Pfizer's Strategic Plan

PFIZER INC.

Pfizer Strategic Plan

Date Submitted: May 25, 2005

Pfizer's Strategic Plan: Overview

Executive Summary

Pfizer is a New York City based major drug producer, ranking first in pharmaceutical sales in the U.S., with 2005 revenues of 56.7 billion. With almost 60 billion in Revenue, Pfizer remains the industry's behemoth, overseeing the most ambitious research agenda for any company in the world. Pfizer's is spending on R&D supports 12,000 scientists. Pfizer's research increased 3 percent in 2004, to 7.7 billion, after a 2003 increase of 44 percent that is attributable to the acquisition of Pharmacia. At the end of 2004, Pfizer had 225 projects in 18 therapeutic areas under active development. Pfizer is studying 145 new molecular entities and 80 extensions of existing drugs. An additional 400 compounds are in discovery phase of testing. In 2004, 43 discovery projects advanced into preclinical testing; 23 projects moved from preclinical research into human trials. Pfizer has eight subsidiaries, divisions and affiliates, and has over 120,000 employees worldwide (Pfizer, 2005). There are four main divisions at Pfizer, consisting of Healthcare, Consumer Care, Food Science, and Animal Health. Pfizer manufactures its products in 150 countries. Pfizer has sales offices in every state, and has Corporate Research Center in Groton, CT, Corporate Headquarters in New York, NY and International Headquarters in Nagoya, Japan and Sandwich, England. The executive members of Pfizer coupled with the reviews from Wall Street and the 50 percent cut in company stock in 2001 has forced Pfizer to demand more accountability from all of it's 115,000 employees world wide. Pfizer realizes that their operating expenses, their size, and their attention to detail has suffered due primarily to their size. Pfizer has also accepted that by the year 2010 (Pfizer, 2005). Politicians and Economist believe that Pfizer has to trim some of the fat from the hostile takeover of Warner Lambert and the 2003 acquisition of Pharmacia. Pfizer believes that this renewed focus on productivity and focus will show long-term potential for growth, business leadership, generating value to their executives and shareholders. By continuing to focus on the customer and the services that they receive Pfizer will maintain its position as the number one pharmaceutical company in the world. Pfizer believes that they are an evolving company in a changing world. Pfizer has been grown in it's 155 years, from a small family-owned business to a specialty chemical company to a diversified manufacturing firm to a research-based pharmaceutical company that is now the world's largest and most valuable company devoted to healthcare.

Company Background

Customer service separates the good companies from the bad companies. With this assignment, I would like to discuss the history of Pfizer and the way that Pfizer plans to remain competitive in the pharmaceutical industry. I would also like to show that Pfizer's commitment to customer service is currently requiring an organizational restructuring to remain competitive. Pfizer has come to the realization that in order to remain competitive they must take a modern approach to the way that they have traditionally done business. Pfizer believes that the very attributes that have made them so successful are now the components that are preventing further progress. Pfizer believes that their size must be addressed in order to continue to deliver the same amount of customer service and focus that the public has come to appreciate and expect since 1849. Two cousins Charles and Erhardt Pfizer in Brooklyn New York formed Pfizer Inc. in 1849 (Pfizer, 2005). The cousins believed that they could be a part of the transformation of medicines during the turn of the century while achieving some financial prosperity.

Pfizer has been and plans to continue to lead the pharmaceutical industry in areas of customer service and focus. Pfizer Inc. is known as the world's largest and most ethical pharmaceutical company. Pfizer has more than 120,000 employees worldwide (Pfizer, 2005). "Pfizer discovers, develops, manufactures, and markets leading prescription medicines for humans and animals and many of the world's best-known consumer brands" (Pfizer, 2005). Pfizer is one of the Pharmaceutical industries most innovative companies. Pfizer is committed to developing and marketing value added products that improve the quality of life for all people.

Pfizer would like to see the products that they produce help people live longer, healthier, and more productive lives. Pfizer's products are available in more than 150 countries. Pfizer's fundamental business practice is about discovering, and developing medicines and making them available to the world. "Pfizer earns more than 57 billion annually" (Pfizer, 2005).

Vision Statement

To achieve our Purpose and Mission, "we affirm our values of Integrity, Respect for People, Customer focus, Community, Innovation, Teamwork, Performance, Leadership, and Quality" (Pfizer, 2005). Pfizer's company vision is the driving force behind all of the billions of dollars dedicated to Research and development.

Our Mission

"We will become the world's most valued company to patients, customers, colleagues, investors, business partners, and the communities where we work and live" (Pfizer, 2005). This mission is inclusive of all Pfizer employees, from the legal, sales, marketing, accounting, logistical teams etc.

Our Purpose

"We dedicate ourselves to humanity's quest for longer, healthier, happier lives through innovation in pharmaceutical, consumer and animal health products" (Pfizer, 2005). Pfizer's cardiovascular products have proven effective in reducing cardiovascular disease and extending the life of those that have it. This is a very important global health concern based on the most recent data released in the Scientific Sessions at the AHA National meeting in November 2004 (AHA, 2004).

Environmental Analysis-Internal Environment

Proper evaluation of a company's financial statement is very helpful in understanding the company's internal environment. To further assist in understanding the financial statement of a company different types of ratio may be used. Ratios are helpful in the understanding of financial analysis because