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Pfizer

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Internal Factor Evaluation (IFE) Matrix

Key Internal Factors


Strengths
1. Partnership venture with Ensai that allow Pfizer to generate a 20% increase in revenues from 2007 for Aricept
2. Engages in the discovery, development, manufacture and marketing of prescription medicines for humans and an
3. Double-digit international sales of the Pharmaceuticals business.
4. Selling, General and Administrative Expenses declined from $15.59 billion in 2006 to $14.54 billion in 2008
5. Largest company in the industry and is a gloal provider of innovative healthcare solutions
6. Industry leader in terms of revenues, gross margins, operating margins and net income.
7. Operates and innovates with partners, allies, mergers and acquisitions
8. Good CSR efforts and activities that generated low-cost publicity, build consumer loyalty and keep inventory from
9. Restructuring of Pfizer

Weaknesses
1. Double-digit decline of sales in the United States for the Pharmaceuticals segment
2. R & D expenditures rose from $ 7.6 billion in 2006 to $ 7.9 billion in 2008
3. Lowest earnings per share and price-earnings ratio among its direct competitors.
4. Revenue decline from $48.42 billion in 2007 to $48.3 billion in 2008, decrease in net income from 2006-2008 by 2
5. Pfizer spent nearly $5.6 million lobbying the US government
6. Total liabilities increased from $43.48 billion in 2006 to $53.59 billion in 2008
7. Decrease in liquidity ratios (Current ratio decreased by 13.96%, quick ratio decreased by 12.70%)
8. Decrease in profitability ratios
Total

Weight

Rating

Weighted Score

0.04
0.06
0.09
0.05
0.1
0.06
0.04
0.04
0.03

3
4
4
3
4
3
4
4
3

0.12
0.24
0.36
0.15
0.4
0.18
0.16
0.16
0.09

0.09
0.05
0.05
0.09
0.06
0.05
0.05
0.05
1

1
2
2
1
1
2
2
2

0.09
0.1
0.1
0.09
0.06
0.1
0.1
0.1
2.6

3
2
4
1
3
5
5
6

4
4
2
3
4
4
4

External Factor Evaluation (EFE) Matrix


Key External Factors
Opportunities
1. Growing markets overseas
2. Focus on low-income individuals in emerging markets
3. Rising standards of living and increase in China's middle class
4. Baby boomer population gets older and increasing life expectancies
5. Recent scientific discoveries
6. Diversification of product portfolio through partnership with Wyeth
Threats
1. Pfizer faces high competition due to the presence of many players in the industry.
2. Law regulations in the United States and other regions around the world.
3. Acquisitions could bring in more debt and litigations
4. Troubled economy and increasing unemployment rate in the United States
5. Patent expirations (Aricept)
6. Unpredictable currency fluctuations
Total

atrix
Weight

Rating

Weighted Score

0.12
0.1
0.1
0.1
0.065
0.08

4
4
4
3
4
4

0.48
0.4
0.4
0.3
0.26
0.32

0.065
0.08
0.08
0.06
0.08
0.07

4
2
1
4
3
1

0.26
0.16
0.08
0.24
0.24
0.07

3.21

1
1.5
1.5
1.5
3
2

3
2
2
4
2
2.5

0.0833333333

Critical Success Factors


1. Product innovation (R&D)
2. Market Share
3. Organization size (economies of scale)
4. Product Quality
5. Financial position
6. Marketing & Advertising
7. HR and Management
8. Global Expansion
9. Product Portfolio
Total

Competitive Profile Matrix


Merck
Weight
Rating
Score
0
2
2
2

Matrix
Novartis
Rating
Score

Pfizer

Rating

Score

3
3

Financial Position

Total

Ratings

0
Industry Position

Total

0
Stability Position

Total

0
Competitive Position

Total

SP Average

CP Average

IP Average

FP Average

x-axis

y-axis

Key Factors
Opportunities

Threats

Strengths

Weaknesses

Total

STRATEGIC ALTERNATIVES
Weight

AS

TAS

AS

TAS

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