Electronic Health Records And Tele - 1978 Words

Introduction The use of electronic health records and tele-nurse has become very popular across the United States recently. These techniques allow offices to go paperless. Converting to electronic health records and tele-nursing has been proven to improve the overall success of physicians who are willing to convert to these methods. To make the best decisions, doctors must have the most accurate and up-to-date information for each client. Proper implementation of these methods will take time to work to perfection. Electronic health record and tele-nursing will guarantee that each patient receives the best services with a minimum of mistakes According to Furguson, â€Å"Telemedicine is the use of medical information exchange from one site to†¦show more content†¦As a result, doctors will have to be especially careful to ensure that only authorized personnel has access to viewing client’s records. The government has set laws that govern how and when a client’ s medical records can be viewed. First, any healthcare provider is mandated to notify the client if there has been a breach of information. In the United States, more than 500 hundred patients a year are victims of unauthorized viewing or breach in confidentiality (Shaul, 2000). Nevertheless, it is nearly impossible for a patient to correct an error in his/her medical records. When a patient has been the victim of medical identity theft, the patient and the culprit’s information becomes a new unidentified patient. Determining which information belongs to the original patient and the thief can become a long task. The thief might use the victim’s information to have major or specialty procedures completed. Such claims can be very expensive and cause the victim to max out on allotted treatments by his/her insurance company. Often, the victim does not realize that he/she is a victim until they go in for an actual procedure and their insurance claim is denied Ethical Issues Some ethical issues have been raised due to electronic health records. The major question that patients have is who is actually viewing their information and how will unauthorized

Pfizer Strageic Plan Free Essays

string(19) " we work and live\." OUTLINE FOR THE STRATEGIC PLAN Please bullet your responses. Staple the completed assignment; do not spend any money binding the assignment. Make sure to respond to every item. We will write a custom essay sample on Pfizer Strageic Plan or any similar topic only for you Order Now I. GETTING STARTED A. Steps in Strategic Management Process Step 1 |Identify the organization’s mission, vision, and value statement | |Step 2 |Determine the firms main business and organizational objectives | |Step 3 |Conduct a SWOT analysis identifying the company’s strengths, weaknesses, opportunities, and threats | |Step 4 |Construct a Competitive Profile Matrix (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 Analysis | |Step 8 |Prepare 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 | | |(implementation), and convey the ROI | |Step 10 |Construct Contingency Plan | B. Information and/or materials used to complete assignment †¢ Resources used in completing the assignment are as follows: Strategic Management Concepts and C ases’ 12th edition textbook, SP 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 have it completed to its entirety by the time it is due; therefore I will not have to rush to get it done last minute. D. Resources Needed – all resource your team used to complete this assignment †¢ FAMU database, online articles, company website. II. MANDATES (â€Å"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 improving the health and well being of individuals around the world. The demand for Pfizer’s 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 new Pfizer, which created the world’s fastest growing Pharmaceutical company. In 2008, Jeff Kindler, Chairman and CEO of Pfizer, announces the next step in the company’s evolution and outlines the company’s plan to establish smaller operating units designed to enhance innovation and accountability, while drawing upon the advantages of Pfizer’s 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 Development, supporting excellence in small molecules, large molecules and vaccine research and development. As apart of the acquisition of Wyeth in 2009, Pfizer initially implemented a two-division structure for research and development (BioTherapeutics and PharmaTherapeutics) to ensure the progress and steady integration of both legacy organizations. Due to the speed and effectiveness of that integration, Pfizer progresses to this new 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 Health’s Business, respectively. B. Identify formal aspects of the organization †¢ Corporate Governance Include: Board of Directors, Board Committees, Code of Ethics, CEO/CFO Certifications, Executive 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 focuses on large-molecule research, including vaccines. The goal with Pfizer doing this is to maximize opportunities within the Biomedical research sector. †¢ Pfizer has also developed an enhanced commercial operating structure. Pfizer has nine diverse health care businesses: Primary Care, Specialty Care, Oncology, Emerging 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 product’s life cycle. B. Identify informal aspects culture of the organization †¢ Pfizer is sustained on innovation, which seeks a nourishing environment in which ideas and perspectives can flourish. It is an array of unique characteristics, perspectives, and life experiences. Pfizer Colleague Resource Groups (CRGs) are organized by colleagues who join together to provide a positive forum for professional development. By embracing diversity of thought and experience, our CRGs help drive innovation and build on our success. †¢ David Simmons, the president and general manager 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 able to product high quality drugs at affordable costs, and he did this as high grossing patents were near expiration III. VISION STATEMENT, MISSION STATEMENT VALUES STATEMENT ANALYSES A. Vision Statement At Pfizer, we’re inspired by a single goal: your health. That’s why we’re dedicated to developing new, safe medicines to prevent and treat the world’s most serious diseases. And why we are making them available to the people who need them most. We believe that from progress comes hope and the promise of a healthier world. B. Vision Statement Analysis – Does it answer the question â€Å"What to do we want to become? † If not, revise it. If organization does not have 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 have a value statement. D. Value Statement Analysis – Does it represent the organization’s guiding principles? If not, revise it. If organization does not have one, create one. †¢ Pfizer will work to provide the best quality drugs that will 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 world’s most valued company to patients, customers, colleagues, investors, business partners, and the communities where we work and live. You read "Pfizer Strageic Plan" in category "Essay examples" 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 world’s 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 promote 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 world’s 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 profitability|We 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 world’s most serious| | |diseases. And why we are making them available to the people who need them most. | |7. Self- Concept |We will become the world’s most valued company to patients, customers, colleagues, investors, busines s | | |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 world’s 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 / Threats – Analyze trends in the following areas: political, legal, competitive, economic, social, cultural, demographic, technological, environmental, and governmental. Provide at least 1 opportunity 1 threat for each of the 10 areas. Provide responses in bullet format. Political | |Opportunity |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 |producer s to make rebates to state Medicaid agencies based on their costs to | | |provide prescription drugs to Medicaid beneficiaries. | | |Constant pressure 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, face a loss of up to billions of dollars due | |acquisitions of Excaliard and Ferrosan Consumer Health’s Business in December |to generics taking market 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 | | |Number of New Molecular Entities approved by the FDA has declined. In 2009, | | |NMEs approved were 26 and 2010 were 21. 2 | | |Beginning of 2011 was a series of new fees in the form of excise taxes payable | | |to the federal government. 12 | |Competitive | |Opportunity |Threat | |Barriers for additional companies to enter the market 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 expected to expand with current sales of 60 | | |billion, 11% of the world market share. | |Economic | |Opportunity |Threat | |Dema nds 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 years | | |Revenue may be hurt by ongoing negative effects from U. S. ealth care reform | | |and austerity pricing in Europe | | |Inflation will cause 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 — Pf izer has its sights on |Number of legislative proposals seeking to allow importation 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, Asia’s biggest drug maker, reported an 18 percent jump |Medicare will not be able to finance this many people2 | |in first-quarter profit, helped by the sale of new medicines in the beginning | | |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 Stakeho lders | |Ian C. Reed- President, CEO, Director |Johnson Johnson | |Frank A. D’Amelio- CFO, EVP of Business Ops. |JP Morgan Chase Co | |Mikael Dolsten- Pfizer Worldwide RD |Northern Trust | |Freda- Lewis Hall- EVP, Chief Medical Officer |Proctor Gamble | 2. Stakeholder Matrix – classify the internal external stakeholders identified above into the appropriate boxes. High Interest/Importance, High Influence |High Interest/Importance, Low Influence | |Ian Reed |Proctor Gamble | |Frank D’Amelio |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 |Stakeholder’s potential |Stakeholders’ perceived |Stakeholder Management | | |Stakeholder to the |expect the stakeholder to |impact on the organization |attitudes and/or risks to |Strategy (SMS) | | |organization |provide? (high, medium, or low) |the organization | | | | | | | |N/A | |Investors |Fund the organization |Provide funding and |High |High Risk; Conservative | | | | |liquidity to the | |Attitude | | | | |organization | | | | | |Strategic plans and |Provide expertise, | |High Risk; Positive |Bottom-Up | |Employees |operations. Supports the|knowledge and value |High |Attitude | | | |functionality and | | | | | | |operational processes | | | | | | |Make critical decisions |Provide conceptual |High |High risk; Conservative |Top-down | |Shareholders | |knowledge and top-down flow| |Attitude | | | | |of decision making | | | | | |Meet market demands |Provide products and | |Medium Risk; Positive |N/A | |Suppliers | |services |Medium |Attitude | | External Factor Evaluation |Opportunities | | | | | |Weight |Rating (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 healthcare 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 | |manufacture and sales adding to the capital 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 decline 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 still 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 Health’s Business. Pfizer saw that they were not meeting the needs of some of their customers but their competitors were. Excaliard is a privately owned biopharmaceutical company focused on developing novel drugs for the treatment of skin fibrosis, more commonly referred to as skin scarring. Ferrosan Consumer Health’s Business focuses on dietary supplements and lifestyle 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 recently 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 Pfizer 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 |Rating |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 Loyalty |. 03 |3 |. 09 |3 |. 09 |3 |. 09 | |Global 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 | |Financial 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 INTERNAL ENVIRONMENT A. Strengths/Weaknesses |Management | |Strength |Weakness | |In June 2011, Pfizer announced strategic partnerships with ICON plc and PAREXEL|Sometimes Pfizer may have to discontinue the production of drugs; therefore the| |International 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 plant restructuring and| | |energy master plan. | |Pfizer is divided into multiple sectors so that most leaders have a specific | | |rather than general role. | | |Pfize r 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 RD in Asia and other countries. | |Marketing | |Strength |Weakness | |Renewed emphasis in the faster growing fields 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, Turkey, Russia, and| | |India. | |For the ninth consecutive year, the Pfizer Pharmaceutical Sales Force was voted| | |as first overall in Verispan’s â€Å"Pharmaceutical Sales Force Structures. | | |Human Resources | |Strength |Weakness | |Global working network wit h 95,000 workers |According the glassdoor. om, the company morale is at an all time low | |Accounting/Financials | |Strength |Weakness | |7. 5% ranking corporation 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 — hasn’t | | |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 regu lations and the unsuccessful completion of clinical trials| |Pfizer has focused most of the RD on Biotech based treatments |reduce the potential recovery and returns of investments such as RD. | |Their research and development sector is highly established and in good | | |strength. | | |Renewed emphasis in the faster growing fields 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 Pfizer’s XALKORI ® (crizotinib) As | | |First And Only 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 |Currently only serving American, European and Asian markets. They are not | |Pfizer has been public in its efforts to address climate change. Our Energy and|serving African or Australian markets. | |Climate Change Program seeks to minimize the cost and operational restrictions | | |arising from a carbon-constrained environment, reduce Pfizer’s contribution to | | |GHG emissions, and assess the risk presented to Pfizer’s operations from the | | |potential physical changes resulting from a warming global climate. | |Pfizer has committed to en sure 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, developing and providing appropriate informed consent, adequate | | |recording and reporting of data, periodic monitoring and audits. | | B. Value Chain Analysis – Graphically depict the organization’s value chain |Infrastructure: | |-Pfizer’s Executive Leadership Team is the company’s 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. Certain policies | |include: Business conduct, Lobbying and Political contributions, Sales and Marketing, Research and clinical trials, workplace standards, and laboratory animal care. 10 | |Human Resource Management: | |Pfizer has agreements with different universities and recruit 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 inclusive 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 worldwide|Television, print ad and online|quality drug to their customers. | |engage with suppliers to reinforce |Specialty Care, Oncology, |in basic problem solving, which|ads. Pfizer has created programs such as | |Pfizer’s 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 fraction| |collaboration leads |Nutrition, Animal Health and |projects across the world in |top in the nation. They receive|of the cost. | |to improvement projects with |Capsugel†. 8 |the last five |extensive training so they are |- | |significant performance benefits, | |years. Significant improvements|knowledgeable of the drugs. | |such as reduced | |to Pfizer’s |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 i n 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 |SP 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 Management 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. Are organization objectives and goals measurable and well |Yes, some of Pfizer’s 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 Development Group. Each sector has | | |its own managers; therefore it becomes easier to be able to plan effectively. | |4. Is the organization’s 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 | | |industry’s 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 organization’s market share been increasing? 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 RD 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 counterfeiting 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 Verispan’s â€Å"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 organization’s products and services priced |No, the federal government has been trying to get Pfizer to decrease 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 publicity strategy? |strength in major geographical and therapeutic areas. | |9. Is marketing planning and budgeting effective? |Yes, one of Pfizer’s plans is to cut the budget of R by 12 million dollars by the end of| | |2012. | |10. Do the organization’s 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 short-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 company’s 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 company’s working capital increased since 2009. In 2010, the working capital was | | |$18,991 million. | |5. Are capital budgeting procedures effective? |Yes, the company has deci ded 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 investors |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 organization’s 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 world’s 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 organization’s 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, insightful | | |information management solution that would help the company manage and derive value from | | |the wealth of project and agreement information. 14 | |5. Is communication between 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 | | How to cite Pfizer Strageic Plan, Essay examples

Economics Solutions Product Differentiation

Question: Discuss about the Economics Solutions for Product Differentiation. Answer: Introduction: Product differentiation is the general marketing of products by creating minor variations from other products which are used by customers while making a choice. In economics or marketing, product differentiation is utilized in distinguishing a specific product from another which may be functionally same, but the differentiation helps in attracting customers which helps the firm gain economic profits. As a product becomes more attractive to the customers, if product differentiation is done effectively it can generate competitive advantage for the product because it becomes finer or unique in the eyes of the customers (Varian, 2010). Types and sources of product differentiation: Product differentiation can be of various types starting from just making changes in the styling or packaging of the product, to making changes in prices because of lower costs or changes in functional features of the product. The basic objective of such differentiation is to change the perspective of the customer towards a particular product compared to another product. There are generally three types of product differentiation namely: Simple, Horizontal and Vertical. Simple product differentiation is based on different characteristics. Horizontal and Vertical are opposites in nature where horizontal product differentiation is based on one single feature but the consumer cannot differentiate the product with higher quality whereas in case of vertical, it is also differentiation on the basis son one feature but the consumer can differentiate. Product differentiation arises from various sources. The main sources are: When the non-functional features of a product are highlighted in contrast to another product even though there functional features are same then that kind of a differentiation is called non-functional in nature. This can be done by bringing styling changes of the product, or its color, or with very unique advertising. Sometimes lower cost in the production of one product with the same functions of another helps the producer in offering a lower selling price which acts as a lower cost or pricing differentiation Differences based on location or time which creates a differentiation in availability of he product (Boundless Economics) When buyers overlook essential features or quality of the product it also creates a sort of differentiation Analysis Of Product Differentiation: Product differentiation also helps in creating brand loyalty towards a particular brand which is preferred particularly by customers because of its unique design or outlook. If a firm is successful in making the consumer highly desire the product then the demand for the product rises which helps the consumer sell at a higher price and hence brings in economic profits for the consumer. A good example for product differentiation can be the market for mobile phones like the differentiation strategies adopted by Apple to differentiate its very famous i-phone from other phones. Apple uses various product differentiation strategies to differentiate i-phone from other mobile phones. Such strategies involve both functional as well as non-functional and is very much evident that they have been successful in changing the perspective of consumers towards i-phone making it more attractive and highly demanded which in turn allows Apple to charge higher prices. Apple uses all kinds of non-pricing strategies through advertising, marketing, unique design, functional features being unique, etc. Apple being an imperfective competitive firm has been successful in creating competitive advantage (Hanks, 2016). It is very much common to ask that such imperfective firms can easily charge a lower price and take over the market but it wouldnt do something like that because it involves the decrease in profits due to lower revenues. How product differentiation help is through affecting the demand curve of the market. A firm gains some sort of pricing power in the market. With differentiation the firm makes the product more preferred by the customers and hence with price changes customers become less likely to divert away from the product thus making the demand curve more inelastic in nature. With inelastic demand curve the price rises at the same quantity making the firm earn more profits. As we see in the figure below for a firm in an imperfective competition the profit maximizing output is attained at price=marginal cost or P=MC. Hence, in part (a) of the figure we see that the demand curve is elastic. Profit maximizing output is Q as there P=MC and ATC which is the average total cost is below the average revenue curve which brings the firm economic profits (Pindyck et al, 2009). Now in the part (b) of the figure we see that the demand curve becomes steeper implying it becomes inelastic which raises the price further bringing the firm more profits at the same quantity of Q. The red shaded region the diagrams show the profit earned by the firm. Conclusion: Hence we see how product differentiation helps big firms attract more customers and gain profits in future. By making minuscule functional or non-functional features in styling, packaging or design of products, producer can make customers desire the product more, increasing the demand for product, making the demand curve inelastic and increasing the price which further increases the profits. Differentials In Wages Across Industries/Ocupations And Within Industries/Occupations Introduction: Wages are monetary compensations or the remuneration that the employer pays the employee on getting a job done. It can be some sort of gross or annual pay or including bonuses, commissions but excluding shift differentials or profit payments. Wages across individuals or occupations differ a lot. These wage differentials can be within the same industry whereas also can exist across the industries. It is comparatively easy for us to apply our common sense to realize that different occupations do have different wages as all individuals do not possess the same set of skills and credentials and labor demand and supply acts as a crucial component in fixing different wages of different occupations (Piana, 2001). But if we consider difference in wages of individuals within the same industry then economics concepts do not completely justify the phenomenon. This happens because when such wage differentials are considered then one has to distinguish two workers based on various other criteria which do not relate to economic concepts completely. Wages between two workers in the same occupation can be due to a number of reasons staring from the skill sets of each worker, their innate abilities, working conditions, geographical regions as well as human capital acquisition (Sowell, 2010). Types Of Wage Differentials: The top 5 cause of wage differentials are: Occupational differences: In this case occupations in an organization are very much different from each other based on skill requirements, period of employment requirements and extent of responsibility. Differences within occupations boost and challenge people to work harder to attain greater higher paying occupations by developing through high level education or training. For example the salary of a manager is higher than that of the junior officers or assistants because the manager has attained higher degree of education experience. Jobs with high skilled labor have more inelastic demand and supply curves compared to jobs with lower skilled labor (Sikder, 2006). This happens because high skilled laborers helps in bringing more profit for the organization and have high qualifications whereas low skilled workers do not have high qualification are many in number and with low marginal revenue product as they may not bring higher profits for the firm (Spaulding, 2016). As we see below t he demand and supply curves of higher skilled and low skilled workers with the former receiving higher wages than the latter. Inter-firm differentials: In the same area or occupation there can be wage differences in between different plants, etc. These differences are based on the quality of labor, labor market imperfections and equipment efficiency differences along with technological advancement, financial capability, size and age of firm, managerial efficiency, raw material availability, etc. Regional differences: Wages also differ between workers of the same occupation but different geographical areas. This happens because differences in working conditions, that are prevalent based on the different regions. Inter-industry differences: Workers of same occupation, same region but of different industries also face wage differentials. These wage differences occur because of the differences in skill requirements, nature of the product market, level of unionization, etc. Personal wage differences: Workers of same occupation can have difference in wages because of the difference in the personal characteristics of the workers. As reported by Elka Torpey in a report that in May 2014 the top earning 10% of athletes and sports competitors earned more than $187200 cutoff whereas the lowest earning 10% of athletes were seen to have annual wages even less than $20190 which is even sufficiently less than the median wage of $35540 for all in the occupations (Torpey, 2015). These differences are based on the innate abilities or skill sets of the workers which the worker may naturally possess or had gained expertise in being more efficient than the other workers. Compensating wage differentials: When jobs in the same industry differ as one asks for more risk taking or working for longer hours which pays the worker more than the one which does not have such requirements. This is in form of compensation to the worker. We know demand supply mechanisms in the labor market may give rise to occupational wage differentials as for certain occupation the demand may be much higher leading to higher prices whereas for some it may be lower leading to higher wages. The demand for labor is a derived demand in the sense that its demand is derived from the demand of the good or service the worker has expert skills in (Mankiw, 2007). Causes Giving Rise To Wage Differentials: We saw the types of wage differentials above and we see that there are many reasons which give rise to wage differentials and these maybe beyond the scope of economics. These reasons are: Qualifications or credentials: Individuals with higher educational degrees earn more than the ones not possessing such credentials. Experience: A workers experience is a crucial determinant of his wage. No wonder a senior analyst with much more experience is paid much higher than a junior analyst with not that much of experience (Lipsey at al, 2011) Specific job responsibilities: Jobs with more complex tasks are paid higher than the ones which are comparatively simpler. These tasks imposes greater responsibility on the worker and simultaneously demand expert skills from the worker hence paying him more Trade unionization: As trade unions collectively possess a bargaining power they can negotiate with employers to earn higher wages. (Economics Online) Success and Performance: A person who is more efficient, had been performing well with a good track record and had been successful to get a job in a particular industry which has very small supply of such high skilled workers can easily earn much higher than others. Revenue creation: Workers more productive and the ones who can earn higher revenues for the firm are paid higher by the organization Discrimination: Employer discrimination also can be included in this list as discrimations between genders by organizations and industries had been an influencing factor to create wage differentials between men and women of the same occupation (Riley, 2016) Human capital acquisition: employers also reward workers who devote in acquisitation of higher educational degrees or trainings which may be part time or full time (Samuelson et al, 2010). Conclusion: Hence we saw, that how various factors create the different types of wage differentials. If we focus on the rationale behind wage differentials we find that there are two views. Firstly, we consider the socialistic patterns of the society and government here plays the role of minimizing inequalities in incomes as well as wealth distribution so that the society as a whole develops boosting the economic growth through the channels of higher quality human capital and getting more jobs done with increase in aggregate demand and income. Secondly, wage differentials get their justification through the wide demand supply mismatches in the labor market. The differences here are based on skill requirements, ability, knowledge, aptitude, experience and also the derived demand of the particular labor. Another justification given in support of wage differentials is the full natural resources exploitation (Chand, 2016). References: Lipsey, R Chrystal, A 2011, Economics, Oxford, New Delhi Sowell, T 2010, Basic economics, Basic books, USA Mankiw, G 2003, Macroeconomics, Worth publishers, New York Sikdar, S 2006, Principles of macroeconomics, Oxford, New Delhi Pindyck, R, Rubinfeld, D Mehta, P 2009, Microeconomics, Pearson, South Asia Boundless Economics, 2016, Product differentiation, viewed 31 August 2016, https://www.boundless.com/economics/textbooks/boundless-economics-textbook/monopolistic-competition-12/monopolistic-competition-75/product-differentiation-281-12378/ Riley, G, 2016, Labor market-wage differentials, viewed 31 August 2016, https://www.tutor2u.net/economics/reference/labour-market-wage-differentials Spaulding, W, 2016, Wage differentials, viewed 31 August 2016, https://thismatter.com/economics/wage-differentials.htm Economics Online, 2016, Labor Market, viewed 31 August 2016, https://www.economicsonline.co.uk/Competitive_markets/The_labour_market.html Piana, V, 2001, Wages, viewed 31 August 2016, https://www.economicswebinstitute.org/glossary/wages.htm Torpey, E, 2015, Same occupation Different pay: How wages vary, viewed 31 August, 2016, https://www.bls.gov/careeroutlook/2015/article/wage-differences.htm Samuelson, P Nordhaus, W 2010, Economics, Tata McGraw Hill, New Delhi Mankiw, G 2007, Economics: principles and applications, Cengage learning, New Delhi Hanks, G, 2016, Apple Pricing strategy, viewed 1 August 2016, https://www.ehow.com/way_5815745_apple-differentiation-strategy.html Chand, S, 2016, Top 5 causes of wage differentials, viewed 1 August 2016, https://www.yourarticlelibrary.com/hrm/jobs/top-5-causes-of-wage-differentials-explained/35339/ Varian, H 2010, Intermediate microeconomics, Affiliated East-West Press, New Delhi