Pfizer Strageic Plan

OUTLINE FOR THE STRATEGIC PLAN Please bullet your responses. Staple the completed assignment do not spend any money fertilization the assignment. shake up incontestable to respond to entirely(prenominal) item. I. GETTING STARTED A. whole steps in Strategic counsel Process Step 1 Identify the boldnesss mission, vision, and value statement Step 2 Determine the firms main business and organizational objectives Step 3 Conduct a SWOT analysis identifying the telephoners strengths, weaknesses, opportunities, and threats Step 4 Construct a Competitive Profile hyaloplasm (CPM) Step 5 Construct an External Factor Evaluation (EFE) Matrix Step 6 Construct and Internal Factor Evaluation (IFE) Matrix Step 7 Construct a Value Chain epitome Step 8 Prep atomic number 18 a SPACE, BCG, TOWS Analysis, and QSPM Matrix Step 9 Use the data above to weigh alternative strategies, make strategic recommendations, develop a plan of action (slaying), and convey the ROI Step 10 Constru ct Contingency Plan B. Information and/or materials ingestiond to complete assignment Resources used in completing the assignment atomic number 18 as follows Strategic forethought Concepts and Cases 12th edition textbook, S&P 500 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. Time Frame My goal is to actively work on a portion of the outline everyday and hold in it completed to its totality by the time it is due and accordingly I allow not obtain to rush to get it done last minute. D. Resources Needed all pick your team 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 dedicated to alter the advantageouslyness and well being of individuals around the world.The demand for Pfizers products soared throughout the Civil War as the demand for painkillers, disinfectants and preservatives increased. In 2000, Pfizer and Warner-Lambert merge to form the cutting Pfizer, which created the worlds fastest growing 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 small operating units designed to enhance innovation and account faculty, while 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 stage of life.In 2010, Pfizer announces a diversified R platform named Pfizer Worldwide Research and ripening, supporting excellence in small molecules, rangy molecules and vaccine seek and ripening. As apart of the skill of W yeth in 2009, Pfizer initially implemented a two-division structure for research and development (BioTherapeutics and PharmaTherapeutics) to fasten the progress and solid integration of both legacy organizations. Due to the speed and hard-hittingness of that integration, Pfizer progresses to this bracing model while maintaining the same breadth and research programs. On December 1 and 2 2011 Pfizer completed the acquisitions of Excaliard Pharmaceuticals and Ferrosan Consumer wellnesss Business, respectively. B.Identify formal aspects of the organization Corporate G everyplacenance Include progress of Directors, Board Committees, Code of Ethics, CEO/CFO Certifications, decision maker Officers, Policy and Procedures for Accounting and Legal Complaints Pfizer has created two distinct research organizations. The PharmaTherapeutics Research & Development Group focuses on the discovery of small molecules and related modalities and The BioTherapeutics Research & Development Group f ocuses on large-molecule research, including vaccines. The goal with Pfizer doing this is to maximize opportunities within the Biomedical research sector. Pfizer has excessively developed an enhanced commercial operating structure.Pfizer has gild diverse health care businesses Primary Care, Specialty Care, Oncology, rising Markets, Established Products, Consumer Healthcare, Nutrition, Animal Health and Capsugel. Each of these businesses is led by an executive with clear accountability for results from product development following proof of concept to providing access 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 nurture environment in which ideas and perspectives potentiometer flourish. It is an array of unique characteristics, perspectives, and life encounters. Pfizer Colleague Resource Groups (CRGs) are organized by colleagues who join together to p rovide a positive forum for professional development. By embracing diversity of thought and experience, our CRGs help oneself drive innovation and build on our success. David Simmons, the president and general motorbus of the Established Products Business Unit at Pfizer. Simmons has been highly successful at building a new, non-traditional culture within Pfizer for his business unit. One example of this was that Simmons was fitting to product high calibre do drugss at affordable be, and he did this as high grossing patents were near expiration III. VISION literary argument, MISSION STATEMENT & VALUES STATEMENT ANALYSES A. Vision StatementAt Pfizer, were inspired by a single goal your health. Thats why were dedicated to developing new, safe medicines to prevent and turn to the worlds about serious diseases. And why we are making them available to the people who read them most. We believe that from progress comes hope and the promise of a healthier world. B. Vision Statement Analysis Does it firmness of purpose the question What to do we want to give out? If not, revise it. If organization does not turn out one, create one. Yes, I believe that it answers the question as to what they want to become. Its states that they are dedicated to developing new ways to prevent and treat diseases. C. Values Statement Pfizer does not cast a value statement. D. Value Statement Analysis Does it re posit the organizations guiding principles? If not, revise it. If organization does not have one, create one. Pfizer entrust work to provide the best quality drugs that depart cater to the most 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 most valued company to patients, customers, 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 include 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 affordable prices to all. We will work hard to ensure that we keep up with the needs and problems of our consumers and provide what is best. We will continue to invoke the well-being of our consumers as well as the well-being of our shareholders and employees as well as promote diversity.We will keep abreast of the ever-changing technology to ensure that they needs of our consumers are met at all times and also that we will not become obsolete to our customers. 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. List each 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 times and also that we will not become obsolete to our customers. 5. Concern for survival, growth, and profitabilityWe will keep abreast of the ever-changing technology to ensure that they needs of our consumers re met at all times 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 / terrors Analyze trends in the following areas political, legal, competitive, economic, social, cultural, demographic, technological, environmental, and governmental. Provide at least 1 chance & 1 threat for each of the 10 areas. Provide responses in bullet format. Political probability Threat Measures taken to close the Coverage gap also known as the donut hole may New Health care Reform Bill was put in place 2010. This law requires drug result in people using more brand name drugs rather than buying generic. 9 producers to make rebates to state Medicaid agencies based on their costs to provide prescription drugs to Medicaid beneficiaries. Constant blackjack 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, hardihood a loss of up to billions of dollars due acquisitions of Excaliard and Ferrosan Consumer Healths Business in December to generics taking merchandise share.For example, Lipitor, which grossed 11 billion 2011 may help Pfizer meet unmet needs of their customers. 23 in revenues last year expired November 28, 2011. This means that other companies are allowed to produce the generic version of the drug. 2 bet of New Molecular Entities canonic by the FDA has line of descentd. In 2009, NMEs approved were 26 and 2010 were 21. 2 Beginning of 2011 was a series of new fees in the form of grave taxes payable to the federal government. 12 Competitive Opportunity Threat Barriers for additional companies to enter the securities industry are high. 4 French drug maker Sanofi-Aventis $20 billion acquisition of Genzyme Corp. completed in April 2011 Fierce competition among Pharmaceutical companies such as Proctor & Gamble and Johnson & Johnson. Japanese drug sales are also judge to expand with current sales of 60 billion, 11% of the world market share. Economic Opportunity Threat Demands for certain drugs are relatively 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 ye ars Revenue may be hurt by ongoing negative effects from U. S. ealth care right and austerity pricing in Europe Inflation will motion 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 healthcare spending is the Number of NMEs approved by the FDA has declined12 highest among these individuals2 Humana and Pfizer Form Research Partnership to Improve Health Care Delivery for Seniors in 2011. Cultural Opportunity Threat Like GlaxoSmithKline and Abbott Labs in particular Pfizer has its sights on Number of legislative proposals seeking to allow importing 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 galvanise Medicare will not be able to finance this many people2 in first-quarter profit, helped by the sale of new medicines in the line of descent 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/Stakeholder 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 red hot A. DAmelio- CFO, EVP of Business Ops. JP Morgan crease & Co Mikael Dolsten- Pfizer Worldwide R&D Northern Trust Freda- Lewis Hall- EVP, Chief Medical Officer Proctor & Gamble 2. Stakeholder Matrix classify the internal & immaterial stakeholders identified above into the appropriate boxes. High Interest/Importance, High Influence High Interest/Importance, modest 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 Government Lenders Insurance Companies Suppliers 3. Stakeholder Analysis Stakeholder Responsibility of What does organization Stakeholders potential Stakeholders perceived Stakeholder Management Stakeholder to the expect the stakeholder to impact on the organization attitudes and/or risks to Strategy (SMS) organization pro vide? (high, medium, or low) the organization N/A Investors Fund the organization Provide funding and High High Risk bourgeois liquidity to the Attitude organization Strategic plans and Provide expertise, High Risk Positive Bottom-Up Employees operations.Supports theknowledge and value High Attitude functionality and working(a) adjoines Make critical decisions Provide conceptual High High risk Conservative Top-down Shareholders knowledge and top-down flow Attitude of decision making consider market demands Provide products and Medium Risk Positive N/A Suppliers services Medium Attitude External Factor Evaluation Opportunities Weight range (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 h ealthcare 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 even up and sales adding to the big(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 employed 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 dec line 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 placid room for improvement.For example, Pfizer seems to be taking advantage of some of the acquisitions that they have had over the last two years. They are seizing the opportunities of the expanding biological pharmacy market. Starting 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 co mpetitors were. Excaliard is a privately owned biopharmaceutical company think on developing novel drugs for the treatment of skin fibrosis, more commonly referred to as skin scarring. Ferrosan Consumer Healths Business focuses on dietary supplements and life style 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 multiple rebate and discount programs to help assist their consumers. For example, Pfizer has of late partnered with Wal-Mart to offer a $4 prescription program allowing consumers to obtain their prescriptions at that low price. This helps to mitigate the complete loss of revenue and market share if consumers were to go to generic all together.I believe that the reason Pfize r did not receive a score of higher than a 3 was because a lot of these new policies have been recent (2010, 2011) and Pfizer seems to be trying 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 evaluation Weighted Score Rating Weighted Rating Weighted Score Score Organizational Structure . 05 2 . 10 4 . 20 1 . 5 Price Competitiveness . 10 3 . 30 3 . 30 3 . 30 Advertising . 04 1 . 04 1 . 04 4 . 16 Product Quality . 10 3 . 30 3 . 30 3 . 30 Sales Distribution . 10 4 . 40 3 . 30 2 . 0 Customer truth . 03 3 . 09 3 . 09 3 . 09 globose 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 fiscal Position . 15 4 . 60 3 . 45 2 . 30 Research and Development . 13 4 . 52 4 . 52 3 . 39 Innovation . 10 3 . 30 3 . 30 2 . 20 Total 1. 00 3. 52 3. 16 2. 58 From constructing the Competitive Profile Matrix, it is apparent that Pfizer is the strongest among the three competitors compared. V. ASSESSING informal ENVIRONMENT A. Strengths/Weaknesses Management Strength Weakness In June 2011, Pfizer announced strategic partnerships with ICON plc and PAREXELSometimes Pfizer may have to discontinue the production of drugs therefore the outside(a) Corporation, both of which will serve as strategic providers of demand for that drug increases. clinical trial implementation services over a five-year period beginning in June 2011 Adoption of new environmental strategies to be more socially responsible Working with numerous companies to do collaborative work in research and development. Pfizer is continually developing new strategies such as build restructuring and energy master plan. Pfizer is divided into multiple sectors so that most leaders have a specific rather than gene ral role. 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. Marketing Strength Weakness Renewed emphasis in the faster growing field of specialty pharmaceuticals, Co marketing with other pharmaceutical companies may slow down its global biologics, vaccines, and, in some cases, even generics. growth. Its number one pharmaceutical from sales point of view and its marketing Decreased amount of advertising infrastructure is well established throughout the world. Pfizer as six markets, which include Brazil, China, Mexico, Tur cay, Russia, and India. For the one-ninth consecutive year, the Pfizer Pharmaceutical Sales Force was voted as first overall in Verispans Pharmaceutical Sales Force Structures. Human Resources Strength Weakness Global working network with 95,000 workers According the gla ssdoor. om, the company esprit de corps is at an all time low Accounting/ pecuniarys Strength Weakness 7. 5% ranking dope market share Prices, according to the federal government, are too high and are currently Sales have increased 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 pair 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 reduce the potential recovery and returns of investments such as R&D. Their research and development sector is highly established and in good strength. Renewed emphasis in the faster growing handle 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 entirely Therapy Specifically For Patients With Locally Advanced Or Metastatic ALK-Positive Non-Small Cell Lung Cancer. Other Strength Weakness Chance to acquire new patents for new technological products presently 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. C limate Change Program seeks to minimize the cost and operational restrictions arising from a carbon-constrained environment, reduce Pfizers contribution to GHG emissions, and assess the risk presented to Pfizers operations from the potential physical changes resulting from a warming global climate. Pfizer has committed 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 compliance 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, dev eloping and providing appropriate informed consent, up to(predicate) arrangement and reporting of data, periodic monitoring and audits. B. Value Chain Analysis Graphically depict the organizations value chain Infrastructure -Pfizers Executive leading Team is the companys senior-most leadership and decision-making management body. It brings together our top leaders to focus on major financial, 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 (JPMorgan, 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. legitimate policies include Business conduct, Lobbying and Political contributions, Sales and Marketing, Research and clinical trials, workplace standards, and labor atory animal care. 10 Human Resource Management Pfizer has agreements with different universities and parent 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 performance, create an comprehensive 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 inflammation, oncology, cardiovascular and metabolic 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 approximately 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 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, print 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 cypher 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 teaching 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 reduction 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 industry? Growth Rate % Sales (Qtr vs. year ago Qtr) 7. 5 5. 90 14. 40 Better Net Income (YTD vs. YTD) NA NA NA Net Income (Qtr vs. year ago Qtr) 185. 10 66. 00 46. 30 Better Sales (5 Year annual 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 Better 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 Capital 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 Managem ent Audit 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. argon organization objectives and goals measurable and well Yes, some of Pfizers goals include maximizing opportunities in Biomedical research, communicated? forging relationships with ey customers, etc. 3. Do managers at all hierarchical levels plan effectively? Yes, Pfizer is divided 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 & Developmen t 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 descriptions and job specifications clear? Yes, Pfizer provides a detailed description of 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 staff turnover at a rate lower than 10% per year for the past 10 years, despite the industrys average rate of 15%. 8.Are organizational reward and control mechanisms effective? Yes, Pfizer has recently raised its salary for its employees from the 50th 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 change magnitude? 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 reliable and No, according to Pfizer. com, globalization has made channels of distribution easy targets cost-effective? for counter feiting products. Drug Importation also poses a difficult task of closely 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 services priced No, the federal government has been trying to get Pfizer to shine its prices to be more appropriately? affordable for customers. 8.Does the organization have an effective promotion, advertising,Yes, Pfizer products have become a household name for most. Pfizer has a marketing and advancement strategy? strength in major geographical and therapeutic areas. 9. Is marketing planning a nd 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 strategies 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 needed sho rt-term capital? Yes, their operating activity ratios for the most part have improved. For example, their inventory turnover decreased in 2009 to 4. 03 but then increased in 2010 to 8. 07. 3. Can the organization raise needed long-term capital 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 asset 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 2009. In 2010, the working capital was $18,991 million. 5. Are capital budgeting procedures effective? Yes, the company has decided to cut back 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 inves tors 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 qualified? 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 computer systems adequate? Yes, Pfizer engaged PA Consulting Group to create and implement a rapid, in sightful information management solution that would help the company manage and derive value from the wealth of project and agreement information. 14 5. Is communication among 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