Pfizer Strageic Plan

OUTLINE FOR THE STRATEGIC curriculum Please bullet your responses. Staple the arrestd assignment do non spend any m sensationy binding the assignment. Make sure to move to every item. I. GETTING STARTED A. measurings in Strategic Man periodment routine Step 1 station the schemes mission, vision, and value program line Step 2 Determine the firms main business concern and system of rulesal objectives Step 3 Conduct a SWOT analysis identifying the phoners strengths, weaknesses, opportunities, and brats Step 4 Construct a Competitive Profile matrix (CPM) Step 5 Construct an External cistron Evaluation (EFE) matrix Step 6 Construct and Internal Factor Evaluation (IFE) ground substance Step 7 Construct a Value Chain compend Step 8 Prep are a SPACE, BCG, TOWS analysis, and QSPM hyaloplasm Step 9 Use the data above to weigh alternative strategies, get hold of strategic recommendations, smash a innovation of action (implementation), and convey the ROI Ste p 10 Construct Contingency Plan B. In fleshation and/or materials practiced to complete assignment Resources used in completing the assignment are as follows Strategic prudence Concepts and Cases 12th edition textbook, S&P calciferol website, Yahoo Finance, Bloomberg. com, Pfizer. com, Google Finance, Reuters. om, and Google search engine including the web pages cited on the Works Cited page. C. m Frame My finis is to actively work on a parcel out of the outline everyday and take away it completed to its entirety by the judgment of conviction it is due therefore I leave non sop up to quite a little to get it through with(p) operate minute. D. Resources Needed both resource your police squad used to complete this assignment FAMU database, online articles, company website. II. MANDATES (MUSTS) -CLARIFYING/UNDERSTANDING A. History/ evolution of the Organization Pfizer was founded in 1849 by Charles Pfizer and Charles Erhart in Brooklyn, New York and has remained sacred to improving the health and s rise up being of individuals around the gentleman.The demand for Pfizers products soared throughout the Civil War as the demand for painkillers, disinfectants and preservatives plusd. In 2000, Pfizer and Warner-Lambert merge to miscellanea the impudently Pfizer, which bring ond the terra firmas fastest developing pharmaceutical company. In 2008, Jeff Kindler, Chairman and CEO of Pfizer, announces the next step in the companys evolution and outlines the companys plan to establish sm aloneer run units designed to enhance innovation and accountability, maculation drawing upon the advantages of Pfizers scale and resources. On October 15, 2009, Pfizer acquires Wyeth, creating a company with a broad range of products and therapies that touch the lives of patients and consumers every day and at every salute of life.In 2010, Pfizer announces a diversified R platform named Pfizer Worldwide investigate and Development, reenforcement excel lence in small molecules, large molecules and vaccine query and exploitation. As apart of the acquisition of Wyeth in 2009, Pfizer initially implemented a two-division grammatical construction for research and learning (BioTherapeutics and PharmaTherapeutics) to ensure the progress and steady integration of both(prenominal) legacy administrations. delinquent to the speed and in force(p)ness of that integration, Pfizer progresses to this bare-ass model speckle maintaining the same breadth and research programs. On declination 1 and 2 2011 Pfizer completed the acquisitions of Excaliard Pharmaceuticals and Ferrosan Consumer healths moving in, respectively. B. report formal asp viperects of the plaque Corporate political science Include plank of Directors, Board Committees, Code of Ethics, CEO/CFO Certifications, executive Officers, Policy and Procedures for account and Legal Complaints Pfizer has created two distinct research organizations. The PharmaTherapeutics loo k for & Development Group focuses on the disc all overy of small molecules and related modalities and The BioTherapeutics search & Development Group focuses on large-molecule research, including vaccines. The goal with Pfizer doing this is to maximize opportunities within the biomedical research sector. Pfizer has also developed an enhanced commercial operating structure.Pfizer has society versatile health care businesses Primary Care, Specialty Care, Oncology, Emerging Markets, realised fruits, Consumer Healthcare, Nutrition, Animal Health and Capsugel. Each of these businesses is led by an executive with go by accountability for results from product development following proof of concept to providing gate to patients and through to the end of the products life cycle. B. Identify informal aspects & culture of the organization Pfizer is sustained on innovation, which seeks a nourishing environment in which ideas and perspectives target flourish. It is an array of unique c haracteristics, perspectives, and life discovers. Pfizer Colleague Resource Groups (CRGs) are organize by colleagues who join together to run a positive fabrication for professional development. By embracing diversity of thought and experience, our CRGs help place innovation and build on our victory. David Simmons, the president and general trader of the constituted Products Business Unit at Pfizer. Simmons has been juicyly successful at edifice a new, non-traditional culture within Pfizer for his business unit. One example of this was that Simmons was up to(p) to product high pure tone medicates at afford fitting comprises, and he did this as high grossing patents were near expiration III. VISION STATEMENT, MISSION STATEMENT & value STATEMENT ANALYSES A. stack dictationAt Pfizer, were inspired by a single goal your health. Thats why were dedicated to develop new, riskless(prenominal) medicines to prevent and treat the worlds nearly serious diseases. And why we are make them avail adapted to the tribe who call for them around. We imagine that from progress comes hope and the promise of a healthier world. B. Vision Statement Analysis Does it answer the question What to do we want to drive? If not, revise it. If organization does not involve one, create one. Yes, I believe that it answers the question as to what they want to stimulate. Its states that they are dedicated to developing new ways to prevent and treat diseases. C. Values Statement Pfizer does not throw a value statement. D. Value Statement Analysis Does it represent the organizations guiding principles? If not, revise it. If organization does not render one, create one. Pfizer concede work to submit the best lumber do dosess that give leave to the nigh people. We will ensure that as a company we will work to do what is best for our patients, physicians and consumers. B. Mission Statement We will become the worlds intimately valued company to patients, cu stomers, colleagues, investors, business partners, and the communities where we work and live. D. Mission Statement Analysis Does it have the 9 components? If not, revise it to accommodate all 9 components.If organization does not have one, create one. No, the mission statement does not include all the nine components. After revising the mission statement, it should be read o We will become the worlds most valued company to patients, customers, colleagues, investors, business partners, and the communities where we work and live. We will ensure that we provide products of the best quality at low-cost prices to all. We will work gravid to ensure that we keep up with the hires and problems of our consumers and provide what is best. We will abide to promote the welfare of our consumers as well as the well-being of our pieceholders and employees as well as promote diversity.We will keep abreast of the dynamical technology to ensure that they ask of our consumers are met at all multiplication and also that we will not become obsolete to our customers. We will constantly be dedicated to developing new, safe medicines to prevent and treat the worlds most serious diseases. And why we are making them available to the people who need them most. List distributively of the 9 components Excerpts from Mission Statement addressing the component 1. Customers We will work hard to ensure that we keep up with the needs and problems of our consumers and provide what is best. 2.Products or Services We will ensure that we provide products of the best quality at affordable prices to all. 3. Markets We will ensure that we provide products of the best quality at affordable prices to all. 4. Technology We will keep abreast of the ever-changing technology to ensure that they needs of our consumers are met at all clock and also that we will not become obsolete to our customers. 5. Concern for survival, emersion, and paidnessWe will keep abreast of the ever-changing technology to ensure that they needs of our consumers re met at all whiles and also that we will not become obsolete to our customers. 6. Philosophy We will forever be dedicated to developing new, safe medicines to prevent and treat the worlds most serious diseases. And why we are making them available to the people who need them most. 7. Self- Concept We will become the worlds most valued company to patients, customers, colleagues, investors, business partners, and the communities where we work and live. 8.Concern for public image We will continue to promote the well-being of our consumers as well as the well-being of our shareholders and employees as well as promote diversity. 9. Concern for employees We will become the worlds most valued company to patients, customers, colleagues, investors, business partners, and the communities where we work and live. IV. ASSESSING EXTERNAL ENVIRONMENT A. Identify Opportunities / panics Analyze trends in the following areas po litical, legal, competitive, economic, social, cultural, demographic, technological, environmental, and authoritiesal. Provide at least 1 opportunity & 1 threat for each of the 10 areas. Provide responses in bullet format. Political luck panic Measures taken to finishing the coverage gap also known as the donut hole whitethorn New Health care Reform Bill was put in place 2010. This law requires do drugs result in people victimisation more brand name drugs sooner than purchasing generic. 9 producers to work up rebates to state Medicaid agencies based on their costs to provide prescription(prenominal) drugs to Medicaid beneficiaries. uninterrupted pressure to lower prescription drug prices from the government2 Legal opportunity threat Acquisitions and in-licensing /co-development opportunities such as recent Expiration of Patents for drugs, face a blemish of up to one trillion millions of dollars due acquisitions of Excaliard and Ferrosan Consumer Health s Business in December to generics taking grocery share.For example, Lipitor, which grossed 11 gazillion 2011 may help Pfizer playact unmet needs of their customers. 23 in revenues last family expired November 28, 2011. This intend that other companies are allowed to produce the generic version of the drug. 2 tot up of New Molecular Entities approved by the FDA has declined. In 2009, NMEs approved were 26 and 2010 were 21. 2 Beginning of 2011 was a series of new fees in the form of excise taxes payable to the federal government. 12 Competitive probability Threat Barriers for additional companies to enter the market are high. 4 French drug maker Sanofi-Aventis $20 billion acquisition of Genzyme Corp. completed in April 2011 boisterous competition among Pharmaceutical companies such as Proctor & gamble and Johnson & Johnson. Japanese drug gross sales are also expected to broaden with circulating(prenominal) sales of 60 billion, 11% of the w orld market share. Economic prospect Threat Demands for certain drugs are comparatively inelastic. 4 Based on the projected losses due to loss of market share, Pfizer has shed 53,000 and 61, 000 jobs in 2010 and 2009 respectively The decline in spending in the US in the last few old age Revenue may be harm by ongoing negative effectuate from U. S. ealth care reform and nonindulgence pricing in Europe Inflation will cause an increase in cost and raise drug prices Competition from newer, better drugs may be a threat to sales. For example, Vivus is a new ED drug that may be able to compete with Viagra. 3 Social Opportunity Threat 450 million Americans are over the age of 65 and health care spending is the Number of NMEs approved by the FDA has declined12 highest among these individuals2 Humana and Pfizer Form Research alliance to Improve Health Care Delivery for Seniors in 2011. Cultural Opportunity Threat Like GlaxoSmithKline and Abbott Labs in p articular Pfizer has its sights on Number of legislative proposals seeking to allow importation of medicines into developing countries for a revenue bump. 13 the U. S. and revenues could be affected Demographic Opportunity Threat Asian drug sales are also expected to expand.For example, Takeda 77 million people by 2031 will be enrolled in Medicare and Health care and Pharmaceutical Company, Asias biggest drug maker, reported an 18 percent jump Medicare will not be able to finance this many people2 in first-quarter realise, helped by the sale of new medicines in the inauguration of 2011. 9 Technological Opportunity Threat Pfizer has plenty of drugs in its pipeline with blockbuster potential. 3 Environmental Opportunity Threat Adoption of new environmental strategies to be more socially responsible Adverse effect on drug prices due to threat of imported drugs and threat of counterfeited drugs due to importing and exporting. B. Monitor Major Stakeholders/St akeholder Analysis Customers, Competitors (list at least 3 of the organizations major competitors, Individuals in the community, Employees, Stockholders, etc. 1. Identify Stakeholders Identify Internal Stakeholders Identify External Stakeholders Ian C.Reed- President, CEO, Director Johnson & Johnson Frank A. DAmelio- CFO, EVP of Business Ops. JP Morgan Chase & Co Mikael Dolsten- Pfizer Worldwide R&D blue Trust Freda- Lewis Hall- EVP, Chief Medical Officer Proctor & Gamble 2. Stakeholder hyaloplasm classify the internal & external stakeholders identified above into the appropriate boxes. uplifted spare-time activity/Importance, High settle High occupy/Importance, Low Influence Ian Reed Proctor & Gamble Frank DAmelio Johnson & Johnson JP Morgan Chase & Co Dow Chemical State Street Corporation Merck and Co Inc. Customers Employees Low Interest/Importance, High Influence Low Interest/Importance, Low Influence establishment Lenders Insurance Companies Suppliers 3. Stakeholder Analysis Stakeholder Responsibility of What does organization Stakeholders potential Stakeholders sensory facultyd Stakeholder Management Stakeholder to the expect the stakeholder to impact on the organization attitudes and/or take a chances to system (SMS) organization provide? (high, medium, or low) the organization N/A Investors line the organization Provide funding and High High assay nonprogressive liquidity to the Attitude organization Strategic plans and Provide expertise, High Risk affirmatory Bottom-Up Employees operations.Supports theknowledge and value High Attitude functionality and functional processes Make critical purposes Provide conceptual High High risk Conservative Top-down Shareholders knowledge and raising-down flow Attitude of decision making Meet market demands Provide products and Medium Risk Positive N/A Suppliers function Medium Attitude External Fa ctor Evaluation Opportunities Weight order (1-4) Weighted Score 1. Measures taken to close the donut hole may result in people using more brand . 07 3 . 1 name drugs rather than buying generic 2. Acquisitions and in-licensing /co-development opportunities . 06 4 . 24 3. 450 million Americans are over the age of 65 and healthcare spending is the . 07 4 . 28 highest among these individuals 4. Expansion of the biologic pharmacy market. . 07 4 . 28 5. Bought King pharmaceutical for $3. 6 billion which would open up more . 06 4 . 4 manufacture and sales adding to the not bad(p) of the company (Carrie, 2009). 6. Barriers for additional companies to enter into market are high . 05 4 . 20 7. Demands for certain drugs are relatively inelastic. . 07 4 . 28 Threats 8. Japanese drug sales are also expected to expand with current sales of 60 . 08 2 . 6 billion, 11% of the world market share. 9. In 2009, Pfizer got assessed a 2. 3 billion fine for which they industrious illegal. 08 1 . 08 marketing strategies. 10. Large manufacture and low research for new inductions in the market could . 07 2 . 14 decline the profitability. 11. constant pressure to lower prescription drug prices from the government . 5 2 . 1 12. Number of NMEs approved by the FDA has declined . 04 2 . 08 13. The decline in spending in the US in the last few years . 07 1 . 07 14. Inflation will cause an increase in cost and raise drug prices . 06 1 . 06 15. Number of legislative proposals seeking to allow importation of medicines into. 05 2 . 1 the U. S. nd revenues could be affected 16. 77 million people by 2031 will be enrolled in Medicare and Health care and . 06 2 . 12 Medicare will not be able to finance this many people Total 2. 64 Pfizer seems to be taking advantage of the opportunities presented as well as avoiding threats but there is smooth room for improvement.For example, Pfizer seems to be taking advantage of round of the acq uisitions that they have had over the last two years. They are seizing the opportunities of the expanding biological pharmacy market. get-go with the acquisition of Wyeth in 2009 and then the acquisitions of Excaliard and Ferrosan Consumer Healths Business. Pfizer saw that they were not meeting the needs of some of their customers but their competitors were. Excaliard is a privately own biopharmaceutical company focused on developing novel drugs for the treatment of flake fibrosis, more comm tho referred to as skin scarring. Ferrosan Consumer Healths Business focuses on dietary supplements and lifestyle products.In addition to this, although New Molecular Entities approved by the FDA have declined, Pfizer has managed to get 3 drugs approved by the FDA in 2011 alone. Lastly, Pfizer has responded relatively well to the governmental pressure of lowering their prices as well as the Lipitor patent expiring at the end of November. Pfizer has implemented sixsomefold rebate and discount programs to help assist their consumers. For example, Pfizer has recently partnered with Wal-Mart to offer a $4 prescription program allowing consumers to obtain their prescriptions at that low price. This helps to decrease the complete loss of revenue and market share if consumers were to go to generic all together.I believe that the reason Pfizer did not receive a fall guy of higher than a 3 was because a lot of these new policies have been recent (2010, 2011) and Pfizer seems to be try to figure out how to remain profitable as well as cater to their consumers and these acquisitions are all relatively new and Pfizer seems to be just getting adjusted. Competitive Profile Matrix Pfizer Johnson & Johnson Eli Lilly Critical Success Factors Weight Rating Weighted Score Rating Weighted Rating Weighted Score Score Organizational expression . 05 2 . 10 4 . 20 1 . 5 harm Competitiveness . 10 3 . 30 3 . 30 3 . 30 Advertising . 04 1 . 04 1 . 04 4 . 16 Product Quality . 1 0 3 . 30 3 . 30 3 . 30 Sales Distribution . 10 4 . 40 3 . 30 2 . 0 Customer Loyalty . 03 3 . 09 3 . 09 3 . 09 Global Expansion . 11 4 . 44 3 . 33 2 . 22 Market Share . 11 4 . 44 4 . 44 3 . 33 Demographics . 03 3 . 09 3 . 09 3 . 9 pecuniary Position . 15 4 . 60 3 . 45 2 . 30 Research and Development . 13 4 . 52 4 . 52 3 . 39 foundation . 10 3 . 30 3 . 30 2 . 20 Total 1. 00 3. 52 3. 16 2. 58 From constructing the Competitive Profile Matrix, it is homely that Pfizer is the besottedest among the ternion competitors compared. V. ASSESSING INTERNAL ENVIRONMENT A. Strengths/ failinges Management Strength Weakness In June 2011, Pfizer announced strategic partnerships with flick plc and PAREXELSometimes Pfizer may have to soften the production of drugs therefore the International Corporation, both of which will serve as strategic providers of demand for that drug increases. clinical trial implementation advantages over a five-year period beginning in June 2011 Adop tion of new environmental strategies to be more socially responsible Working with many companies to do collaborative work in research and development. Pfizer is continually developing new strategies such as plant restructuring and energy master plan. Pfizer is dissever into fourfold sectors so that most leaders have a particular(prenominal) rather than general role. Pfizer expects to increase its market share from 4% to 6% by reinforcing its lead, expanding developments in high growth markets, building leadership in oncology and taking advantage of R&D in Asia and other countries. trade Strength Weakness Renewed vehemence in the faster growing fields of specialty pharmaceuticals, Co marketing with other pharmaceutical companies may slow down its global biologics, vaccines, and, in some cases, even generics. growth. Its derive one pharmaceutical from sales point of view and its marketing fall amount of advertising infrastructure is well established t hroughout the world. Pfizer as six markets, which include Brazil, China, Mexico, Tur pick out, Russia, and India. For the ninth consecutive year, the Pfizer Pharmaceutical Sales repulse was voted as first overall in Verispans Pharmaceutical Sales soldiery Structures. Human Resources Strength Weakness Global working network with 95,000 workers tally the glassdoor. om, the company morale is at an all time low Accounting/Financials Strength Weakness 7. 5% ranking corporation market share Prices, according to the federal government, are too high and are before long Sales have change magnitude from 16. 02% in 2008 to 22. 89% in 2010. trying to get Pfizer to cut their prices. High budget pharmaceutical industries having the revenue of $50 billion Lowest Earnings per Share among competitors. For example, Pfizer has an EPS of $. 48 and Johnson & Johnson and Eli Lilly have an EPS of $1. 5 and $1. 11, respectively. The integration of large acquisitions including a p air by Pfizer hasnt resulted in s great return on equity. Each new drug can cost as much as $1 billion to develop, with no guarantee of success. Internal Technology Strength Weakness Due to the expectation of the drugs expiring and the decline and market share, Delays caused by regulations and the unsuccessful completion of clinical trials Pfizer has focused most of the R&D on Biotech based treatments conquer the potential recovery and returns of investments such as R&D. Their research and development sector is highly established and in respectable strength. Renewed emphasis in the faster growing fields of specialty pharmaceuticals, biologics, vaccines, and, in some cases, even generics. Pfizer Announces Licensing Agreement With Puma Biotechnology, Inc.For The Development And Commercialization Of Neratinib, An Investigational Pan-HER Inhibitor U. S. Food And drug Administration Approves Pfizers XALKORI (crizotinib) As First And Only Therapy Specificall y For Patients With topically Advanced Or Metastatic ALK-Positive Non-Small Cell Lung Cancer. Other Strength Weakness Chance to acquire new patents for new technological products Currently only serving American, European and Asian markets. They are not Pfizer has been public in its efforts to address climate change. Our Energy andserving African or Australian markets. Climate Change Program seeks to minimize the cost and operational restrictions arising from a carbon-cons dexterous environment, reduce Pfizers contribution to GHG emissions, and assess the risk presented to Pfizers operations from the potential fleshly changes resulting from a warming global climate. Pfizer has perpetrate to ensure that their quality is top notch and no counterfeit products have been purchased by their consumers. Pfizer is committed to its outsourcing. The key considerations for outsourcing decisions include the ability to supply and capacity flexibility, regulatory compl iance and safe practices, technology and cost competiveness. Pfizer has a structure for quality.Some components include creating, implementing, and upholding standard operating procedures for trial execution, a quality scientific and medical design of the protocol, clinical investigator and site pre-assessment and selection, regulatory agency and ethics committee approval, developing and providing appropriate informed consent, adequate recording and reporting of data, periodic monitor and audits. B. Value Chain Analysis Graphically depict the organizations value chain Infrastructure -Pfizers Executive Leadership Team is the companys senior-most leadership and decision-making management body. It brings together our top leaders to focus on major fiscal, strategic and operational decisions for the company. -The Governance structure of Pfizer consists of an Executive Board (CEO, CFO, President), Board of Directors (Dennis Ausiello, Michael S.Brown), Shareholders (JPMo rgan, Northern Trust, Ian Reed, State Street Corporation). -Pfizer has made several initiatives to ensure a diverse company culture. They also have recognized their responsibility towards their customers. authoritative policies include Business conduct, Lobbying and Political contributions, Sales and Marketing, Research and clinical trials, oeuvre standards, and laboratory animal care. 10 Human Resource Management Pfizer has agreements with opposite universities and recruit from different areas of study. This serves to create a diverse environment and fosters a challenging and open culture.Some of their values with regards to their employees are sustain focus on proceeding, create an inclusive environment, exchange open discussion and debate, manage change, develop people, and align across Pfizer. 2 Research and Development Pfizer is prioritizing its research and development efforts in areas with the greatest scientific and commercial promise immunology and inflammatio n, oncology, cardiovascular and metabolous diseases, neuroscience and pain, and vaccines.Through major research efforts across multiple modalities including small molecules, biologics and vaccines. Pfizer has set up the phases of clinical development from making the drug to administering the drug through clinical trials and then manufacturing and selling the drugs. 2 Procurement Pfizer is expected to increase outsourced manufacturing of products from nigh 17 percent to 30 percent over the next three years. Key considerations for outsourcing decisions include the ability to supply, capacity flexibility, cost competitiveness,and technology. Inbound Logistics trading operations Outbound Logistics Marketing and Sales Service Pfizer procurement professionals -Pfizer has nine diverse health-Pfizer has trained over 95 -Channels of marketing include-Pfizer is committed to providing a regularly care businesses Primary Care, percent of colleagues worldwideTelevision, mug ad and onlinequality drug to their customers. engage with suppliers to reinforce Specialty Care, Oncology, in basic problem solving, whichads. Pfizer has created programs such as Pfizers expectations in all Emerging Markets, Established has resulted in over 8,000 -Pharmaceutical sales the $4 Wal-Mart prescription program operational business areas. This Products, Consumer Healthcare, improvement representatives are among the to provide their drugs at a fraction collaboration leads Nutrition, Animal Health and projects across the world in top in the nation. They receiveof the cost. to improvement projects with Capsugel. 8 the last five extensive training so they are - significant performance benefits, years. Significant improvementsknowledgeable of the drugs. such as reduced to Pfizers They have knowledge of Pfizer packaging and transportation costs, key products have delivered a products as well as their and elimination of undesirable 40 percent diminution in both competitors . 2 chemicals through process the time to make and ship the improvements. 8 product as well as allowing a reduction in inventory. 8 Primary Activities Financial Ratios Financial Ratios Pfizer Inc Industry S&P 500 How Pfizer is doing in comparison to the labor? Growth Rate % Sales (Qtr vs. year ago Qtr) 7. 5 5. 90 14. 40 break off shed light on Income (YTD vs. YTD) NA NA NA Net Income (Qtr vs. year ago Qtr) 185. 10 66. 00 46. 30 break dance Sales (5 twelvemonth one-year Avg) 7. 42 7. 59 8. 28 Worse Net Income (5-Year Annual Avg) 1. 68 2. 38 8. 48 Worse Dividends (5-Year Annual Avg) -1. 08 9. 81 5. 9 Worse Financial Condition Debt/Equity Ratio . 46 1. 14 1. 05 pause Current Ratio 2. 3 1. 7 1. 4 Better Quick Ratio 1. 9 1. 4 1. 0 Better Interest Coverage 9. 6 23. 5 316. Worse Investment Returns % Return on Equity 11. 4 30. 0 26. 3 Worse Return on Assets 5. 2 8. 8 8. 9 Worse Return on great 6. 1 11. 7 11. 9 Worse Management Efficiency Income/Employee 91,763 84,518 130,228 Better Revenue/Employee 616,998 539,073 1 Mil Better Receivable Turnover 4. 5 5. 5 15. 9 Worse Assets Turnover 0. 4 0. 6 0. Better Inventory Turnover 1. 8 2. 7 12. 5 Worse * http//moneycentral. msn. com/investor/invsub/results/compare. asp? symbol=pfe* C. Assess all Functional areas using the internal checklists Management visit Checklist Give an example for each response 1. Does the organization use strategic management concepts? Yes, Pfizer is continually developing new strategies such as plant restructuring and energy master plan.For example, In June 2011, Pfizer announced strategic partnerships with ICON plc and PAREXEL International Corporation, both of which will serve as strategic providers of clinical trial implementation services over a five-year period beginning in June 2011 2. Are organization objectives and goals measurable and well Yes, some of Pfizers goals include maximizing opportu nities in Biomedical research, communicated? forging relationships with ey customers, etc. 3. Do managers at all hierarchical levels plan goodly? Yes, Pfizer is drainage basind into multiple sectors so that most leaders have a specific rather than general role. Pfizer is divided into 2 sectors, the PharmaTherapeutics Research & Development Group and the BioTherapeutics Research & Development Group. Each sector has its own managers therefore it becomes easier to be able to plan effectively. 4.Is the organizations structure appropriate? Yes, their leadership brings together top leaders to focus on major financial, operational and strategic decisions. They have managers for every sector who work specifically to foster the success of that sector. This creates an atmosphere for managers and employees to focus on their specific sector rather than divide their attention. 5. Are job interpretations and job specifications clear? Yes, Pfizer provides a detailed description o f the top managers and what they do as well as what they expect from all their employees. 6. Is employee morale high? No, according to glassdoor. com, the employee morale is at an all time low. 7. Is employee turnover and absenteeism low? Yes, Pfizer currently has over 110,000 employees and they have managed to maintain their lag turnover at a rate lower than 10% per year for the past 10 years, despite the industrys average rate of 15%. 8.Are organisational reward and control mechanisms effective? Yes, Pfizer has recently raised its salary for its employees from the fiftieth to the 75th percentile of markets rates. Marketing Audit Checklist Give an example for each response 1. Are markets segmented effectively? Yes, Pfizer as six markets which include Brazil, China, Mexico, Turkey, Russia, and India 2. Is the organization positioned well among competitors? Yes, Pfizer ranks 2 right behind Proctor and Gamble 3. Has the organizations market share been increasing? Yes, Pfizer expects to increase its market share from 4% to 6% by reinforcing its leadership, expanding developments in high growth markets, building leadership in oncology and taking advantage of R&D in Asia and other countries. 4. Are present channels of distribution original and No, according to Pfizer. com, globalization has made channels of distribution easy targets cost-effective? for counterfeiting products. Drug Importation also poses a difficult task of fast monitoring these drugs to prevent counterfeiting and damaged goods. 5. Does the organization have an effective sales organization? Yes, For the ninth consecutive year, the Pfizer Pharmaceutical Sales Force was voted as first overall in Verispans Pharmaceutical Sales Force Structures. 6. Does the organization conduct market research? Yes, this is the basis for their business. They have to research the causes and effects for the drugs that they manufacture and produce. 7. Are the organizations products and serv ices priced No, the federal government has been trying to get Pfizer to decrease its prices to be more appropriately? affordable for customers. 8.Does the organization have an effective promotion, advertising,Yes, Pfizer products have become a plate name for most. Pfizer has a marketing and publicity strategy? strength in major geographical and therapeutic areas. 9. Is marketing planning and budgeting effective? Yes, one of Pfizers plans is to cut the budget of R by 12 million dollars by the end of 2012. 10. Do the organizations marketing managers have adequate Yes, from inspection of the top marketing managers, they all have experience prior to experience and training? Pfizer. 11.Are product quality and customer service good? Yes, Pfizer has committed to ensure that their quality is top notch and no counterfeit products have been purchased by their consumers. They have implemented numerous plans in order to assure top quality. This stems from their procurement strategie s such as making sure that their suppliers only produce the utmost quality of products. Finance Audit Checklist Give an example for each response 1.Where is the organization financially strong & weak as Yes, the company has a high gross profit margin at 81. 5%, which indicates a strong indicated by financial ratio analyses? position in the market. 2. Can the organization raise required short-term crownwork? Yes, their operating activity ratios for the most part have improved. For example, their inventory turnover decreased in 2009 to 4. 03 but then change magnitude in 2010 to 8. 07. 3. Can the organization raise needed long-term detonator through Yes, most of the companys ratios seemed to have decreased in 2009, but most recuperated debt and/or equity? in 2010. For xample, total addition turnover decreased in 2009 to 0. 23 but then increased in 2010 to 0. 35. 4. Does the organization have sufficient working capital? Yes, the companys working capital increased since 2 009. In 2010, the working capital was $18,991 million. 5. Are capital budgeting procedures effective? Yes, the company has decided to cut O.K. in R costs in order to save capital 6. Are dividend payout policies reasonable? No, the payout for dividends is currently $. 20 per share which is $. 3 less than its number one competitor, Proctor & Gamble 7. Does the organization have good relations with its investors Yes, all the financials are reported online and there is a sense of transparency with the and stockholders? investors and the company. 8. Are the organizations financial managers experienced and well Yes, all managers have experience prior to working at Pfizer trained? R Audit Checklist Give an example for each response 1.Does the organization have R facilities? Are they adequate? Yes, Pfizer has the worlds largest research. Pfizer has six main research locations, which include New York, California, Massachusetts, Connecticut, UK and Missouri. 2. If outside R organizations are used, are they cost-effective? N/A, Pfizer does not use outside R organizations. 3. Are the organizations R personnel well adequate? Yes, Pfizer has a rigorous screening process for their scientists that work in R. This is done to ensure a quality product. 4. Are management information and ready reckoner systems adequate? Yes, Pfizer engaged PA Consulting Group to create and implement a rapid, insightful information management solution that would help the company manage and derive value from the wealth of project and agreement information. 14 5. Is discourse between R and other organizational units Yes, communication has to be effective when it comes to R and the other sectors. This effective? has to be done to ensure safe, effective products. 6. Are present products technologically competitive? Yes, Pfizer has some of the leading medications in areas such as Internal Medicine.The drug Lipitor is the leading drug for the reduction of cholesterol in the industry as of