Also cited as threats are those of: begins "on the people level." (Pierce, Demetrakakes, and Barry, 2003)
(1) Product manufacturing and marketing risks;
(2) Cost and expense control or unusual events; and (3) Changes in laws and accounting standards. (Pfizer Inc. Report to the United States Securities and Exchange Commission, 2008)
IV. Internal Environment -- Strength and Weaknesses
Stated as strengths of Pfizer Inc. are the following components of its organization:
(1) Written policies and procedures;
(2) a compliance officer and compliance committee;
(3) Effective training and education;
(4) Effective lines of communication;
(5) Internal monitoring and auditing;
(6) Enforcement through discipline pursuant to established guidelines; and (7) Prompt response and corrective action for detected problems.
(Pfizer, Inc., 2009)
Another component that provides strength to Pfizer Inc. is its effective training and education program. As well Pfizer boasts effective lines of communication including an 'open door' policy allowing and encouraging colleagues to "discuss any issues, concerns, problems and suggestions with their mediate supervisor or other manager without fear of retaliation and with the assurance that the matter will be kept confidential. There are corporate compliance hotlines available which are anonymous in nature as well as a corporate compliance inquiry line. The Corporate Compliance Group "communicates with management about compliance matters. The development and implementation of compliance policy benefit substantially when colleagues at all management levels are engaged." (Pfizer, Inc., 2009)
Vital parts of the Corporate Compliance Program are internal monitoring and Auditing of business processes which also "provide an organization with the capacity to detect and prevent deviations that in certain circumstances can potentially engender compliance concerns. The Corporate Internal Audit team maintains responsibility for auditing the policies and procedures of the Corporate Compliance Program." (Pfizer, Inc. 2009)
Opportunities are identified as it is stated by Pfizer, Inc. that growing in importance are Managed Care Organizations (MCOs) as 249 million individuals in the U.S. are now participants in some type of managed care program. Therefore, Pfizer, Inc. has identified marketing prescription drugs to MCOs to be of primary importance in the future.
The work of Pierce, Demetrakakes, and Barry (2003) entitled: "Pfizer's Strategy is Good Medicine: Drug Packager of the Year" states that Pfizer Inc. "has deftly followed several paths to the pinnacle of the world's pharmaceutical market: acquiring leading competitors, developing blockbuster products, taking advantage of favorable regulations (often after lobbying for them).
Packaging has been an indispensable part of Pfizer's journey. That's why Food & Drug Packaging has named Pfizer its 2003 Drug Packager of the Year. Smooth integration of packaging operations has been integral to the absorption of Pharmacia, Warner-Lambert and other former rivals. Innovative packaging has sped the acceptance of over-the-counter medicine and consumer products like Listerine PocketPaks. Judicious presentation of physicians' samples has helped introduce new medicines and impart correct information about them to doctors and patients." (Pierce, Demetrakakes and Barry, 2003)
The large variety of products produced by Pfizer results in a demand for diversity in packaging and estimations are that the "number of stock keeping units (SKU) supported by sites within the U.S. numbers more than 2,500. With the acquisition of Pharmacia, more than 5,400 packaging bills of materials and 8,500 package specification revisions are revised annually in support of these SKUs." (Pierce, Demetrakakes, and Barry, 2003)
Pfizer's business is stated to be divided between over-the-counter and prescription products and it is stated that "beating the competition to market is a priority. But the time window differs dramatically between OTC and prescription medication." (Pierce, Demetrakakes, and Barry, 2003)
Prescription medication being marketed directly to consumers "via print and television ads, has been credited with enormously increasing pharmaceutical sales and profits. One study estimates that for every $1 the industry spends on direct-to-consumer ...
Ensuring safety throughout the supply chain is stated as "a vital function of packaging for all types of consumable products. Drugs are no exception." (Pierce, Demetrakakes, and Barry, 2003) One of biggest safety concerns is the "multiplicity of distribution channels. These channels include primary and secondary wholesalers, repackagers and the dispensing pharmacist." (Pierce, Demetrakakes, and Barry, 2003)
The packaging strategies at Pfizer Inc. are "determined by new technologies, many of which are introduced through machinery and material suppliers. Working with suppliers is key to the developing well designed functional packages and filling them efficiently." (Pierce, Demetrakakes, and Barry, 2003)
Pierce, Demetrakakes, and Barry state that "speed isn't the only thing Pfizer asks of its suppliers...Pfizer needs equipment that merges flexibility with high speeds for optimal efficiency. This is not always an easy task because where equipment may have high speeds, it may not have the required flexibility. And flexible machinery may not be capable of high speeds." (2003) Harmonization for Pfizer is likely to occur when they work with the same suppliers "over and over again because they know exactly what to deliver." (Pierce, Demetrakakes, and Barry, 2003) However, Pfizer has an open door policy "if there's a supplier that has a desired technology or equipment that can handle necessary speeds with flexibility." (Pierce, Demetrakakes, and Barry, 2003) Keeping suppliers informed of what is desired and needed is the optimal method and the one used by Pfizer Inc. To assist the suppliers in best fulfilling the needs of the company.
V. Analysis of Strategic Factors
Pfizer, Inc. has its strategic objectives clearly outlined and which are stated to include:
(1) Marketing to MCOs and customer direct marketing;
(2) Open-door policies with suppliers;
(3) Environmental compliance;
(4) Partnering and collaborating with other similar organizations;
(5) Developing, manufacturing and marketing of prescription drugs;
(6) Developing, manufacturing and marketing of animal health care products;
(7) Developing, manufacturing and marketing of over-the-counter drugs;
(8) Creating trust among consumers; and (9) Addressing cost-effectiveness of its products.
VI. Strategic Alternatives and Recommended Strategy
Since packaging suppliers are so critical to Pfizer, Inc. strategic alternatives recommended in this report include the recommended strategy of Pfizer Inc. being more vocal about its open door policy and advertising more fully the potential of entry into the supplier base of Pfizer Inc. through innovative packaging that increases speed of production for Pfizer Inc. As well, it is clear that Pfizer, Inc. should dedicate time and resources to securing intellectual property of its divisions located throughout the world.
Since generic pharmaceuticals being released into the market prior to the expiration of the patent owned by Pfizer, Inc. It would serve the company well to apply more resources to mitigating this problem which it experiences with other pharmaceutical companies violating the patent owned by Pfizer Inc.
Pfizer Inc. should place an emphasis on its Research and Development initiatives through increasing the projects that it takes on in the area of discovery and development. Further, there should be dedicated human resources development and public relations departments in each of its divisions and locations for the purpose of maintaining and improving its image. Legal issues should be pursued on a systematic basis in order to mitigate and counter the effects of these issues on the pharmaceutical business throughout the world.
The initiatives identified in the previous section are of the nature that Pfizer Inc. is capable of achieving. The company should expand in the area of research and development. The acquisition of Coley Pharmaceutical Group, Inc. was completed in 2008 and as well the acquisition of CovX Research LLC was completed. Later in 2008 the acquisition of both Encysive Pharmaceutical Inc. And Serenex Inc. were completed. These acquisitions add to Pfizer Inc., a company with expertise in immunotherapy, a biotherapeutic company focused on preclinical oncology and metabolic research and the developer of technology platforms, a biopharmaceutical company with expertise in treating pulmonary arterial hypertension, and a biotechnology company with a Heat Shock Protein 90 development portfolio, respectively.
VIII. Evaluation and Control
Pfizer Inc. has the control and evaluation processes set well in place and its financial goals are well stated and this enables the company to check its progress against the plans which it has set for achievement.
Pfizer Inc. (2009) Center for Responsive Politics. Online available at: http://www.opensecrets.org/orgs/summary.php?id=D
Pfizer Streamlines Operational Processes to Achieve Balanced Excellence (2004) Tradeline 29 Sept 2004. Online available at; http://www.tradelineinc.com/reports/40CF58BA-2B3B-B525-80444AE6588980A1
Corporate Governance FactSheet (2009) Pfizer Inc. Online available at: http://www.pfizer.com/about/corporate_governance/corporate_governance_fact_sheet.jsp
Pfizer's Infectious Disease Commitment and Portfolio (2007) Pfizer, Inc. 18 Sept 2007. Online available at: http://www.pfizer.com/files/investors/presentations/icaac_2007_presentation_071807.pdf
Pierce, Lisa McTique, Demetrakakes, Pan, and Barry, Christopher (2003) Pfizer's Strategy is a Good Medicine: Drug Packager of the Year -- Special: Pfizer Inc." Food and Drugs Packaging 2003 December.
Pfizer, Inc. (2008) United States Securities and Exchange Commission…
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