Strategic Audit for Pfizer

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For your group project, consider Pfizer (http://www.pfizer.com/home/). Using the guidelines established in Chapter 11 of your text, produce a Strategic Audit for Pfizer. As you produce your Strategic Audit, make sure to include all eight sections.

IFAS, EFAS, and SFAS tables are to be presented in Excel format, separate from the rest of the assignment, which is to be written in a Word file. As a reminder, two files are to be submitted: One Excel file (counting for three pages) and one Word file (up to seven pages double-spaced).

You will be graded on your knowledge of the software in building the MS Excel tables, and on your ability to communicate in writing and present your arguments. You will also be graded on your ability to analyze socio-cultural, political-legal, technological, and financial data to justify your available strategies and the one(s) you recommend, and finally on your critical thinking and problem solving abilities in justifying your set of strategies.

Company Background
Pfizer was incorporated in 1942 and is headquartered in New York City. Pfizer, is a global pharmaceutical company, with headquarters in New York City. The company is the world's largest research-based pharmaceuticals firm. It produces the number-one selling drug Lipitor (atorvastatin, used to lower blood cholesterol); the oral antifungal medication Diflucan (fluconazole), the long-acting antibiotic Zithromax (azithromycin), the well-known erectile dysfunction drug Viagra (sildenafil citrate), and the pain reliever Celebrex (celecoxib)
Pfizer's best-known products include erectile dysfunction therapy Viagra, antidepressant Zoloft, and cholesterol-lowering Lipitor. In addition to prescription drugs, the firm makes OTC remedies, including sniffle-and-sneeze treatments Benadryl and Sudafed. Pfizer also keeps Fluffy and Fido in mind with its animal health products, including Revolution (antiparasitic). Subsidiaries in the Pfizer family include Warner-Lambert, Parke-Davis, and Goedecke.

Operations
Pfizer, Inc. engages in the discovery, development, manufacture, and marketing of prescription medicines for humans and animals, as well as consumer healthcare products worldwide.
It operates in three segments: Human Health, Consumer Healthcare, and Animal Health.
The Human Health segment offers treatments for cardiovascular and metabolic diseases, central nervous system disorders, arthritis and pain, infectious and respiratory diseases, urogenital conditions, cancer, eye disease, endocrine disorders, and allergies.

The Consumer Healthcare segment markets over-the-counter medications for oral care, upper respiratory health, tobacco dependence, gastrointestinal health, skin care, eye care, and hair growth. Its principal products include Listerine mouthwash, Listerine PocketPaks oral care strips, Nicorette for tobacco dependence among others

The Animal Health segment discovers, develops, and sells products for the prevention and treatment of diseases in livestock and companion animals. Its products include parasiticides, anti-inflammatories, vaccines, antibiotics, and related medicines.

In addition, the company offers empty soft-gelatin capsules, contract manufacturing, and bulk pharmaceutical chemicals. It offers its products to health care providers, such as doctors, nurse practitioners, physician assistants, pharmacists, hospitals, Pharmacy Benefit Managers, Managed Care Organizations, and government agencies

ENVIRONMENTAL ANALYSIS

EXTERNAL ENVIRONMENT

Here we will analyze the effect of various environmental factors and to see what trends are like to affect the industry in which the it is operating in a Brief manner.
? Economic Forces: One has monitor the economic trends like GDP trends, Interest rates, Money supply, Inflation rates, Unemployment levels, Disposable income. Currently in USA there may be saturation. It has to look for the other parts of world there is growth especially in Asian countries. Individual economies becoming interconnected into a global economy.
? Technological Forces: Impact of following factors:

? Efficiency of infrastructure, including roads, ports airports, rolling stock, hospitals, education, healthcare, communication, etc.
? industrial productivity
? new manufacturing processes and drug discoveries
? patent regime
? new products and services of competitors
? new products and services of supply chain partners
? any new technology that could impact the company

Internet, virtual online stores, using Internet effectively to increase the reach and to reduce the cost. Portable Information Devices, Electronic networking, smart mobile robots, increase in the speed of microprocessors will have tremendous impact on business.

? Political Legal regulations: One should also be aware of foreign trade regulations, attitude towards foreign companies as Pfizer wants to aspire to be a multinational company. It has to consider following factors:
* Political climate - amount of government activity
* Political stability and risk
* Government debt
* Budget deficit or surplus
* Corporate and personal tax rates
* Payroll taxes
* Import tariffs and quotas
* Export restrictions
* Restrictions on international financial flows
* Minimum wage laws
* Environmental protection laws
* Worker safety laws
* Union laws
* Copyright and patent laws
* Anti- monopoly laws
* Sunday closing laws
* Municipal licenses
* Laws that favor business investment

? Societal Trends:
Demographic factors such as:
o population size and distribution
o age distribution
o education levels
o income levels
o ethnic origins
o religious affiliations
* Attitudes towards:
o materialism, capitalism, free enterprise
o individualism, role of family, role of government, collectivism
o role of church and religion
o consumerism
o environmentalism
o importance of work, pride of accomplishment
* Cultural structures including:
o diet and nutrition
o housing conditions
affecting this industry very much.

Adverse legal environment in various countries
In March 2006 Pfizer sued the Philippines government as well as two government health officials personally, to prevent Philippines drug regulators from allowing the importation of less expensive versions of a Pfizer heart disease drug.

In May 2006, The Washington Post a report, in which a panel of Nigerian medical experts found that Pfizer violated international law.
(Source moneycentral.com)

Outsourcing

It is outsourcing some of the drugs from low cost regions such as Zoloft being produced in Puerto Rico (www.pridco.com). Several advantages for going offshore are described on the website, such advantages include labor laws, taxes and location.

Societal responsibility
Now a days there is a great focus on societal responsibility focusing on following areas:
Clean and safe environment
The corporations, which serve their employees, enjoy high degree of employee loyalty that goes beyond the employee-employer relationship. Employees are obviously most productive when they do the work in a clean & safe environment.
Fair and equitable compensation
Employees are respected for their work, are suitable rewarded and the remuneration are fulfilling, are empowered and have a say and have freedom to maintain a balance ...