Increase marketing efforts 0.08 3 0.24 Form strategic partnerships 0.12 4 0.48 Invest in research and development 0.09 3 0.27 Improve cost efficiency 0.11 4 0.44 Enhance customer service 0.10 3 0.30 Enter new markets 0.10 4 0.40 Develop online sales channels 0.10 3 0.30 Total 1.00 2.83

26. Recommendations T he company is planning 19 drug launches or label expansions over the next year and a half. Those launches, in total, should generate $20 billion in sales by 2030, Bourla said. The group includes an RSV vaccine, elranatamab in multiple myeloma, ritlecitinib in alopecia areata,and many other products