1. Submitted By :
Group 1
Aamir: 13074
Himanshu: 13021
Sruthi:13073
Salil Garg:13045
Krishnapriya:13027
1
Submitted to :
Professor :Dr.Ajay Singal
IMT ,Dubai
2. Introduction
Research-based, global pharmaceutical
company
Function : Discovers, develops, manufactures
and markets leading prescription medicines
Segment : Humans and Animals
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5. VISION & MISSION
Vision:
To become the world’s most valued company to
patients, customers and businesses
Mission :
To develop medicines to cure & treat diseases,
symptoms & sufferings.
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6. Evolution Of Pfizer
Pfizer was founded by cousins Charles Pfizer and Charles
Erhart in 1849
First Product : Santonin ( Anti-Parasitic)
1900 : From family business to Incorporation
1939 : leading producer of citric acid
1944: leading producer of Pencillin “Miracle Drug “
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8. PFIZER’S STRATEGIC MOVES
Enter New Product / Geographic Market
Capture Emerging Market
Strengthen Market Standing & Competitiveness : Acquiring
or merging with the other companies
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11. Internationalisation
1951: Brazil , Cuba, Mexico ,Belgium , Canada (Decentralized
Decision Making)
1952-58 :New R&D plants , Agriculture & Nutritional Divisions
1967 :Started Acquisitions , Partnerships (Eg:Warner Lambert ,
Wyeth)
2013: Restructured into 3 Business units (2 innovative , 1 value
based )
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12. Global Strategy
Mergers ( includes Warner Lambert)
Acquisitions ( includes Taito , Mark Illertissen, Wyeth ,
NextWave, Excaliard, AstraZeneca Pharma, Inno Pharma etc.)
Partnerships & Joint Venture (Pfizer & Zhejiang Hisun Pharma Co,
together formed Hisun Pfizer.)
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13. Global Access Strategy
Pfizer's Global Access team : exploring innovative business models
Increase access to healthcare and medicine for low-income populations in
emerging markets
Private Sector Involvement in India
Growing Research and education:
Preferred research centres to build research capacity
Pfizer Education and Research League Training Programs
Supporting Public health Initiatives
Opened 600 smoking cessation clinics in 2010
Partnership with Max Health care.
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17. PFIZER’S SHIFT IN SEGMENTS
BEFORE 2014
1. Primary Care;
2. Specialty Care and Oncology;
3. Established Products and Emerging Markets;
4. Consumer Healthcare.
AFTER 2014
1.Global Innovative Pharmaceutical business (GIP);
2.Global Vaccines, Oncology and Consumer Healthcare business
(VOC)
3.Global Established Pharmaceutical business (GEP).
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18. EXTERNAL DRIVERS
Global Pricing Pressure
Foreign Exchange Risk
Threats of new entrants
Suppliers bargaining power
Buyers bargaining power
Rivalry of competitors
Threats of product substitute
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20. Pfizer Organisation Structure
Established 1st International division in 1950
Established offices, subsidiaries and partnerships all over the world
Entry strategy was based on wholly owned subsidiaries and Joint
partnerships.
Divided world in 4 regions( Europe, West, Middle east & far east) placed
Regional director in NY HQ.
Subsidiary Autonomy
Timely decision making with reduced dependence on HQ
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21. Pfizer Organisation Structure
Transformed from Manufacturing in 1990s to Research based Pharma Co.
In 2003, Geocentric Approach
Implemented standards that were universal and local to evaluate &
Control all aspects.
Intended to measure performance both at HQ and each subsidiaries
Multidirectional Flow of Knowledge between HQ & subsidiaries and
Among Subsidiaries.
Transnational Firm
Centralization of firm
Resource Concentration( labour and capital) located in foreign.
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22. Pfizer Organisation Structure
Product Offerings
Human healthcare
Consumer healthcare
Animal healthcare
Divisions
Pfizer Global Research & Development
Pfizer Global Pharmaceuticals
Pfizer Global Manufacturing
Pfizer Animal Health
Pfizer Consumer Healthcare
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24. Pfizer Organisation Structure
HQ monitored divisions to align their activities to corporate strategy.
Pfizer centralized strategic responsibility of firm but decentralized
Operational responsibility to divisions and subsidiaries.
Used mix rules approach and market approach to control corporate
activities.
Interdependence: Integrated Network structure
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25. Pfizer Organisational Structure
Plans to segregate commercial operations into 3 business segments:
Two innovative business
Includes Product across multiple therapeutic areas.
Other includes vaccines, oncology and consumer healthcare
Operate as separate global business with different Market Approach
One value business line
Led by Value Products Group
Provide lower cost treatment and include cash flow products
Reorganisation will provide
Enhanced ability to respond to market dynamics
Greater visibility and focus
Distinctive capabilities to deliver to patents and shareholders.
“ Transition from Current Emerging Markets Organisation to regional structure”
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27. Pfizer HRM
Top Leadership views HR department as central to achieve business results
HR team focussed on planning for mergers, acquisitions and divestitures.
Partner with a global cross-functional HR team to develop integration and
execute plans
Represent the M&A HR team on cross-functional teams and
interdependencies.
Pfizer has adopted “ Investment in People philosophy”
Attract the best talent
Build an environment that retains
Invest in development
Pfizer’s value includes integrity, innovation, respect for people , customer
focus, teamwork, leadership, performance and community.
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28. HRM Role in Merger Integration
Warner-Lambert acquisition in 2000 and merger integration process at
PGRD.
To integrate and align cultures, systems , structure and processes.
Managing potential redundancy in staffing and research projects during
budgetary decisions.
Retain Key talent by reviewing staff performance and commitment.
Merger of Pfizer Animal health group and SmithKline Beecham
Used In house Knowledge to guide thinking.
Solid communication tactics and involvement of staff in planning and
recommending integration strategies with respect to culture, programs,
systems, structure, and processes.
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29. HRM challenges
Cash and stock merger & Acquisition ofWyeth by Pfizer in 2009 case
Overall company size has declined by about 5 percent this year .
Client was quite concerned that the company lost top talent. Moreover, 25
percent of its workforce was on retirement age.
HR programs came into play to effectively manage talent.
For Merger integration
Challenge to integrate the best of both the organisations.
Balance b/w consulting everybody and making decisions that move
organisation forward.
Need in complex and high speed organisation
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35. Current Ratio
35
3
2.5
2
1.5
1
0.5
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Times
Years
Current Ratio
36. INDUSTRY CHALLENGE
High fixed costs and long –lead time
Discovering and developing a new medicine takes atleast 12 years and an
average cost of more than $1B(including cost of unsuccessful compounds)
Cost drivers for the innovative pharmaceuticals:R&D and SG&A account for
approx.45% of revenue
Wave of patent expiration
Slow down in product introductions
Increasing pricing pressure
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37. Growth in demand is fuelled by:
Aging population ,lengthening of average life
expectancy and rising incidence of chronic
disease
New diseases-Although impossible to predict
,surfacing of new diseases will trigger demand
Demand in emerging markets- increasing
standard of living & improving healthcare
systems globally
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38. SWOT
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STRENGTH
• Strong sales and
marketing infrastructure
• Strong R&D departments
• R&D innovation with
abroad therapeutic
coverage
• Existing patent protection
for a number of years on
key products
WEAKNESS
• Over reliance on Lipitor
franchise
• Very limited
penetration of biologics
market
• Discontinuation of
products in the latter
stages of development
• Co-marketing
agreements can limit
Pfizer’s global presence
39. SWOT
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THREAT
• Lipitor’s patent
expiration in 2011
• Further large scale M&A
activity could further
decline Pfizer’s
profitability
• Increased competition
for core products
• The new economic
potential of emergent
china, India and
completion in diverse
regional markets
OPPORTUNITIES
• Restricting strategy
designed to cut costs
and create a leaner
company
• Funding available to
facilitate
product/company
• Biological market
expansion
• Decreasing
development time
through favourable
R&D collaborations
and internal efforts
40. Recommendations
Emerging markets outside of north America,Europe and japan, are now
increasingly attractive for low-cost manufacturing and clinical trials
The emerging market opportunities include large population sizes and unmet
medical need,growing economies.
Targeting new markets
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Src: https://www.google.ae/?gfe_rd=cr&ei=Dd1LVMn6FseH8QeQwIGACw#q=pfizer
41. CONCLUSION
Despite sound financial results, Pfizer
market cap outperforms its competitors
Pfizer has a clear focus on emerging
markets
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